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-   -   Why must some companies make price increases that are sneaky--not straightforward? (http://www.politicalwrinkles.com/economics/59021-why-must-some-companies-make-price-increases-sneaky-not-straightforward.html)

pjohns 09-08-2020 01:17 PM

Why must some companies make price increases that are sneaky--not straightforward?
 
One practice that I simply despise is downsizing.

I do understand that inflation is a reality; and that companies must, therefore, periodically pass along those higher costs--including wholesale costs of the product itself; labor costs; rent on the building (if it is not owned outright); and any other costs associated with the production of goods.

But a straightforward price increase is certainly an honorable way to achieve that.

Downsizing, on the other hand--in the apparent hope that many people will just not notice the slightly smaller package--is not really honorable.

For instance, the 23.6-ounce container of body wash that I regularly purchase is now just 22.0 ounces. (The container it comes in is of an irregular shape--so I really cannot describe it by the typical geometric terms--but the new bottle is designed just like the old bottle.)

If the company had simply increased its wholesale price by less than seven percent, so that its retail outlets might increase their own price from an even $3.00 to $3.26, it could have achieved the same end--but without any deception.

I suppose that I just do not like deception in marketing.

Correction: I know that I do not like deception in marketing.

FrancSevin 09-08-2020 01:42 PM

Re: Why must some companies make price increases that are sneaky--not straightforward
 
Quote:

Originally Posted by pjohns (Post 992731)
One practice that I simply despise is downsizing.

I do understand that inflation is a reality; and that companies must, therefore, periodically pass along those higher costs--including wholesale costs of the product itself; labor costs; rent on the building (if it is not owned outright); and any other costs associated with the production of goods.

But a straightforward price increase is certainly an honorable way to achieve that.

Downsizing, on the other hand--in the apparent hope that many people will just not notice the slightly smaller package--is not really honorable.

For instance, the 23.6-ounce container of body wash that I regularly purchase is now just 22.0 ounces. (The container it comes in is of an irregular shape--so I really cannot describe it by the typical geometric terms--but the new bottle is designed just like the old bottle.)

If the company had simply increased its wholesale price by less than seven percent, so that its retail outlets might increase their own price from an even $3.00 to $3.26, it could have achieved the same end--but without any deception.

I suppose that I just do not like deception in marketing.

Correction: I know that I do not like deception in marketing.

Back in the fifties and sixties, the price of a candy bar stayed the same but the size of the bar changed depending on the price of sugar. Candy companies got away with it for decades. Still do.
But today, a three pound can of coffee is 22.4 ounces. Less than half.

Coffee industry did the downsizing for years using end aisle sales to confound the consumer. Few noticed. Except old farts like you and me.

Cereal companies, and pasta companies do it as well. Changing the net weights from16 oz to 12 oz in the exact same cartons.


Milk on the other hand comes in gallon and it's price has risen dramatically . A gallon is a gallon and that, Like gasoline, cannot change. So the price escalates.

Not much the consumer can do but complain and change brands to those which haven't done the swap.....; YET.

jamesrage 09-08-2020 03:06 PM

Re: Why must some companies make price increases that are sneaky--not straightforward
 
They did that with smoked sausage and seems to be be all the brands.They used to be 16oz. Now they are 12 to 14 oz and they cost more. This is within the past couple of years.

I think they are trying to do that with bacon as well.Not all the brands and varieties of bacon but some of them are trying to 12oz packages of bacon instead of 16 oz. Some of them are even trying to be sneaky about it by selling 24oz packages of bacon instead of 32oz packages of bacon.

Some of the generic brands of hotdogs they are doing 12 oz instead of 16 oz. I don't mess with generic brands of hotdogs that much.If I do then I get are John Morell.Before they were John Morell brand hotdogs they used to be called Rodeo hotdogs. I used to get BarS hotdogs until the started making them gritty,almost like they cutting way to ****ing close to the bone for that mechanically separated meat. Probably part of their cost saving measures.

FrancSevin 09-08-2020 03:14 PM

Re: Why must some companies make price increases that are sneaky--not straightforward
 
I like the lead "NEW AND IMPROVED" which may well be that the quantity has changed or the packaging to accommodate the deception.
Once, whilst taking to a buyer at a major detergent company, I asked how they would make money selling product Made In the USA to the former USSR. He responded that the New and Improved was from the company diluting the product with water. Since it was competing with what the government was selling, they still had a better product.

They got away wth it.

Also, while he would not admit it, I did tell him of my suspicions about WAL-Mart asking for the same considerations so they could undersell. He declined to respond. I don't have any proof it is true or false but,,,,;:rolls

pjohns 09-08-2020 04:34 PM

Re: Why must some companies make price increases that are sneaky--not straightforward
 
Whenever a company gives more of its product to customers (in a special), it blares, in large letters: "25 Percent More!"

But I have never yet seen a can (or a bottle) declaring, "25 Percent Less!"

Just an observation...

mr wonder 09-09-2020 08:48 PM

Re: Why must some companies make price increases that are sneaky--not straightforward
 
That's capitalism.
what's the problem?

the market will bare it, so it's A-OK right?
Why the complaints and claims that various business "got away" with something?:mad
sometimes for decades "still do"?
the markets will correct the problem (if any :mad) right?
Are you folks communist or something?

pjohns 09-09-2020 09:07 PM

Re: Why must some companies make price increases that are sneaky--not straightforward
 
Quote:

Originally Posted by mr wonder (Post 992767)
That's capitalism.
what's the problem?

Actually, it might be more accurate to describe it as cynicism.

Total cynicism.

loboloco 09-10-2020 03:55 PM

Re: Why must some companies make price increases that are sneaky--not straightforward
 
Market research. It shows that people in general prefer to pay the same for a little rather than more for the same. Keep your size, charge more, people will eventually quit buying.

FrancSevin 09-10-2020 04:47 PM

Re: Why must some companies make price increases that are sneaky--not straightforward
 
Quote:

Originally Posted by loboloco (Post 992785)
Market research. It shows that people in general prefer to pay the same for a little rather than more for the same. Keep your size, charge more, people will eventually quit buying.

What market research shows is that people do not read the volume on the box. If you keep the same graphics and only change the quantity, most customers do not know it was changed until the box of pasta doesn't quite feed everybody like it used to.

Despite the deception, now known by the consumer, most retain their brand preferences.

I know because I did it for years in the pasta business and later in coffee and cereals. I no longer produce such items but...; Today I have a business that services that same group. Marketing people are still my main customers.

Originally Posted by pjohns View Post
One practice that I simply despise is downsizing.

I do understand that inflation is a reality; and that companies must, therefore, periodically pass along those higher costs--including wholesale costs of the product itself; labor costs; rent on the building (if it is not owned outright); and any other costs associated with the production of goods.

But a straightforward price increase is certainly an honorable way to achieve that.

Downsizing, on the other hand--in the apparent hope that many people will just not notice the slightly smaller package--is not really honorable.

For instance, the 23.6-ounce container of body wash that I regularly purchase is now just 22.0 ounces. (The container it comes in is of an irregular shape--so I really cannot describe it by the typical geometric terms--but the new bottle is designed just like the old bottle.)

If the company had simply increased its wholesale price by less than seven percent, so that its retail outlets might increase their own price from an even $3.00 to $3.26, it could have achieved the same end--but without any deception.

I suppose that I just do not like deception in marketing.

Correction: I know that I do not like deception in marketing


BTW, just increasing the price to the retailer by 7 % will not raise the retail price 7%. Likely more. retailers make more margin for the same real estate so the objection to higher prices will not be made by the retailer. They will pass the blame for the now 10% increase through to the wholesaler and manufacturer. Customers will still shop the same stores and buy the same brands to which they have become accustomed. Call it deceit or cheating, whatever you want. But the instability of retail prices is more the result of inflationary pressures which are more extreme now that the dollar is no longer based on the gold standard and therefore easily printed.

Our government just invented two Trillion dollars out of thin air. What price pressures will that put on marketing and eventual prices at retail? Yeah, blame the producers right?

jimbo 09-10-2020 06:32 PM

Re: Why must some companies make price increases that are sneaky--not straightforward
 
In fairness you can still buy most if not all the products being discussed by standard weights and measures. And I do. Bacon, cheese, coffee, sausage, including hot dogs, all sold in bulk, generally at a lower price, often a better quality, and most about 10 feet from the packaged equivalent. It's up to the buyer which way he chooses to spend his money.


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