How to read unit pricing labels in Australia
Unit pricing tells you the real cost of groceries per kilogram or litre. How to read it, where to find it, and why it saves you money.
Unit pricing is the hidden key to saving money on groceries. While the shelf price tells you what you pay at the checkout, the unit price tells you the real cost: what you are paying per kilogram, litre, or 100 grams. Australian retailers are required to show unit pricing on shelf labels, but many shoppers never look at it. Learning to read unit prices takes 30 seconds and can save your household hundreds of dollars each year.
Pinch tracks unit prices across Australian supermarkets, helping lower income families find the best value on the groceries they buy every week. By comparing price per kilogram or litre, you can identify which pack sizes give you the real savings.
The impact: real money in your pocket
A family buying 500g pasta at $3.00 per pack thinks they are spending less than when they see 1kg pasta at $4.50. But the unit price reveals the truth:
- 500g pasta at $3.00 = $6.00 per kilogram
- 1kg pasta at $4.50 = $4.50 per kilogram
The larger pack is 25 percent cheaper per kilogram. Over a year, choosing the better value pack saves $20-30 on pasta alone. Add the savings from milk, oil, rice, and other staples, and unit pricing adds up to real weekly savings for families on a tight budget.
Where to find unit pricing on shelf labels
Unit pricing has been mandatory in Australia since 2009 under the Trade Practices Act. Every shelf label must show two prices:
- The shelf price: what you pay at the checkout (the larger, more prominent number)
- The unit price: the price per standard unit, displayed below or beside the shelf price in smaller text
The unit is always one of these:
- Per kilogram (kg) for solids like pasta, rice, meat, cheese
- Per litre (L) for liquids like milk, oil, juice
- Per 100 grams (100g) sometimes used for expensive items like coffee or spices
- Per 100 millilitres (100ml) sometimes used for sauces or condiments
- Per unit or "each" for items like rolls, eggs, or individual items
Look for this information printed in fine text on the white or coloured shelf label below the main price. It is usually left-aligned and formatted like "$6.00/kg" or "$4.50 per litre".
The common trick: different units for the same product type
Supermarkets sometimes use this tactic to make cheaper products look more expensive. They show similar products using different units:
- Brand A olive oil (500ml) shows "$12.00 per litre" on the shelf label
- Home brand olive oil (750ml) shows "$10.67 per litre" on the shelf label
When you calculate the actual cost per litre:
- Brand A: 500ml at $6.00 = $12.00 per litre
- Home brand: 750ml at $8.00 = $10.67 per litre
The home brand is genuinely cheaper, and the unit pricing makes this obvious. But if you compare shelf prices in isolation ($6.00 vs $8.00), Brand A looks cheaper. This is why unit pricing matters.
Always compare the unit prices, not the shelf prices, when choosing between products in the same category.
Why unit pricing changes your shopping decisions
Unit pricing solves a problem that most shoppers face: you cannot compare value when pack sizes are different. A $1.50 yoghurt looks expensive until you realise it is 500g, while the "cheaper" $1.20 yoghurt is only 150g. The unit price shows you cost per 100g, making the comparison instant and accurate.
For families managing a tight weekly budget, this matters. Every dollar counts. Unit pricing helps you:
- Avoid overpaying for products sold in smaller packs with higher unit prices
- Identify which bulk sizes actually save you money (not all of them do)
- Compare home brands with premium brands fairly
- Spot when a "sale" is not actually cheaper on a per-kilogram basis
Practical examples from Australian supermarkets
Pasta
Store shelf shows three options:
- 500g at $2.50 = $5.00 per kilogram
- 750g at $3.50 = $4.67 per kilogram
- 1kg at $4.00 = $4.00 per kilogram
The 1kg pack offers the best value per kilogram. But you might buy the 750g pack if storage space is limited or if you prefer fresher pasta more often. Knowing the unit price lets you make that choice with your eyes open.
Milk
Comparing milk across different pack sizes:
- 1L at $1.20 = $1.20 per litre
- 2L at $2.10 = $1.05 per litre
- 3L at $3.00 = $1.00 per litre
The 3L bottle is cheapest per litre, but only if your household drinks 3 litres within the shelf life. If milk goes off before you use it, the smaller pack with higher unit price is actually cheaper (no waste).
Canned tomatoes
Different brands, same product type:
- Home brand 400g at $0.85 = $2.13 per 100g
- Premium brand 400g at $1.45 = $3.63 per 100g
For a staple ingredient used in cooking, the home brand offers significantly better value. For a special occasion dish, you might choose the premium brand. The unit price helps you make that decision based on value, not guesswork.
How to use unit pricing when you shop
Using unit pricing at the supermarket is straightforward:
- Read the unit price on the shelf label, not the shelf price
- Compare unit prices between different products in the same category (all showing $ per kg or $ per L)
- Choose the product with the lowest unit price, unless you have a reason not to (expiry date, brand preference, pack size)
- Remember: smaller packs are often more expensive per kilogram, but wastage is a cost too. Choose the size your household will actually use
Unit prices can be slow to scan when you are shopping quickly. The Pinch app tracks unit prices across Australian supermarkets and highlights the cheapest options before you shop. By planning your shopping list based on unit prices (not shelf prices), you can stretch your weekly budget further.
Track prices before you shop
Pinch shows you 52 weeks of price history across Coles, Woolworths, ALDI, and Harris Farm. Know when to buy, know when to skip.
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