Monday, Aug 18, 2008
Hiding Inflation
Evening Standard: Shoppers 'cheated' as supermarket brands downsize - so you pay the same for less
Shoppers are paying more for their goods without realising - as manufacturers shrink the pack sizes.
In the face of rising costs, firms try to protect their profits. But many brands are reluctant to put up prices for fear of a consumer backlash - particularly when household budgets are squeezed.
One solution is to charge customers the same - but make packs smaller.
Posted by sold out @ 01:04 PM (927 views) Add Comment
19 Comments
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1. Eyes_wide_open said...
This has been going on for a long time... shame the media took so long to cotton on to it.
2. sold out said...
See also these similar articles
http://www.ft.com/cms/s/0/05bcc69c-59e3-11dd-90f8-000077b07658.html?nclick_check=1
http://www.huffingtonpost.com/max-keiser/clipped-roman-coins-and-s_b_114902.html
3. Bananasplit said...
The producers, wholesalers and retailers all need profit and corners will be cut to achieve this, including laying off employees and expecting more from the rest. I would not be surprised to see cheating, selling inorganic as organic and free range might not be free range. Changing pack size and reducing content has always been a marketing tool especially for more expensive products, posher looking packs sell for more.
My advice to consumers would be to buy the basic products like milk, flour, custard powder etc and bake your own treats, make your own puddings and stop buying ready made foods, including small tubs of yoghurt, buy yoghurt in large pots and add cereal, honey or fruit.
90% of products for sale in supermarkets processed for profit and a sensible shopping basket would only buy foods that need preparing at home.
4. This comment has been removed as it was found to be in breach of our Blog Policies.
5. Swissnic said...
Well, this is just another reason to avoid supermarkets in general. Cook fresh produce purchased at your local farm or farmers market. A pound or kilo of potatos doesn't change in weight, so you will know when the price changes. And if the price does rise, I would rather it go to the person actually producing the goods, and not into the hands of the greedy supermarket corporates.
6. last_days_of_disco said...
The dark depression diet. I suppose the opportunity for us to all lose a few pounds is arriving.
7. brian t said...
The gradual move from Imperial to Metric is a nice place to hide increases in unit price. e.g. 1/2 pound of bacon (227g) is now 200g.
A similar related trend is how some vendors try to hide this kind of thing, by tarting up their products. Pringles tubes went from 200g down to 170g... then they tried selling "Gourmet Pringles" at the same price for 120g (I think it was). I nearly fell down laughing when I saw that one - there is nothing "gourmet" about Pringles, regardless of what flavourings you dump in the tube. Twits.
8. brian t said...
I forgot to mention: Tesco are partly thwarting this trend by printing per-kilo prices on nearly everything. If you get a feel for those prices, over time, it makes this package size manipulation easier to spot.
9. growler said...
They all do it. it's called "price establishing". The key is that they were at artificially high prices for a qualifying period - so now the product can be legitimately "reduced". I'd also be aware of EDLP (every day low price) claims - these are aimed at perception. Look around at prices by product sector per retailer - you'll see better retail margins in those areas that are not the ones everyone knows (bread and butter).
10. mountain goat said...
I have a friend who produces luxury soaps in the UK. He said his raw material had gone up 30% this year but a large supermarket chain who buys his product said he was not allowed to pass the costs on to them. Make bars of soap smaller.... would make sense to him.
11. Eyes_wide_open said...
@Banana Split
Very good comments.
I would also recommend people shop for fruit and veg at their local green grocer. You'll generally find you get much more for your money, especially on things like Potatoes, Tomatoes, Celery, Plums, Grapes, Apples, Oranges and Water Melon.
12. paranoia blue said...
Re: Last days of the disco’s [6] – depression diet, and Mountain goat’s [10] - reduced soap size:
Great symbiosis – a step towards sensible consumption and sustainable thrift.
13. Whostolemyendowment said...
Buy one get one half !
14. Safe As A Crash said...
its not just any cheating, its M&S cheating, every little helps, thats why mum's go to iceland....
15. inflation is eating my savings said...
poor man's soup:
Brown 1 lb diced beef shin in butter, remove from pan. Brown 2 onions in leftover fat. Put beef back in with 1 cubed turnip (or swede), 2 chopped carrots, 2 chopped parsnips.
Add about half a pint of IPA (or more if you don't drink the rest of the bottle), then add enough water to cover. Simmer for 4 hours, thicken if desired (or just mash in the veg a bit), Serve with bread and cheese. Tastes great, serves 4, costs about a fiver.
16. James said...
8 - that'll be the evil EU and their labelling regulations. They can be useful sometimes...
17. Bananasplit said...
@Eyes_wide_open said...
yes ! we should all stop buying food that is containerised ! grow your own is best but food need not be expensive if you buy seasonal produce.
Get together with your neighbours and buy in bulk.
Most of us are lazy and rely on supermarkets telling us how and what to eat......this is a microwave meal.....put in microwave,heat and then eat,......... unfortunately the container is not recyclable is probably written on the box.
home cooking is fun and good for you!
18. mark said...
A driver for a supplier for Aldi told me that they visit the most awful places in east EU to source food for Aldi, he said he has frequently seen rats and other nasties etc in these places.... the cheapest of the cheap then...
19. malct said...
it'snot often I post off topic but!
somehow I feel this news story has an amusing relevance to this thread which is off topic anyway
apollogies in advance for my bizarre sense of humour.
http://uk.eurosport.yahoo.com/18082008/58/beijing-2008-only-ten-gays-village.html
Nine of the gay athletes named by Outsports were lesbians and their sports ranged from fencing to cycling. Just one, Australian diver Matthew Mitcham, was a man.