How to Find the Unit Price to Save Money

save money at the grocery store

Manufacturing companies know that everyone is looking for ways to save money. They will often label their larger packages as "value" or "jumbo" packs. This means that it is the better deal, right? Not always. This article will help you see through the marketing strategies and figure out what the best deal actually is.

Things You'll Need

• Calculator

Instructions

1. In order to see which product really gives you the best value, you need to compare what is called the unit price. The unit price is the cost per unit. The unit is one oz, fl oz, lb, etc.

2. 

   Lets say you are comparing a regular size can of tomato soup to a "family sized" can of the same product. The regular size can is 10 oz for $1.50 while the 15 oz can is $3.00.

3. 

   Beware! Marketing strategies try to confuse you. Let's do some simple math do determine the best UNIT PRICE.

4. To find the unit price for each can, take the price and divide it by the number of units there are. So for our regular size can of soup we would solve: 1.50/10=0.15 That means each ounce costs 15 cents. Compare that to the family sized can: 3.00/15= 0.20 That means each ounce costs 20 cents.

5. Compare your unit prices. In this example, the better value is the regular size can. Do not be fooled by advertising!

Tips & Warnings

• This method for unit pricing not only works at the grocery store, but for any purchase you make!

Resources

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