Supermarkets across Australia are facing mounting pressure from customers who are worried about costs. Against that backdrop, a new pricing experiment stands out. Monash University and Deakin University partnered with Ritchies IGA Supermarkets to trial what they call “nutritional serve pricing.” They add a per-serve price tag alongside the familiar per-kilogram label for vegetables (and fruit). Since the rollout, the trial reports a 6 per cent lift in vegetable sales across the chain. This kind of price framing raises an important question. Does this pricing format really make vegetables cheaper, or does it just make them feel cheaper?
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Australian Supermarket Price Per Serving Labels
Per‑serve pricing changes how price information is presented. For example, green beans priced at $12.99 per kilogram may initially seem steep. But when displayed as 97 cents per 75‑gram “serve,” the number feels smaller and more familiar, similar to a snack or canned good. This is an example of price framing in action, helping shoppers understand the cost of a price per serving.
In effect, per‑serve pricing shifts the reference point for the customer. Rather than thinking about kilos and these vague metrics, shoppers see a price they can directly relate to a meal portion. The actual cost per kg stays the same. So this is a shift in communication, not a discount.
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The Price Framing and Behavioural Psychology at Play
We know from behavioural pricing theory that how you frame a price changes how customers react. When a price looks like a small everyday expenditure rather than a bulk commitment, consumers are more likely to view the product as affordable. This is a clear example of price framing aimed at improving perceptions of fruit and vegetable prices.
Many shoppers think in portions, a serve or a meal, not in kilos. When shoppers see a vegetable serve priced like a ready‑made product, the dread of “expensive fresh produce” dissolves. As a result, they adjust their perceptions of value. This cognitive shift is powerful and helps customers understand the price per serving more intuitively.
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Fruit and Vegetable Price Perception Improves, Spending May Rise
Here is the nuance that many businesses miss. Per‑serve pricing does not lower the cost per kilogram. If customers buy more vegetables, for a family, or to hit multiple serves, their spending can increase overall. In other words, this price framing can lead to higher total spend even if vegetable prices in Australia remain the same.
For heavy or regular vegetable shoppers, or larger households, this means paying more overall for the same price per serving. The underlying economics do not change. What shifts is the perception of cost. This is not inherently bad, but it is important to recognise.
What Price Framing Means for Pricing Teams
For pricing teams in supermarkets or grocery retail, treat per‑serve pricing as a communication format, not a pricing strategy. It is a tool for price framing to influence perception. Use it wisely.
Make sure you keep the supermarket price label and per‑kilogram pricing clearly visible. That keeps transparency intact. Then use per‑serve pricing to give customers a quick, intuitive way to understand price per serving. In that sense, you respect both the consumer and the economics of the business.
Also, align the “serve” size with actual consumer patterns, not idealised nutritional guidelines that may not reflect real household usage or fruit and vegetable prices.
What Executives Need to Understand About Price Framing
As a business leader, you might see per‑serve pricing as a behavioural “nudge” that drives sales. And you would be right. It has delivered measurable lifts (6 per cent or more) according to the latest data. This is a strong example of price framing in action.
But nudges are no substitute for affordability strategies. If your costs are high or margins are tight, per‑serve pricing alone won’t solve the problem. Instead, it can mask issues and potentially erode trust if customers realise they are paying more over time for fruit and vegetables.
Use it only when it reinforces clarity, trust and value. Not as a way to disguise cost pressure or inflate perceived value without real benefit.
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The Bigger Lesson for Australian Businesses on Price Framing
This trial demonstrates that how you communicate price often matters more than the price itself. Simple price framing adjustments can change shopper behaviour and increase volumes. For retailers, that is a powerful lever when price labels.
However, price communication is a double‑edged sword. Done well, it builds value perception and trust. Done poorly, it risks confusing customers or eroding long‑term loyalty.
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The Future of Price Framing and Communication in Retail
Per‑serve pricing can help shoppers see vegetables as affordable everyday goods rather than budget-busting items. It only works when used as a transparent price framing tool, not as a workaround for high costs.
If you lead a supermarket or retail chain, now is the time to review how you display prices. Ask yourself: Does your pricing help customers understand value, or does it hide cost on your supermarket price label or fruit and vegetable prices?
For pricing or merchandising teams, consider running a small pilot. Test per‑serve pricing alongside standard labels, track basket size and volume, and measure customer feedback and trust. This gives shoppers a clear sense of price per serving.
You may find that clear price framing can shift behaviour in a meaningful way. In a market under cost-of-living and value scrutiny, that can make all the difference.
We understand the challenges of balancing customer value, affordability, and trust. We help retailers and pricing teams design strategies that influence behaviour without compromising transparency. Reach out today, and let’s explore practical ways to make your pricing more effective, customer-friendly, and profitable. Together, we can turn insights into action and deliver stronger results for your business.
For a comprehensive view of maximising growth in your company, download a complimentary whitepaper on A Capability Framework for Pricing Teams.
Are you a business in need of help aligning your pricing strategy, people and operations to deliver an immediate impact on profit?
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