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I've wanted to write this post for a long time, and today this situation really irked me, so I finally did. This particular time it occurred at a Walmart, but I've seen the same type of pricing methods in many different stores.
Here's what happens. A local store is selling two different sized packages of ground beef. They're identical except for the size. Below is the 10 pound package:
...and here's the 5 pound package.
This is the annoying part. They all have a "unit price" on the price listing. But...the 10 pound package has a "per ounce" price
...and the 5 pound package right next to it has a "per pound" price.
So they use different "units" for 2 different sizes of the same thing! I've seen this used for all different kinds of products - anywhere that you're looking around at the prices, trying to find the lowest per unit price (ounces, pounds, grams, etc.), you'll see it.
I find this, over and over again. Even when they're selling eggs, sometimes the price is per dozen, and sometimes it's per egg.
Of course I can, and do, multiple the per ounce price by 16 to get the per pound price, or do whatever other calculations necessary to figure out the unit price. Cause I'm frugal.
But I guess this strategy must work, I'm assuming most people don't bother or can't do the calculation, so they don't get the benefit of knowing the unit price.
Does this happen just in the US?
I had always assumed this was just ineptitude, but I definitely agree that it's annoying.
Why do you think they want customers to have difficulty making comparisons between products?
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76 sats \ 3 replies \ @Scoresby 13h
Yes, they could just not offer the product. Why would a store offer a product at a price they don't want their customers to accept?
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I think they need to balance things out, and appeal to all customers - the price conscious ones, and the ones that just grab and go.
For the price conscious shoppers, they do the math, and figure out what to buy.
For the grab and go customers - well, they pay the "stupid" tax. Or maybe those customers benefit, because they're not spending extra time in the store with their calculator out.
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maybe those customers benefit, because they're not spending extra time in the store with their calculator out
I think that's it, exactly. There are customers who would choose the lower unit price, but for whom doing the calculation is not worth the effort, so they default to the higher unit price smaller size.
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I think it's probably a price discrimination story. There are people who are willing to pay a higher unit price, presumably for the smaller size, but are less willing to do so when they can see the unit price difference.
Apparently this is a thing they're willing to pay fines over.
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I don't think it's ineptitude. It's gotta be more complicated to switch up the unit pricing all the time, instead of always sticking with a per pound pricing, for instance.
I'm assuming it's to steer/push you towards buying something that's more profitable, for the store.
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You certainly might be right, I just don't get why they'd do that. The store is free to adjust their prices to the point where they're indifferent to which choice you make.
I'd be interested to here an explanation for it.
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I just did some research - it turns out that Walmart has been fined for this before:
The allegations state that Walmart violated New Jersey’s Consumer Fraud Act (CFA) and Unit Pricing Disclosure Act (UPDA) by inaccurately displaying unit prices for various grocery products. The UPDA mandates grocery retailers to present prices using standardized units such as per quart, per pound, or per 100 sheets, enabling consumers to compare prices of differently sized or packaged items easily.
During inspections in early 2023, OWM identified over 2,000 instances where incorrect units of measurement were used at Walmart stores, often varying within the same product category, complicating price comparisons for shoppers. Previous inspections in 2021 and 2022 had already resulted in $226,950 in fines for similar violations.
Just to be clear - I'm not saying the government SHOULD be monitoring this. Apparently displaying the unit pricing is mandatory, but making it easy to understand is not as mandatory (at least in some states).
Interesting that Walmart has been fined about this issue, and still continues to do the exact same thing. I guess they're constantly making judgements on issues like these, as to whether they pay more in fines, or make more with these (semi-deceptive) practices.
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Good enough for me.
Yeah, they must have realized that they can move some products at higher margins, as long as consumers can't do the unit comparison.
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deleted by author
This example would justify switching to grams and kilograms since the math would be much easier.
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68 sats \ 0 replies \ @OT 13h
Most people just look at the number and grab it. After paying they wonder why it cost so much.
Price conscious people will do math in their head and also compare with different stores.
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Happens everywhere. Sales & marketing policy at it's finest. Some countries like mine, are a bit more fine with this as we use international standard units like gram/kilogram, but we also see this practice. They use kg and 100g for the same thing you are pointing with the beef. It frustrates buyers that's for sure.
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I think I saw that in Europe last month too, but it is easier to deal with there because of the metric system being base10.
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Funny how “unit pricing” is supposed to help the customer, yet it often does the opposite. The real lesson here: Verify always.
Those who do the math themselves end up with more in their basket. Such a great eye for detail!
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Very annoying. Ask the store manager next time or the meat dept. Manager.
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This wouldn’t happen in my country, because if you use a non-SI unit (like ounces), you have to show the SI unit (like grams or kilograms) alongside it.
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