HERE'S WHAT TO LOOK FOR TO SAVE SOME CASH WHILE AT THE SUPERMARKET

Is bigger always better value? Apparently not.

When you’re at the supermarket and you pick up large packets of items like toilet roll, laundry detergent pods and ketchup, you may assume bigger packs means more value.

However a closer look at unit pricing on these items suggest otherwise.

The watchdog Competition and Markets Authority (CMA) has published findings after examining 26 everyday essentials and found examples of when shoppers had not scooped a bigger deal by relying on a ‘rule of thumb’ assumption about what is the best value by size.

This assumption is, in fact, not always correct and could lead to you paying more per unit.

In its first release of analysis from its investigation, the CMA said: ‘While it was usual for bigger packs to have a lower unit price than smaller packs, this wasn’t always true. We saw examples in our basket of groceries of larger packs having higher unit prices.’

What is unit pricing and how can you spot it?

Unit pricing is a labelling system for displaying the cost of different products to standard units of weight and volume.

It’s meant to help shoppers compare the relative costs of products, irrespective of their size, to work out which product is the best value for the shopper’s needs. 

However, the CMA research has revealed that there isn’t much awareness about what unit pricing is and that it tends to compete with promotions and special offer notices for a shopper’s attention. 

While products on promotion generally were cheaper than those that were not, there were some products, including ketchup and laundry detergent packs, when discounted ‘had an equal or more expensive unit price than alternative pack sizes which were not on promotion’. 

There were also some multipack items, including mayonnaise, which were more pricey for each unit than other packs that were not on promotion. 

The CMA shared: ‘Our pricing analysis highlights the value of unit pricing when comparing between grocery items – revealing that shoppers’ commonly held assumptions about what products are cheapest on a per unit basis aren’t always right and that the pricing of some products relative to others can be surprising.’

How can you use unit pricing to help save money?

To ensure you get the best deals, Victoria Leyton, a consumer expert at hotukdeals.com and host of False Economy podcast, tells Metro.co.uk that it is important to look at the unit price on the shelf before purchasing a bigger pack.

This will give you a cost you can compare to full price individual, smaller batch products and promotional offers.

On how supermarkets can make unit pricing clearer, Victoria says unfortunately it is currently as clear as it will get.

She adds: ‘Highlighting a deal that isn’t great value is unlikely to be a priority for shops looking to nudge people into spending a little bit more, which is why it is on the consumer to look closely. 

‘If you need one, buying one at full price is better for your bank balance than buying three.’

How is unit pricing linked to loyalty schemes?

The CMA investigation comes as shoppers face big changes with various loyalty schemes potentially coming to an end.

The watchdog said it would investigate whether the schemes, such as Tesco’s Clubcard and the Nectar card from Sainsbury’s, really offer a good deal.

Alarms have been raised about the two-tier pricing currently offered by retailers like Boots and Tesco – where members pay less for certain products – with ‘a number of questions about the impact of loyalty pricing on consumers and competition.’

Its review will assess whether non-members are being unfairly shortchanged by the schemes, as well as their impact on shoppers’ ability to compare prices.

‘It’s easy to be tripped up by loyalty schemes,’ Vanessa explains, arguing that being ‘disloyal’ is what shoppers should be.

‘When [loyalty schemes were] initially pioneered by Clubcard, it was a small selection of deep discounts on things like premium brand coffee, bringing them down to affordable prices. 

‘As time has gone on and it has been adopted more widely by the big four, it has become easier to exploit the remembered early buzz of big discounts with the actual discounts getting more shallow. 

‘For some items it might be more of a case of allowing you to level up brand wise, rather than bring down the cost of your shop. There are still deals to be found and it is worth checking across all supermarkets accessible to you – be disloyal – but you shouldn’t assume loyalty prices are the best you can do.’

Yiannis Zourmpanos, a finance expert and chartered certified accountant, tells Metro.co.uk that the investigation into loyalty schemes is ‘wise’. 

He adds: ‘While reward programs foster customer engagement when structured well, there is cause for concern if they skew shoppers’ perceptions or disadvantage certain groups. Supermarkets must ensure discount claims stand up to scrutiny.

‘Pricing practices should prioritise transparency to empower informed choice,’ the Bountii contributor adds. ‘If done right, both retailers and consumers can benefit through building commitment and trust over time. But fairness and clarity must come first to protect all shoppers.’

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2024-02-01T11:17:42Z dg43tfdfdgfd