Unit pricing shows an item’s cost per unit of measure – for example per 100g – so you can tell whether a big box of cereal is better value than a small one (it often isn’t), or whether one brand is cheaper than another.
Both supermarket chains (Progressive and Foodstuffs) have voluntarily agreed to unit pricing. However, the way they do it makes it enormously difficult to compare prices. This from one of our loyal members:
“I think the supermarkets are doing us a favour. By forcing us to do mental (and physical) gymnastics to work out the unit prices, they are protecting us from Alzheimer’s disease.
“My weekly shop probably takes half an hour longer than it needs to as I diligently peer at the labels, turn over the ‘specials’ tags to see what they are obscuring, and attempt long division on the back of my shopping list. That’s half an hour a week I will never get back.”
Ain’t that the truth.
The biggest problem we found, like our member, was that unit prices are often shown in small type – much smaller than the retail price. And for some products, a measure isn’t given at all. And they can be confusing. Unit prices are usually shown per 100g or 100ml. But we found prices for cheeses shown per kilogram.
A recent Queensland University of Technology study found shoppers armed with unit pricing information saved on average 11% of their grocery bill. Unit pricing is mandatory in Australia. But how retailers display unit prices has a significant impact on whether consumers use the information to compare products and make savings.
A US Journal of Retailing report found retailers can influence consumers’ awareness of unit pricing by manipulating price prominence.
The wide variation in pack sizes is also a trick of the trade. In a survey we did of 75 mueslis, product weights ranged from 350g to 1kg. Even within brands where products were packed in the same-sized box, weights and prices varied widely.
If you’re having problems reading unit prices, complain to the staff and let us know.
We’d really like to see supermarkets make it much easier for consumers to make comparisons – and most importantly, to enjoy some extra savings.
Sue Chetwin
CEO CONSUMER NZ
