Greed or Inflation? Why We Pay More For Less
Decoding Shrinkflation: Corporate Tactics and the Hidden Costs of Price Hikes
Discover why the products you buy are getting smaller and more expensive, separating genuine inflation costs from aggressive corporate profit-seeking hidden in the packaging.
Short Summary
- Front-load: Understand the psychology (Just Noticeable Difference) that makes shrinkflation effective.
- Front-load: Pinpoint the difference between necessary cost adjustments (inflation) and excessive profit-taking (greedflation).
- Front-load: Learn three critical terms—shrinkflation, greedflation, and skimpflation—that define modern pricing strategies. This episode explores the widespread practice of reducing product quantity while maintaining shelf price, analyzing its historical context, psychological effectiveness, and recent escalation fueled by post-COVID economic actions. Readers will gain clarity on corporate accountability regarding seemingly unexplained price increases across major global markets.
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Top Comments (10)
When companies start really losing money because of their actions, they will lay off workers instead of lowering prices.
Doesn’t help when about 5 companies own all of big food
After the pandemic I noticed that in the UK my favourite icecream Magnum has only three in the box instead of previously four. But the cost has increased by more than 50%
I always used to enjoy Toblerone Swiss chocolate, but after they reduced the number of 'peaks' per bar I never bought another. Apparently they've since gone back to the original size, but I guess I just lost the taste for it. Companies need to understand that when they upset a loyal customer they may lose them forever.
"Someone has to pay" Yes, it is us.
I used to work in P&G and way before covid the sizes of the products have been reduced little by little, while keeping packages as close as the same size as possible. But that's not all, they on purpose make you spend more. I still remember one day we were discussing about how Colgate made the opening of their toothpaste bigger so people over-use cream and thus rebuy it faster. They also did the same for Fairy, as they want people to splurge on liquid soap so they come buying more. Kind of sick
People should identify which “small companies” are masquerading as independent while controlled by private equity.
Skimpfaltion is the entire pure honey industry. I recently found a local honey-bee keeper so I can get actual 100% pure honey. The honey purchased in store chains has almost no pollen, so it cannot be considered real honey.
I've been noticing this forever and nobody listened. I was so mad when nobody believed me McDonalds burger patties are much much smaller than they use to be. They're basically transparent now and people kept telling me this is how it always was.
They make “junk” food, shrink the portions, and then charge you more…how delightful 🙄
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Top Comments (10)
When companies start really losing money because of their actions, they will lay off workers instead of lowering prices.
Doesn’t help when about 5 companies own all of big food
After the pandemic I noticed that in the UK my favourite icecream Magnum has only three in the box instead of previously four. But the cost has increased by more than 50%
I always used to enjoy Toblerone Swiss chocolate, but after they reduced the number of 'peaks' per bar I never bought another. Apparently they've since gone back to the original size, but I guess I just lost the taste for it. Companies need to understand that when they upset a loyal customer they may lose them forever.
"Someone has to pay" Yes, it is us.
I used to work in P&G and way before covid the sizes of the products have been reduced little by little, while keeping packages as close as the same size as possible. But that's not all, they on purpose make you spend more. I still remember one day we were discussing about how Colgate made the opening of their toothpaste bigger so people over-use cream and thus rebuy it faster. They also did the same for Fairy, as they want people to splurge on liquid soap so they come buying more. Kind of sick
People should identify which “small companies” are masquerading as independent while controlled by private equity.
Skimpfaltion is the entire pure honey industry. I recently found a local honey-bee keeper so I can get actual 100% pure honey. The honey purchased in store chains has almost no pollen, so it cannot be considered real honey.
I've been noticing this forever and nobody listened. I was so mad when nobody believed me McDonalds burger patties are much much smaller than they use to be. They're basically transparent now and people kept telling me this is how it always was.
They make “junk” food, shrink the portions, and then charge you more…how delightful 🙄