How to Figure the Cost Per Unit

One way to save money is to figure the cost per unit for products you buy.  Buying bigger is not always better!  Some stores already have this figured for you on the price tag, but for the stores or items that don't have it available, knowing how to quickly figure the cost per unit can save you a lot of money in the long run.  I keep a calculator handy and take the cost of the product and divide it by how many units it has, depending on the product, such as the number of ounces it has.  For example, if you are buying cheese and are comparing a smaller package that costs $3 with 8 ounces to a bigger package that costs $5 with 12 ounces, which is the better deal?  Check out this math:

Smaller Package: $3.00/8 = $.375 per oz

Or

Larger Package: $5.00/12 = $.416 per oz

In conclusion, the smaller $3 package would be a better deal in this instance.  Not seem like a big enough deal to compare?  Over the course of one year, at using 16oz per month, you would save about $10 by buying the smaller package of cheese.  Over ten years, $100.  Now save $10 (at least) on a lot of the products you buy, which are at least 100 different products, and we are talking about saving $1,000 a year simply by figuring the cost per unit!