Shrinkflation

[el kaka22]

This is such a BS, I keep getting less and less food whenever I order food, I keep getting less and less stuff when I eat somewhere, it really doesn't feel like it's a good idea, I feel like we are doing a bad job right now and should be doing a lot better. I hope that it gets to a better point eventually but that doesn't change the fact that we are facing one of the worst situations in the recent memory with this financial situation so I understand companies trying to protect it's users as well.

I hope that it gets better eventually and we will not face these issues, but until the economy recovers, we are going to do worse. I end up getting two of the thing I want instead of one, just to eat enough, and that makes me spend even more, so it could be a trick as well.

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[Dickiy]

Shrinkflation is practice of reducing the size of a product while maintaining its sticker price.

I hate it when companies reduce quantity (and often quality too) of product to sell it at same price as before to combat inflation. Oh and don't forget those, "30% Extra" labels.

Inflation makes everything rise, so might as well keep the original quantity and just increase the price.

Do you agree? How would you combat inflation if you were running a company?

This is one of the effective strategies to fight fast-moving inflation like today, because what is affected in this case is the increase in production costs so that companies or producers must have a way to keep their products competitive in the market.
Rather than changing the quality of using cheaper ingredients to do the production it will definitely affect the taste if it is in the food, the best option here is to reduce the size and keep the price the same.
Increasing prices directly will shock consumers if at the level of inflation, it is possible that the goods being marketed will be abandoned by consumers, and consumers will look for other alternatives.
If I were the owner of the company, the pressure in this situation would be to make production of the same quality and reduce the size and increase the price slightly so that consumers are not too surprised by the price increase and my company does not lose money, because the most important thing for the company is to maintain customers so that their money can rotate.

[Die_empty]

Shrinkflation is practice of reducing the size of a product while maintaining its sticker price.

I hate it when companies reduce quantity (and often quality too) of product to sell it at same price as before to combat inflation. Oh and don't forget those, "30% Extra" labels.

Inflation makes everything rise, so might as well keep the original quantity and just increase the price.

Do you agree? How would you combat inflation if you were running a company?

A price increase is one of the major reasons why customers seek alternatives. Although it is the best option to maintain quality and quantity but producers hardly use it for fear of losing market share. In the business world sincerity is rare virtue but it might be a good tool to gain customer loyalty. For me, I will not deceive my customer with fake packaging rather I will create more options for my client. My customers will have to choose from a variety of my products with different prices and quality. Customers that can afford high quality and quantity will have to pay more. While the other option will be a cheaper version with reduced quality or quantity.

[Fesatmas]

But to me it’s better a company increases their price and maintain their quality and quantity, people that really know the quality of your products will still patronize, but most company owners don’t really know this.

That might be quite a risky step because maybe the market won't be able to buy many products and there will be a slowdown in the circulation of goods if quality and quantity are maintained with the option of only increasing prices, but yes, in order to maintain good customer trust, the choice you mentioned is an option.

Inflation makes everything rise, so might as well keep the original quantity and just increase the price.

If you can reduce the packaging and sell it at a higher price than before, and in addition use lower quality raw materials to make the product, then most companies will do it - profit comes first, and they consider customers to be sheep who are not very intelligent anyway.

That is truly a disgraceful act especially since the goods being sold are commodities or the main needs of the people in living their lives, that is too cruel, capitalistic thinking like that is inhumane.

[Razmirraz]

Shrinkflation is practice of reducing the size of a product while maintaining its sticker price.

I hate it when companies reduce quantity (and often quality too) of product to sell it at same price as before to combat inflation. Oh and don't forget those, "30% Extra" labels.

Inflation makes everything rise, so might as well keep the original quantity and just increase the price.

Do you agree? How would you combat inflation if you were running a company?

The phenomenon that occurs in the midst of society, especially the lower middle class, is more accepting of a decrease in quality than having to buy it at a slightly higher price. Inflation has pushed consumers into unfavorable choices, people who have an above average amount of wealth may not be affected by inflation too much.

The company will implement a marketing strategy that can connect with all consumers, from the highest level to the lowest level, under any circumstances the company will try to sell its products. I prefer quality over quantity, when quality decreases it will affect consumer confidence in products that make purchasing power decrease.

[bangjoe]

Do you agree? How would you combat inflation if you were running a company?

Yes I agree about maintaining the quality and quantity even though I have to eat the price.
But if I am the owner of the company so I will use two strategies in this regard, basically the market has 3 clusters in its first high -class marketing for rich people, middle and lower classes, in this case I aim for my product so that it can be sold well in the cluster market.

First I will maintain the quality and quantity of goods that I produce and raise the price to support my sales in the consumer class of the rich because they put the quality and quantity of goods for them to consumption and surely on this premium product there will be a slowdown And it is important for companies to reduce production to keep goods from rotten.

The second I will make the same new product as an alternative to lower-level consumers as an alternative product choice by reducing quality with the same utility and quantity, because the average consumer behavior of the lower economic level tends to prioritize quantity.
For the middle class economy, I think it is a plexible, they can choose the main product or alternative product for them to consume.

This strategy will be effective if the company has enough funding in running it, because in the inflation situation it will make the company suffocate if it does not accelerate the handling strategy in maintaining its market.

[Stable090]

That might be quite a risky step because maybe the market won't be able to buy many products and there will be a slowdown in the circulation of goods if quality and quantity are maintained with the option of only increasing prices, but yes, in order to maintain good customer trust, the choice you mentioned is an option.

If you decide to reduce the quality and maintain the price, don’t be surprised that you are still going to lose more customers, if some people are purchasing a product, they will go for the one with high quality even if the price is high compare to others, not everyone cares about price, some people just want to get a quality product.

Have seen a company that closed down in my country just because when they started production, they were producing high quality products when they started, but after getting more customers, they decided to reduce their quality, and people reduced they way they patronized them drastically, the company is now down. If they increased their price and maintained their quality maybe they will still be in market up till now.

[AbuBhakar]

Inflation makes everything rise, so might as well keep the original quantity and just increase the price.  

Company main goal on using shrinkflation on their product is to make their product available to all type of consumer including the poor. They focus on the quantity of their product sale rather than the amount since consumer normally dodge product that high price or increased price with certain percentage because people think that the product is expensive rather than the volume of the content.

How would you combat inflation if you were running a company?

Many old product in the market went down because they can’t keep their product price to affordable range without sacrificing the quality. I think I will do the same method especially if my company is on the food industry because no one will buy a shitty product just ro make it affordable same with high price just to have the same quantity.

Reducing the size to make it still affordable and same quality is the best way to maintain the brand reputation in the market to keep the business running.

[Dr.Bitcoin_Strange]

Shrinkflation is practice of reducing the size of a product while maintaining its sticker price.

I hate it when companies reduce quantity (and often quality too) of product to sell it at same price as before to combat inflation. Oh and don't forget those, "30% Extra" labels.

Inflation makes everything rise, so might as well keep the original quantity and just increase the price.

Do you agree? How would you combat inflation if you were running a company?

But that's not the right way to combat inflation. I know these companies also buy some raw materials they need for their production, but at least maintaining high quality is better than quantity reduction. It seems that this is the approach that most companies are taking now. Last month I went to buy spaghetti, and I was seeing different sizes of the spaghetti: one packet was 400g, sold for $085; the other was 500g, sold for $1.1. Normally, what it used to be is only 500g,, which is normally sold for $1, but I was surprised by the new development, so I bought the two sizes, but when I cooked this spaghetti, I noticed that there was a difference in quality between the 400g and the 500g, which is very wrong. With that, I will not be buying their products again; I have to look for alternatives. They have lost one bonafide customer in me.

If I have a company, usually I have to maintain the standard of my product, and if it will require me to increase the selling price of the product in order to maintain the quality and quantity, I will do so, but if I see that it is not working, I had better reduce the quantity rather than the quality. Even if the price is high, as long as it still maintains the usual quantity and quality, most people will still buy it.

[Gyfts]

But to me it’s better a company increases their price and maintain their quality and quantity, people that really know the quality of your products will still patronize, but most company owners don’t really know this.

"Shrinkflation" is based on misleading people into thinking they're getting the same value for their money. Increasing the price takes the deception away because most consumers pay attention to the price relative to the price per unit of product.

I've seen companies demonized over this practice. While deceptive, people should rather be angry at their own government for inflating their currency beyond recognition. As if the private sector has any say on how much currency gets printed.

[Ultegra134]

Shrinkflation is practice of reducing the size of a product while maintaining its sticker price.

I hate it when companies reduce quantity (and often quality too) of product to sell it at same price as before to combat inflation. Oh and don't forget those, "30% Extra" labels.

Inflation makes everything rise, so might as well keep the original quantity and just increase the price.

Do you agree? How would you combat inflation if you were running a company?

Does it ever matter? Inflation is inflation. It doesn't matter if the quality/quantity gets reduced or the prices go up.
You are terribly wrong about something.
The business owners/managers cannot "combat inflation". Only the governments and the central banks can fight inflation by interest rate hikes, higher taxes and cutting government expenses. 99% of the time, inflation is created by the governments and the central banks, which is a part of the absurd reality we live in. All the companies in the private sector can only adapt to the situation(by cutting costs and increasing the prices).

The issue is that companies are taking advantage of the current situation with inflation by further increasing their prices and/or reducing their quantities in an attempt to additionally increase their profits in the name of global inflation. Businesses and companies may not be able to battle inflation, but they can certainly worsen an already awful situation. Supermarket chains here are breaking records in profits in a period that's supposed to be characterized as worrisome and underwhelming. It's a complicated matter; on the one hand, governments are allowing them to constantly increase prices since there's little to no monitoring, while on the other hand, companies are part of the inflation issue due to their greediness to increase their massive profits.

The shrinkage of packaging is a common practice that has become excessively prevalent in the past few years in an attempt to trick consumers into thinking that prices have remained the same. I used to work at a supermarket, and a wide variety of products had been shrunken, such as yogurts, butter, and bread.

[yhiaali3]

You, as a company manager, cannot combat inflation because this inflation is at the level of the entire country, and it is related to the state of the national economy and the government's economic policy.

But as a manager of a company that has a product, you either reduce production costs or increase the price. Reducing production costs includes using cheap but bad raw materials or reducing the quantity of the product.

So the choice here is related to the society in which you live, some people prefer to use cheap products even if they are bad, while others prefer quality even if the price is higher.

Therefore, as a manager, I will manufacture cheap and expensive products, so that I can spread my product to the widest segment of people.

[ichsan ardi]

Shrinkflation is practice of reducing the size of a product while maintaining its sticker price.

I hate it when companies reduce quantity (and often quality too) of product to sell it at same price as before to combat inflation. Oh and don't forget those, "30% Extra" labels.

Inflation makes everything rise, so might as well keep the original quantity and just increase the price.

Do you agree? How would you combat inflation if you were running a company?

if i own a company and want to fight inflation so my company doesn't go bankrupt i will divert the company money to inflation resistant assets like gold and bitcoin because one effective way to fight inflation is to buy inflation resistant assets if things start to recover i will sell some of the assets that I bought so that my company can run again as before, this is just my personal opinion

[MainIbem]

This is one thing that quickly gets me annoyed and I hate seeing things not worth up to the quality and quantity it was before..
As for me price increased would have been the best option than reduction of size and quantities. For instance there is this peak Milk company in my country, they have reduces their quality and quantities as same time increased the price of the product from the previous to extra 40 percent increase and this made me to change products to starting patronizing Cowbell products. They maintain their quality and quantity but yet still little increase in price maybe 10 percent to 15 percent but I still enjoyed their products more better than peak.

[wxa7115]

Shrinkflation is practice of reducing the size of a product while maintaining its sticker price.

I hate it when companies reduce quantity (and often quality too) of product to sell it at same price as before to combat inflation. Oh and don't forget those, "30% Extra" labels.

Inflation makes everything rise, so might as well keep the original quantity and just increase the price.

Do you agree? How would you combat inflation if you were running a company?

If that is your preference that is cool, however the fact that a great deal of companies do this should tell us that for them it is preferable to offer less product for the same price than the same amount of product for a higher price.

Customers are very sensitive to any price increase, and if a company raised the price of their products in order to keep up with inflation then they will lose customers against a company which decided to offer less for the same price, and about how companies could combat inflation there is really not much they can do, as even if they bought their supplies before the prices went up, at some point they will have to buy again at inflated prices, so as you can see companies are also victims of the inflation caused by the governments.

[Similificator]

Shrinkflation is practice of reducing the size of a product while maintaining its sticker price.

I hate it when companies reduce quantity (and often quality too) of product to sell it at same price as before to combat inflation. Oh and don't forget those, "30% Extra" labels.

Inflation makes everything rise, so might as well keep the original quantity and just increase the price.

Do you agree? How would you combat inflation if you were running a company?

I can totally relate! I feel like crap looking at the snacks that I usually buy from time to time becoming full of air rather than actual chips/fillings/food size! Really degrades the nostalgic feel of reminiscing about the childhood days that I long for every time I open those snack brands. And even if it weren't related to that, it's still freaking disappointing looking at something expecting it to have a lot inside of it because of how it is packaged but end up seeing just a few bits and a ton of air. It's like buying air inside a pack and getting a bit of food for free!

But, on a business owner's side though, I'd probably be making the same decision since nowadays people prefer the cheaper stuff more along with those "30% Extra" labels despite knowing that it isn't even real. I mean, if a person starts a business, his main goal would naturally be profits. And going for the strategies that would make products sell more and give out the most amount of profit possible would obviously be the choice he'd prioritize most.

What a businessman can add to this strategy to make it as fair as it can be to the consumers though is to make sure that the product getting adjusted in terms of quality or quantity won't affect the actual purpose of the product. If it does, then find other ways to cut costs or just increase the price with a reasonable amount that wouldn't be too much for the consumers but would still give you considerable profits. That is, if a businessman really does care about the consumers.

[Lorence.xD]

If they downgrade their products or food it will affect their market as customer like the originality of the products itself. For example, in here the Jollibee fast food is actually popular but due to inflation you could notice that their gravy needed to be served if you don't have any orders but before you could actually ask a gravy as long as you like. People find it displeasing so they return it, however the prices of the menu increases which people had no choice but to pay extra for the choice of their quality.

[wajik-tempe]

Do you agree? How would you combat inflation if you were running a company?

If I were in charge of a business, I would prioritize increasing productivity, cutting expenses, and identifying fresh development prospects.
Finding ways to cut costs without compromising quality is a possibility. This can entail revising supplier agreements, identifying more effective manufacturing procedures, or cutting overhead costs. Alternatively, you could simply raise prices to keep up with inflation as another option. However, this can be tricky because it might lead to customers looking for less expensive alternatives.

[adaseb]

Yeah I noticed this also. Basically when you go shopping you will notice two things

1) Products which cost 50% more

2) Products which cost 10-20% more but less quantity

Basically the bag is the same size except the label has indicated there is less contents inside. Very common with potato chips and cereal boxes.

[Wind_FURY]

Yeah I noticed this also. Basically when you go shopping you will notice two things

1) Products which cost 50% more

2) Products which cost 10-20% more but less quantity

Basically the bag is the same size except the label has indicated there is less contents inside. Very common with potato chips and cereal boxes.

Inflation is telling you to stop eating the junk food and go start living a more healthier life style. Hahaha.

But that's where it actually starts. When the plebs like us start to notice that inflation is starting to take away more and more of our savings, that's when we budget our money more carefully. It helps lowering demand, and therefore also starts to help in lowering inflation. But there's a negative effect. A Recession. That's because business and services would also have lower profits and will be forced to get rid of a percentage of the company's employees, OR be creative = smaller amount of Potato Chips.

Simply, to defeat inflation there must be a recession. The Central Banks must cause a recession, through monetary tightening, as early as possible while the economy is still strong and while the consumers still have their savings. It will make the recovery faster.