Business Pricing

Unit price calculator

Price of A
Size of A
Grams, ml, sheets, any unit, as long as both match
Price of B
Size of B
Better value B
A: 3.00 ÷ 500 · B: 5.00 ÷ 1000
A per unit 0.006
B per unit 0.005
A per 100 units 0.6
Difference per unit 0.001
Cheaper by 16.67 %
Same unit on both sides, or it is not a comparison

Retailers rely on the assumption that it is. Roughly a quarter of the time the larger pack costs more per unit, especially when a smaller size is on promotion. Unit pricing on shelf labels exists precisely to expose that, and it is legally required in most of Europe, but only in the units the retailer chooses, which is why a comparison between a 500 g box priced per kilo and a 6-pack priced per item is still work you have to do yourself.

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Unit price is the pack price divided by the quantity it contains. A 3.00 pack of 500 g is 0.006 per gram; a 5.00 pack of 1,000 g is 0.005. The larger pack is 16.7% cheaper per gram — but that is not always the way it falls.

How to compare unit prices

1 Enter the price and size of the first option.
2 Enter the second, using the same unit of measure for both.
3 Read which is cheaper and by how much.
4 Factor in whether you will actually use the larger pack before it spoils.

Unit price is necessary but not sufficient. A bigger pack that is cheaper per gram is only a saving if it gets used. Food that spoils at 30% remaining was not cheaper at all, it was 30% more expensive than the small pack. The same logic applies to bulk buying anything with a shelf life or a storage cost. The other trap is unit mismatch: comparing a price per kilo against a price per item is not a comparison, and supermarket shelf labels do it constantly.

Questions

Divide the pack price by the quantity. Use the same unit for both options or the comparison is meaningless.

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