Tag Archives: marketing

Inflation Grows as Packages Shrink

It really isn’t new, ice cream containers were reduced from a full half gallon to 1.75 quarts several years ago. Some have shrunk again to 1.5 quarts. Packaging is shrinking everywhere and at an increased rate. Yogurt containers hold just 6 oz instead of 8. Cereal boxes are getting smaller. Snacks are lighter in weight but not in calories. It is part of the hidden inflation that affects us as well as the more obvious forms of inflation. Inflation is growing everywhere despite assurances from the Federal Reserve that inflation either does not exist or is transitory.

With real annual income reduced for most households, manufactures have to be more creative in meeting their costs. By keeping the prices relatively the same but decreasing the volume, weight or count, improves their revenues. Many manufactures alter the physical size of the package little or create new internal packaging, such as changing the spacing so that a package now holds only 22 cookies instead of 24. Most of the time this is subtle enough to be easily accepted by the consumer.

So, if you think there is less in the package than before, you just might be right.

Left, Right and then Left again.

    By now, most of us know that the highest price items in the market are usually at eye and chest level.  Our eyes just naturally look ahead.  Therefore, we have trained ourselves to scan the other shelves.  We learn to read from left to right.  We naturally scan the shelves from left to right and rest at the right side.  This is a perfect place to put the higher priced items of the less premium brands.  Before deciding on the product on the right, scan again to the left side to get a truer picture of the pricing.  Marketing science exploits natural behaviors.  It is best to be aware of the tactics so that you can be an informed consumer.

   Take care, stay well, and be safe.


When 20+20=36

   No, I didn’t fail math and the marketers hope you didn’t either.  This  works when you approach  a sale sign that says, “Save 20% on this item! Today only, take another 20% off the discounted price!”

   “Wow,” you think to yourself, “I’ll save 40% if I buy this today.”

   So, you purchase this fantastic deal.  You check your receipt and find that it just doesn’t seem right.  But alas, it is.  You just didn’t realize that 20+20=36.  Our primo product here costs $100.  After the initial 20% discount, you pay $80.  This is simple and straightforward.  However, today, you get 20% additional discount “off the discounted price.”  That is the kicker.  You save 20% of $80, which is an additional $16 discount.  Your total discount is 36%.  The final cost of your primo product is $64, not the $60 you had expected.

   There is no deceit here; it’s just that you added the two numbers together in your head immediately, which is exactly what the marketers wanted you to do.

   This is not wrong, nor is it a bad deal.  Just be aware of the tactics that marketers use to separate you from your money.

   Take care, stay well, and be safe.