This article was translated from our US edition using AI technologies. Errors may exist due to this process. Opinions expressed by Entrepreneur contributors are their own.
Although sometimes we are not aware of them, in times of inflation companies reduce the amount of product we receive for the same price. Such is life in a world plagued by pandemics and wars.
Excited, you open the bag of your favorite chips and begin to enjoy them only to discover that something has changed: you are still hungry and they are gone too quickly. After analyzing the situation, you come to a terrifying conclusion: the bag contained fewer potatoes than usual . The strangest thing is that you paid exactly the same price as last week.
What happened? It’s called shrinkflation and it’s the process by which brands reduce the amount of product they sell to you so as not to have to increase its price in the face of inflation (it should be clarified that sometimes they do it too, although there is no inflation, to increase their profit margins).
In a world plagued by pandemics and wars, the prices of all products have increased. In Mexico, inflation during 2021 was 7.36%, in Spain 7.8%, in the United States 7% and in Argentina 50.9%. In 2022 the scenario does not look better. Most countries are seeing price increases and the war between Russia and Ukraine has already disrupted the supply chains of many products and the effects are being felt everywhere (if not, ask Mr. Elon Musk ).
Faced with the onslaught, brands have two options: increase their prices or offer a smaller amount of product for the same price. And since consumers are angry about having to pay more for the same thing, in many cases we will pay the same for less .
THE SHRINKFLATION AND ITS CONSEQUENCES
Years ago Reddit users opened a subreddit to document and evidence the shrinkage of some of the products they consumed. The volume of evidence has increased and among the products “flagged” we can find bags of chicken fajitas with 300 grams less, thinner antibacterial towels, energy drinks in smaller containers, chocolate jars with an inner bottom to fit less quantity, narrower toilet paper, hamburgers with less thick slices of bread, fans of the same size, but with smaller motors and gum strips with a space cancelled.
The list is endless. The effect of inflation is unavoidable. Look around you and you will find out. Such is life in a pandemic and war world.
By the way: I could have sworn the donut I ate this morning was smaller.
Jane Poynter Wants to Take You to Space — and She’s Not Doing It Like the Billionaire Boys’ Rocket Club
Why One Burnt-Out Executive Left Her Job to Write the Book (Literally) on Women of Color in Corporate America
10 Game-Changing Pieces of Advice From Powerhouse Businesswomen
Starting a Business Empowered Jing Gao to Reclaim Her Name
The House of LR&C Co-Founder and CEO Christine Day Shares the ‘Subtle Power Moves’ That Amplify Her Voice
4 Ways Black Women-Owned Small-Retail Brands Changed the Game
This Women-Powered Social Platform Is Revolutionizing the Way Authors Market Their Work