With all of the prices rising some companies are deciding to keep the prices the same.....
Today’s post is by Troy Lowe; Vice President of Development at SafeSourcing.
With all of the prices rising some companies are deciding to keep the prices the same but reduce the amount of product that goes into the packaging. If you are not yet aware of this, it is called shrinkflation. Shrinkflation is the practice of reducing the size of a product while maintaining its original sticker price. This practice is usually used by companies in the food and beverage industries to increase profit margins or maintain them when there are rising input costs. This practice is not new but it does escalate during times of inflation. Companies are trying to find ways to deal with the rising costs for their ingredients, labor, packaging and high cost of transportation. One of the main reasons for this practice is that manufacturers know that customers will notice if a product increases in price but they may not realize that a package may contain less product. Most consumers do not pay attention to the weight, quantity or number of sheets contained on a roll of toilet paper. But they would however notice if the price increased from their last time of purchase. So when you are out shopping next time you may want to pay attention to the products you purchase and maybe search for an alternative one instead. Below are some products that have been reduced.
- Toilet Paper Rolls
- Paper Towel Rolls
- Ice Cream Cartons
- Family Size Boxes of Cereal
- Candy Bars
- Cat Food
- Dog Food
- Trash Bags
Interested in learning how SafeSourcing can help your company save money during these challenging times? If you would like more information on how SafeSourcing can help you, please contact a SafeSourcing Customer Service representative. We have an entire team ready to assist you today.