Shrinkflation and Price Pack Architecture

SOURCE www.npr.org
Manufacturers are using 'shrinkflation' techniques to reduce packaging sizes but maintain the same prices. Consumers can fight back by paying attention to unit prices to find the best value.

Key Points

  • Price pack architecture can lead to inflated prices through shrinkflation
  • Paying attention to unit prices helps consumers identify the best value
  • Some states mandate stores to display unit prices for consumer transparency

Pros

  • Allows consumers to make more informed purchasing decisions by paying attention to unit prices
  • Some forms of price pack architecture offer more consumer choice

Cons

  • Shrinkflation leads to consumers getting less product for the same price
  • Not all stores are required to display unit prices, making it harder for consumers to compare value