Shrinkflation has nothing to do with the higher price of therapy these days (unless you count retail therapy), but rather a lot to do with product size and prices. Intriguing right? Keep on reading to find out more on its impact on consumers, producers and a short history of it.
Have you ever felt like the chocolate bar or bag of chips you endlessly adore has shrunk? Or if you check the prices per kilogram when shopping you keep on seeing them getting higher and higher, yet the product's price remains the same? In the current economic situation, we have all become victims of inflation, and a high proportion of shrinkflation as well. This smart tactic is implemented to trick the consumer into buying the same product despite its increase in price, but once caught onto, it may make consumers feel cheated and profited off.
Ideal for producers in the food and drink industry, shrinkflation helps them keep production costs at bay, by only having to purchase lower amounts of materials, and spending less on capital goods. It also lessens the chance of firms losing customers, as they are usually blissfully unaware of the smaller products, since they only keep track of prices. Due to there being low chances of firms being found out or called out on this practice, it remains common due to its low and higher profit opportunities.
This practice can be dated as far back as in 18th century France before the revolution, when units of measurement were not set in stone, and merchants would trade grain at different measurements for the same price based on market prices being high or low. This has resulted in bakers having to buy grain for more money, forcing them to either sell bread at a higher price, or make slightly smaller loaves. Since poverty and ethics were crucial matters to consider, bakers opted for the latter to not risk being banished from their settlements.
Another notable time period when shrinkflation was widely adopted was World War II, since it took place when essential goods such as sugar, flour and coffee were rationed in order to ensure everyone had access to them over a longer period of time. This was due to uncertainty of how long the war would take place, and due to trade sanctions.
So, now that you have found out about this matter, will you check the prices and grammages on foods more? Will you be more vigilant when inflation is high and prices don’t seem to reflect that? And most importantly you can also target brands and call them out for their shrinkflation, if it bothers you, through social media, petitions or other tools that could grab their attention.
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