The Price-Tag Hack That Will Save You Money at the Grocery Store

The average American spends about 45 minutes grocery shopping per trip, according to a 2020 analysis. That’s a lot of time spent picking out food. And with the high cost of groceries, for many, a good chunk of that time is spent comparing prices. Depending on the store, and the state you live in, taking a closer look at the shelf tag could save you time and money.

It’s easy to assume that a product with a big red sale sign or a buy-one-get-one-free offer is going to deliver the best bang for your buck. While that’s sometimes true, it’s often not. And that’s why reviewing the unit pricing or the “cost per unit” is an important money-saving tip to follow when grocery shopping.

What Is Cost per Unit and Why Is It Helpful?

The cost per unit breaks down the price of a product by a given measurement—think per ounce or pound—and allows shoppers to easily compare prices for similar products that may otherwise be hard to compute based on ambiguous factors, like the size of a package.

For example, two boxes of crackers of the same variety and package size might appear to contain an equal amount, so it would initially make sense to choose the box that costs less. However, because appearances can be deceiving, you would need to divide the total price of the product by the weight or volume (or whatever measurement applies) to find out which is truly the better deal, like this:

1. Brand Name Whole-Wheat Crackers: $3.00 ÷ 16 ounces = $0.19 per ounce
2. Store Brand Whole-Wheat Crackers: $3.25 ÷ 20 ounces = $0.16 per ounce

In this case, choosing the store brand will save you a small amount of money, but these pennies add up to big savings over time. To skip the time-consuming and sometimes confusing calculation, you can simply look at the cost per unit on the shelf tag to help you make your decision. 

Where Is the Cost per Unit Displayed?

Here’s where things get a little confusing … so make sure to keep that math in mind just in case you can’t find the cost per unit on the shelf tag. 

Unit pricing is not federally mandated but rather is determined on a state-by-state basis. As of 2025, there are only nine states (plus the District of Columbia) that fall under mandatory unit pricing regulation status and another 10 states and territories that fall under voluntary status. The remaining states have the choice of whether to participate in displaying cost per unit information on shelf tags, but you’ll find that many do.

To further complicate things, the cost per unit is not required for all commodities or retailers, even in states with a mandate. Using New Jersey as an example: retailers with a single location or annual sales of less than $2 million are exempt, as are establishments with a total floor space of 4,000 square feet or less (yes, even big box stores like Kroger). That’s one reason that you won’t find the cost per unit displayed in smaller stores, like Trader Joe’s, which primarily uses shelf tags designed by in-house artists that include only the total cost of the product.

The shelf tag templates and measurements used to calculate unit prices can also vary greatly across retailers that voluntarily participate in displaying the cost per unit. It might be found conspicuously displayed on the tag, in tiny text anywhere within the tag or not displayed at all. Though it can usually be found in one of the corners of the shelf tag. 

For mandated states, it should always be located in the same place (in New Jersey, it’s the left side or upper portion) and use the same unit of measurement across products that are the same or similar. With so many variances—and information like SKUs and procurement codes crammed onto a single shelf tag—it can take a minute to zero in on the cost per unit. Interestingly, one study found that the design or consistency of shelf tags can influence the consumer’s attention to the unit price.

What Products Require Cost per Unit Price Tags?

Not all commodities require this type of labeling. However, most commodities regulated by the Department of Agriculture, the Food and Drug Administration or a state or local agency require the cost per unit to be displayed in states where there is an existing mandate.

Foods and non-grocery products that typically require the cost per unit to be reflected on shelf tags include:

• Food storage products like aluminum foil and plastic wrap
• Baby food
• Baking mixes and supplies
• Prepackaged bread and pastry products
• Butter and margarine
• Canned poultry, fish and meat
• Coffee
• Cereal
• Cheese
• Jarred or canned fruits and vegetables
• Packaged grains and beans
• Condiments like ketchup, mayonnaise and mustard
• Dry pasta products
• Toothpaste, mouthwash and deodorant
• Laundry detergent

A few foods and non-grocery items that do not require a cost per unit breakdown include:

• Prescription drugs
• Vitamins
• Alcoholic beverages, including those regulated by the Federal Alcohol Administration Act
• Frozen foods, including mixed vegetables, ice cream and TV dinners
• Snacks and spices sold in packages weighing 5 ounces or less
• Products offered for sale in one size only

The Bottom Line

Saving time and money while grocery shopping can be as simple as looking for the cost per unit pricing designed to help you easily find the best deals. But because not all stores, states or commodities mandate cost-per-unit breakdowns, remembering some simple math (total price divided by total measurement) can help when the calculations aren’t done for you.