I asked about this once on the SDMB, only it was related to the cost of cans. I usually see six-packs of 8 oz (235ml) cans sell for far more per ounce than 12-packs of 12 oz (355 ml) cans; maybe $3.50 for the 12-pack of 12 oz cans (2.4 cents/ounce), and $2.50 for the six-pack of 8 oz cans (5.2 cents/ounce). Dopers defended their purchase of the small cans, saying that pop doesn’t get wasted, and they don’t have to deal with cleaning up cans where half of the pop remains.
Ok I decided to google this as my head was hurting.
I think for the sake of sanity I’m going to go somewhere else and think about something sensible, like quantum physics.
I see that quite often at Walmart in Chicago. It must be some kind of a special.
Thanks for all the feedback. FWIW, I noticed this close to a year ago, and the pricing has been consistent. It’s definitely not a unit-price issue, hence the Alice in Wonderland quote that began the OP. It’s literally cheaper to buy a full gallon and throw half of it away than to buy a half-gallon.
Given that it’s happening elsewhere, I wonder if there’s some sort of government subsidy involved, some paperwork that says milk producers get a tax break on every gallon of milk sold, or something like that, but no subsidy is in the paperwork for half-gallons. That’s what I’m trying to figure out.
Actually, I have another WAG: Could it be partly WIC shoppers? AIUI (I’ve never been on WIC) the shopping list you get is very specific: X gallons of milk, Y boxes of cereal, etc. So, if someone had benefits for 1 1/2 gallons of milk, then they are buying the half gallon container, even if it costs more than the gallon.
sorta odd cite, here’s something about container size, question #15:
http://www.jamiesonfamilymarkets.com/uploads/Cashier_Training-_WIC_WV_Quiz_Answers.pdf
There is no government subsidy to milk producers tied into half gallon milk sales.
The only government program that would be tied into half gallon milk purchases would be WIC programs.
At least a few people are purchasing the 2 qt. containers or the store wouldn’t stock them. They know about what number of them sell and buy about that quantity, otherwise it wastes space that could be selling something that brings in money.
I hope your not comparing different brands either as some people have brand loyalties regardless of value per unit.
Hmm… are both the same brand or different brands?
Check out what you quoted: store brand in both case :). I think that the name brands are more reasonable in their pricing.
It’s just a way to get money out of the customer’s pockets. If you go into a store at noon for a sandwich, you grab a cute little bottle of milk out of the cold case in the deli. It costs $1.50. In the back of the store are quarts of milk that cost about 89 cents. They know full well you aren’t going to buy that quart of milk for your lunch, even if it is cheaper.
That’s always been the case…but recently I’ve been noticing sometimes it no longer is. For example, I buy 100 calorie keebler fudge stripe cookie packs for lunch, and it’s $1.99 for a box of six, or $4.59 for a box of twelve - so you’re paying more for the convience of…I don’t know what. I’ve noticed similar issues with ritz peanut butter crackers and other lunch items, too.
I’m pretty sure it’s all the answers here.
The convenience cost plus prices being affected by packaging.
WIC (means Women, Infants, and Children for those that don’t know*) has VERY strict rules about packaging and sizes. (Realize that if you’re buying milk for at least one adult and one kid, a lot of milk will be used. If the kid count goes up—that’s a LOT of milk. Most WIC is for lowest priced items of the type of merchandise and only in certain sizes for many reasons.)
Milk is a loss leader–I work in the belly of the beast–and it matches any other grocery store that prices it that way. For the longest time, my store has been matching (at a huge loss) the 1.99 gallon of milk b/c that’s what’s in their ad.
In addition, there are people like me–there is no way in hell in a two adult household that we get thru a half-gallon of milk before it gets bad. In the winter, I might use a tablespoon if I drink coffee. The SO takes his black. I used to eat bowls of cereal, but I’m up and out the door with something I can eat while I drive like a sandwich. (Plus, I cant do cereal or sugar in the morning–I need protein.) And I HATE to throw out milk. It feels so wrong. So I’ll pay the extra .30.
And for those of you who go “ewwwww…store brand!” It’s been said here before and it’s true–it’s the same company, with diff labels.
- I added this b/c when I talked about it with my dad and b/f, they had no idea what that is. A government program to help make sure that kids and nursing mothers can get good nutritional food.
Just wanted to say that our local, independent supermarket has a very similar sale on milk right now, although not quite as marked a difference as the OP’s.
For the last two weeks, i’ve been able to buy a half-gallon bottle of milk for $2.59, and a one-gallon bottle for $2.50. Although we go through quite a lot of milk in our house, we usually buy half-gallon bottles because they’re easier to fit in the fridge. Since the gallon bottles have been so cheap, however, we’ve made the effort to make room in the fridge for them.
Absolutely. I understand how it doesn’t make logical sense; I noticed this very early in my grocery career and struggled to understand how it was possible, but trust me, that’s exactly how it works. It took me a while to get my head around it; it clearly made no sense whatsoever, until I really took a good look at the invoices/sales and crunched the numbers. This was many years ago and I couldn’t possibly remember what the actual numbers were, but I’ll have to ask you to take my word for it- it’s the only way the store can turn a profit on half gallons/quarts. In fact, it would be fair to say that the only reason they even carry half-gallons is for customers’ convenience. The costs of stocking and selling gallons is significantly less than the cost of stocking and selling half gallons.
Strange but true.
Gallon milk is the big loss leader around here. Every place charges around $1.99, and advertises it as such. It’s just to get you in the store. We all know that the milk cooler is placed furthest from the front doors in a supermarket, so you have to walk past every other aisle in the store to get it, thereby getting you to buy much more than just the milk - why waste a trip? Now, even 7-Elevens and Walgreens charge nearly that low for milk because otherwise you’ll take your business somewhere else.
Well, they sell it that way because it apparently works, and I can see how it could. If I walk into a grocery store to buy milk I’ll look at the quarts and the half-gallons. I won’t even look at the gallons. Unless I’m making my own cheese, I just don’t need a gallon of milk, and won’t be able to use it.
Having food go to waste stresses me out and makes me uncomfortable – as such, I easily see myself paying a lot more for a smaller package of something because I know it is less likely to go to waste.
So how come my supermarket doesn’t do that? 
Gallons at Safeway here are $3.79, and half gallons $1.99.
consider their local competition
if convenience store/drug store/small retailer X sells Gallon jugs of milk for loss-leading purposes (and only stocks that size, since it’s only being sold as a loss leader, and may not do enough milk business otherwise to justify shelf space and/or spoilage costs), then large retailer X who does sell both Gallons and 1/2 gallons will be forced to similarly discount their Gallons to maintain the same loss leading effects (and normal sale effects).
Half gallons aren’t going anywhere in price, though, since no one else stocks them and there are particularly good reasons for a consumer to favor purchasing those 1/2 gallons (weight limits, fridge size limits, lower usage of milk leading to a desire to have greater milk turnover so as to get fresher milk, etc.) at the slightly higher price
Once my mom saw someone buying two half-gallons and helpfully pointed out that the one gallon would be cheaper. They replied “Oh I can’t drink a whole gallon.” ???
[minor hijack]I buy half gallons. I’ve noticed that milk I buy goes bad before the date. At first, I blamed the open cases at the store. Some of that milk tasted sour even three days after I bought it. I switched to a store that has the milk behind doors. It lasts longer, but it never lasts until the expiration date. It’ll usually taste sour a couple days early. [end hijack]
Thanks for the answers, folks. The “loss leader” thing sort of makes sense: I’d always thought that loss leaders would be heavily advertised specials and not regular products, but it makes sense that some loss leaders would be staples. Weirdly, I shop at the local Ingles (the grocery store in question) rather than the one near where I work, because milk and eggs at the one near my workplace are much more expensive. My local one has a much worse selection of many other products, but their loss leaders help them outcompete the other Ingles stores in town.