Worksheet: Plot and fix your pack-price ladder

Shoppers read the unit price on the shelf label. The large grocers must show it under the Unit Pricing Code. A bigger pack that costs the same per unit as a smaller one wastes the bigger pack. This sheet plots the ladder, fixes the wrong steps and sets the gap to hold on promotion. It builds the Competent step of the check:

Price per unit steps down the pack sizes by design, and the gap between our brand and own-brand is a stated target.

Step 1. Plot the ladder

Use one unit for the whole line, such as per 100g or per litre. Use shelf prices any shopper can see.

Pack size	Our shelf price	Ours per unit	Nearest competitor per unit	Own-brand per unit	Step from the next smaller pack (%)	Steps the right way?
e.g. 250g	$3.50	$1.40	$1.30	$0.90	n/a	n/a
e.g. 500g	$6.00	$1.20	$1.15	$0.80	−14%	Yes
e.g. 1kg	$12.50	$1.25	$1.05	$0.75	+4%	No

Step 2. Fix the steps that go the wrong way

Check each pack's contribution first. A pack that loses money and breaks the ladder is a candidate to delete.

Pack	Problem (no step, wrong way, too close to a competitor)	Contribution per unit	Fix (reprice, resize, delete)	Where its volume goes if it moves	Owner	Date
e.g. 1kg	Costs more per unit than 500g	$0.30	Reprice to $11.50	Some from 500g, some from competitor 1kg	Brand manager	Next list review

When one step moves, shoppers move to the next. Estimate how much leaves the brand, not just the pack.

Step 3. The gaps we hold

Product line	Premium to own-brand per unit, everyday (%)	Least premium on promotion (%)	Gap to nearest competitor (%)	Deepest promotion that keeps the premium
e.g. Line A	45%	20%	+5%	25% off

A promotion deeper than the last column puts the brand at own-brand prices. Write the gap into the promotion guidelines.

Done when: price per unit steps down your pack sizes by design, and your brand's gap to own-brand is a written target.

Adapted from our own own-brand pricing strategy (PSP, 2012).