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Are You Overpaying For Groceries?

Joe Raedle, Getty Images

According to a new study in the “Journal of Marketing” in PR Newswire, about three-quarters of us probably overpay for groceries . . . because we can’t solve the following math problem:

Would you rather buy something where you get 50% MORE for the regular price . . . or buy the regular quantity at 50% off?

73% of people in the study chose the first option, and bought the product that offered 50% more.  But . . . that deal is actually WORSE. Here’s why . . .

Let’s say we’re dealing with 10 bananas for $5.  In the first option, you’d get 50% MORE for the regular price . . . or 15 bananas for $5.  That’s 33 cents per banana.

If You Can’t Solve This Math Problem, You’re Overpaying For Groceries:

In the second option, you buy the regular quantity at 50% OFF, so you’d get 10 bananas for $2.50 . . . or 25 cents per banana.

In fact, even if the discount was only 35% instead of 50%, you’d STILL be better off taking the discount than buying the extra quantity.

It’s because we’ve been trained to want BONUSES over DISCOUNTS.  So we want the larger quantity even when it’s a worse deal.

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