Tricks That Companies Use on Consumers: Shrinkflation, Skimflation and Trickflation

In the intricate dance of consumer marketing, companies often employ a range of tactics to manage costs while maintaining or increasing profit margins. Some of these tactics, though legal, may not always align with consumer expectations of fairness and value. Among these are shrinkflation, skimflation, and trickflation — three strategies that subtly alter the consumer’s purchasing experience. Here’s a closer look at each:

1. Shrinkflation

Shrinkflation is perhaps the most straightforward and frequently discussed among these tactics. This occurs when a product’s price remains the same but its quantity or quality is reduced. Companies may decrease the amount of product in a package, such as offering fewer chips in a bag or less cereal in a box, without a corresponding price reduction. This tactic is often masked by redesigning packaging to look similar in size or using prominent labeling like “new and improved” to distract from the diminished quantity. Shrinkflation tends to ramp up in periods of rising production costs, allowing companies to pass on these costs to consumers indirectly.

2. Skimflation

Skimflation is a less discussed but increasingly prevalent technique. This strategy involves reducing the level of service or quality while maintaining the same price points. For example, an airline might reduce the frequency of flights, increase overbooking, or cut back on complimentary services like snacks or checked baggage without reducing the cost of tickets. Hotels, restaurants, and other service industries might reduce staff levels, leading to longer wait times or less attentive service. Consumers may not immediately notice the cutbacks as they often occur incrementally.

3. Trickflation

Trickflation, a term less formally recognized but commonly experienced, involves deceptive or misleading marketing practices that make products appear better or more valuable than they are. This can include using exaggerated claims, misleading images that make products look bigger or higher quality, or hiding less favorable terms and conditions in the fine print. Trickflation plays on consumer psychology and often requires scrutiny by consumers to spot discrepancies between what is advertised and what is delivered.

Consumer Impact and Response

These tactics collectively impact consumer trust and satisfaction. While they can be effective in the short term for maintaining corporate profit margins, they can lead to consumer frustration and erosion of brand loyalty in the long term. Awareness and scrutiny from consumers, as well as regulatory attention to ensure that these practices don’t cross the line into deceptive marketing, are essential checks on these practices.

Consumers can combat these tactics by becoming more informed and vigilant. Checking product sizes, reading labels and terms carefully, and comparing per-unit prices are practical steps. Additionally, voicing dissatisfaction through feedback channels or switching to brands that prioritize transparency and value can also be effective responses.

In conclusion, while shrinkflation, skimflation, and trickflation are prevalent in today’s market, consumer awareness and proactive behavior can mitigate their impact. As markets evolve and consumer preferences shift towards transparency and fairness, companies may need to reconsider the long-term viability of these tactics.