Is this greed or inflation?

[Stepstowealth]

I don't know if this is only particular to my country but there's something I've observed about industries and the products they make that I would like to point out for discussion.

I visited a regular shop where I buy home commodities and I remember some few years ago that there used to be a particular yogurt brand that I used to enjoy because of its thickness and creaminess and considering that the weather was hot I went ahead to pick up this drink from their refrigerator, went to the counter to pay, I was not shocked to see that the price is no longer what it used to be, it is now more expensive than before, I was not shocked because I understand that things have toughened up in the economy. That was not my disappointment, my disappointment was that the quality of the product has dropped so much even with the price increase.

Now my question is, why can these industries not increase the price of goods and maintain the quality? why is there an increase in price and then still the quality is being reduced. I have noticed this across so many other product in my countries market, not just this yogurt drink. 

I know that this will not be so if my country has a good quality control unit, but even without that, why can these industries not act right and maintain quality, is reducing the quality of product while increasing the price not directly affecting their business?

[KiaKia]

This can only happen in a developing country, it's a playing ground where people like robbing themselves up in the name of the country is now harder than what it used to be, this is something that would land that company in big problem if it happens in America.

To buy anything in a developing country itself isn't safe anymore because you can buy something that will end up killing you, many things aren't original like they used to be anymore. Be careful what you buy and eat or drink.

It's ten times safer when you prepare your food in your house yourself, people don't put effort in what they do best anymore because the return they will get is not changing anything for them, they got tired but keep going because they have no other choice.

[uneng]

I know exactly how you feel, because I have already faced the same scenario many times here. It's a good question to ask if it's greediness or inflation... I think it's inflation, because if it was greediness, another businessman who isn't so greedy like that could simply launch a product of high quality for an affordable price, and that isn't something you see happening. Therefore, I conclude food producers find themselves in a hard position where there isn't much to do.

If you want to purchase quality, you have to go for the very expensive ones, and that is something impossible in a daily basis.

[Donk1]

 when the economy becomes harder, things tends to become more expensive but that's not just it. When the demand for a commodity is high, and the product is frequently being bought the price gradually increases.Still that's not the point. We can all assume that as the economy gets hard like the value of the currency drops tools, materials, and ingredients for creating those products become expensive, which we are all aware of. But when the quality of the product drops and the price increases, then the company is probably just being selfish or they might be under pressure of how to offer maximum utility to customers. Most times it's not only the quality that drops, but the quantity also you will notice that it would become way smaller than it used to be.Unfortunately they will just be the ones to lose, as other commodities that come to the market tend to bring new flavors that can serve the same purpose. But the idea is how long will the product last before it gets reduced in both quality and quantity That's all....

[AprilioMP]

Now my question is, why can these industries not increase the price of goods and maintain the quality? why is there an increase in price and then still the quality is being reduced. I have noticed this across so many other product in my countries market, not just this yogurt drink.

A decline in quality will indirectly cause the business to experience a drop in production, as that is the inevitable consequence. Consumers will look for other products even if there is a price difference. That’s the first point.
Second, if well-known products remain at the same price and their quality stays unchanged, they aren’t losing out by selling at the same price while the prices of other goods are rising; rather, they’re making a small profit on a large volume of production. They’ll work hard to maintain quality and price while waiting for prices to return to normal.

[Filicius]

I think that the term the OP is looking for is Shrinkflation, or the reduction of quantity/quality of a good without corresponding price reduction - or, even worse, even despite a price increase, like in the case of the mentioned yogurts.

I've been seeing it in my country for a long time too, and it's becoming more and more evident, especially with snacks. I think the fundamental reason behind it is greed, and it corresponds to the trend that seems that in the future will be greater to charge not so much for what the product costs plus a commercial margin, but based on what the customer is willing to pay.

[Rockson1]

Now my question is, why can these industries not increase the price of goods and maintain the quality? why is there an increase in price and then still the quality is being reduced. I have noticed this across so many other product in my countries market, not just this yogurt drink. 

I know that this will not be so if my country has a good quality control unit, but even without that, why can these industries not act right and maintain quality, is reducing the quality of product while increasing the price not directly affecting their business?

personally I'm from a country that the government do not care about the price of goods and they do not also care about the quality, I might be some how mean with my statements but thats the reality because if the government can increase the price of fuel and when it drops the do not see any need to monitor the filling stations to know if they are complying with the new price, it means that it has become a free market where anyone can buy and sell at any amount they like.
Guy the quality control we have in my country are not after fake products except they are not bribed or not given the amount they requested to be bribed with, that is when they can expose things.

Do you expect production companies to produce quality things when the institutions that monitor them are reluctant, just know this, some of those industries pay the quality control agency to allow them do those shits.
It might not affect their business much you know why? If you compare the amount the sell previously and currently, you will understand that when they sell little, they make more money although it is risky because if many people get to know about it, they might decide to go for other brand which is bad for a business.

[Merit.s]

A lot has changed from my childhood till date due to inflation. In fact, I will say that those junk food we buy way back that was cheap and rich has lost its richness and the price is even high. Last time, I told a kid when he bought a particular kind of biscuit that the biscuit has lost its quality compared to when I was a kid.

I believe both of them are the problem inflation and greed. I don't feel comfortable buying snacks or drinks that I can prepare at home because it's a waste of funds to me.

[abhiseshakana]

Based on information i got from one of my logistic customer that dairy beverage / FMCG has a relatively thin net margin compared to its gross margin. So even small trouble on distribution delivery which bring small extra cost, they can not tolerate. When there are inflation, producer often between two pressure, pressure to rise up price to cover increase of production cost but on the other hand, consumer purchasing power and tolerance for price increases are limited so hard to apply price increase that proportional to cost increases.

With this pressure, producer have several option such as raising price, reducing the size, change formulation, reducing expensive ingredient or combine all above alternative solution. Maybe your favourite yogurt producer choose quality degradation for cost optimization with consideration, not all consumer notice about ita nd not all consumer buy with the reason of thickness and creaminess, some of them choose to buy because of the taste, the price, the brand, can be nutrition content,  habits, or simply because the packing look stunning on the store refrigerator.

Todays competition was very tight, producer must balancing cost inflation, consumer purchasing power, price elasticity, margins, quality, and market share to be survive.

[Hamza2424]

I know that this will not be so if my country has a good quality control unit, but even without that, why can these industries not act right and maintain quality, is reducing the quality of product while increasing the price not directly affecting their business?

Bro, it is obvious the companies are trying to protect the profit from both sides. They are increasing the price and reducing the quality or quantity. I have fewer complaints about quality as that is almost the same, but the quantity has been reduced a lot. For example, the biscuit which locally was 15 PKR once, is now 50 PKR, but the number of biscuits has been reduced, from 17 to 12 or 13, not sure, and their size has almost been reduced.

It is the same with almost every packed item.

They are making profit from both sides. If the system is corrupted, then companies can get away with it for a while. They will damage their reputation, but once caught, they will declare the manufacturing site is not theirs. It is a fake site under the management of third parties who impersonate the company.

[Yeesha]

I don't know if this is only particular to my country but there's something I've observed about industries and the products they make that I would like to point out for discussion.

I visited a regular shop where I buy home commodities and I remember some few years ago that there used to be a particular yogurt brand that I used to enjoy because of its thickness and creaminess and considering that the weather was hot I went ahead to pick up this drink from their refrigerator, went to the counter to pay, I was not shocked to see that the price is no longer what it used to be, it is now more expensive than before, I was not shocked because I understand that things have toughened up in the economy. That was not my disappointment, my disappointment was that the quality of the product has dropped so much even with the price increase.

Now my question is, why can these industries not increase the price of goods and maintain the quality? why is there an increase in price and then still the quality is being reduced. I have noticed this across so many other product in my countries market, not just this yogurt drink. 

I know that this will not be so if my country has a good quality control unit, but even without that, why can these industries not act right and maintain quality, is reducing the quality of product while increasing the price not directly affecting their business?

You are absolutely right, i thought maybe I was the only one experiencing that, the price of all commodities has increased and their value and quality decreases, so I think it is not only as a result of inflation but also an act of greediness. Because if it is as a result of inflation, tell me the essence of increasing the prices of the commodities. As inflation rise higher, the price of the commodities also rise higher, so I think this is more than enough to balance the equation, so it is left for them to buy quality/ items or ingredients and things that are require for production.

[Freeveto]

I know that this will not be so if my country has a good quality control unit, but even without that, why can these industries not act right and maintain quality, is reducing the quality of product while increasing the price not directly affecting their business?

In some scenarios, these things are beyond explanation, it is not everything that some companies will come out to say especially in terms of tax they pay just to maintain that company.
Inflation of prices of their ingredients also affects the quality of their product, they can’t just increase price above what consumers can afford, they will maintain a certain range of price based on their company regulations, they can’t go above some prices, so they tends to reduce the quality and maintain the price because if they want to maintain the quality, they will charge more than they are charging you which can be extortion.

Although, if the government have price control, they can regulate it and maintain quality standards, while some consumers can’t afford it.

[SPIDERMAN008]

The company may be spending more on making that product due to inflation or some other reason. That is why they are increasing the price. But the quality of their product is deteriorating. The reason is that if they had kept the same quality, then they would have had to increase their price even more. Then, many people would not have bought their product. That is why companies may follow this kind of strategy. For example, if the dessert you like is now poor in quality, you will still buy it because it is your favorite. But if the price had become more expensive, then you yourself might not have bought that food frequently. Considering this, companies sometimes increase the price a little and reduce the quality a little. But in this case, I think they can adopt another way. They also increased the price to a tolerable level. Again, if they can reduce the quantity while keeping the quality the same, then it may be possible to balance it .

[Ojima-ojo]

In in unregulated markets, when a company says that their have increased the price of a product, by 50% for example, what the actually did is to make divide of 100% Which is 50% price increase and then 50% product quality decrease.


So you see in the end their total increase becomes 100% and they walk away with that because there is no government agency that can checkmate their activities in the economy that is aimed at protecting the consumer rights.

[Judith87403]

Now my question is, why can these industries not increase the price of goods and maintain the quality? why is there an increase in price and then still the quality is being reduced. I have noticed this across so many other product in my countries market, not just this yogurt drink. 

I know that this will not be so if my country has a good quality control unit, but even without that, why can these industries not act right and maintain quality, is reducing the quality of product while increasing the price not directly affecting their business?

OP i know the country you come from and i can tell you that such act do not breach consumer protection laws so all you have to do when you experience such is to stop buying that product and look for another company that produces the quality you require. The truth is just that what most brands in developing countries are doing now is that when they start producing something, they will make it to the best standards and in some cases they will even reduce the price but as soon as they have gathered enough customers, they will change and reduce the quality and even increase the price especially when they know that product is on high demand. Everything is not inflation, sometimes, manufacturers read the minds of the consumer and manipulate them. The problem is the consumer, if you can't complain to the company why not just stop buying it, when the company experience low patronage and decline in demand, they will read between the lines and know that consumers have identified their tricks. Unfortunately, the government cannot do anything in such case except when it has to do with a fake product that has a misleading label or an unregistered product.

[boyptc]

They want to maintain their customers paying them with a bump price while not maintaining the quality of the product.

Maybe their case study is about the customers liking a small increase in price but not that much in the quality.

But little did they know that we like more of these products if they're consumables or not that we want it to be quality even if they will have a price hike.

I guess it's a business morale depending on the company because it made me remember this --> This Japanese company offered an apology you’d never find in America after raising prices by 9 cents

[trendcoin]

Now my question is, why can these industries not increase the price of goods and maintain the quality? why is there an increase in price and then still the quality is being reduced. I have noticed this across so many other product in my countries market, not just this yogurt drink. 

The rate of inflation has slowed down worldwide, but inflation hasn’t stopped. It’s still on the rise. Companies have raised prices so far. However, raising prices any further could now trigger a backlash...

That’s why they’re taking a different approach that consumers might find harder to notice. They’re cutting costs by lowering quality, which helps keep prices a bit more stable...

You may have been able to tell the difference in the quality of the yogurt, but rest assured there are thousands, and perhaps even hundreds of thousands, of people who cannot tell the difference and continue to use the same product in the same way...

[Btcdeybodi]

Now my question is, why can these industries not increase the price of goods and maintain the quality? why is there an increase in price and then still the quality is being reduced. I have noticed this across so many other product in my countries market, not just this yogurt drink. 

This is a wicked thing to do and I know that things like this can happen only in developing countries. If it were a developed country they would have sued that brand because it is criminal to increase the price of a product and still reduce the quality. It can be harmful to the health because it is consumable. There is what is called consumer right, many people are ignorant of the laws that protects consumers but you should know that you have the right to take legal action against a brand that sold substandard products to you with a high price.

We take a lot of things for granted and that is the reason why those brands are not afraid of tricking consumers. If one or more people can take legal action against them you will see that they will stop such criminal behaviour and other brands will also take caution. Never keep silence about anything that concerns your health because when the quality of something you consume reduces, it will surely have effects on your health. Learn to take legal actions whenever you are being cheated by any brand.

[nara1892]

Clearly, there are many factors that drive price increases. Simply put, when demand rises, prices are likely to rise as well. other factors could include limited inventory, rising production costs, and other factors. However, if, for example, the price of a product rises while its quality actually declines, then in my opinion, this is most likely a tactic by the manufacturer simply put, they want to make a larger profit, but the consequences can be very serious, as buyers may switch to a similar product that offers comparable quality at a comparable price.

[Coyster]

is reducing the quality of product while increasing the price not directly affecting their business?

It depends on how many people feel the same way you do, right now it is your subjective opinion and the company would only take action on the quality of their products if there are multiple complaints from customers. Any serious business wouldn't want to compromise on quality, particularly because their customers would move over to their competition, which would affect their revenue.

Is there no competitor for this particular brand? Maybe you should consider switching to them if you still want to continue having it.