In a recent post titled “How are you dealing with your overstock issues” Where I discussed using eprocuremnt tools to help reduce retail shrink. Then today I opened the paper and there it was Shrinkflation. Which is the Reduction in the size or weight of retail products, especially items of packaged food, with no corresponding reduction in the retail price. This improves financial results for the company with the expense born by the consumer who end up getting less for more.
In economics, shrinkflation is the practice of reducing the size or quantity of a product while the price of the product remains the same or slightly increases. In some cases, the term may indicate lowering the quality of a product or its ingredients while the price remains the same.
When I was studying Psychology in college out professor brought up the term Just Noticeable Difference or (JND). He asked us if anyone though that candy bars were getting smaller year over year. We all know the answer to that question, particularly if you ever trick or treated or now take your kids trick or treating. Those darn candy bars keep shrinking. So just what is a Just Noticeable Difference
For our senses, there is a measure called an absolute threshold. The absolute threshold shows that we can hardly see the difference in stimulus and are able to perceive its ability, and the difference threshold is that we cannot notice the difference, better known as the” Just-noticeable difference” (JND). For example, if you hold a bag of 100 pounds of oranges, plus a pound will not be noticed. But if you hold 5 pounds, then you add a pound, you will notice.
SafeSourcing is an eprocurement company that operates across multiple industries. As such we have specific experience in helping our customers source their products through a variety of tools. One of those is our SafeSourceIt™ Templates Library. Here we house thousands of specifications that have evolved over the years as products have changed. Having the proper specification is key to sourcing the correct products at both the manufacturing and the retail level. Take care of your customers the way they deserve to be. Don’t sell them less for more, they are already hurting enough.
To learn more, please contact a SafeSourcing customer services associate.
References: shrinkflation meaning – Search (bing.com)