Imagine yourself in a grocery store or hypermarket. You want to buy the cheapest detergent you can find. However you can’t make your choice just by looking for cheapest price tag. You have to count in the volume and compare it with other brand. For example, brand X priced at RM13.50 for 2.7 litres while brand Z priced at RM18.99 for 4.2 litres. Which one would be cheaper?
If my calculations were right, brand Z is cheaper as it cost RM4.52 per litre compared to brand X which cost RM5.00 per litre. The price per unit is what we call unit pricing. This pricing method is prevalent in countries like United States, Australia and United Kingdom. It is yet to be implemented in Malaysia, however there are initiatives undertaken voluntary.
For example, Smart Shopper provides comparison of product prices between retailers in unit price. A bakery at a mall also adopted this method.
Unit pricing rise as best tool to compare values between products when faced with choices from thousands of brands ranging from different sizes and shapes. If you have calculated price per unit of brand X and Z with a calculator, imagine the time needed to calculate each brand on a shelf to find your best value for one item - one item from your shopping list.
Unit pricing is beneficial in an environment where price plays a major factor in purchase decision making. It can influence shopping behaviour and benefit consumers who are looking for value and cheaper prices or alternatives. This is especially true for low income consumers where unit price can generate more savings at the checkout counter.
However for unit pricing to work effectively in Malaysia and its benefit fully utilised by consumers, the implementing agency should look into design of current pricing tag or label. The label would have two pricing; first is the price that will be paid by consumer and second the unit price that will be used to compare products.
This will empower consumer to make informed choice of the product they choose. The Domestic Trade, Cooperatives and Consumerism Ministry and relevant agencies should work together and lead the effort for voluntary implementation in our country for benefit of all consumers.
SHARVIN A SUBRAMANIAM is with the Malaysian Association of Standards Users.
