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SHRINKFLATION: Increasing prices, decreasing quantity! · Talking FACS

• 0:01
  Welcome to Talking Facts.
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  What you need to know about family food finance and fitness.
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  This nationally recognized award winning podcast is hosted by the University of Kentucky Family and Consumer Sciences Extension Program.
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  Our educators share research knowledge with individuals,
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  families and communities to improve quality of life.
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  Hello and welcome to Talking Facts.
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  What you need to know about family food finance and fitness.
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  I am your host,
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  Mindy mccauley Extension Specialist for instructional support at the University of Kentucky.
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  Today.
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  My guest is Doctor Nicole Huff Extension specialist for the same with finance and resource management.
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  Welcome Nicole,
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  I'm Mindy.
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  So we're gonna talk about shrink today and I bet that that is probably not a word that crosses people's lips daily.
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  Uh No,
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  no.
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  Um People have probably heard of what what I've heard.
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  You referred as its cousin,
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  it's cousin.
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  Inflation they may have heard of,
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  but shrink inflation is,
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  you know,
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  so with inflation,
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  especially in today's market,
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  many shoppers have probably seen that the price of goods and services just skyrocket like it is.
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  It's hard not to notice,
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  but I wonder and what we'll talk about today is,
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  have they noticed that they're packed are also shrinking.
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  And so this is a tactic known as shrink when not only are goods and services going up,
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  but the size and quantity of what we receive in our packages is going down.
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  And so that is what's known as shrink.
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  Yeah,
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  we noticed this recently at our house,
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  my husband pulled a sleeve of crackers out of the cracker package and he was like,
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  oh,
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  I think they shorted us some.
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  And then I was like,
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  well,
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  I don't know.
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  Let's look.
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  And so we noticed that all of the four packages were also smaller than normal because they,
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  it was still the same size box but looked,
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  yep,
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  different amount inside the same size package.
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  So,
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  yes.
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  So what does shrink mean for households?
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  Yeah.
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  Well,
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  your example is a really good one and so it,
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  it can sometimes be called downsizing,
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  but that's when it's,
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  it's a,
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  a strategy that companies use to maintain their current prices or they might bump it up a little.
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  So we might see a slight increase in,
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  in product price,
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  but it's when they give you less product.
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  And so like you mentioned,
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  the box itself hadn't changed,
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  but those individual sleeves was in that box had changed.
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  And,
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  and so usually shrink inflation is enough to keep that physical package the same.
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  And so maybe it's a bag of chips which,
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  you know,
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  are half air anyway.
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  Right?
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  But if your bag of chips has has shrunk from 13 ounces to 11 ounces or bacon is one of my favorites because bacon,
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  which of course is just a household favorite anyway.
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  But the packages are a good example of shrink.
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  So you may have gotten a pound of bacon before,
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  but that size has,
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  has shrunk from 16 ounces to 12 ounces for that same price.
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  And so,
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  you know,
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  those little types of changes typically go unnoticed and for households that really matters because like for you,
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  you're gonna go through your crackers quicker.
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  So you're gonna,
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  you're gonna have to purchase them more often.
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  And you know,
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  when we go through,
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  um,
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  an item more quickly,
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  it can impact our monthly budget because we're having to buy more of it.
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  And so we have to purchase it more often and when we get less product,
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  we're just gonna go through it faster.
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  And so it's gonna cost us more in the long run.
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  So how can shoppers pay attention to translation in stores?
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  We'll start by paying attention to those slight changes in packaging.
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  You know,
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  whether it's cereal or toilet paper or,
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  or shampoo or crackers,
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  but just take a look at the design on,
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  on the package.
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  And so not all products will come with a new package or a new look,
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  but some might and some might make boxes or bottles taller and narrower to trick the eye into believing it holds more product and also be wary of bonus buys or those other marketing tactics that promise additional products that,
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  you know,
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  compare those to the regular product to ensure that it actually contains more.
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  And so probably the,
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  the first step to combating it is to pay attention to it.
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  And I noticed that with my crackers now they sell them in family size,
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  which is the same amount that I used to get in the regular,
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  but it cost a whole lot more.
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  Right.
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  And we've gone from just the two of us to now we're family again,
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  family size packers.
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  So they're right.
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  And so they market it as family,
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  but you're not really getting more product.
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  But that's kind of a slight justification in that price increase.
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  And so to strategy,
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  it's hard for consumers because there's not a whole lot we can do about it other than beginning to be mindful.
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  Yes,
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  pay attention and we can of course,
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  look for maybe an alternative to that.
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  So is it legal for them to do this to our products that we have run the?
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  Yeah,
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  it,
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  it is actually a legal tactic.
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  And so,
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  you know,
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  because uh you know,
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  I try to give,
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  give companies the benefit of the doubt,
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  right?
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  I mean,
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  you know,
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  their cost have gone up to their production costs have gone up and,
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  and so many companies are just trying to look for strategies to help them save money on production costs.
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  And so it is legal though to reduce the size of a,
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  of a product.
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  So the fair packaging and labeling act that requires businesses to clearly label accurate weights on its packages so that customers can comparison shop or pick an alternative or so that they have the facts.
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  But it doesn't prohibit companies from decreasing that weight.
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  They just have to clearly label it,
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  but they don't have to notify the consumer that they reduce the amount.
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  So it's up for us to notice that that they do.
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  And and so it is legal but you know,
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  one way that shoppers can combat it is to compare unit prices.
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  So pay attention to the unit.
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  So that's like your pounds or your ounces and then the price and so you can calculate the,
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  the unit price.
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  And so it just goes back to your basic math,
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  your basic arithmetic.
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  So you just,
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  you just divide that item's price by the number of its units.
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  And so that will allow us to compare if we're really being charged more per unit.
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  So it helps us if we take the time to calculate the unit price then and sometimes it's labeled on the shelf,
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  sometimes it's done for you.
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  But again,
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  the easiest way and the most accurate way is for you to calculate it.
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  So then,
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  so then you're comparing apples and apples and not apples and oranges.
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  And also sometimes when it's labeled on the shelf,
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  it might be a different unit than what's sold So if you know,
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  it might be for 100 of whatever,
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  but they're only selling it in a package of 50.
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  So you have to realize,
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  you know,
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  what,
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  what the unit list is on the shelf,
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  if that does make a difference.
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  So what are some other tips that you recommend for consumers trying to battle shri inflation and inflation too?
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  Yeah,
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  absolutely.
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  You just have to,
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  you have to be such a mindful consumer now because you know,
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  I like to,
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  to talk about bacon and,
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  and how those those packages have shrunk from 16 to 12 ounces and many consumers.
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  We,
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  we work to bring home the bacon,
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  but um the cost of bacon unintended is so high.
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  We,
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  we can't afford it these days.
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  So we have to look for things like sales.
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  We have to,
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  you know,
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  stock up on freezer or shelf staple items,
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  those staples in our household when we find a deal,
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  you know,
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  couponing is a good strategy,
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  buying generic brands,
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  comparing unit prices and even your customer loyalty programs.
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  And um look for ways to just maximize your resources and stretch that dollar.
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  So that,
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  that we really are getting the best deal even if prices altogether have gone up.
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  We still have to use strategies just smart shopping strategies.
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  And typically once prices go up,
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  they rarely come back down.
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  So we're gonna have to really find ways to make sure that we save money in the best way that we can.
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  Yes,
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  Nicole,
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  thanks so much for joining me today.
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  I know that this is a topic that is going to garner lots of interest.
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  I'm sure maybe not the kind that people want to be excited about,
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  but at least it would give them the information that they need to help trim their budgets.
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  Absolutely.
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  Thank you,
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  Mindy.
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