Monday, January 01, 2007

Reading the Tea Leaves: Big Price Lessons in Tiny Boxes

The little boxes of Celestial Seasonings tea were inviting. The exotic names on the illustrated labels promised brewed delights: Imperial White Peach, Blueberry Breeze Green Tea and Tangerine Orange Zinger.

It was a special display featuring a newer line of herbal tea flavors. I picked up the minature boxes and quickly put them down, assuming that the price would not be right for the small containers with only 10 teabags per box. We usually buy the larger boxes of 20 bags for $2.87.

But a little voice in my head said: Do the Math! Check the Unit Price. The tiny boxes, I discovered, were only $1.00 each, which meant that I would pay $2 for 20 teabags....(2 boxes for $1 each or 10 cents a bag) versus 20 bags for $2.87 in the larger container, which translates to $0.1435 a tea bag.

Bottom line: The smaller promotional boxes were actually 43 percent cheaper.

Now sipping a cup of peppermint tea, I am tallying up my lessons:

1. Never make assumptions.

2. Always do the math, especially when shopping.

3. Good things come in small packages.



The Frugal Duchess Boutique

No comments: