Chief Financial Officer (CFO) Jimmy Patronis is alerting Florida consumers to a recent trend that is secretly hitting their wallets.
With record-high inflation continuing to erode consumers’ purchasing power, it’s no secret that many across the U.S. are getting less bang for their buck. From soaring energy costs to rising food prices, inflation is crippling household budgets across the country. Add in that the government reported last Friday that consumer prices climbed 8.6 percent over the year through May — its highest level in four decades — and many Americans are left scratching their heads and searching for answers about how long the price surge will continue.
And although the vast majority of consumers are privy to inflation — with it dominating the 24/7 news cycle — its lesser-known sibling is flying under the radar and causing many to get less of what they paid for.
The practice is called Shrinkflation, and it’s accelerating globally as manufacturers quietly ‘downsize’ package sizes.
Shrinkflation is the process of reducing the size or quantity of a product while the price of the product remains the same or slightly increases. Not a new concept, shrinkflation has a long history in economics. Many companies engage in the tactic to try and offset any extra costs. Notable brands to ‘shrinkflate’ their products to cut costs include Charmin, Bounty, and Gatorade.
The phenomenon has gotten so out of hand that many are coming together — with some forming a group on Reddit — to decry how everyday items such as food, drinks, and paper products are shrinking in size as the American dollar continues to lessen in value.
Patronis kickstarted the week by highlighting the growing epidemic that continues to go unnoticed by everyday shoppers.
“As the country continues to endure historic inflation and the price of gas and groceries are taking a major bite out of American pocketbooks, manufacturers are ‘shrinking’ their products without reducing their prices,” Patronis said. “Understandably, companies are doing what they can to keep their doors open as the supply chain remains a disaster and the cost of ingredients for products increase. This trend, however, is not only bad for business, but it is unfair to consumers.”
Along with placing a spotlight on the problem, the CFO also issued a call to action, outlining several ways Florida consumers could combat this ‘skimpflation.’ In particular, Patronis encouraged Floridians to check and compare the unit pricing on goods instead of the retail price. He also pushed customers to use apps, rebates and reward programs to save on items, especially when they go on sale.
And if consumers don’t want to deal with the hassle of micromanaging their shopping habits, Patronis recommends that people switch brands to get the most out of every dollar.
“When shopping for you and your family, make sure that you are getting the best bang for your buck by following a few tips to avoid being fooled by shrinkflation,” Patronis continued. “The bad policies of Washington continue to place an unnecessary burden on Florida families and our businesses. As the nation continues to be impacted by an unsettled economy, I suspect there to be more issues like shrinkflation to appear and that’s why I am urging Floridians to start saving and spending your money wisely to prepare for the long road ahead.”