New pricing system to offer grocery bill relief

A new pricing system in supermarkets could offer much needed relief from soaring household grocery bills.

Unit pricing- which will allow shoppers to easily compare the value of items across different sizes by giving the cost per 100g, 1kg or 1 litre could potentially save shoppers thousands of dollars a year on their weekly supermarket shop. Families will get fair and transparent pricing so they can get the best value for their dollar.

By having this new system it will allow consumers to compare a whole range of products across a given category and it will give them more information to make a choice on what is the best value to buy.

The unit pricing plan will require supermarkets to display a 'price- per- unit measurement' figure on their products and is designed to help customers lower the cost of their grocery bill.

Here is an example:

A 375-gram box of weetbix has a shelf price of $2.75 and the bigger 1.2Kg. box is $5.49. But, after unit pricing is included in the price tag, it will tell a very different story.
If you buy the smaller box, you are actually paying $7.34 per kilo as opposed to $4.50 for the bigger box.

Consumers could definitely save $20 a week on their grocery shop or up to $1000 a year.

Published on November 11-th, 2008 in Financial Planning
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.

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