Mika
VIP Contributor
Shrinkflation is a method businesses are using to raise the price of a product without the customers knowing it.
Let’s say you used to buy a packet of pasta of 390 grams for $3m. Since you are buying the packet for a long time, you don’t take note of the weight. However, the manufacturer might have reduced the weight to 365 grams without you noticing it.
Most consumers are price conscious, they will only take note of the price, and they will rarely take note of the weight of the product they have been buying for a long time. Therefore, if the product price becomes $3.50 the consumer will notice it, however, if the product is 365 grams instead of 390 grams, they might not notice it.
When the manufacturer has to choose between increasing the price of the product or decreasing the size/quantity/weight of the product, they will choose the latter. This is not a new practice, though.
Let’s say you used to buy a packet of pasta of 390 grams for $3m. Since you are buying the packet for a long time, you don’t take note of the weight. However, the manufacturer might have reduced the weight to 365 grams without you noticing it.
Most consumers are price conscious, they will only take note of the price, and they will rarely take note of the weight of the product they have been buying for a long time. Therefore, if the product price becomes $3.50 the consumer will notice it, however, if the product is 365 grams instead of 390 grams, they might not notice it.
When the manufacturer has to choose between increasing the price of the product or decreasing the size/quantity/weight of the product, they will choose the latter. This is not a new practice, though.
