How packaging designed to “save you time” really just costs you money
This is the third in a continuing series on ‘the basics.’ Here we look at the real cost of convenience and how much more you’re paying when you buy smaller packages.
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
In this installment, I’ll show some examples of the various packaging choices you have, and how they add up to big money. I promise after this I won’t mention groceries or unit pricing for a long time.
THE CHALLENGE: PAY AS LITTLE AS POSSIBLE FOR THE SAME PRODUCT
It may not be as prevalent outside the US, but here we have a staggering amount of choice at the grocery store. So today I walked through Giant (my local grocery store) and got so overwhelmed with examples I thought they’d kick me out for being a weirdo taking pictures of all the food.
As we’ve discussed, ‘buying in bulk’ doesn’t have to mean getting a Costco membership and bringing home a pallet of food. Simply switching from the “normal” size to “family size” can save you a lot of cash. It gets even more egregious when you look at single-serve and individually-packaged items. They’re more convenient, sure, but what’s it really costing you?
THE CONTENDERS
Contender #1: Sunkist Orange Soda
We’ve got 5 options to choose from if we limit ourselves to just single-serves (in our house a 2-liter would go flat long before it was consumed):
| item | total oz | price | unit price |
| mini cans (10x 7.5oz) | 75oz | $4.99 | $2.12/qt |
| 12oz bottles (8x 12oz) | 96oz | $5.39 | $1.79/qt |
| normal cans (6x 12oz) | 72oz | $3.69 | $2.62/qt |
| normal cans (12x 12oz) | 144oz | $6.89 | $1.53/qt |
| 20oz bottles (6x 20oz) | 120oz | $4.99 | $1.33/qt |
| *cheating: a 2L at Walmart | 67.6oz | $1.38 | $0.65/qt |
It should come as no surprise that the 20oz bottles are the cheapest. What surprised me is that the 6-pack of cans (what could be considered ‘standard’) are the most expensive! 6 12oz cans actually cost you about 46% more than 6 12oz bottles! Compared to the 20oz bottles, you’re paying about 97% more for cans!
Salt in the Wound: Cost of Convenience v2.0
Now recall…we don’t buy 2-liters because we wouldn’t finish them before they go flat. It almost wouldn’t be fair for the sake of this comparison, but let’s say you *do* go through enough soda to drink a 2L. What’s the difference then? The same store here sells a 2L for $2.29 (and that’s by no means the cheapest around). At $1.09/qt you’d be paying 140% more for the cans!
Now when we’re talking about the cost of convenience, you can’t ignore those little coolers up near checkout. Say you want the same exact 20oz bottle they’re selling 20ft away, but you want it cold. I looked as I was checking out…the cold bottles at the register are $1.99/ea, or $3.18/qt. Again, that’s a 140% premium over the same bottle, you’re paying for cold air.
What that means is if you want to buy some Sunkist, and you can wait as long as it takes to cool down…you have a choice. The cheapest Sunkist on the shelf is $1.09/qt, the most expensive is $3.18/qt. That’s a difference of 192% for the *exact same product!*
The *cheating row at the bottom up there isn’t included in our calculations because it’s a 2L sold at a different store, but just for fun note that it’s a 390% difference between a cold 20oz at the Giant checkout and a warm 2L at Walmart.
Contender #2: Cinnamon Toast Crunch
I’m getting hungry talking about all this junk food, so we won’t go through all the details this time. We have 4 sizes of delicious CTC to choose from:
| item | price | unit price |
| “giant size” (27oz) | $5.99 | $3.55/lb |
| family size (19.3oz) | $4.89 | $4.05/lb |
| “normal” (12oz) | $3.79 | $5.05/lb |
| single serve cup (x4 cups) | $5.00 | $11.11/lb |
That’s right, while there’s no question the single-serve cups are more convenient than the big box…are they really worth a 213% premium? For that money you could walk to the next aisle and buy some Rubbermaid TakeAlongs and make your own pre-packed cereals for less money.
(I stopped by a drugstore on the way home and they were selling that family size CTC for $6.79…that’s $5.64/lb for anyone keeping track)
The Takeaway
Without a doubt, we’re all very busy. We can pay a little more for convenience, right? Besides…we’ve earned it! Sure, that’s what we tell ourselves. The more of that we do, though, the longer we’re going to stay “very busy.” That’s because spending less now (and saving what we didn’t spend) is the most reliable way to achieve FIRE, and that’s the whole reason we’re here!
When is the convenience worth the financial cost?