October 18, 2011

Price increases, merchandise shrinks

I heard from a local news that a certain brand of Peanut Butter will increase its price this Fall and I just reacted, what's new? Most of the commodities have increased their prices and shrinked their packaging size/qty. I noticed that small package of Doritos and the rest of its family have a new label with 2/$1 which used to be 3/$1. Aside from increasing price, the contents are less than it used to have. Well, you do expect those things whenever you are into economic turmoil. Seeing on tv the wallstreet protest, learning someone has been laid off, those products/services in terms of animals/pets are down because people are no longer capable of taking care of their pets from buying their food, hygiene, medicine and others. They would prioritize the family basic needs over the others. We are indeed in serious/huge crisis. I am with the majority of the consumers that upon learning that a certain product increases its price, I will buy less if it has no competitor or move to another lesser brand. But these companies are trying a different strategy, they will stick to their price but will decrease the quantity/size of the package which sometimes you don't pay attention with, you will wonder why you ran out of it quickly. As a consumer, you will be pissed of because you thought you're not getting what you deserve for the price that you paid or if you're paying attention, it's because you're been cheated. On the other hand, if the company of those products have reduced their CEO's salary, freeze salary increases and have done other measures to lessen expenditures, in order to continue operation which means people can still have their jobs instead of being laid off and hiring is open, it's UNDERSTABLE because we're living in a crisis and it's a global one. With this, I noticed that more reactions are received if it comes to increases on food products and/or shrinking of package qty/size than in FASHION. Refer to the photo, back the old days, we enjoyed a full size, as the years passed by, it shrinks due to fashion trend and now it's because of fashion trend and to decrease production cost, LOL!

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