As we stroll through the aisles of our favorite grocery stores, our minds are often on the delicious meals we'll prepare, the nutrients we'll consume, and perhaps the joy of finding our favorite snacks on sale.

But for many of us, especially those of us who have seen the ebb and flow of the economy over the years, there's another pressing concern that weighs on our minds: the cost of our grocery bill.

In an era where every penny counts, savvy shopping isn't just a skill—it's a necessity. That's why we're excited to share a simple yet powerful trick that can help you slash your grocery bill!



The average American spends around 45 minutes grocery shopping per trip, and with rising food prices, it's crucial to make every minute and dollar count.

One of the most effective ways to ensure you're getting the best deal is by paying attention to the cost per unit displayed on shelf tags.

What exactly is cost per unit? It's a breakdown of the price of an item based on a standard measurement—like per ounce, pound, or liter—which allows you to compare prices across different brands and package sizes on a level playing field.

This is particularly helpful when products are packaged in varying quantities, making it challenging to determine the better buy at a glance.



For example, let's say you're comparing two brands of olive oil:

• Premium Olive Oil: $10.00 ÷ 17 ounces = $0.59 per ounce
• Classic Olive Oil: $9.50 ÷ 16 ounces = $0.59 per ounce

At first glance, the Classic Olive Oil seems cheaper. But when you look at the cost per unit, you realize you're paying the same price per ounce for both.

Armed with this knowledge, you can make an informed decision based on other factors like brand preference or quality.

While the cost per unit can be a game-changer for your wallet, it's important to know that its presence on shelf tags isn't consistent across all stores or states.



Unit pricing regulations vary, with some states mandating it and others leaving it up to individual retailers. This means you might find it prominently displayed in one store but absent in another.

Even in states with mandatory unit pricing, not all products are required to display this information.

In New Jersey, certain retailers are exempt from displaying the cost per unit on price tags. Businesses that operate a single location or have annual sales under $2 million are not required to provide this information. Additionally, stores with a total floor space of 4,000 square feet or less—including some big-box chains like Kroger—fall under this exemption.

This is why smaller retailers like Trader Joe’s typically do not display unit prices. Instead, they use custom shelf tags designed by in-house artists, which list only the total product cost rather than the cost per unit.



The placement and format of unit prices can vary significantly among retailers that voluntarily display this information.

Some stores make it prominent, while others tuck it away in tiny text anywhere on the shelf tag—or sometimes omit it entirely. However, it is most commonly found in one of the corners of the tag.

In states where unit pricing is mandated, the information must be consistently displayed in the same location.

For example, in New Jersey, unit prices are required to appear on the left side or upper portion of the shelf tag and must use uniform measurement units across similar products.



Because shelf tags often include a mix of SKUs, procurement codes, and other product details, spotting the cost per unit can take some effort.

Interestingly, a study found that the design and consistency of shelf tags can influence how much attention shoppers pay to unit pricing, potentially affecting their purchasing decisions.

Recommended for you: The 5 magic words that stretched $46 into 17 Costco meals—A game-changing shopping secret!

What products need cost per unit price tags?
Typically, items regulated by the Department of Agriculture, the Food and Drug Administration, or state and local agencies will have the cost per unit on their tags.

• Food storage products like aluminum foil and plastic wrap
• Baby food
• Baking mixes and supplies
• Prepackaged bread and pastry products
• Butter and margarine
• Canned poultry, fish and meat
• Coffee
• Cereal
• Cheese
• Jarred or canned fruits and vegetables
• Packaged grains and beans
• Condiments like ketchup, mayonnaise and mustard
• Dry pasta products
• Toothpaste, mouthwash and deodorant
• Laundry detergent

A few foods and non-grocery items that are exempt from requiring a cost per unit breakdown include:

• Prescription drugs
• Vitamins
• Alcoholic beverages, including those regulated by the Federal Alcohol Administration Act
• Frozen foods, including mixed vegetables, ice cream and TV dinners
• Snacks and spices sold in packages weighing 5 ounces or less
• Products offered for sale in one size only

To make the most of unit pricing, here are a few tips:

1. Keep an eye out for the cost per unit on shelf tags, usually found in one of the corners or along the sides.
2. Compare the unit prices of similar products to determine which offers the best value.
3. Remember that larger packages aren't always the better deal—unit pricing will reveal the truth.
4. Use unit pricing to decide when bulk purchases make sense, especially for non-perishable items.
5. Don't be swayed by flashy sale signs; check the unit price to see if you're truly saving money.



Even if unit pricing isn't available, you can still apply this money-saving principle by doing a quick calculation: simply divide the total price by the total measurement (weight, volume, etc.) to determine the cost per unit yourself.

Also read: The truth behind why junk food is more affordable than healthy food–Is it worth the extra expense?


Have you used unit pricing to save money before? What other strategies do you employ to keep your grocery bill in check? We invite you to share your own grocery shopping tips and tricks in the comments below!