We all know how inflation pushes the prices up on daily items. If you feel your money isn’t going as far as it used to, you might be dealing with shrinkflation. Inflation has hit the highest in four decades. American consumers are already feeling it where it hurts.
Besides, the war in Ukraine has affected the prices on consumables and groceries. We can easily notice the price increase, but another aspect of inflation is catching up as well – shrinkflation. Keep on reading to learn what it is and how to fight it.
What Is Shrinkflation?
Shrinkflation is a common practice in which manufacturers lower the amount of a product they sell without reducing the price. The price remains the same while the amount of a product lessens. This practice had been widespread for several decades. Lately, it has become even more common, as inflation hit a 40-year high this June. Manufacturers started looking for ways to pass along the price increase to clients.
Not many consumers will even notice a difference when they look at the package in the grocery store. People may use a cash app borrow money for the short term as they need more money to finance their needs as the prices grow. The package may only become 25 or 30 grams less if producers implement a content reduction strategy. At first, reduced quantity or a smaller package may look minimal. As the costs add up over time, they amount to a lot of money.
Why is this strategy so popular? Companies prefer to utilize shrinkflation instead of increasing the price as consumers are more likely to notice the price increase rather than a slightly smaller size of the package. In the end, consumers have to purchase more products to meet their needs.
Examples of Shrinkflation
Here are some examples of shrinkflation at the grocery stores:
- A jar of Utz pretzels “hards” went from 28 ounces to 26 ounces.
- Some Pedigree dry dog food bags decreased from 50 pounds to 44 pounds.
- Sparkle paper towels removed one sheet from each roll in its pick-a-size paper towel six pack, for a total of 116 sheets rather than 110.
- Dawn Ultra dishwashing liquid lowered from 7 ounces to 6.5 ounces.
The recent survey on food categories where shoppers have noticed shrinkflation in 2022 by Statista has shown that over half of American respondents stated they had noticed the size of snack products decreasing, yet the price staying the same or increasing, otherwise known as shrinkflation. About sixty-four percent of consumers were concerned about snack shrinkflation.
Top Ways to Fight Back against Shrinkflation
#1 Look Out for Changes in Content and Packaging Size
Consumers are usually price-sensitive; they may not notice small changes in content or packaging. You should read the fine print on the weight or size of a product. If the price remains the same, shoppers won’t likely notice that they are getting less.
They are more scared of higher prices, so producers decided to use the shrinkflation strategy. Consumers may not pay attention to the changes in content or size of the packaging. Any time that a producer is repacking their product, they may lower the content of the new package.
#2 Check the Unit Price
Consumers usually concentrate on the product price instead of the unit price. Unit price is the price you receive per gram, unit, sheet, litter, or whatever the item is. Product price is the amount you pay for the item or package. It helps to define if you pay less or more. If a manufacturer lowers its quality or consent, there is a chance you are being charged more. The real value is in the price per unit.
#3 Purchase in Bulk
It will be better to purchase certain items in bulk, experts believe. Provided that you have the room to keep the excess product, it may be worth buying more. You may also want to split the cost and supply with your relative or friend. Make certain it’s as good of a deal as it seems before you purchase it. It may be a good way to fight against shrinkflation if you can afford to buy in bulk and have a place to store the product.
#4 Time Your Expected Purchases
Financial experts recommend consumers to have cash for covering emergency expenses. If you have some cash on hand, you will be able to finance urgent expenses including auto repairs or home renovation projects. Medical bills and other emergency costs can also be covered with cash. Another way to put your finances to work is to pre-purchase items in advance and on sale. If you purchase products in sufficient quantities, you will definitely benefit from them.
#5 Lower Waste
About one pound of food per consumer is wasted every day in the USA. It translates to 103 million tons of food waste created in the USA in 2017, according to the US Department of Agriculture. Food waste is estimated to be worth $161 billion annually, with the average American household of four wasting $1,500 per year. If this amount of food can be saved, it would have a major financial impact on consumers’ spending and savings.
#6 Shop Around
Producers may dictate not only price but also package size. If you want to lower the costs you should shop around for the best price. Take some time to find a better deal at other grocery stores. You may check other places and big-box stores like Target to find cheaper options for a better price.
#7 Consider Other Sizes
Shoppers are often set on particular brands but they can cost more today with the rising inflation. It can be worth searching for other sizes of the same product if you want to keep on buying the same brands. Companies don’t adjust their packaging for a product straight away, so consumers can purchase a smaller or bigger package and get a better value instead of reaching for the same size they normally do.
The Bottom Line
You may have noticed some changes in the price for various items and goods over the last few months. Shrinkflation is when the product size is shrinking while the price isn’t. Follow these tips to fight against it and find cheaper deals.