Supermarket Pricing Confusion: Per-Unit vs Per-Kilogram Costs
Supermarket Pricing Confusion: Per-Unit vs Per-Kg

Under current regulations, major supermarket chains have the flexibility to price fruit and vegetables either per unit or per kilogram, regardless of whether items are packaged or sold loose. This system has created significant confusion for shoppers trying to make informed purchasing decisions.

Bitter Reality: How Per-Unit Pricing Leaves Consumers Out of Pocket

Consumer advocacy groups are calling for greater transparency as Woolworths, Coles, and Aldi increasingly expand their use of per-unit pricing without consistently displaying equivalent per-kilogram prices. This practice makes it extremely difficult for customers to accurately compare costs between different products and sizes.

When purchasing a bunch of small "kids' bananas" at Woolworths, shoppers might not realise they're paying nearly double the price of larger cavendish bananas positioned right beside them. At one store, kids' bananas were sold in bunches of five for $3.70 per bunch, appearing similar in price to loose cavendish bananas priced at $3.50 per kilogram.

However, when a Guardian reader weighed a bunch of these smaller bananas at 530 grams, they calculated the actual per-kilogram price reached $6.98 – representing a staggering 99% price increase for smaller pieces of the same fruit.

Confusing Pricing Conceals Significant Cost Variations

Because supermarkets are not legally required to display per-kilogram pricing or even provide average weight information for items, consumers frequently remain unaware whether they're actually securing good value when paying fixed prices for individual products.

The same Guardian reader conducted another revealing test at their local Woolworths, this time examining cucumber pricing. Lebanese cucumbers were priced at $4.90 per kilogram, positioned directly beside continental cucumbers priced at $2.50 each. While the continental variety might initially appear more affordable due to its larger size, weighing revealed a different reality.

When the reader weighed one continental cucumber at 340 grams, they calculated the per-kilogram cost reached $7.35. While not identical products, this represented a 50% higher cost per kilogram compared to the Lebanese variety.

A Woolworths spokesperson defended their pricing approach, stating it was "clearly communicated to allow our customers to make informed choices when it comes to their purchases."

Random Implementation of Unit Pricing Across Supermarkets

In physical stores, all three major supermarket chains have been expanding their use of per-unit pricing, frequently omitting per-kilogram pricing entirely. Coles has confirmed it is trialling an expansion of per-unit pricing, but a Guardian Australia visit to a Melbourne Coles store revealed more than half of fresh produce was already priced per item in what appeared to be a random fashion.

Cauliflowers were priced at $5 each beside broccoli priced at $8 per kilogram. Numerous vegetables including silver beet, kale, celery, spring onions, pak choy, leeks, and wombok were all sold per-unit, as were various fruits including kiwifruit, lemons, limes, sweet corn, pineapple, papaya, passion fruit, and different melon varieties.

Many lettuces were sold in Coles-brand plastic packaging priced between $2.50 and $4.70, with no per-kilogram price displayed on tickets and no weight information marked on packaging.

A Coles spokesperson explained that their mix of per-kilogram and per-unit pricing aimed to make shopping easier for consumers. "Many items are commonly selected as individual pieces, and per-unit pricing makes it easier for customers to quickly choose the number of items they need," they stated, adding that their goal was to "balance transparency with simplicity, so customers can easily understand prices and shop in the way that suits them best."

The situation proved similar at Aldi stores, where rock melons priced at $4.99 each sat beside watermelons priced at $1.99 per kilogram. Customers could purchase bags of five lemons for $5.99 per bag (equating to $1.20 each) positioned next to baskets of loose lemons priced at $1.49 each. With no scales available in Aldi stores, customers cannot weigh loose lemons to determine better value. Aldi declined to comment on their pricing practices.

Online Shopping Reveals Even Greater Inconsistencies

Guardian Australia reported last month that major supermarkets' shift toward charging for fresh produce by item rather than weight was creating "wild volatility" in pricing, with some items becoming more than 50% more expensive through this method.

When purchasing groceries online from Coles and Aldi, these supermarkets display approximate per-unit prices for some fruits and vegetables alongside each item's average weight and per-kilogram price. For these items, both retailers adjust final prices according to actual weight.

Dario Bulfone, operations manager at local greengrocer Aumanns in Warrandyte, Melbourne, emphasised that taking average product weights and adjusting final prices accordingly was "not complicated at all." He noted that presenting fixed per-unit pricing without proper "true weight reconciliation" creates customer confusion at best and systematically disadvantages shoppers at worst.

"The technology already exists. The systems already exist," Bulfone stated. "Choosing not to do it is not a technical limitation. It's a decision."

A Woolworths spokesperson revealed the company was "investigating additional system capability" for online customers who "might prefer an approach that mirrors how we price in our stores."

Calls for Regulatory Reform and Greater Transparency

Consumer advocates have urged supermarkets to be required to consistently display and charge fresh produce prices per kilogram both in stores and online, with any displayed per-unit prices serving as estimates only.

When questioned by Guardian Australia about supporting such a mandate, Assistant Competition Minister Andrew Leigh did not provide a direct response. Instead, he referenced the Albanese government's commitment to strengthening certain other pricing regulations, describing this as "about clear, accessible information which allows shoppers to compare prices fairly and make informed choices."

The government has not announced any specific reforms addressing per-unit pricing practices, leaving consumers to navigate increasingly complex and potentially misleading pricing systems when purchasing fresh produce.