Topic: Are you aware of Shrinkflation? (Read 370 times)
It's the one way of company market strategy where they want to increase the profits with inflation and expenses being increased.Many times we as consumers don't give much importance to these small changes as if they don't matter like if we are getting 3-4 grams less at same price we don't care but company is gaining huge profits on global level with these.Like PepsiCo products Lays says 25% extra with same rate but it's just the size of packet not chips which they have increased but we don't know.But in the end they all matters and type of hidden inflation in the market.
I remember as a kid we used to have the big bags of Doritos and today they look really tiny by comparison. Not only is everything smaller now but it is also more expensive. You can only shrink things so much before people stop buying your product so these companies will have to find the right balance between price increase and resizing the package.
Maybe this is the reason, When production costs increase, the company has three options: increase prices, make packaging smaller, and change production materials.
Changing the prescription is a risky move. Not only is there a chance that the product won't taste great later — as Chandon, INSEAD professor of marketing, says that the three most important things in food are taste, flavor, and taste — but substituting artificial ingredients of inferior quality can cause even greater waves of anger at producer than at the time of depreciation.
Changing the prescription is a risky move. Not only is there a chance that the product won't taste great later — as Chandon, INSEAD professor of marketing, says that the three most important things in food are taste, flavor, and taste — but substituting artificial ingredients of inferior quality can cause even greater waves of anger at producer than at the time of depreciation.
Congrats to every comments here! Every experience, opinion or criticism show how this subject has space in the actual consumer market as well as manufacturers sales policy. Both sides try to earn some kind of advantage putting their needs in the balance of life. But who or what has to rule this? Through different economic models we can, in this post, verify that one common element is the necessity of a wide open and "seethrough" relationship between companies and customers. To let market be ruled by itself is the ideal mechanism, even oscilating high and low but from time to time finding balanced points for both sides keep on trading under a fair price for goods and services. The deceptive trail may culminate in a "no way out" or "dead end road"!
I'd like to interact with the higher as possible number of comments here, but time is short for this at the moment. I hope I can do this as soon as my others duties release me from.
Happy to see people conscious and aware about what occurs on our daily lives!
I'd like to interact with the higher as possible number of comments here, but time is short for this at the moment. I hope I can do this as soon as my others duties release me from.
Happy to see people conscious and aware about what occurs on our daily lives!
OMG! This is what happened in my country, Venezuela, little by little we saw drastic changes in the products of the supermarkets.
Obviously the situation in my country is different but it is finally inflation.
I wish that the situation in your country is short and that it does not last for a long time.
What can be seen is that large industrialists are trying to maintain their products to avoid losses and maintain jobs.
Obviously the situation in my country is different but it is finally inflation.
I wish that the situation in your country is short and that it does not last for a long time.
What can be seen is that large industrialists are trying to maintain their products to avoid losses and maintain jobs.
Super post my friend, I just could not help laughing. It seems like a serious issue, however I can see a clear benefit to all this: foods that are not processed are normally sold by an standard unit of weight, that is, a kilo a pound a gallon,... however it is only packaged and porcessed foods that can play with shrinking amounts, so overall this means that we will eat less crap and benefit from the less processed foods.
In any case, I know this phenomenon happened when certain pizza company went public in Spain (telepizza). All the sudden some "marketing expert" stripped the cheese and reduced the size. I never bought again.
In any case, I know this phenomenon happened when certain pizza company went public in Spain (telepizza). All the sudden some "marketing expert" stripped the cheese and reduced the size. I never bought again.
Consider the persoective of the businesses though, they have to make a profit and they have to adapt with the current prices of raw materials to make their product which also goes up. I didn't know that it was called shrinkflation but I have seen and observe this happening in my country although it doesn't really affect me as an individual, I am sure that my country's economy is fucked if I can see it then.
It makes sense, if the population in the country understands the way of marketing maybe people start looking for other ways to buy or all sales made will experience a drastic drop in turnover. It could be that a country experiences chaos in buying and selling transactions because the government also wants profits for their country to be able to pay the profits to other countries. My advice if you need and useful do not think too much about the disadvantages of buying these products. but on the contrary think twice if the goods offered are not useful.
Yes. It's sad that manufacturers and businesses have to resort to this just to keep up with the economic situation and to ensure that jobs can still be given out. If most manufacturers retain the same amount of quantity of the products they are selling while the prices of raw materials keep on increasing, they'd be operating on a loss, and might drop some workers from their roster up until everything falls apart. While I hate greedy capitalists, things like this couldn't be helped, and is happening everywhere to ensure that manufacturers stay afloat and keep their employees intact.
Consider the persoective of the businesses though, they have to make a profit and they have to adapt with the current prices of raw materials to make their product which also goes up. I didn't know that it was called shrinkflation but I have seen and observe this happening in my country although it doesn't really affect me as an individual, I am sure that my country's economy is fucked if I can see it then.
It makes sense, if the population in the country understands the way of marketing maybe people start looking for other ways to buy or all sales made will experience a drastic drop in turnover. It could be that a country experiences chaos in buying and selling transactions because the government also wants profits for their country to be able to pay the profits to other countries. My advice if you need and useful do not think too much about the disadvantages of buying these products. but on the contrary think twice if the goods offered are not useful.This is why they do this, not because they have to in order to be profitable, they do it because they want to make more and more profit. Why? Because they have shareholders and you can't promise shareholders 1 billion dollars profit forever, if you do that they will move to some other that will profit them more, so they have to keep profiting more and more and that is why there is shrinkflation.
It's because the ingredients they are using in their product got a price increase as well, so instead of increasing the price by keeping the same amount of weight or quantity inside the product, they chose to decrease it and keep the same price so their regular customer won't complain about the sudden price hike, it's a better marketing strategy knowing your consumers to avoid profit loss because of price changed.
Things that continue to be done in a company that make a profit for them. Ordinary people who don't really understand will feel happy with discounts or other forms of promos. but actually everyone is deceived by it all. But all companies will also think about how to market a product they will sell.
Consider the persoective of the businesses though, they have to make a profit and they have to adapt with the current prices of raw materials to make their product which also goes up. I didn't know that it was called shrinkflation but I have seen and observe this happening in my country although it doesn't really affect me as an individual, I am sure that my country's economy is fucked if I can see it then.It makes sense, if the population in the country understands the way of marketing maybe people start looking for other ways to buy or all sales made will experience a drastic drop in turnover. It could be that a country experiences chaos in buying and selling transactions because the government also wants profits for their country to be able to pay the profits to other countries. My advice if you need and useful do not think too much about the disadvantages of buying these products. but on the contrary think twice if the goods offered are not useful.
Things that continue to be done in a company that make a profit for them. Ordinary people who don't really understand will feel happy with discounts or other forms of promos. but actually everyone is deceived by it all. But all companies will also think about how to market a product they will sell.
Consider the persoective of the businesses though, they have to make a profit and they have to adapt with the current prices of raw materials to make their product which also goes up. I didn't know that it was called shrinkflation but I have seen and observe this happening in my country although it doesn't really affect me as an individual, I am sure that my country's economy is fucked if I can see it then.It makes sense, if the population in the country understands the way of marketing maybe people start looking for other ways to buy or all sales made will experience a drastic drop in turnover. It could be that a country experiences chaos in buying and selling transactions because the government also wants profits for their country to be able to pay the profits to other countries. My advice if you need and useful do not think too much about the disadvantages of buying these products. but on the contrary think twice if the goods offered are not useful.
Consider the persoective of the businesses though, they have to make a profit and they have to adapt with the current prices of raw materials to make their product which also goes up. I didn't know that it was called shrinkflation but I have seen and observe this happening in my country although it doesn't really affect me as an individual, I am sure that my country's economy is fucked if I can see it then.
Companies definitely need to make profit but that can be communicated openly. There is no need to try and trick the consumers. Increasing prices on the normal package is fine from time to time. If this happens multiple times per year it already feels a bit wierd. But this shrinkinflation is just a rip off in my opinion. There is no need to make the packages smaller at the same prices. This is just to trick the consumer that the price remains the same. And most of us won't notice if it was 150g and now its 120g for example.
These companies spend so much on branding and human perception of what they sell that they believe that people don't know (or choose to ignore] that they are paying for less with more.
It is funny that this has always been. People abd companies have always been using deceptive to make customers buy less with more money.
I think some regulations should be put in place to curb these devious acts.
It is funny that this has always been. People abd companies have always been using deceptive to make customers buy less with more money.
I think some regulations should be put in place to curb these devious acts.
What actually matter is that they do it morally in the ways :
1. They can either increase the price to cover their expenses and earn small profits... Price increase is typically obvious and consumers will have choices on whether to buy or not.
Or
2. They could just reduce the size without changing the price but will have to make it obvious they reduced it, and the specific size it's reduced to clearly written.
Both 1 and 2 will help competition because people will compete to sell cheaper, bigger and healthier alternatives
Things that continue to be done in a company that make a profit for them. Ordinary people who don't really understand will feel happy with discounts or other forms of promos. but actually everyone is deceived by it all. But all companies will also think about how to market a product they will sell.
Consider the persoective of the businesses though, they have to make a profit and they have to adapt with the current prices of raw materials to make their product which also goes up. I didn't know that it was called shrinkflation but I have seen and observe this happening in my country although it doesn't really affect me as an individual, I am sure that my country's economy is fucked if I can see it then.Companies definitely need to make profit but that can be communicated openly. There is no need to try and trick the consumers. Increasing prices on the normal package is fine from time to time. If this happens multiple times per year it already feels a bit wierd. But this shrinkinflation is just a rip off in my opinion. There is no need to make the packages smaller at the same prices. This is just to trick the consumer that the price remains the same. And most of us won't notice if it was 150g and now its 120g for example.
Things that continue to be done in a company that make a profit for them. Ordinary people who don't really understand will feel happy with discounts or other forms of promos. but actually everyone is deceived by it all. But all companies will also think about how to market a product they will sell.
Consider the persoective of the businesses though, they have to make a profit and they have to adapt with the current prices of raw materials to make their product which also goes up. I didn't know that it was called shrinkflation but I have seen and observe this happening in my country although it doesn't really affect me as an individual, I am sure that my country's economy is fucked if I can see it then. 
There is already an EU directive stating that you have to put the price per kilogram also and in every supermarket, you will see those below the price per piece. It's a pretty nice thing to have when comparing the same product at different sizes or weights.
I don't know when it will become mandatory for all the countries but around here almost all chain stores have adopted it, quite nice to see the difference in price per kg, when it comes to pistachio, for example, I see that the few cents I pay more for my favorite brand are actually close to 10 euros per kilogram, almost double% up compared to the other brand if I buy a small 140grams pack compared to the other 1/2 kg bag.
So, read the labels!!!
I don't know when it will become mandatory for all the countries but around here almost all chain stores have adopted it, quite nice to see the difference in price per kg, when it comes to pistachio, for example, I see that the few cents I pay more for my favorite brand are actually close to 10 euros per kilogram, almost double% up compared to the other brand if I buy a small 140grams pack compared to the other 1/2 kg bag.
So, read the labels!!!
This is news to me, I'm probably one of the few that haven't noticed.
In my country, the prices are skyrocketing so much you don't even look at those things anymore. On one hand, 180g against 200g doesn't seem like a big difference, not to the customer. But on a large scale, for the companies and distributors it means a lot of additional profit. I hate the fact that customers are being fd over like that, especially in times of crisis.
In my country, the prices are skyrocketing so much you don't even look at those things anymore. On one hand, 180g against 200g doesn't seem like a big difference, not to the customer. But on a large scale, for the companies and distributors it means a lot of additional profit. I hate the fact that customers are being fd over like that, especially in times of crisis.
Things that continue to be done in a company that make a profit for them. Ordinary people who don't really understand will feel happy with discounts or other forms of promos. but actually everyone is deceived by it all. But all companies will also think about how to market a product they will sell. But all companies will also think about how to market a product they will sell.
These companies spend so much on branding and human perception of what they sell that they believe that people don't know (or choose to ignore] that they are paying for less with more.
It is funny that this has always been. People abd companies have always been using deceptive to make customers buy less with more money.
I think some regulations should be put in place to curb these devious acts.
It is funny that this has always been. People abd companies have always been using deceptive to make customers buy less with more money.
I think some regulations should be put in place to curb these devious acts.
Jump to: