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No. 120Money4 minviews 23

Published by GK Library Annex

Is the bigger pack really the cheaper buy?

A big jar and a small jar of the same honey sit side by side. How can you tell which one is the better deal?

A large and a small glass jar of the same honey side by side on a wooden table, with a shopping basket and a kitchen scale

It is easy to believe that bigger sizes and multipacks are always cheaper, but that is not always true. In a study of prices at four large Korean stores, about one product in four cost more for the same amount when you bought the bigger option.

When bigger costs more

The study collected and compared the prices of 5,389 products sold at four large stores. For 1,403 of them, or 26%, the bigger size or multipack had a higher unit price than the smaller one. A unit price is the price worked out for a fixed amount, such as 100 g or 100 ml. When a bigger pack ends up costing more per unit, it is called a quantity surcharge.

The rate was not very different from similar surveys in the United States and Europe. It showed up most often with nuts and dried fruit, and least often with detergents and cleaning products.

Why does this happen?

The study found quantity surcharges were more common in two situations: when the two sizes were close, and when the sizes were hard to compare. If the difference is small, like 450 g versus 500 g, or one is labeled in grams and the other by count, it is hard to divide in your head on the spot.

Sales can flip the order too. If only the small size is on sale, it gets cheaper than usual while the big size stays at its regular price. Grab the big one assuming it is cheaper, without checking, and you simply lose out.

A common misconception

It is tempting to think a lower unit price always means a better deal. But if food goes bad or changes taste before you finish it, whatever is left is money thrown away. For things that spoil quickly, like milk, or that start to smell rancid when kept too long, like nuts, think first about how fast your household actually uses them.

On the other hand, for things you always use that do not go bad, like toilet paper or detergent, there is no need to buy small if the big size really has the lower unit price. In the end, what makes something cheap or expensive is not the pack size but the price tag and how fast you use it.

Finding it on the tag

In Korea, large supermarkets and big-chain grocery stores must show a unit price for designated items. The standard is fixed, such as per 100 g for honey, per 100 ml for milk and per 10 g for snacks, so you only need to compare the small number in the corner of the price tag.

Where there is no such label, divide the price by the amount. A phone calculator does it in seconds. If the two products use different units, convert them to the same unit first and then compare.

Bigger is not always cheaper. Compare the unit price on the tag, and also ask whether you will finish it before it goes bad.

Notes and references · KCI study on unit prices of larger packages. Found quantity surcharges in 26.0% of 5,389 products at four large Korean stores. Rates may vary by store and period. Unit price rules follow Korea's price labeling guidelines.

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Quick quiz

In the study, when did bigger packs cost more especially often?

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