Political Wrinkles  

Go Back   Political Wrinkles > Political Forums > Economics
Register FAQDonate PW Store PW Trivia Members List Calendar Search Today's Posts Mark Forums Read

Economics Discuss Why must some companies make price increases that are sneaky--not straightforward? at the Political Forums; Originally Posted by AZRWinger The small increase is used as an illustrative example. Sure, lots of people can afford to ...

Reply
 
Share LinkBack Thread Tools Display Modes
  #51 (permalink)  
Old 09-27-2020, 12:11 PM
PW Enlightenment
 
Join Date: Apr 2013
Gender: Male
Posts: 12,643
Thanks: 10,397
Thanked 8,513 Times in 5,049 Posts
Default Re: Why must some companies make price increases that are sneaky--not straightforward

Quote:
Originally Posted by AZRWinger View Post
The small increase is used as an illustrative example. Sure, lots of people can afford to pay the small increase but multiply it out over a wide range of expenses and people living paycheck to paycheck have a problem.

Remember the famous statistic that some huge percentage of Americans can't afford a modest unexpected expense? If you have $2 in your pocket or on your EBT card are you going to get the 32 oz box for $2.10 or the 28 oz for $2?

It's fashionable to condemn the manufacturer for reducing the size to keep it affordable but it's a let them eat cake attitude.
Again, that assumes only one choice. That's almost always not true.

If I have $2 in my pocket and want something that costs $2.10, I might buy the store brand for $1.75 or go to the store next door and buy the same product for $1.90
Reply With Quote
The Following User Says Thank You to jimbo For This Useful Post:
  #52 (permalink)  
Old 09-27-2020, 06:54 PM
PW Enlightenment
 
Join Date: Mar 2009
Location: Tennessee
Gender: Male
Posts: 10,736
Thanks: 13,521
Thanked 4,858 Times in 3,111 Posts
Default Re: Why must some companies make price increases that are sneaky--not straightforward

Quote:
Originally Posted by AZRWinger View Post
Say the box of oatmeal 32 oz is $2. But thanks to Donald Trump withdrawing us from the Paris accords the Chinese have increased emissions causing a drought or flooding in Iowa boosting the price of oats. The oatmeal manufacturer can boost the price or reduce the size of the box. A small price increase doesn't effect most customers but poor or those living on a fixed income who could afford $2 may not be able to afford $2.10. For them stretching a 30 oz box might be the only viable alternative. But hey, why not rail against evil capitalism instead of giving people options.
For openers, I do not wish to "rail" against "evil capitalism." (As Churchill famously said in 1947, capitalism "is the worst system except for all the others.")

And the product that I was initially speaking about (which has recently been downsized from 23.6 ounces to 22.0 ounces) is body wash--which is something like liquid soap.

I then spoke of our kitchen trash bags (which have been downsized from 45 to 40).

Neither of these is a food product--something necessary for mere survival.

Even if a food product were downsized, however, it begs the question: Just how might this be more useful toward the end of prompting smaller portions than a price increase would be?

It does seem like a reasonable question...
__________________
"In his second inaugural address, [Franklin D.] Roosevelt sought 'unimagined power' to enforce the 'proper subordination' of private power to public power. He got it…"—George Will, July 8, 2007
Reply With Quote
  #53 (permalink)  
Old 09-28-2020, 10:42 AM
Conservative Sage
 
Join Date: Mar 2010
Location: Scottsdale, AZ
Posts: 18,900
Thanks: 12,393
Thanked 13,365 Times in 7,787 Posts
Send a message via ICQ to AZRWinger
Default Re: Why must some companies make price increases that are sneaky--not straightforward

Quote:
Originally Posted by pjohns View Post
Perhaps you have placed your finger--albeit inadvertently--upon the problem: Too many Americans are, as you said, "living paycheck to paycheck."

I strongly believe in the pay-yourself-first method. It works like this:

When one gets paid--however meager the amount may be; and whatever one's expenses might be--one should pay oneself first. Which is to say, one should set aside a set amount--say, 10 percent of the net pay--into savings.

Then, one should set aside enough money to pay all the monthly bills.

Next, one should set aside enough money to purchase food for the month.

Next, one should set aside enough money to purchase gasoline for the month.

And lastly, one should set aside enough money for entertainment for the month (if there is any money left over).

Too many people, I think, do this sort of thing upside-down.
That's certainly a classic and worthwhile budgeting discipline. Care to comment on the merit of a manufacturer reducing the size of a product so the price remains the same meaning it will fit within the budgeting discipline you describe?
__________________
If Democrats were confident their nominee actually received more than 80 million votes they wouldn't have more troops occupying Washington, DC than Lincoln had defending the city during the Civil War. Not Joe Biden, Kim Jung Biden.
Reply With Quote
The Following User Says Thank You to AZRWinger For This Useful Post:
  #54 (permalink)  
Old 09-28-2020, 10:59 AM
Conservative Sage
 
Join Date: Mar 2010
Location: Scottsdale, AZ
Posts: 18,900
Thanks: 12,393
Thanked 13,365 Times in 7,787 Posts
Send a message via ICQ to AZRWinger
Default Re: Why must some companies make price increases that are sneaky--not straightforward

Quote:
Originally Posted by jimbo View Post
Again, that assumes only one choice. That's almost always not true.

If I have $2 in my pocket and want something that costs $2.10, I might buy the store brand for $1.75 or go to the store next door and buy the same product for $1.90
No, it assumes we are talking about the same product from the same manufacturer. All sorts of scenarios can be introduced to avoid discussing the merits of a manufacturer reducing quantity. There is probably a food bank or charity kitchen where someone can get oatmeal for free but that has nothing to do with reduced quantity for the same price.

I don't know where you live but there aren't grocery stores next door to each other around here. That means transportation cost to go to another store.

Even Walmart doesn't have store brands for everything. My pension doesn't go as far as it used to but I'll still hold out for not a speck of cereal.
__________________
If Democrats were confident their nominee actually received more than 80 million votes they wouldn't have more troops occupying Washington, DC than Lincoln had defending the city during the Civil War. Not Joe Biden, Kim Jung Biden.
Reply With Quote
  #55 (permalink)  
Old 09-28-2020, 01:30 PM
PW Enlightenment
 
Join Date: Mar 2009
Location: Tennessee
Gender: Male
Posts: 10,736
Thanks: 13,521
Thanked 4,858 Times in 3,111 Posts
Default Re: Why must some companies make price increases that are sneaky--not straightforward

Quote:
Originally Posted by AZRWinger View Post
That's certainly a classic and worthwhile budgeting discipline. Care to comment on the merit of a manufacturer reducing the size of a product so the price remains the same meaning it will fit within the budgeting discipline you describe?
As I mentioned previously: Why could a person not simply eat smaller portions if the price were increased, rather than just doing so if the product were downsized?

Moreover, you have simply ignored the fact--as I mentioned, in my prior post--that I was speaking of body wash and kitchen trash bags, rather than food.

(In all fairness, I also mentioned the downsizing--albeit not recently--of a bag of sugar, from five pounds to a mere four pounds. But although sugar is, technically, a food, I rather doubt that anyone would purchase a bag of sugar as a means of survival.)
__________________
"In his second inaugural address, [Franklin D.] Roosevelt sought 'unimagined power' to enforce the 'proper subordination' of private power to public power. He got it…"—George Will, July 8, 2007
Reply With Quote
  #56 (permalink)  
Old 09-28-2020, 09:17 PM
Conservative Sage
 
Join Date: Mar 2010
Location: Scottsdale, AZ
Posts: 18,900
Thanks: 12,393
Thanked 13,365 Times in 7,787 Posts
Send a message via ICQ to AZRWinger
Default Re: Why must some companies make price increases that are sneaky--not straightforward

Quote:
Originally Posted by pjohns View Post
As I mentioned previously: Why could a person not simply eat smaller portions if the price were increased, rather than just doing so if the product were downsized?

Moreover, you have simply ignored the fact--as I mentioned, in my prior post--that I was speaking of body wash and kitchen trash bags, rather than food.

(In all fairness, I also mentioned the downsizing--albeit not recently--of a bag of sugar, from five pounds to a mere four pounds. But although sugar is, technically, a food, I rather doubt that anyone would purchase a bag of sugar as a means of survival.)
If you can't afford the more expensive purchase price then you can't eat at all. The same dynamic applies to body wash and trash bags. The choice is between no body wash or trash bags and making do with a smaller quantity. Sure, you aren't going starve without these products but reduced quantity at the same price allows the less affluent to continue to use these products.
__________________
If Democrats were confident their nominee actually received more than 80 million votes they wouldn't have more troops occupying Washington, DC than Lincoln had defending the city during the Civil War. Not Joe Biden, Kim Jung Biden.
Reply With Quote
The Following User Says Thank You to AZRWinger For This Useful Post:
  #57 (permalink)  
Old 09-29-2020, 11:05 AM
PW Enlightenment
 
Join Date: Apr 2013
Gender: Male
Posts: 12,643
Thanks: 10,397
Thanked 8,513 Times in 5,049 Posts
Default Re: Why must some companies make price increases that are sneaky--not straightforward

Quote:
Originally Posted by AZRWinger View Post
If you can't afford the more expensive purchase price then you can't eat at all. The same dynamic applies to body wash and trash bags. The choice is between no body wash or trash bags and making do with a smaller quantity. Sure, you aren't going starve without these products but reduced quantity at the same price allows the less affluent to continue to use these products.

Of course you can still eat. Again, you're assuming that there is no third choice. If you can't afford the prime rib, buy the choice or the Mac and cheese. You're still gonna be eating.

Similarly non food commodities, I'd be willing to bet Awesome Products makes body wash and sells it at the dollar store for a buck. OTOH, if you insist on the pricy premium brand, then it might be on sale at another store for less. Trash bags? There are dozens of brands. My son is a high volume user and buys them on the internet in box lots at probably half the box store
price. It's almost never an all or none choice.
Reply With Quote
The Following User Says Thank You to jimbo For This Useful Post:
  #58 (permalink)  
Old 09-29-2020, 12:03 PM
GottaGo's Avatar
Sanity is overrated.
 
Join Date: Aug 2009
Location: Miles to go before I sleep
Posts: 13,377
Thanks: 11,657
Thanked 9,741 Times in 5,971 Posts
Default Re: Why must some companies make price increases that are sneaky--not straightforward

Quote:
Originally Posted by jimbo View Post
No, it's a matter of indifference. The boxes are clearly marked, and at least in Virginia the price/ounce must be posted on the shelf. The fact is most people don't care.

On a side note. Most people don't know or care that that green can of cheese contains sawdust, the salt box contains sand, and Corned Beef is pumped with 20% water. Check the box the next time you buy.
While everything you said is true, it is the idea that many products are changed, with no indication they have been changed. While I am a notorious label reader for contents and nutrients, rarely do I double check the volume. I don't keep a running list of container sizes of products I buy, and for most things, I buy a product after the one at home is in the garbage, so have nothing to compare to anyway.

Of course it's caveat emptor, but it's the slight of hand, or as PJohns said, the deception. And it is very intentional.
__________________
Your life is the sum total of the choices you make.
If you don't laugh at yourself, a whole bunch of people will volunteer to do it for you
I never lose. I either win, or I learn....
Reply With Quote
The Following User Says Thank You to GottaGo For This Useful Post:
  #59 (permalink)  
Old 09-29-2020, 05:34 PM
PW Enlightenment
 
Join Date: Mar 2009
Location: Tennessee
Gender: Male
Posts: 10,736
Thanks: 13,521
Thanked 4,858 Times in 3,111 Posts
Default Re: Why must some companies make price increases that are sneaky--not straightforward

Quote:
Originally Posted by AZRWinger View Post
If you can't afford the more expensive purchase price then you can't eat at all. The same dynamic applies to body wash and trash bags. The choice is between no body wash or trash bags and making do with a smaller quantity.
You will end up paying the same amount as with a straightforward price increase; but it will be because of needing to purchase the product more frequently--and it is therefore sneaky.

Unless, of course, one decreases the amount used.

But just why could that not be done if there is a price increase, rather than downsizing?

Quote:
Originally Posted by AZRWinger View Post
Sure, you aren't going starve without these products but reduced quantity at the same price allows the less affluent to continue to use these products.
Well, I am hardly "affluent" (unless you count a net income of about $44,591 per year as "affluent"--plus my wife's Social Security, and an occasional check from the church, for playing the piano there).

So you are not conversing with a multi-millionaire here.
__________________
"In his second inaugural address, [Franklin D.] Roosevelt sought 'unimagined power' to enforce the 'proper subordination' of private power to public power. He got it…"—George Will, July 8, 2007
Reply With Quote
  #60 (permalink)  
Old 09-29-2020, 05:56 PM
PW Enlightenment
 
Join Date: Apr 2013
Gender: Male
Posts: 12,643
Thanks: 10,397
Thanked 8,513 Times in 5,049 Posts
Default Re: Why must some companies make price increases that are sneaky--not straightforward

Quote:
Originally Posted by AZRWinger View Post
No, it assumes we are talking about the same product from the same manufacturer. All sorts of scenarios can be introduced to avoid discussing the merits of a manufacturer reducing quantity. There is probably a food bank or charity kitchen where someone can get oatmeal for free but that has nothing to do with reduced quantity for the same price.

I don't know where you live but there aren't grocery stores next door to each other around here. That means transportation cost to go to another store.

Even Walmart doesn't have store brands for everything. My pension doesn't go as far as it used to but I'll still hold out for not a speck of cereal.
But that's the point. Why would you assume that the only option is to buy the same product produced by the same manufacturer? And from the same store? That's never the case.

I live 2 miles from the nearest supermarket. Within a mile radius there 4 supermarkets, a Wal Mart, and a dollar store. I know I said next door. I figured you'd know what I meant.
Reply With Quote
The Following User Says Thank You to jimbo For This Useful Post:
Reply

Tags
are, companies, increases, make, must, price, sneakynot, some, straightforward, that, why

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

Forum Jump


All times are GMT -5. The time now is 05:24 AM.


Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2021, vBulletin Solutions, Inc.

Content Relevant URLs by vBSEO 3.2.0