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Product shrinkage...For the same (+) price!!
Okay TFP, who else is pissed off by this happening as I am? This is mostly and easily noticable with packaged (not fresh) products. I try to cook and therefore eat healthy, but there are still crap foods that hubby and I like.
I am not new to noticing this economic trend but I did a search and didn't find a thread. It used to be that potato chips and the like were 11 oz. bags for $3.49 (that price went up and up recently too). I'd only ever buy what was on sale when I did buy them. Now, they are all the same damn price but the bag's have shrunk down to 9 1/2 oz. I also went to make a tuna salad sammich the other day and after draining my 6 oz. can of the liquid (chunk light in water please), I was left with barely enough fish to make two. I don't make tuna salad very often but Hubby and I have been together 20 yrs. and a can has ALWAYS made two sandwich's with enough left over for one the next day. The can still says 6 oz. but it has to be now at least 2 oz. of water. I don't mean for this in ANY WAY to devolve into a political thread (although it may not be avoidable) but I have to say that while gas prices kept going up and up and UP, we got all kinds of surcharges tacked on to all of our utility bills. In turn, all the food producer's (among other's) kept talking about how they had to pass on their cost's to the customer's with price increases (and only vary rarely mentioning the package downsizing). Well, gas has dropped DRAMATICALY in recent months and yet nothing seems to have trickled down to us consumers. I may be wrong but in my observance, the package size of products has shrunk before my eyes simultainiously with the dropping of gas prices. How can they get away with this bullshit? Because we will keep buying their products (yeah, answered my own question :lol:)? What say you fine folks? P.S. Sorry for any spelling mistakes, I'm tired. |
well, not to derail the thread right out of the gate, but within the next few months we should experience at least some mild deflation, so if this trend is true (haven't noticed it myself) it should reverse itself soon.
At least here in the south Ive seen the price of a gallon of milk drop as much as 50 cents. |
Andy Rooney has been banging on about this for the last 25 years.
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Dippin, your thoughts are in no way derailing the thread, what you had to say is right in line with the issue. In my area the cost of milk hasn't gone down at all, although some things like dairy and coffee have always fluctuated independant from other products. Gas prices have been low for quite awhile now which is why it irks me so much that we haven't seen deflation.
Highthief, as I said I realize I'm not the only person who has noticed this and that similar things have happened in the past. It's just stuck in my craw for awhile now and I felt like ranting and asking if others feel the same. Plus, I had a nice little note at the top of my screen asking me to maybe start a new thread.:D |
Yeah, this isn't anything new.
One food product to look at is chocolate: http://www.babylontoday.com/40fb22c0.png You see how prices spiked pretty quickly after the '70s. Also note the changes in Hershey Bar prices/sizes here: The Food Timeline--historic food prices Since the era of packaging, food marketers have had the challenge of balancing prices with portions. The thing to realize is that companies such as Hershey have the external pressure of global trade. Cocoa and sugar prices are beyond their control, so they manage it with things they can control: product size and price. The same goes for potato chips and tuna, and anything else, really. When people are used to paying a certain price for some things (such as candy bars, bags of potato chips, and cans of tuna) it's really difficult to increase the price without some kind of backlash, especially when you have competitors. So what to do to remain profitable? Reducing portions is easier to get away with than increasing prices. |
Ice cream is especially guilty of this.
As a result, we buy our ice cream from local producers who still make half-gallons for the same price as Dreyers/Edy's much smaller 1.5QT (shrunk down from 1.75QT). Here's a story from USAToday about it, dated last June: Quote:
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I also have noticed this happening with Tuna, except at our grocery store the can is actually smaller but the same price.
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Transportation costs are down, but corn prices are up. As are wheat prices. As are just about any other agricultural product. American farmers are planting corn and selling it for ethanol, which is used as a fuel additive. There's more money in EtOH. Less money in food. Unfortunately I can't buy a huge package of generic cheese puffs for under a buck anymore. So I don't buy them. Snack foods and other non-essentials are going to see business drop off as prices rise.
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I can't say that this trend happens in the UK, that I've noticed.
In fact, as soon as prices started to fall on fuel, the major grocery chains all got into a price war explaining how if you shop with them they've dropped more prices than their competitors. |
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But milk is a poor judge of price. Or did you not know that the price of milk has been inflated by the US government for a number of years to keep the milk industry viable? (You can read about it in this pdf from the USDA: http://www.ers.usda.gov/publications/aib761/aib761.pdf) |
Yes, the factors on prices are convoluted.
There's market forces such as global trade and supply & demand (some foods have elastic demand, while others have inelastic demand), and then there's government subsidies on certain food industries. Another factor is food production and purveying. Growing crops, fishing the oceans, etc. aren't stable practices. Also consider such things as the cost of packaging. Paper costs have gone up over the years by quite a bit as well. I'll note, too, that relatively speaking, food in the U.S. is still fairly cheap. Though much of it is regional as well, even within one country. I was always amazed at how dirt cheap junk food is just south of the border in northern New York State. Less than a dollar for things? That's still possible where you are? |
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Ice cream is one of the most obvious. I have also noticed that rolls of paper towels and boxes of cereal are shrinking. I can't see this "trend" slowing down even if the economy should improve.
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