Is this greed or inflation?

[DiMarxist]

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?

As time changes things always change, and over time the standard of goods and services in the market also changes , not only in terms of looking at the price but the quality of products that is been produced now. These days I feel that government has not done enough in the areas of protecting the right of the consumer.

This is an oversight of everything responsible government, because industries should abide by the standard of every rules and regulations that is been set up by the government. This is because if the necessary guidelines and procedures, I don't think that there will be situation where a product will be produced in a less quality standard when compared to the standards of the country.

I don't think that inflation should be used to justify this type of moves coming from desperate and greedy individuals. Who is just out to making money by all means this is because the more you reduce the quality the more people run away from such a product.

[Nanga Parbat]

I just can't get it straight, I'm finding it so hard to reason your statement. I don't think that should be an excuse, because when the cost of production increases, the price of the commodities also increases, so I need to understand their essence of increasing the price of the commodities when they are making use of cheaper raw materials for production. When the price of commodities increases, I usually assumed that they are using the extra money (the remaining percentage) to balance the equation due to increased in the cost of production, but at the end of the day you will realize that the quality of the products decrease, instead of it to maintain its normal quality, it still doesn't make sense. Some companies are taking advantage of the increase in the cost of production to increase the price of commodities and make use of cheaper raw materials for them to gain more profits, this is greediness.

Yes you have explained very well,  when the cost price increases then automatically it affects the commodities prices. That can cause inflation, But some time i observe the factor of greediness. For example When some time government announced decrease in prices of certain products here some producers intentionally delayed in implementing the new prices just to earn the extra money from the public. It happens because of communication gap, or the noticed about the new prices received by the producers, but customer is not aware of it.

As a result producers take the advantage of this communication gap. In my country situation is not good, if government increases 5 % the price of oil, every one multiply that increase in their production more than 5%. So that create problems or create burden for the common man. This is actually a greedy, here government is not responsible for this type of consumer loss. This act of greed is not real inflation.

[alastantiger]

At the ending of the day, all production companies want to make maximum profit from per unit production and one reason they have the power to do that his consumers loyalty to brands instead of quality. That's why we see alot of people but average quality goods at a high price because of the brand rather than get a less known quality product, and that loyalty is like an armor for companies to do as they like

It is because of greed that the quality of things are no longer the priority and that is why many companies care more about producing more products and this is affecting our health for the product we buy for eating and this this can also affect other parts of the economy based on the quality of things reducing. Companies are becoming more greedy because they want to make profit from people and they do not care if many people lose their lives for them to make money.

Inflation has always been a problem because it affects the economy of the world but we are also becoming the problem because people are becoming more greedy as they want to make money very fast without waiting for the expeimce needed to control such amount of wealth and that is why the quality of life is reducing for the majority while a small amount of people keep getting richer.

[slapper]

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?

As time changes things always change, and over time the standard of goods and services in the market also changes , not only in terms of looking at the price but the quality of products that is been produced now. These days I feel that government has not done enough in the areas of protecting the right of the consumer.

This is an oversight of everything responsible government, because industries should abide by the standard of every rules and regulations that is been set up by the government. This is because if the necessary guidelines and procedures, I don't think that there will be situation where a product will be produced in a less quality standard when compared to the standards of the country.

I don't think that inflation should be used to justify this type of moves coming from desperate and greedy individuals. Who is just out to making money by all means this is because the more you reduce the quality the more people run away from such a product.

The industries can take action. They choose not to. Because of information asymmetry, they can get away with it. Sellers have more information about what they are selling than buyers. Over time the poor products displace the good products. Consumers can't tell the difference.

They replace actual ingredients with less expensive fillers, tweak the recipe a bit. Most consumers are only aware of degraded versions after months of purchase. By that time the company had collected the margin. There are industry terms for this these days. "Skimpflation" when they reduce quality, "shrinkflation" when they reduce quantity. Both achieve the same thing: you pay the same or more, you get less value.


Anyway, Austria literally passed a law this year forcing retailers to label products that got downsized.



It is not a coincidence that there is no regulation. In many emerging markets these are the agencies charged with enforcing quality standards, but fail to do so. Such as underfunded, understaffed, or straight up influenced by the industries they're supposed to regulate. This is what is known as regulatory capture. The fox is designed the security system. Technically the government did put in place the right guidelines, but who is in the room when they're setting the guidelines?

[Japinat]

What I actually see here is abuse more than greed. Business owners/sellers/manufacturers abuse their position in times of inflation. They really think that people will understand the situation, or that people will be the one to adjust because everything is expensive these days, and that possible changes may happen on the quality of the product.

But this is business, and every business comes with a fair price. So if the consumers pays a good price, the seller itself should also provide a quality that fits to the price. This is no longer on the concern on inflation, but everything is now tied to greed and the abuse of it because they are in the position to provide goods or services to the people.

[STT]

The business often has no choice on altering either the product or the price, the inflation is external to their business & they are a passenger on that journey same as everyone else is.    The problem arises that during inflation the customer is not any richer and will avoid a more expensive product so quality or quantity is often dropped hoping that people often don't finish their portion anyway and wont mind its smaller.
  Those that can afford more will buy twice as much perhaps.   I tend to buy in bulk and infrequently, sometimes finding a bargain for some reason which can be for a variety of reasons like short dated produce that will expire so the price is marked down and so on.

  Its unfortunate but this is why its been known for centuries that a rich country does not have a weak flimsy currency but a greatly in demand high quality currency to build on, in the modern age its become quite a rarity even in supposedly rich countries.

[Odusko]

Now my question is: why can these industries not increase the prices of goods and maintain quality? Why is there a price increase when the quality is still being reduced? I have noticed this across so many other products in my country's 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?

It is very bad if despite the increase in the price of the commodity, there is a reduction in its quality, because inasmuch as I do not know your country, and how your economy might have been lately, it's unprofessional for a business to reduce it's quality as a result of inflation. Because one thing they failed to understand is that their will always be an available market for the company to sell it's product if only they are able to maintain the quality. But for the fact that they have now reduced its quality despite increasing the price of it, if I was to be in your shoe I will definitely just abandon the ice cream, because what drew me to it was because of its quality. However, there is also another factor that might contribute to this, which is poor management, because when a company shifts hand, its quality can never remain the same, even though it still maintains the same brand name.

There have been raising price of goods and services within my country lately, and even the quality of finished goods have also reduced, this is because of the increase in petroleum and gas prices from the government, and this have affected good transportations, one of the main reasons retailers and marketer give for increasing price each time is cost of transportation from the factory to the customer market place and also government increasing tax on companies, producing this goods.

[DabsPoorVersion]

snip
Yes, almost everyone does this and I don't think this method is good. I think it is better to reduce the quantity of the product and at the same time keep the price the same. Because whenever the quality of the product gets bad, maybe everyone will start losing faith in the company and at some point it will be seen that a big impact has been created in the market. So at this time it will be better to reduce the quantity of the product and keep the quality of the product the same and be with everyone in the market. Maybe it may affect the market in the beginning, but in the long run this decision can be very profitable. Whenever it is seen that the quality of other products has become very bad, then everyone will stop using that product and start depending on your product and you will be able to build trust among everyone.

I tell you what, even if there is indeed a possibility that the loyal customers will lose their faith to the company or the product itself, loyal customers usually continue to buy the product because they simply like it, why? Because consumers already built the trust to the brand, even if a slight change in quality is not enough for them to completely ignore it. The company knows it that's why they are able to adjust the quality/quantity while increasing the price that will still be affordable and match the taste of their consumers.

Another thing is what if the product is sold per piece instead of a pack, how does the manufacturers reduce the quantity? They will adjust the size or the contents of the product, which is the same as reducing the quality of the product.

[tabas]

Anyway, Austria literally passed a law this year forcing retailers to label products that got downsized.

That is a good initiative to let their consumers know if there has been a change to the products they used to buy. And they're not going to take a guess and question why it seems to have a reduction in its quality. In Japan, there's also that particular law that whatever is in the image of the pack of the product, it should be the same in personal appearance. So, the size and quality should be the same. I think that most countries need to adopt this law so that everyone is aware if shrinkflation has happened to what they usually consume or the quality has dropped significantly.

[Natalim]

While inflation can affect the rate of production, but I don't think it could also affect the quality of the products. Greed is one thing that I obviously seen here, and I can't deny that not only one or two but a lot  have adapted this kind of strategy because they think aside that can make more money, they can also save of their capital with low or poor quality.

But they neglect the importance of customer satisfaction. This should be the target of every business, not to prioritize personal gains and interest.

[Iranus]

While inflation can affect the rate of production, but I don't think it could also affect the quality of the products. Greed is one thing that I obviously seen here, and I can't deny that not only one or two but a lot  have adapted this kind of strategy because they think aside that can make more money, they can also save of their capital with low or poor quality.

But they neglect the importance of customer satisfaction. This should be the target of every business, not to prioritize personal gains and interest.

Inflation doesn't affect the rate of production. More precisely, it affect the company's profit. And to maintain the same level of profit, or even make more, many companies have little choice but to quietly cut both the quantity and quality of their product.

So greed can be part of the reason, but not always. When inflation rise, businesses also have to find ways to cut costs just to stay afloat. But problem is that some companies take advantage of the situation and cut quality too much just to protect their profit.

What's even more noteworthy is that many businesses are doing the same thing. That is why consumers have no choice but to complain.

[Anthony Bill]

Is everywhere in the world, companies was producing quality that will make custom happy those days, because they used good raw materials to produce what will satisfy their customers without focusing on the money they will make from their customers. I think is greed, if you look at some of the companies these days, some company holders are after money without considering what customer will taste from their products either good or bad.

[WillyAp]

It is not a coincidence that there is no regulation. In many emerging markets these are the agencies charged with enforcing quality standards, but fail to do so. Such as underfunded, understaffed, or straight up influenced by the industries they're supposed to regulate. This is what is known as regulatory capture. The fox is designed the security system. Technically the government did put in place the right guidelines, but who is in the room when they're setting the guidelines?

The Japanese have laws for that:

Code:

Article 1The purpose of this Act is, in order to prevent the inducement of customers by means of unjustifiable premiums and misleading representations in connection with transactions of goods and services, by providing for limitations and the prohibition of acts that would interfere with general consumers' voluntary and rational choice-making, thereby protecting the interests of general consumers.

https://www.japaneselawtranslation.go.jp/en/laws/view/2303/je

[Bitcoin.com97]

To be honest,it's really unfair,I understand how you feel ,prices of goods keep increasing while their is  reduction in there products,it happens to me ,I went to get my body lotion, because whenever I'm getting it ,I make sure I always get two so it's going to be for  a while before buying again, just few weeks ago,the price has skyrocketed to ×2 of what I used to buy it ,and when I checked inside it was just half of it ,they have reduced the quantity badly,I was so disappointed .

[Halifat]

To be honest,it's really unfair,I understand how you feel ,prices of goods keep increasing while their is  reduction in there products,it happens to me ,I went to get my body lotion, because whenever I'm getting it ,I make sure I always get two so it's going to be for  a while before buying again, just few weeks ago,the price has skyrocketed to ×2 of what I used to buy it ,and when I checked inside it was just half of it ,they have reduced the quantity badly,I was so disappointed .

Sometimes these people are not to be blamed because is the government that is pressuring them to act that way, I don't know for your own location but my, it has become normal to the extent that we never bother to ask the main problem. Our own start from biscuit, the price did not change but the quantity reduce drastically, this is the fault of the government because he is taxing them more and more and they don't have anywhere to pay those money rather than pushing it back to their customers. You know where you don't have choice, you just have to force yourself to adapt with the system since you don't have anywhere to go.

[Maslate]

When greed is there, people tend to do things unreasonably. Their whole concern is just focused on their own selves, on their own future profits and benefits, without thinking what could be the circumstances after a wrong decision making.

This is where the problem starts. A business target isn't the satisfaction of the owner itself, but the satisfaction of the consumers. Because they are the main reason why such business still thriving, and still bringing a good income.

Now if you are not honest with your business, if you are not true to your customers, you will lost them eventually and leave your business struggling. That's how greed can ruin a business, and the effect isn't temporary but long term.

[Abiky]

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.

Shrinkflation has been standard practice by greedy merchants and/or businesses. They reduce portion sizes or the quality of an item, while increasing their prices. What's worse is that governments are allowing this to happen. The ones who end up suffering are none other than average people like you and me. The Elite will remain unaffected.

It's why the global economy is where it is right now. Both developing and developed countries are affected. Although, it's worse in developing countries due to higher corruption rates. I wouldn't expect things to improve in the long-term if the issue persists.

[snowpega]

One thing some business owners or producers fail to recognize is the fact that, once customers are into your goods, the good thing you could do is to maintain standard even if there's changes in price due to inflation.
 In as much as many people want profit from sales, greed shouldn't be a driving force that'll end up making customers not want to return or patronize them again.
 Inflation seems to play a major role for manufacturers not to keep up to standards of a commodity.

This is exactly the reason why many brands loose their reputation and sales in the market.
Greed overcome them when they see more inflow of the money. And believe me this is a nature of human on which they don't have control. But I think if you want hold a successful business you should never compromise on your brand quality.

Yeah, if you are getting disturb with the increasing rate of inflation which is also disturbing your business ecosystem then what you should do is that, keep maintain your product quality and reduce the quantity a little.

Which I think I may really help you to increase your brand demand in the market when your customers will not be able to find your best products. And once the inflation rate get under control then you can again increase the number of your production of your product. This way you can lead your brand for the long run.

[Negotiation]

Shrinkflation has been standard practice by greedy merchants and/or businesses. They reduce portion sizes or the quality of an item, while increasing their prices. What's worse is that governments are allowing this to happen. The ones who end up suffering are none other than average people like you and me. The Elite will remain unaffected.

I agree with you that currently, all the companies in the world are increasing the prices of their products in a disproportionate manner and reducing the quality of the products. This is done by the companies to make more profits; the companies take such policies to gain additional profits.
Nowadays, it is very difficult to find such companies where they give the right price or the right product. They only see the company's profit but on the contrary, the common consumer is harmed.

[#CapsLOck]

Shrinkflation has been standard practice by greedy merchants and/or businesses. They reduce portion sizes or the quality of an item, while increasing their prices. What's worse is that governments are allowing this to happen. The ones who end up suffering are none other than average people like you and me. The Elite will remain unaffected.

I agree with you that currently, all the companies in the world are increasing the prices of their products in a disproportionate manner and reducing the quality of the products. This is done by the companies to make more profits; the companies take such policies to gain additional profits.
Nowadays, it is very difficult to find such companies where they give the right price or the right product. They only see the company's profit but on the contrary, the common consumer is harmed.

I believe it's inflation as well as being driven by companies trying to maintain or boost profit margins, as in shrinkflation. When raw material, labour, transport, and energy expenses are increased, companies may either have to increase their product prices, or they have to decrease the size. What's really scaring people is when companies claim to be charging more because of inflation, but they're really charging a lot more. Ultimately, consumers face not only higher costs, but reduced quality as well, and businesses are concerned with maintaining their margins.