If it seems like your regular grocery bill keeps climbing up every time you make a trip, you’re not alone. While overall inflation has been going down, shrinkflation is helping companies mine profits…
And shoppers are getting annoyed.
What Is Shrinkflation?
Consumers have a lot to be wary of when shopping. Of course, inflation has made it that much more complicated.
Yet, shoppers are just starting to wake up to the effect shrinkflation has on their wallets.
Shrinkflation happens when companies lessen the quantity of their products…
While keeping the prices the same.
This often happens when corporations don’t want to raise prices but want to cut costs and still make money.
In short…
YOU’RE GETTING LESS PRODUCT FOR THE SAME PRICE.
Essentially, this practice is what’s been contributing to the feeling of higher prices in grocery stores. You’re paying the same price… but you’re getting less mileage out of your snacks and household items.
Shrinkflation first began in 1988…
When coffee companies started selling a 13-ounce can of coffee grounds instead of the traditional one-pound can. They cut the amount consumers were getting without cutting the prices.
But this is not the first time we’ve seen the widespread effects of minimizing product quantities. It took over stores in 2016. Still, inflation was at a low then…
Now, shrinkflation has taken over every grocery store aisle, affecting items such as:
- Snacks
- Pantry Items
- Frozen Foods
- Meat
But beyond the actual shrinking of products, companies are also practicing Skimpflation.
In this instance, skimpflation is when companies use cheaper materials to cut costs. So if you’re buying the same paper towels and suddenly they don’t feel/perform the same…
CONGRATULATIONS! THAT PRODUCT IS A VICTIM OF SKIMPFLATION.
What’s worse is that while the government measures shrinkflation and counts it towards inflation…
Skimpflation does not get measured.
So with everyday items getting more expensive…
Smaller…
And seemingly made with worse quality…
What can shoppers do to combat these issues?
Combatting Shrinking Sizes
Ultimately, companies were able to get away with shrinkflation because historically…
CONSUMERS PAID MORE ATTENTION TO PRICE INSTEAD OF SIZE.
But now, that tide is turning.
According to a study from The Morning Consult…
64% of consumers are worried about shrinkflation affecting their purchasing power.
In response to the smaller packages, shoppers have started taking new approaches to their trips to the grocery store. Mostly, they’ve started to:
- Switch to competing brands
- Buy store-brand essentials
- Buy products in bulk
- Research alternatives not impacted by shrinking
It used to be the case that consumers would just ignore the sizes of their products…
Now, buyers are going into stores with eagle eyes and more criticism regarding their potential purchases.
This change in consumer behavior could potentially put these big brands on edge…
ESPECIALLY KNOWING THEY WON’T BE ABLE TO GET AWAY WITH THE SAME BEHAVIOR AGAIN.
We need to be more vigilant than ever if we want to create a legacy of wealth. That might mean asking yourself if you really NEED what you want.
But if you can start being smarter about how far your money can go…
Nothing can stop you from creating the wealth you deserve.
Be Great,
GCTV Staff
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