You’ve heard of inflation, but have you heard of shrinkflation? It all centers around the same topic – rising costs for consumers and companies. As life gets more expensive for everyone, companies have two choices – raise prices or shrink the size of their products.
Today in the face of high inflationary rates, most companies are choosing to shrink their product sizes to keep costs manageable and profits high versus raising their prices making them more inaccessible to consumers.
So, if you think you’re running out of your favorite food or household products faster, it might not be your imagination – it could be shrinkflation.
*Please keep in mind any information provided here is not financial advice and is for educational purposes only.
How are you Affected by Shrinkflation?
Companies may think they’re helping consumers by not raising their prices, keeping their products affordable, but consumers are still affected. Here’s how.
If you buy laundry detergent that usually lasts you 2 weeks, but suddenly with shrinkflation it lasts you a week and a half, you have to replace the detergent sooner than before, so you’re still spending more money on the product over time, you’re just not forking out more money for the product right now.
3 Things you can do During Shrinkflation
Shrinkflation can have just as many detrimental effects as inflation on consumers, so what can you do during shrinkflation? Here are 3 tips.
Don’t be Brand Loyal
If you notice the brand you usually buy shrunk its size but kept the price the same, but a competing brand hasn’t, go for the competing brand. You might find that store brands are the cheapest, but some name brands may still offer some savings too.
Only Shop for Sale Products
It might be difficult at first, but if you can hold out and only buy products when they’re on sale, you’ll get more bang for your buck. It’s even better if you can stock up during sales, buying enough to get you through to the next sale, then you don’t have to worry about paying full price.
Compare per Unit Prices
Always look at per unit prices, even if you arent aware of shrinkflation affecting your favorite products. You might be surprised to learn that they are affected or that you were paying more per ounce than necessary.
Compare a few brands to one another to see what the per unit price is and which is the best deal. You might find that buying a larger size of something is more economical in some cases, but not all today.
Shrinkflation is real, and every consumer should be aware of it. We aren’t just talking about the bag of chips that feels like it’s 50% air, but more so the overall package size of most items you buy for your family and household.
Food and cleaning products are most affected, as are paper products like paper towels and toilet paper. Do your research, look for sales, know the per unit price and don’t be afraid to stray from your favorite brands and try something new in the name of saving money.
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