Is this greed or inflation?

[Makus]

The issue of fake products has become a major problem in my country and even though there are bodies that regulate the circulation of such types of products those products end up in the hands of consumers after they must have gotten it for a very high price. Inflation has something to do with this but this is not always the case because a lot of people do this out of their greed.

In the case of what you mentioned, the price didn't just increase but the product also had inferior types of it, this is just greed and nothing more. There are health complications in consuming fake products, this is one of the reasons people are developing issues with their kidneys.

[Stepstowealth]

If they raised the price only and did not drop the quality, creamy yogurt's costs to produce in today's melting fiat currency, you'd probably drop dead at the checkout.

Consumers have a strict psychological limit on how much they are willing to pay for fermented milk, and that applies to every other product. Welcome to the fiat standard!

I think consumers that can adjust will adjust because they have built dependence on the product as long as the quality remains the same, others who cannot adjust will simply find alternatives.
It is better to me to raise the price than reduce the quality. Many consumers must share this view.

[Botnake]

Inflation will often lead to a man's greed. Although I'm not saying this in general, but with high inflation, you won't be surprised that there are really business owners or sellers that would try to take advantage of inflation by diluting taste of their food products, because aside from the price increase, they also want to gain extra profit believing that since their product is already popular, people will stick to it even if the taste changed.

Greed will compromise the future outcome of every endeavor or action. And with this, people will have a change of choice that would lead to a loss of future profits.

[GiftedMAN]

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. 

Greed and wickedness is the only thing I can think of as the reason why they keep cheating people while they are making money off them if not I don't see any reason why they will increase price for a particular product and still not leave it with the original quality. The government needs to step in and punish some of the companies that are fond of doing all this evil cause they keep on increasing their products all in the name of inflation and high cost of materials but yet they don't maintain the quality of their products if the government takes the responsibility of monitoring them probably we will stop having such complain.

[mirakal]

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. 

Greed and wickedness is the only thing I can think of as the reason why they keep cheating people while they are making money off them if not I don't see any reason why they will increase price for a particular product and still not leave it with the original quality. The government needs to step in and punish some of the companies that are fond of doing all this evil cause they keep on increasing their products all in the name of inflation and high cost of materials but yet they don't maintain the quality of their products if the government takes the responsibility of monitoring them probably we will stop having such complain.

If they have seen no tight competition with that kind of business, these owners will find the confidence to keep it going. But if the complaints will grow and will make them alarm, that's the time they will get back to retain the original quality.

Greed is temporary, but the effect could last for years. So the choice is really up to them. If they want their old customers to keep coming back and grow new customers, they really have to fix their mindset and stay away with greed. Inflation is already enough.

[letteredhub]

This is what we are facing and is becoming a global problem as the general drop in quality and price hike along the way, some product got remodel and the newer version become less quality compared to the first set which is the Old model, and price too get increase significantly, I don't know if customers protection board of my country are bribed not to do their job and allowing all manner of substandard goods in the market.

In some situation with what the OP is lamenting on, it's not always the case about whether or not the consumers protection agency or the quality assurance agency is being bribed not to do their job. With the growing high inflation it's difficult for the companies to maintain the standard of products as it was both in quantity and quality without having some citizens unable to afford the product anymore because of a triple increase in price, for what they used to easily afford.

 To illustrate, a single egg 4 years back in my country was sold for #50 but currently same single egg is now selling for #250, many households who were able to afford a full eggs crate now can't afford half crate. Just imagine the multiple price imcrement all because the quality and size of egg couldn't be reduced since it's not something that's manufactured, same would have being for products which companies decides to retain the old quality and quantity, and it could affect consumption rate since not a lot of people can afford the product anymore. Which could lead to a shutdown of the company since they ain't making much sells, profit will drop.

[Questat]

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.

This could be an advantage on their part on the first months or year, but eventually when customers find the same product with excellent quality, they will surely have a change of mind and leave the first product they have been patronizing for years.

One mistake will leave a huge impact, most especially that every business these days does not hold guarantee to last for years. There is stiff competition in the market that would test the resilience of every business, some will managed to stay, but others will be out in the market. If greed will often be prioritized, business will always be compromised.

[Marykeller]

OP, what you talked about is actually what I have long noticed in most of the things being produced in my country. The decrease in the quality of products produced is alarming. What more can we do, if not to accept that as a reality, and I blame it on external pressures like the cost pressure of raw materials being on the high side, and regulatory changes from the government, causing formula changes. The industries are however, find means to cut down the quality of their production to be able to pay their workers and continue with their production, even if it will reduce the quality of their production.

[slapper]

It is not greed OR inflation. It is working together in a manner which is specifically punishing markets with low competition.

After 2021, the price of raw materials increased, energy costs surged and supply chains were destroyed. That is real inflation. However, a different event occurred. Corporate profit margins in the food industry did not simply remain unchanged during all this, they increased. Companies got away with legal inflation to overcharge for cost increases. This topic is still being debated and controversial. Economists cannot even agree on how much of recent price increases were cost-driven versus profit-driven. However, the pattern is recorded in various markets.

Then add on top of that your yogurt situation. The company raised prices, okay, costs went up. However, they also secretly switched to less expensive ingredients. That is double-dipping. They are recovering those costs in the price increase as well as cutting costs in reformulation. The margin expansion is coming from both ends while you absorb the full hit as the consumer. This effect is known as the "rockets and feathers effect" in economic terms. Prices shoot up fast when costs rise but come down slow, if ever, when costs drop. I would guess that in your particular market they never lowered those prices either.

[EFS]

This isn't something that's specific to your country. A lot of places are dealing with both inflation and declining product quality. In general the food industry seems to be getting worse every year. Food is becoming less nutritious, additives are increasing, quality is being reduced to cut production costs. There's also a multi billion dollar healthcare industry. All of these things are interconnected. There are entities working to make people get sick more often, spend more on healthcare and create less healthy generations, that's not a conspiracy theory. The future definitely doesn't look good.

[Swordsoffreedom]

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.

Are you sure about that?
I don't think this is something that only happens in developing countries. Even in the US and other developed countries, the prices of many products have gone up significantly over the years, while consumers sometimes get lower quality or less for their money. This is a problem that can happen in any market, not just in developing countries.




https://www.yahoo.com/lifestyle/5-fewer-doritos-shrunken-gatorade-114500319.html
https://www.gao.gov/blog/what-shrinkflation-and-how-has-it-affected-grocery-store-items-recently
https://www.dontpayfull.com/explore/shrinkflation-statistics

Besides, the US and other developed countries have better regulatory and inspection system. But that doesn't mean they are free from contaminated food, counterfeit goods, or low quality products.
The US isn't the perfect paradise you might think it is.

https://www.foodpoisoningnews.com/a-year-of-outbreaks-the-major-foodborne-illness-events-of-2025-2026/

[Mayor of ogba]

After reading your post I knew you are from Nigeria but to be very sure of that I checked your post history, your post history confirms you are from Nigeria. Well, I'm a Nigerian too, and all what you have said in your post I have experienced it and keep asking myself the same question you have asked yourself, which is if producers are massively increasing the price of what they are producing then why are they reducing the quality. Inflation is the reason why the cost of products increase in the market. But for producers to increase the price of goods or products and still produces low quality goods or products is a clear sign of greed, they are taking advantage of inflation to make extra gain.

[Pearl_20]

This is very relatable and I still don't know why these companies will not maintain the consistency of their products, I remember one particular drink I use to enjoy and they decided to rebrand that particular product, I still don't know why it didn't just end there, because the quality of that drink was altered to the point that some customers who comes for that drink noticed the low quality and the change of taste.

We all can agree that the Economy is very bad, the rate of things at the market is high but then isn't it better to still maintain the quality of your product and then reduce the size or portion, most producer's lack trust and consistency, and these two qualities can scale you up in business, I don't want to believe that this could be inflation entirely, some people are just like that once they notice that customer's are into a particular product and is on high demand, instead of keeping up with the same quality of that product or brand, they reduce the quality and still sale on the same price.

I've noticed that even some developed countries that you can also experience low quality products, have a friend who usually use a foreign product and she was lamenting that the quality has dropped, I know most producer's will say is inflation and then I keep telling the ones I know that why won't you reduce the packaging and then still maintain the original quality of the product. Increase the price, reduce the packaging but then keep the quality as it was from the onset.

[lombok]

After reading your post I knew you are from Nigeria but to be very sure of that I have gone through your post history, your post history confirms you are from Nigeria. Well, I'm a Nigerian too, and all what you have said in your post I have experienced it and keep asking myself the same question you have asked yourself, which is if producers are massively increasing the price of what they are producing then why are they reducing the quality. Inflation is the reason why the cost of products increase in the market. But for producers to increase the price of goods or products and still produces low quality goods or products is a clear sign of greed, they are taking advantage of inflation to make extra gain.

The move to compromise on quality of products in the name of increasing their profit margin is a kind of taking advantage of the situation. The hike in operational expenses, does indeed to a large extent, cut down the earnings of factory managers. But to increase selling prices but at the same time to decrease the quality of the product, this is simply unacceptable, to anyone.

The attitude of seeking short term gains at the cost of buyers will affect a negative reputation towards the brand in the wider market. This will cause sales to plummet in future as trust of the people will be lost. Intelligent entrepreneurs are advised to uphold quality in order to achieve a high level of customer loyalty in the long term.

[Rockstarguy]

For some products, I think I will call it greed, but for others, I believe they have genuine reasons for the increase in price and low quality. The cost of all materials is very high, which they can't even afford, and because of this, they choose to lower the quality of the product just to keep up. Since the price of materials is very expensive, what should be done is to increase the price of the product to match the quality.

However, they fear this will be too expensive, and out of concern for losing customers, they set the price lower and reduce the quality so customers can still afford the product. This is a mistake that business owners make. Quality should never be compromised because if you consider the cost and lower the quality of the product, people will still complain about it, and this is what brings a brand down.

[LastKiss]

~snip~
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. 

When I met a brand like this, I will immediately switch to another brand. The main factor is inflation because businesses also need to raise their prices, well, changing the composition of their products is another option. When a brand doesn't raise its prices, the product usually gets hit harder in other ways. I know a fried chicken seller in my area. Before COVID, her prices normally like others seller and the size of the chicken was normal. But when COVID hit and the price of cooking oil increased dramatically, she was forced to sell smaller pieces of chicken while keeping the same price meanwhile other seller raise the price and maintain it's chicken size.

As buyers, we will notice the difference in products we usually buy. If the taste changes, the size gets smaller or the price goes up, we will immediately notice it. Sellers don't really have many other options if they keep their prices and products unchanged as if inflation doesn't exist, they probably won't survive.

[Cityhunter34]

Things are actually going wrong in many countries, because it makes no sense when you increase price of products and yet nothing reasonable has been added to them. Honestly, I don't usually feel happy when I moved out to go and buy something, because there's a lot increases in the prices of products. And the most annoying part is that they don't usually have a human sympathy at all. They are just after the gain, which is absolutely greed and wickedness. We really need to help ourselves, because sometimes we are the ones that are making things difficult for ourselves. Nothing more than that.

[I_Anime]

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.

we also have  shrinkflation and skimpflation which are also part of inflation . Shrinkflation this is when price stays roughly the same but you receive less , like for instance the price of a particular product (yoghurt) $2 in 500ml then that same product was later reduced to 400ml , with same price tag of $2 . While skimpflation is when the product price increases while the quality reduces which is quite related to what the op is talking about , Businesses may implement shrinkflation and skimpflation as strategies to cope with rising costs caused by inflation.

[Shinpako09]

It depends. By the book, it's part of inflation. But we all know how those capitalists move. They always take advantage of the situation to earn more profit, so I would say both greed and inflation. Shrinkflation and skimpflation are legal, and elites take advantage of this.

Capitalists surely won't take a cut from their profit just to maintain the quality of their products. So they do shrinkflation and skimpflation as a way to gain more profit coz they know consumers will still buy their products. If you think switching to another brand is a smart idea, guess what, almost all, if not all, capitalists have the same mindset. That's why the rich are always getting richer.

[stadus]

High price with low quality does not seem so right. So the answer is really obvious, that kind of business will surely won't succeed in the long run. It could be understandable if that yogurt won't meet our taste expectations because it comes with a lower price, but seeing it high priced with poor quality, I think that's very unfair to the consumers. Even old customers will not bite it anymore because they are paying a good price, yet the quality of the product they are receiving are highly discouraging.

I don't think this has to do with inflation. This is obviously about high greed of the manufacturer.