Better Deal

Here’s a lesson from the grocery store this last week: is a bigger box of cereal a better deal than the smaller size of the same cereal?

Answer: usually, but watch out for sales.

Exhibit A:

image of large cereal box price compared to small cereal box price

Looking at the non-sale price, you see that the larger box (19.1 oz) is a better deal because it is 26.1 cents/ounce – lower than the 26.3 cpo for the 12.5 oz box.

As an aside, I prevent whining from the kids about picking out cereals when they accompany me to the grocery store. I do this by having a consistent rule and reminding them of it beforehand. Before we reach the cereal aisle, I let them know they can each pick out one box of cereal, whatever they want as long as it is less than 20 cpo. This heads off questions about what they can get and keeps them busy as they scan the shelves for qualifying items and weigh their options. It also usually weeds out bad choices such as Lucky Charms, but on the rare occasion when that is on sale I do let them get it.

Back to today’s topic… The sale price knocks the price of the smaller box down to be the better deal: 19.9 cpo vs. 23.5 cpo.
And if you buy 6 of them, you can save even more. Either way, the big box ends up being the worse value in this case. I’ve seen it where the small box was on sale but the large box was not, yet the large box was still a better deal, so don’t be drawn in by large colorful “SALE PRICE” signs – read the fine print.

Plus, shopping is so much nicer when they list the cents/ounce on the shelf tag.

In proportion to the extent of the years you shall increase its price, and in proportion to the fewness of the years you shall diminish its price, for it is a number of crops he is selling to you.

Leviticus 25:16

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This little article thingy was written by Some Guy sometime around 6:11 am and has been carefully placed in the Finance category.

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