Unit pricing

Unit pricing means displaying the price of grocery items for a certain unit of measurement in addition to the items’ selling price.

Large grocery retailers must display a unit price on labels and in advertising where a selling price is displayed.

This makes it easy for you to compare the price and value of similar types of products when shopping for groceries.

Unit pricing calculates for you what is better value—for example, a 2.5 litre container of laundry liquid costing $7.62 or a 1.5 litre container costing $5.74.

Price label 1: Laundry detergent X 2.5L $7.62 = $3.05 per litre
Price label 2: Laundry detergent Y 1.5L $5.74 = $3.83 per litre
 
You can see that the unit price of $3.05 per litre for brand X is better value than brand Y at a unit price of $3.83 per litre.

Will I see unit pricing in all grocery stores?

Unit pricing is mandatory for some grocery retailers and optional for others. It is also mandatory for large grocery stores and online grocery retailers. Under the Code, store based grocery retailers are used primarily for the sale of food based grocery items, have a floor space of greater than 1000 square metres and sell the minimum range of grocery items. Online retailers are captured under the Code if they sell the minimum range of grocery items.

That means that you might not see unit pricing in smaller supermarkets, or shops that are not mainly food retailers (such as some department stores) or sell only a small range of food types.

Grocery retailers with smaller premises can choose to opt in to the unit pricing rules or not to participate at all.

Where will the unit price be displayed?

The unit price must be displayed with the selling price.

You will see unit pricing in stores where a selling price is displayed, such as shelf price labels, promotional signs and print-based advertising (such as catalogues, newspaper advertisements or online price listings).

Not all grocery items have to be unit priced, such as stationery, kitchen applications, hardware and computer equipment.

Grocery retailers do not have to use unit pricing in television and radio advertisements. Also groceries advertised in online video and audio advertisements are also exempt from unit pricing.

Grocery retailers must also make sure the unit price is easily seen and close to the selling price for the grocery item.

How will items be unit priced?

Most unit prices you will see in stores are based on standard units of measure—per 100 millilitres, per 100 grams or per item.

However, some grocery items use different units of measurement. These include fruit and vegetables (per kilogram or per item); meat, seafood and poultry (per kilogram or per item); and eggs (per 100 grams).

How are unit prices calculated?

Unit prices must be worked out to the nearest 1 cent (rounding up for 0.5 cents or more and rounding down for 0.4 cents or less).

This means that when you multiply the unit price by the quantity of the item, you may get a retail price that is a few cents different from the retail price on the label.

Will unit pricing be displayed on all grocery items in my supermarket?

No. Some items do not need to be unit priced, such as kitchen appliances, stationery, hardware and alcoholic beverages.

Also marked-down grocery items that are perishable, damaged or discontinued are exempt from unit pricing.

Combinations of different grocery items sold together (or ‘bundled’) for a single price do not have to be unit priced. For example, an offer that enables you to buy a packet of frozen potato chips and a separate packet of frozen fish fillets for a single price would not require unit pricing.

Promotions where different items are offered at the same price—that is, a single price is displayed for multiple items that differ in type or weight—do not need to be unit priced. For example a range of chocolate bars of different kinds and weights for $1.50 would not require unit pricing.

Items sold from vending machines and meals prepared at the retail premises for immediate consumption do not have to be unit priced.

Need help?

For more information download a copy of the Introducing unit pricing publication.

You can also call the ACCC’s Unit Pricing Hotline on 1300 746 245.