financial freedom, as easy as taking pasta from a jar

Save on Groceries with Unit Pricing (no coupons required)

unit price tag showing the cost of hebrew national hot dogs

The simplest way to save on groceries is to shop by unit price

This is the first in a continuing series on ‘the basics’. Here we introduce unit pricing to save on groceries with no fuss.

Part 1: How to Use Unit Pricing to Save a Ton on Groceries (no coupons required)
Part 2: How to Save $3,000/yr on Groceries – Unit Pricing at Scale
Part 3: How Packaging Designed for Convenience Really Adds Up

Bottom Line Up Front

You can immediately start trimming your grocery bill by a significant amount, without denying yourself anything on your list, by making one simple change to your shopping.

Unit pricing. Those little numbers on the price tag that no one ever bothered explaining (to me at least) are one of the easiest ways to slash your bill.

a price tag in a grocery store, displaying the item's price and unit price per ounce
Ignore the big bold price to save on groceries. What you really care about is the unit price (circled)

Generally speaking, any item you’re looking at in a US grocery store will be available in a variety of sizes. From individually packed single-serves to gigantic “family value pack” sizes. It may seem like the price per item would be the same, after all…2 cookies are 2 cookies whether they come in a 20-pack or a 100-pack. You might even think buying the biggest size available is going to get you the best price (and it sometimes/often will!).

The Numbers, via Imaginary Cookies

You might be surprised to learn that the cost “per cookie” can vary dramatically depending on the package you choose.

Let’s say you want cookies (as I always do), and you have 4 different options:

“Lunchbox Singles” – a box of 20 cookies, wrapped in little packs of 2
“Normal” – a box of 35 cookies
“Family Size” – a box of 50 cookies
“Value Pack!” – 2 boxes of 30 cookies each (and it’s conspicuously larger than the other options)

 # of CookiesPriceUnit Price
(‘per cookie’)
“Rank”
Lunchbox20$2.99$0.14953
Normal35$3.99$0.1142
Family Size50$5.49$0.10981
Value Pack60$6.99$0.11654

While it’s usually a safe bet that anything packaged for ‘convenience’ (think individually-wrapped anything; single-serve bottled soda vs 2-liter) is going to cost more, there’s almost always a deal to be had by ignoring the packaging and the cost altogether and just buying based on unit price. You want the cookies, you’re getting the cookies, and you don’t care what kind of package you’re taking them out of…ignore everything else and pick the lowest unit price!

Save on Groceries in the Real World

So that’s a great theoretical example, but it’s way too convenient that these arbitrary numbers I place on imaginary cookies just happen to support my position. So let’s look at a real world example!

Say you want strawberry jam. You get to the aisle and see there are no fewer than 8 different strawberry jam-looking bottles from just ONE brand. Which do you buy? Let’s say you’re very particular and you will *only* eat Smucker’s Strawberry Preserves.

two jars of jelly side-by-side.  The smaller one is $2.59, the bigger one is $3.99

Here we’ve got the sizes and unit prices blocked out, but if you’re walking up you’ll see the $3.99 jar is significantly bigger (though it’s kind of hard to tell in the photos). I’m honestly surprised they don’t have a big “50% MORE!” label on it. Without another thought, you may assume the bigger jar is the better deal. But take a closer look:

two jars of jelly side-by-side.  The small one is $2.59 for 12oz (21 cents/ounce), the big one is $3.99 for 18oz (22 cents/ounce)

That jar that’s 50% bigger is slightly more expensive per ounce.

It just so happens that at the time I looked, these prices were even more radically different because the little jar was on sale while the big one was still full price:

side-by-side picture of two jars of jelly, with prices.  The bigger jar costs 30% more per ounce vs the smaller jar on sale for 17 cents/ounce.  Save on groceries by ignoring price and package size and buying the lowest price per ounce

The Takeaway

That means just blindly following unit price and buying the little jar is going to save you 30% “pound for pound” – on the exact same product!

They play so many games with package sizing, having one variant on sale, buy 2 get 1 free, etc., that it can make your head spin (and you can bet that’s intentional!).

In the next installment, we’ll see how this idea scales to save on groceries (plural) instead of conveniently-priced example jar of jelly. What if we compared unit prices on every item in our cart and just bought the cheapest version of each? No store brand, no coupons, no math (except comparing two unit prices).

If you’re here to berate me for explaining something so basic…instead tell me how and where you learned this!

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