Buying in Bulk is Not Always a Money Saver. Buying by Unit Price Is!

Buying bulk is not always the less expensive way to save some money. Most would agree buying a larger package or quantity is a savings rather than buying a smaller package. There is one simple shelf label that helps assist in making better comparisons for price for the buck. This label is referred to as the "unit price label" also known as the "price per unit label." It indicates how much the product is per weight or volume. Whether it is by gallons, ounces, quarts, pounds etc., it is all in the same. The unit price advices how much you are paying per unit of ounces, quarts, etc. If the price per unit is less in product comparison this is the best deal. It will vary depending on package size and brand. It may as well be the larger package or the best brand with smaller package.

If you are looking to save some money, take your time to check out the unit price labels. They are easy to understand and will indicate the price per unit statement and also the product price as a whole. The lower the price is for the price per unit is the cheapest. It is important that you do understand that this price is not for the total product. It is for volume comparison pricing so that you can make smarter shopping choices. As you look at the image that was applied with this article(at the top of this article), you will see the two different prices, the unit price as well as the total product price. A lower product price does not always mean that the product is a better deal. Likewise, making the assumption of more or the bigger product as a bargain.

With the price per unit shelf labels the decision is quite simple. Most stores do use these effective shelf labels. In the event that you are shopping and the store does not use these types of labels, learn to calculate them. If you are serious about saving some money, it shouldn't't be too much of an inconvenience. There is a simple method of mathematics used for such a comparison. If you are not math savvy, I encourage you to shop with a calculator, pencil and small tablet, to make the comparison process easier for you.

Next are two examples. The first example is a comparison of the same brand of cereal in different size options. The last example is a comparison of two different brands of chips that are different size options.

Follow along with this first example. I am trying to decide which size of a particular cereal to buy one is $3.99 for 16 ounces and the other is $5.99 for 30 ounces. To compare these I would simply divide each of the products price by the amount of ounces of each product. The first box of cereal would be a price per unit amount of 25 cents. The second choice would be a price per unit amount of 20 cents. The second and larger box is the bargain choice in the case. This is a case of bigger being better for the savings of 5 cents.

Now I am deciding which tortilla chips to buy. I have a choice out of 28 ounces for $2.49, 32 ounces for $3.69 and 46 ounces for $6.59. Choice one is 9 cents price per unit. The second choice is 12 cents price per unit. The last and biggest bag option is 14 cents per unit price. The 28 ounce bag for $2.49 is the best deal while the biggest bag was the worse option.

Using the unit price labels or having to calculate on your own will add up to much savings for you. Just remember bulk is not always the better bargain.