Jon Pape dot comOne individuals impact in the world.

A new Lifehacker article, Be Aware of the “Unit Effect” to Avoid Marketing Tricks, got me thinking of other times that consumers see unit pricing and use it in decision making.  I believe it happens a lot more regularly than the author suggests.

I commonly buy way too much of a product because the unit pricing is better in bulk purchases.  Costco shelf tags are a great example of this.

From everydayfoodstorage.net - Grocery Shopping 101 Tip #2: Unit Pricing

Some people would argue that unit pricing should be the most important asset in purchasing decisions but I feel that this metric often overshadows other important decision points such as budget, storage space, consumption vs spoilage rate, and past usage.

Recently, I was going to try a new product and the purchase price for 5lbs was $25, while  1lb was $10.  I was so caught up in the unit pricing that I failed to take into account that I had never tried this product and wasn’t sure I would continue to use it.

Multiple Pricing

Another example of an instance that unit pricing overshadows logic is grocery unit sale signs.

commonsensewithmoney.com - New $4/10 Smart Ones Coupon + Target deal

I frequently see buy 10 yogurts for $4 when I see them on sale, but there is no reason to buy 10.  The example in the photo above, you can get one item for the same price as purchasing 5.  However, for some reason, I bet most peoples behavior is to purchase the exact number of units listed in the shelf tag.

[From our rep]

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Pages_Transition_Guide_Feb2011
PremiumSponsoredStories_Jan2011
The Facebook Post- February 14 2011

Transcript of my exchange with Land’s End.

1   2011-01-26 20:52:15   customer http://i.imgur.com/U24qa.jpg (Land’s End had a 40% off one item promo on their home page which returned this error when I entered it).
2   2011-01-26 20:52:18   customer Nice error message.
3   2011-01-26 20:53:16   customer Do you have a free shipping promo code instead?
4   2011-01-26 20:53:58   Bobbi I don’t know what the error message is.
5   2011-01-26 20:54:02   Bobbi We offer free shipping from time to time in some of our catalogs and e-mail updates, but we don’t have an unlimited free shipping offer. Would you like to sign up today to receive our e-mail updates? I will also be able to give you free shipping as a one-time courtesy.
6   2011-01-26 20:55:53   customer Sure.
7   2011-01-26 20:56:06   customer XXXXXX@gmail.com
8   2011-01-26 20:56:11   Bobbi Thank you.
9   2011-01-26 20:57:01   Bobbi This is for a $50 minimum order.
10   2011-01-26 20:57:16   Bobbi The Code you can use is SPRINGMEN and the PIN is 2103.
11   2011-01-26 20:57:18   Bobbi To add a Promotion Code and PIN, you need to be on the billing page. There is a field above the credit card area to add the Code and PIN you’d like to use.
12   2011-01-26 20:58:55   customer OK. I have to add $3 to my cart. This is my first time buying anything from Lands End. I found the link on Reddit and they recommended your shirts.
13   2011-01-26 21:02:17   Bobbi Your customer service representative is currently busy but will be with you shortly. Your chat is important to us. Thank you for your patience.
14   2011-01-26 21:02:38   Bobbi I see. If you want to place the order as it is, I can remove the shipping costs for you, then, without you having to add to the order.
15   2011-01-26 21:07:13   Bobbi I’m sorry; I’m not receiving a response Is there something else I may help you with?
16   2011-01-26 21:07:50   customer I will place the order as is. One moment
17   2011-01-26 21:09:14   Bobbi Thank you.
18   2011-01-26 21:11:58   customer    Order #: 1813XXX
19   2011-01-26 21:15:04   Bobbi Your customer service representative is currently busy but will be with you shortly. Your chat is important to us. Thank you for your patience.
20   2011-01-26 21:15:14   Bobbi Thank you.
21   2011-01-26 21:15:20   Bobbi I have removed the shipping.
22   2011-01-26 21:15:31   Bobbi Your new total is $49.79.
23   2011-01-26 21:15:47   customer Sweet. Thanks.
24   2011-01-26 21:15:51   Bobbi Can I send an updated order receipt to the gmail address?
25   2011-01-26 21:16:14   customer That would be great.
26   2011-01-26 21:16:23   Bobbi It is on the way. Is there anything else I can help you with?
27   2011-01-26 21:16:39   customer No. I’m all set.

They brought sleds.