Shrinkflation is just capitalism

[Politruk]

People feel about "shrinkflation" as if it were something criminal. And not unreasonably.

But whoever thought of it -- whatever exec first had the idea, "We can sell less of the product per packaged unit at the same price -- most people won't even notice!" -- we may be sure that person got a bonus and a promotion.

It's simply the logic of capitalism.

And the same reasoning applies to everything the health-insurance industry is doing. Of course the CEOs are scumbags, they could not rise so high if they weren't.

 

[Politruk]

Deny, defend, depose -- it's just what a businesscritter does.

 

[UltraChad]

People feel about "shrinkflation" as if it were something criminal. And not unreasonably.

But whoever thought of it -- whatever exec first had the idea, "We can sell less of the product per packaged unit at the same price -- most people won't even notice!" -- we may be sure that person got a bonus and a promotion.

It's simply the logic of capitalism.

And the same reasoning applies to everything the health-insurance industry is doing. Of course the CEOs are scumbags, they could not rise so high if they weren't.

What do you think capitalism is??

 

[BabyBoomer50s]

Setting price points that people are willing to pay. How horrible.

 

[Politruk]

What do you think capitalism is??

A problem to be solved.

 

[UltraChad]

A problem to be solved.

So like most leftoids you have no fucking clue. Figured.

 

[RobDownSouth]

Document teh shrinkage....
https://i.imgur.com/gYSVDZX.png

 

[Rightguide]

So like most leftoids you have no fucking clue. Figured.

Millions for DEI but none for fire and water makes perfect sense to the clown force on the left.

 

[Rightguide]

Document teh shrinkage....
https://i.imgur.com/gYSVDZX.png

That's what happens when the dollar is inflated and looses its buying power. You either have to spend more to get the same or less is given for the amount spent. Either way you look at it.

 

[RobDownSouth]

That's what happens when the dollar is inflated and looses its buying power. You either have to spend more to get the same or less is given for the amount spent. Either way you look at it.

Damned shame you never attended an accredited college. You might have learned about the theory of economic substitute goods. If the price per unit of one of your favorite foods (let's use "Little Debbie Donuts" given your large waistline) gets too high, you can substitute a similar item with a better value price-per-unit wise (say, "Hostess cupcakes").

You're not locked in to a single non-commodity item in a capitalistic market, so the dollar's relative buying power is minimal at best.

P.S. It is "loses" not "looses" you dotard.

 

[MajorRewrite]

Millions for DEI but none for fire and water makes perfect sense to the clown force on the left.

You replied to a month-old comment on a thread about inflation, and your reply is about wildfires.

You are a stable genius.

 

[Rightguide]

Damned shame you never attended an accredited college. You might have learned about the theory of economic substitute goods. If the price per unit of one of your favorite foods (let's use "Little Debbie Donuts" given your large waistline) gets too high, you can substitute a similar item with a better value price-per-unit wise (say, "Hostess cupcakes").

You're not locked in to a single non-commodity item in a capitalistic market, so the dollar's relative buying power is minimal at best.

P.S. It is "loses" not "looses" you dotard.

Nothing I said was in error. Note the following search results:

Common Reasons for Shrinkflation:

Rising Costs of Production:
Increased costs for raw materials, labor, transportation, or energy can squeeze profit margins. Instead of raising the price, which may deter customers, companies reduce the product size to offset these costs.

Maintaining Price Perception:
Consumers are often more sensitive to price changes than subtle decreases in quantity. By keeping the price the same, companies aim to avoid triggering negative reactions or losing customers to competitors.

Economic Inflation:
During periods of high inflation, the cost of goods and services increases broadly. Shrinking product sizes allows companies to manage these rising costs while minimizing the visible impact to the consumer.

Market Competition:
In highly competitive markets, raising prices could result in losing customers to rivals. Reducing product quantity is a way to stay competitive without directly altering the price tag.

Psychological Pricing Strategies:
Many companies rely on the psychological impact of price points. For example, keeping a product at $4.99 instead of raising it to $5.49 may feel less drastic to consumers, even if the quantity is slightly reduced.

 

[Politruk]

Nothing I said was in error. Note the following search results:

Common Reasons for Shrinkflation:

Rising Costs of Production:
Increased costs for raw materials, labor, transportation, or energy can squeeze profit margins. Instead of raising the price, which may deter customers, companies reduce the product size to offset these costs.

Maintaining Price Perception:
Consumers are often more sensitive to price changes than subtle decreases in quantity. By keeping the price the same, companies aim to avoid triggering negative reactions or losing customers to competitors.

Economic Inflation:
During periods of high inflation, the cost of goods and services increases broadly. Shrinking product sizes allows companies to manage these rising costs while minimizing the visible impact to the consumer.

Market Competition:
In highly competitive markets, raising prices could result in losing customers to rivals. Reducing product quantity is a way to stay competitive without directly altering the price tag.

Psychological Pricing Strategies:
Many companies rely on the psychological impact of price points. For example, keeping a product at $4.99 instead of raising it to $5.49 may feel less drastic to consumers, even if the quantity is slightly reduced.

All of which supports what I said in the OP.

 

[Politruk]

What do you think capitalism is??

This.

Capitalism is an economic system that is utilized in most countries of the world. Even in most countries where it is not accepted in theory, it is accepted in practice.

Most people agree that it has been more productive than any other economic system the world has tried, and requires comparatively small amounts of centralized oversight to keep it from running out of control.[citation needed] However, there is the fact that the benefits of this often fall disproportionately to the rich as opposed to society where the rich aren't richer than anyone else, with persistent (and in some cases dangerous) material and social divides in capitalist societies, as well as capitalism's long history with colonialism that arguably continues to this day. And of course, there is the large amount of destruction to the environment and especially the atmosphere that has been brought about largely due to capitalism's quest for growth and of which capitalism is still struggling to find solutions to. There are intellectuals that propose other economic systems are more just or can improve on capitalism. For example, some of the least unequal states are those that have adopted modified versions of capitalism that spread wealth without sacrificing overall prosperity, such as the Nordic countries and to a lesser extent, Canada. Some may argue that a capitalist economy is not reliable and it can explode in a matter of months using the recent COVID-19 pandemic as an example. However, in September 2021, only two years after the Pandemic started the total global output was higher than the pre-pandemic levels. It should be mentioned, however, that this recover was uneven, with large differences in vaccination rates between countries being responsible for a considerable part for the unevenness of the recovery.[3]

In particular, capitalism is a far sight better than its predecessors, mercantilism and guilds, and has outlasted the idea of a command economy; it has also proven itself much more compatible with liberal ideals than either of these systems. There is a body of academic literature that suggests that capitalism may in fact be a prerequisite for the growth of progressive social values, or at the very least something that can help with their spread. On the other hand, there have been plenty of countries (e.g. China and Russia) that loosened economic restrictions while maintaining violations of political and civil rights.

There is also a belief patterned on the democratic peace theory of liberal international relations that no two globalized, capitalist countries can or will go to war with each other, though this statement only tends to be true if you define "democracy" and "capitalism" such that the statement is true.[4]

 

[UltraChad]

This.

Capitalism is an economic system that is utilized in most countries of the world. Even in most countries where it is not accepted in theory, it is accepted in practice.

Most people agree that it has been more productive than any other economic system the world has tried, and requires comparatively small amounts of centralized oversight to keep it from running out of control.[citation needed] However, there is the fact that the benefits of this often fall disproportionately to the rich as opposed to society where the rich aren't richer than anyone else, with persistent (and in some cases dangerous) material and social divides in capitalist societies, as well as capitalism's long history with colonialism that arguably continues to this day. And of course, there is the large amount of destruction to the environment and especially the atmosphere that has been brought about largely due to capitalism's quest for growth and of which capitalism is still struggling to find solutions to. There are intellectuals that propose other economic systems are more just or can improve on capitalism. For example, some of the least unequal states are those that have adopted modified versions of capitalism that spread wealth without sacrificing overall prosperity, such as the Nordic countries and to a lesser extent, Canada. Some may argue that a capitalist economy is not reliable and it can explode in a matter of months using the recent COVID-19 pandemic as an example. However, in September 2021, only two years after the Pandemic started the total global output was higher than the pre-pandemic levels. It should be mentioned, however, that this recover was uneven, with large differences in vaccination rates between countries being responsible for a considerable part for the unevenness of the recovery.[3]

In particular, capitalism is a far sight better than its predecessors, mercantilism and guilds, and has outlasted the idea of a command economy; it has also proven itself much more compatible with liberal ideals than either of these systems. There is a body of academic literature that suggests that capitalism may in fact be a prerequisite for the growth of progressive social values, or at the very least something that can help with their spread. On the other hand, there have been plenty of countries (e.g. China and Russia) that loosened economic restrictions while maintaining violations of political and civil rights.

There is also a belief patterned on the democratic peace theory of liberal international relations that no two globalized, capitalist countries can or will go to war with each other, though this statement only tends to be true if you define "democracy" and "capitalism" such that the statement is true.[4]

All that and no real definition....just a bunch of inane commie bullshit rambling.

Typical.

 

[RobDownSouth]

Setting price points that people are willing to pay. How horrible.

Funny thing about those price points with regard to fast food restaurants!
It seems that the big three (McDonalds, Burger King and Wendys) have been ratcheting up prices continually over the past four years, far outpacing the cost of labor and raw materials. "Maximizing shareholder value", don'tcha know.

Their high-priced market pricing consultants seem to have overlooked one critical thing: the actual customer.

It seems that when you price a single meal combo (burger, fries and drink) at 18 bucks as one hapless McDonalds in Connecticut did, customers go elsewhere (particularly households earning less than 50K per year). They all say fuck it, at those prices we'll go to Applebees. You can get away with that sort of pricing at airport locations but not roadside fast food.

Sooo....after virtually all fast food restaurants reported lackluster fourth quarter results last year, almost all fast food restaurants are rolling out new 'n improved "value menus" this year.

McDonalds is hyping "buy one sandwich at regular price, get a second for $1!"...Subway is putting one sandwich on the menu each day, rotating selection each day. I know the nearby Burger King was having "Whopper Wednesday" where a plain old whopper was a buck.

How horrible indeed, consumers pushing back.