Ridiculous unit pricing at supermarket

[PrincessPerky]

It's a screwed up world we live in, the best protection is education.
Ray

Ditto that

[disneysteve]

Most stores make the same profit margin on similiar items. Meaning for example on toilet paper, they make around 30% profit on Cotenelle, Charmin or Angel Soft. They really don't care which they sell as long as they are selling something.

Wouldn't they rather sell the most expensive item? 30% of $2.00 is more than 30% of $1.75, for example.

Toilet paper is an interesting example. Years ago (not all that many years), each brand came in just a couple of sizes, perhaps a 4-pack and an 8-pack. Now, the choices have multiplied tremendously. There is a 4-pack, 8-pack, 12-pack, 24-pack. Then there is also the 6-pack of "double rolls" plus a 12-pack and 18-pack of that size. Then there are also the "jumbo" rolls and the "mega" rolls, each with different numbers of sheets and different numbers of rolls in a pack. Just try figuring out which is the best buy based on unit price without an advanced math degree, a scientific calculator and a bottle of Tylenol for the headache you are sure to develop. You can't tell me there isn't some intentional deception built into that process by the manufacturers.

[kork13]

DS, you're totally right. Manufacturers always make changes to their products to save them money, and pass it off to consumers with a positive light. Because toliet paper serves the example so well, I'll keep with it. So here are a couple examples of their "claims" and what it (really means):

"Thicker, more absorbant sheets!" >> (fewer number/footage of sheets, or an excuse to raise the price)
"Now X% more sheets!" >> (lower quality, or an excuse to raise the price)

Same sort of thing goes with cars, clothing, food, and just about any other product out there. Save a couple cents per item saves them bigtime, then they advertise that it's a dramatic improvement when really, it might not be (could even be a negative).

Yes, it's essentially inescapable, but it's better to understand how manufacturers advertise than to go out unaware.

[JeanneElle]

That is irritating, I wonder if it was all priced at a different time or if they want you not to notice and buy the one they made look better?

Oh, absolutely that's why they do it!! You can't acuse them of lying, either, because they clearly mark what quantities they're pricing. They're just counting on you not paying attention, or being too rushed to bother.

I carry a calculator in my purse... Another thing I do is compare receipts and break down prices into an equal unit for comparison (i.e. per ml., instead of total price) so I get an idea of what a good price is.

Then I have a little notebook in my purse (btw, I'm a SAHM so I have time for this!!) that has the "best prices per ml" that I've seen, so I have an idea of what I'm looking at. I can't remember prices no matter how hard I try, so I have to write them down...

[JeanneElle]

Keep in mind that these manufacturers aren't out to screw over their consumers. In fact they all work very hard to retain their consumers and their share of the sales.

Also with price increases, this is not the manufacturers neccesarily trying to increase their profits at our expense. Realize that they their costs have gone up just like ours. Fuel is one of the biggest expenses they have. So if they don't increase their prices to off set the increase they have they would go out of business and we would all be growing our own food again.

Good point! You're absolutely right. Mind you, from a marketing perspective, they know that we don't care what the reason for the price increase is, (increased profit or keeping pace with increased cost); they just know that we shop according to our perception of value.

It's true that repeat buyers are the key to their success, but I think if a consumer is more aware of an increase in cost, he or she is more likely to look elsewhere for another option.

[SnoopyCool]

I love growing my own food! I'm just not able to produce a year's worth in this tiny Florida yard. Well, I suppose anything is possible.

Pricebook. I keep a pricebook and I just convert the unit price on the shelf to the unit price in my book to see if I can get a better deal elsewhere.

[disneysteve]

If a manufacturer advertises "thicker / more absorvent sheet" than by law something has to have changed in the product and their claim has to be substantiated.

True, but in the process, they raise the price when the customer may not get any value from the "new improved" version.

Staying with the toilet paper theme, let's say they make it "more absorbent" but at the same time they put fewer sheets on a roll. That means we will go through a roll more quickly and have to buy it more often. Paper towels are the same way. They've made them smaller and put fewer sheets on a roll. The result is we use a roll much quicker than we used to, costing us more money.

[kork13]

Here's a question for the group. In recent years what do you consider a breakthrough enhancement or improvement worth paying a premium for?

Great question, I'm curious what people will respond with...

Just off the top of my head, I'd say DSL/Cable/T1 (at work) internet. Yea, a dial-up connection now costs only $10 next to the $35 for my cable internet, but the difference in speed makes it totally worth it for me.

[disneysteve]

Here's a question for the group. In recent years what do you consider a breakthrough enhancement or improvement worth paying a premium for?

I'd say DSL/Cable/T1 (at work) internet.

Great question. I would definitely agree with high-speed internet access. The web is an incredibly useful tool that we turn to every day in ways that we never dreamed of before and simply weren't possible before with ultra-slow dial-up access.

I'd also list many auto safety features and devices like airbags and antilock brakes. They've saved so many lives and are worth every penny they add to the car's price.