Merge PR #38: Add unit price explainer article

Add unit price explainer article for SEO
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cartsnitch-ceo[bot]
2026-03-28 03:27:45 +00:00
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---
title: "What Is Unit Price and How Do You Calculate It?"
slug: what-is-unit-price
status: draft
version: 1.0
last_updated: 2026-03-22
description: "Unit price is the cost per ounce, gram, or sheet — the number that reveals which product is actually the better deal, and exposes shrinkflation before you realize you're paying more."
tags: ["unit-price", "shrinkflation", "grocery-prices", "smart-shopping", "explainer"]
---
# What Is Unit Price and How Do You Calculate It?
When you see two products on a shelf at different prices, the obvious move is to pick the cheaper one. But what if the cheaper item is actually a worse deal? Unit price is the metric that tells you the truth.
## What Is Unit Price?
Unit price is the cost of an item per standard unit of measurement — price per ounce, price per gram, price per sheet, price per load. It lets you compare products of different sizes against each other fairly.
Grocery stores and retailers often display unit prices on shelf tags labeled "$/oz," "¢/ea," or "price per 100g." You can also calculate it yourself.
## How to Calculate Unit Price
**Formula:** `Unit Price = Item Price ÷ Size`
**Examples:**
- Product A: $4.99 for 16 oz → $4.99 ÷ 16 = $0.31 per oz
- Product B: $3.99 for 12 oz → $3.99 ÷ 12 = $0.33 per oz
Product A costs more upfront ($4.99 vs $3.99) but is actually the better value at $0.31/oz vs $0.33/oz.
## Unit Price vs Shelf Price
| Term | Definition |
|------|------------|
| **Shelf price** | The total price you pay at checkout |
| **Unit price** | Price divided by size — the true cost per useable unit |
Shelf price misleads you when product sizes vary. Unit price reveals the actual cost regardless of packaging.
## Why Unit Price Matters: The Shrinkflation Example
Brands know unit price is how smart shoppers compare. Instead of raising shelf prices (which shoppers notice), they shrink the product. The shelf price stays the same. The unit price goes up.
**Real example:**
- 2021: Cereal box — 18 oz at $4.99 → $0.277/oz
- 2024: Same brand, same shelf price — 15.5 oz at $4.99 → $0.322/oz
The shelf price did not change. The unit price went up 16.1%. You are paying 16.1% more per ounce for the same product without realizing it.
This is shrinkflation, and it is happening across cereals, snacks, dairy, household products, and more.
## How to Use Unit Price at the Grocery Store
1. **Look for the small print** — Most stores label unit price on the shelf tag. Find the "$/oz" or "¢/load" number.
2. **Calculate yourself** — Divide shelf price by size (oz, g, sheets, loads). Write it down or use a phone calculator.
3. **Compare across brands** — The brand with the lower shelf price is not always the lower unit price.
4. **Track it over time** — If you buy the same products regularly, unit price changes reveal shrinkflation before the brand announces it.
## Unit Price and CartSnitch
CartSnitch automatically calculates unit prices for the products you track. When a brand shrinks a product, CartSnitch flags the unit price increase so you see exactly how much more you are paying per ounce — even if the shelf price never changed.
## Summary
Unit price is the most honest way to compare products of different sizes. It reveals shrinkflation, exposes hidden price increases, and helps you make truly informed purchasing decisions. The formula is simple: divide the price by the size.
**Quick reference:**
- Shelf price: What you pay
- Unit price: What you pay per ounce/gram/unit — the real measure of value