Sunday, May 2, 2021

Shrinkflation: Costco Paper Towels, Now with 20 Fewer Sheets per Roll

I ’ve been noticing this happening with all sorts of different products and finally decided to post about it to see how receptive RFD would be.

Econ 101:

Don’t forget inflation comes in two different shapes: direct price increases (for the same goods) or no price increase (for less quantity of goods).

Typically companies will prefer the latter to pass on increasing costs of goods to a consumer because it isn’t as noticeable. Where as if the retail sales price goes up, a consumer might reject the increase and say, “I’ll consider the competitor price to see if it is lower.”

I tried telling the clerk at Costco about this, and they said “who cares, it’s just 20 sheets.”

Will probably be the typical response.

Last edited by

frozatio

on Apr 26th, 2021 9:50 am, edited 4 times in total.

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