by Scott Dolan, VT Agency of Agriculture, Food & Markets
State and local jurisdictions throughout the country are celebrating National Weights and Measures Week, which occurs during the first seven days of March each year. National Weights and Measures Week commemorates the signing of the first United States weights and measures law by President John Adams on March 2, 1799. This year the Vermont Weights & Measures program would like to highlight the concept of Unit Pricing.
How do you know if you are getting the most for every dollar spent? The short answer is unit pricing. The unit price is the cost of a commodity per unit of measure (weight, volume, length, areas, or count). For instance, cereal is sold by weight and is usually unit priced by the pound or ounce, whereas milk is sold by volume and is typically unit priced by the quart or fluid ounce.
Businesses who provide unit pricing information to consumers enable them to quickly compare the cost of different items on the shelf and facilitate value comparisons between retailers. For example, is the large can (16 fl. oz.) of Red Bull at regular price a better value compared with the smaller can (8.4 fl. oz.) which is on sale this week? Is the large box of Cheerios a better deal than the smaller one? Are the smaller cans of soup at Dollar General better value than the those at the local supermarket?
When retailers provide unit pricing information, consumers can swiftly and easily make these judgements for themselves, but without it, buyers are left doing long division on the spot to ensure they are getting the best value for their dollar. FMI The Food Industry Association1 reported in its U.S. Grocery Shopper Trends 2023 that 74 % of shoppers use unit pricing when it is available.
Unit pricing enhances transparency to shrinkflation, enabling consumers to adjust their purchasing habits accordingly. Shrinkflation is the reduction of a product's net contents without a commensurate reduction in the item price. For instance, the family size box of Raisin Bran changed from 24 oz. to 22.1 oz. without a reduction in price. In many cases of shrinkflation, the size of the container itself remains the same, but the net weight label on the front is altered. Consumers who actively use unit pricing will immediately notice this change, while those who don’t may not be aware that they are getting less for their dollar.
Unit Pricing has been in existence in the U.S.A. since the early 1970s, growing out of the “truth-in-labeling” era. Consumers demanded more information (“right to know”) on labels to make informed purchase decisions. Currently seventeen states, Puerto Rice, and the US Virgin Island have unit pricing laws and regulations in effect. Vermont is one of these states, all chain retailers are required to provide unit pricing for all consumer commodities sold. Often the unit price is displayed with an orange background, but this isn’t always the case. Therefore, consumers should look for the words “Unit Price” to ensure they are using the correct information.
While unit pricing is inexpensive to provide and maintain by the business, it offers significant benefits to the consumer when making value-based purchases. Consumers who aim to maximize value from every purchase over the long term should base their decision on the unit price rather than the item price.
Unit Pricing is one of many items that the Weights and Measures section oversees. The section works to ensure accuracy and equity between buyers and sellers where transactions occur based on a weight or a measure.
The inspection program also includes the testing and inspection of commercial devices such as scales, gas pumps, meters used in the home delivery of fuels (propane and fuel oil) as well as accurate package weights, and retail pricing. Weights and Measures Week serves as a reminder of the efforts that programs in Vermont and throughout the country make to ensure that accuracy and fairness in the marketplace occur.
Visit the VAAFM Weights and Measures Program here: https://agriculture.vermont.gov/weights-measures
To support vital journalism, access our archives and get unique features like our award-winning profiles, Book of Lists & Business-to-Business Directory, subscribe HERE!
