As consumers, we are also very much aware of the situation, wherein when we go to purchase something that we use on a regular basis, we are shocked at the increase in the prices. This is however not the only reason as there is another term called Shrinkflation that you may not have heard of.
Table of Contents
What is Shrinkflation?
Shrinkflation is the process of reducing the size or quantity of a product while keeping the price or even increasing it. This can be done with food, household items and other consumer goods. It is a not so obvious way for companies to raise their prices without having to explain it to the public.
For instance, a chip bag that was previously 10 ounces in size may now contain 8 ounces of chips but the price remains the same. Or, a shampoo bottle that was previously 16 ounces in size may now only contain 12 ounces of shampoo, but the price is still the same. In either of the two instances, the consumer is expected to pay the same amount of money for a reduced quantity of the product.
Why Do Companies Use Shrinkflation?
There are several reasons why a company might decide to use the shrinkflation strategy to boost its sales. First of all, the cost of the raw materials may have increased. When the cost of the ingredients or materials that go into making a product rises, the company may decide to reduce the size or quantity of the product in order to keep the prices the same.
One more reason is to avoid the consumer backlash that could result from increasing prices. If a company raises the price of a product, it may lose the market and reduce its sales. Thus, reducing the size or quantity of the product, the price increase is not as much pronounced to the consumer.
How Can Consumers Protect Themselves from Shrinkflation?
One of the ways to prevent yourself from shrinkflation is to focus on the unit price of the product. This is the price of the product in terms of ounces, pounds or any other unit of measure. It is thus easier to determine which of the brands or sizes of the product offers the best value for the money when you compare the unit price. Another way to protect yourself is to be a savvy shopper and compare prices at different stores. You may also find that some stores offer the same or similar products at a lower price, or with a larger quantity or size.
That is why you can also try to purchase products in bulk or select store-brand products as they are usually cheaper.
In conclusion, shrinkflation is a good way to increase the company’s revenue without having to explain the price change to the customers. As a result, when you know how to find the best price per unit of the product, you can avoid buying products during shrinkflation and thus save your money.
Tips for dealing with Shrinkflation:
- Look for deals and discounts: To help reduce the cost of shrinkflation, check for sales and deals on the items you purchase most often. For instance, if you like eating a certain brand of cereal that is prone to shrinkflation, then you should check for coupons or go for buying when the price is cheap at the grocery store. You may also be able to get a better deal if you purchase from discount departments stores or if you buy in bulk from warehouse clubs.
- Compare prices: It is recommended to spend some time COMPARING PRICES in different stores and on the Internet to look for the best price. For instance, when you are in the market for toothpaste, you should check the price of the toothpaste per unit in different markets to determine who has the best offer. You should also consider checking out online retailers as they may have cheaper products and free shipping.
- Buy in bulk: If you get a good price on a product that tends to shrink during inflation, it may be worth buying it in bulk. This can help save money in the long run. For example, if you consume a lot of coffee and notice that the sizes of the bags have been reduced, it may be better to buy a large bag of coffee beans instead. This will usually work out to be more economical in the long run.
- Consider switching brands: In case you are not happy with the size or quantity of the product, you should consider changing to another brand that may be more advantageous. For example, if you are tired of the size of a particular brand of paper towels, you should try a different brand that offers more sheets per roll without increasing the price.
- Be aware of portion sizes: When using food products, you should know the portion sizes. This will help you to make sure that you are getting what you are expecting in terms of quantity even when the product size has been reduced. For example, if you notice that your favorite candy bar has been reduced in size but the price remains the same, you will be aware of the new serving size and can modify your portions accordingly.
Specific examples of shrinkflation include:
- The size of a bag of chips has been reduced from 10 ounces to 9 ounces.
- The number of cookies in a package has been reduced from 12 to 10.
- The size of a bottle of shampoo has been reduced from 16 ounces to 12 ounces.
- The size of a container of ice cream has been reduced from 1.5 quarts to 1.25 quarts.
- The weight of a bag of pet food has been reduced from 20 pounds to 18 pounds.
Conclusion – How to deal with Shrinkflation?
Therefore, it is worthwhile to mention that shrinkflation is a real phenomenon in the market and there are some tips on how to reduce the costs and get more value for money. By taking full advantage of the deals, comparing the prices, buying products in bulk, changing brands, and controlling the portion sizes you can prevent the shrinkflation from affecting your budget.
