Manufacturers use “shrinkflation” to pass costs on to consumers

Edgard Dworsky:

Manufacturers rely on both increasing the price and reducing the product. The difference is that they know consumers are price conscious and consumers will realize that if that container of orange juice goes from $2.99 ​​to $3.39, they will kick back, they will will complain. Maybe they will switch to another brand.

But they know that consumers are unaware of net weight. They won’t notice, most of them, if the product has gotten a little smaller.


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