The real problem with shrinkflation is that companies are charging more for the products while at the same time providing less of the product. If a company wants to put their additional cost on the consumer, then charge more for the same amount of product or charge the same amount and provide less product. What these companies are doing is raising the price while making giving you less product thereby increasing the company's profits.
It's impossible to know what exact ly she is referring to. Gross profit, net profit, just the food segment or the entire business. I would need to see the P&L for these companies for the time frame she used to even start to verify or disprove it. And frankly, I'm not that motivated.
I understand. Honestly, you don't have to be motivated to do that much research - you just have to go food shopping to realize that the prices are up and the contents of the merchandise is down.
No one is claiming is does not/is not happening, the debate is why?
If my costs go up, so will my sales price. If my labor increases, my sales price increases, if my rent/mortgage goes up, so does my sales prices. Also for taxes etc....and all of these things are increasing of course the prices increase and sometimes to keep the price from increasing as much a business will decrease the size of the product.
This post was edited by my2cents at March 22, 2024 5:20 PM MDT
The size (weight, volume, oz, fl oz, servings in the package, etc) of every product is printed on every food product in a grocery store. Of course, the company is not advertising there change in size. That would not be a smart ad campaign.
You think people do not know if a product they have been buying got smaller?
Most people aren't as smart as you. Frankly, I didn't notice there were 5 fewer Kleenex in the box, or that Doritos had half an ounce less per bag, or that the Dawn bottle isn't quite as full. The box, bottle, or bag looks the same as before. It doesn't seem like much, but about 10% of the price increase is due to shrinkflation. I'm not arguing with you, just explaining what the government says the issue is.
So, you're able to compare the number of pieces of tissue in Kleenex box you buy today with the one you bought last month? Impressive! Do you keep a list or is it all in your head?
The consumer can figure it out easily enough. Then, they have the choice of continuing to buy the product anyway or not. I had that fight with Sara Lee recently. The size of the slices of bread have decreased significantly. I told them that if they kept it up, their product would have to be in the cracker aisle. I don't buy their bread any longer.
I agree. However, with the bread, it as one week to the next. Now I'm seeing it with the box of Thomas' cornbread toaster cakes. The width of two cakes went from the full length and width of the box to a little over half that. They are so small now that I'm afraid to put them in the toaster lest they crumble and all I'd wind up with is crumbs.
You completely miss the point. If your costs go up and you pass that on to the consumer, the amount of product should remain the same. If the cost goes up and you lessen the amount of the product, you don't need to increase the price. Raising the price and lowering the amount of product is just being greedy.
It might or it will cause them to change their hiring practices. And if they are hiring non citizens, then it is not Americans loosing their jobs anyway. The CEO has said about 40K of their 120K are non citizens (or were when hired) so let the smaller company get the business.
my2cents 