Sunday, November 8, 2020

Shrink Inflation Example

Do you hate getting RIPPED OFF? 

I do, unless you tell me up front the reason to rip me off was saving our planet. Is that why the hole in the Kirkland Brand Toilet Paper got bigger in the center?

The reason I wrote this blog is to point out that when our options are dwindling from the lack of competition due to monopolies dominating the market (Amazon, Costco, CVS, etc.), we can easily be taken advantage of. More and more venders that scaled companies, creating jobs and providing a decent living for their "Children" are going out of business as their hot selling items are replaced with store brands.

Kirkland Brand from Costco just pulled a fast one over our eyes, like they are not making enough money.

I noticed the center of the toilet paper rolls I just purchased from Costco looked "Bigger."

So I took the roll to my office and measured the diameter at 1.3/4". Then I took older rolls and they all measured 1.5" in diameter. The standard sizes are 3.8cm (1.5"), for home or 4.2cm that are more commercial. However, the new Costco brand is 4.5cm OUCH! 


So Costco made a strategic decision to reduce their cost by giving us less, and hid the evidence inside. The package on the outside had the same dimensions. The rolls looked just as large as before. When you squeeze the rolls to see how dense the paper is, it's the same. 

FACT: Had they given us less from the outside in (keeping the 1.5"diameter) the package would look smaller, each roll would appear smaller, and we would then question what we are paying for. Instead, they deceive us while charging the same amount per roll.

This tactic to increase margins without customers knowing has been going on for a long time. For example: Bottles containing liquid would be replaced with new bottles that have an indent on the bottom, reducing the volume inside. Ever notice coffee and shampoos that used to be 16oz (a typical weight for goods sold) are now 13.5oz or 12.8oz? 

Buyer beware. This is one reason why we are fed up with the politics of big business. It's bad enough companies like Amazon, Costco, and Albertsons stop supporting brands and copy their product under the house brand names. They now cut back their product volumes to increase their profits. What happen to good old inflation where consumers are aware of higher prices and usually know the rational for paying more. But to be deceived is challenging our intelligence and trust. 

I am proud to say that I average 3.5 purchases from Amazon each year. That's it. Why are we supporting companies that destroy small family owned businesses by knocking off their products and slapping their own name on it? Then to have them hide the fact they are shorting you.

Kevin L.

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