The Insight: Shrinkflation Is Sneaky (and It’s Costing You)
The other day, we were having a team lunch and opened a bag of potato chips (it was a deli lunch, so requisite chips were had). The bag was filled about one-third of the way.
Womp womp.
Have you noticed your favorite snack bag feeling a little lighter lately, or your go-to laundry detergent running out faster than usual? You’re not imagining it. That’s shrinkflation – when companies quietly reduce the size, quantity, or quality of their products without lowering the price.
Instead of raising the price by a dollar, they give you fewer ounces, fewer sheets, or less per serving. The price tag stays the same, but the value drops. It’s inflation’s stealthy cousin, and it’s impacting your bottom line more than you think.
Shrinkflation can fly under the radar. It’s subtle. And that’s exactly why it’s so effective. And dangerous. While you’re busy trying to budget or cut back on luxuries, these silent product changes are nibbling away at your money in the background.
But there’s good news: You can fight back. And it starts with awareness.
The Perspective: It’s not just about what you spend, but what you get
Most people track prices. You might scan the sale rack, clip coupons, or compare stores to get the best deal. But in today’s economy, it’s no longer enough to just look at the sticker.
You have to look at the value.
A $5 item isn’t always worth $5 if it used to contain 20% more. Your coffee, cereal, cleaning supplies, even toilet paper,if you’re getting less for the same money, you’re losing purchasing power.
Cost control isn’t just a budgeting trick. It’s a mindset shift. It’s about evaluating return on spend. What does each dollar actually bring you? When you stop seeing price tags as fixed truths and start questioning what you’re truly getting in exchange, you’ll unlock a whole new level of financial awareness.
Smart consumers are like smart investors: they ask not just “How much does this cost?” but “What do I get in return?” That’s the secret to staying financially resilient, even when the market (or your grocery store) tries to squeeze more from you.
The Action: Audit your everyday purchases, then eliminate some
Here’s your weekly money habit:
- Pick five products you buy regularly.
Think pantry items, personal care products, cleaning supplies. Your everyday go-tos.
- Compare current sizes and servings to older versions.
Check your receipts, photos of past packaging (yes, you probably have some in your phone), or even product reviews online. You’ll often find other buyers calling out shrinkflation in the comments.
- If you’re getting less, take action.
- Switch brands. Often, store brands or lesser-known names offer better value.
- Source from alternative suppliers. Some warehouse clubs or online marketplaces still stock “pre-shrinkflation” sizes.
- Consider bulk buying. But be strategic. Buying more doesn’t always mean saving more (and we’ll dive deeper into that next week).
- Switch brands. Often, store brands or lesser-known names offer better value.
The key is not to accept shrinkflation passively. If enough of us speak with our wallets, by refusing to pay more for less, companies will listen. Consumer behavior is powerful. Let’s use it wisely.
Share the habit
Know someone who might be unknowingly paying more for less? Share this issue with them and encourage them to subscribe to The Money Habit Weekly (it’s free!). The more we shine a light on these sneaky shifts, the better equipped we all become to make smarter money moves.
Wishing you vigilance, value, and most of all, financial freedom.
– Mike
Author of The Money Habit
The post Are You Being Squeezed By Shrinkflation? appeared first on Mike Michalowicz.