That’s right friends, it’s back! Simple Savings Sunday is back on board here at Debt Roundup. Now, I started this series last year and it did well. Over time, things changed and I ran out of time to get it done. Now, I’m bringing it back, but with a different strategy. I won’t be sharing tips every Sunday, but only when I have something good. Only when the savings nuggets come across my mind. Case in point, this Simple Savings Sunday tip is about a real easy calculation, which everyone should be doing. Since it’s Super Bowl Sunday, this is perfect for your game day treats. You better jump on this calculation today as it can save you money!
Unit Pricing Calculation
I’m sure you have heard of this calculation before or even noticed it on grocery store tags. This is a calculation which breaks down the cost of a product by its unit of measure. By using this (I do very often), you can make sure you are getting the best bang for your buck. For the most part, unit pricing is displayed in grocery stores on their price tags. Now, they can be in many different places on that tag, so you may have to look at it. You can see a sample of a grocery store tag with the unit price circled. What this tag is showing you is the unit price is $0.263 per ounce. The unit size is 15 ounces. You do some quick multiplication and you get the price of $3.945 and then round up to the nearest hundredth. If there is no tag, then you can do this simple calculation.
Product Price / # of units in the product (oz, lbs, kg, mg, etc…) = Price per unit
You run this calculation for the two products you are looking at buying and see which one is truly the better deal. Remember, this method shows you what’s actually less per unit of measure, not what’s less on the price tag. If you need to do the actual conversions of units, then I would suggest a simple app. You can download Unit Converter to your Android phone or Vert for iOS. Other than those, you can just use your phones calculator. Simple and easy!
A Simple Way to Use Unit Pricing
You use this to compare two products together and see which one is a better deal. For instance, I just bought some bubble bath for my son. While the prices were different for the two products, so were the sizes. There were no unit pricing on the labels. One was 36 ounces and the other 24. Naturally, the 24 ounce was cheaper, but it also came at a higher unit price. It was $0.14 per ounce and the bigger one was $0.10 per ounce. So, instead of jumping on the lowest price, I went with the better deal. Simple calculation can either be done in your head or on your smartphone.
Now, I have seen a few flaws in this unit pricing gig. One issue is when the retailer has not done the calculation correctly. Yes, I have seen this a number of times. It’s really easy math, so double check it before running with it. Many times they don’t update these when sales are going on. It would be too expensive to add these to simple sales tags, so the unit price would change. The second issue is when the units of measure don’t match up. The weird thing is I have seen this issue more on the tags than on the products themselves. I have seen tags show me a unit price based on grams and the other one does it based on ounces. Well, you can either convert it with a smartphone or you can look at the product first. This often confuses some and I understand why.
In this example, the two products were spaghetti sauces. They were both measured in ounces on the bottle with grams next to it. The price tags were confusing and didn’t show a true picture of the price per unit. I ran the numbers quickly with my calculator and got the unit price. It was really easy to do. I’m not saying everything is like this. There are some times when you will have to convert units of measure to make them line up. This is the only way unit pricing is effective in saving money.
I prefer to just do the calculation myself as many price tags don’t have them. As I noted, this calculation is shown mostly in grocery stores, but they are not in all of them. Saving money with this method comes down to good old math. My how I love it. It’s amazing what simple mathematics can provide you, yet I have met many who can’t do basic addition or subtraction without pulling out their phone’s calculator. Either way, take some time this week and see if you can calculate unit pricing and start saving real money when you compare products. It’s not always about the lowest price, but more about the best deal!It's not always about the lowest price, but more about the best deal! Click To Tweet
PS. I’m sure some of you are wondering why I would even write about unit pricing. It has been around on price tags for a long time and it should be common sense. Well, there are some who are just learning to save money and also it’s a nice reminder to always check our savings methods with math.
This Weeks Articles
I wanted to highlight the articles on Debt Roundup this week. If you have time, check them out!
- Sorry Angie’s List, This is NOT How I Make Purchases
- Motif Investing Review – Get Free ETFs & Up To $150 Cash Back
- When Debt Consolidation is the Only Option
- Simple Tips to Help Your Home Sell Fast
- Use these 4 Investment Strategies to Grow Your Wealth
This Weeks Questions
If you forgot, I added a nice question and answer section to Debt Roundup. It’s been slowly rolled out, but people are starting to use it. Here are this week’s questions. If you have an answer, please help them out.
- What are viable options to the 529?
- How can I increase my credit score quickly?
- How much of my income should I save for retirement?
- How can I make money on Craigslist?
Do You Know Your Credit Score?
Even if you don’t plan on getting a loan, a good credit score can affect your ability to get a job, a place to live, and will save you money whenever you need to borrow. If you don’t know your credit score, you can get yours free at Credit Sesame. It’s 100% free with no credit card required to signup. I’ve been using it for years to monitor my credit score.