Retail vs. Unit Prices

Sometimes products use psychological tricks to confuse you. They may change the size of packaging, inflate bags with air, and use odd-numbered sizes (e.g., 13.7 oz vs. 16 oz) so you can’t do the math in your head. The “unit price” information you can find on the retail shelf tags helps you cut through the noise, showing you the cost per single unit of measure (e.g., ounce, pound, liter, or count) for a product.

• Retail Price: This is what you pay at the register.
• Unit Price: This is usually located in the bottom-left or bottom-right corner of the retail shelf. The math used is straightforward:

Total Price ÷ Total Unit Measure = Unit Price

Let’s say you are buying peanut butter:

• Jar A: $4.00 for 10 oz ($0.40/oz)
• Jar B: $6.00 for 20 oz ($0.30/oz)

Jar B costs more upfront ($6 vs. $4) but it is a much better value. If you buy Jar A, you are voluntarily paying 33% more for peanut butter.

Brands sometimes shrink their product while keeping the price the same. For example, a 10 oz bag of chips that sold for $4 last year may still cost $4 today, but the package might now contain only 9 oz.

Always check the price per unit when shopping.