“Look at this,” Kris said yesterday when she returned from grocery shopping. She held up two yogurt containers for me to see.
“So what?” I said. “Black cherry yogurt.”
“Look closer,” she said.
“That one’s smaller,” I said. “Did they change the container size?”
“Yes,” she said. “But they didn’t change the price.”
The incredible shrinking yogurt
I’ve received several e-mails lately from readers noting the same thing. They go to buy a product they’ve been using for years, only to discover that the container has shrunk. The price hasn’t changed — only the packaging. Reader David Cox, for example, wrote with the following anecdote that mirrors our own:
We went to the grocery last night and one of the items I wanted to get was yogurt. The store always seems to have their brand of yogurt on sale @ 10/$5.00. I was about to scoop up a bunch, when I noticed that they had redesigned the packaging with pretty new colors, but the package seemed a bit smaller. On closer examination, it was.
The new size was 6 oz. of yogurt, while the old style had been 8 oz. The price per package hadn’t changed, but the package now contained 25% less product. I thought it was very tricky of them to leave the big sales sticker on the shelf (10/$5.00!!!) just like we were used to seeing, without any thing to warn you of the repackaging. I guess they would claim it was obvious, but it still seems a bit tricky to me.
Is it tricky? I don’t know. I understand that manufacturers need to make a profit, but when they reduce the container size instead of raising the price, it does seem a little sneaky. It’s as if they’re unwilling to raise prices directly, so they take a circuitous route.
Standard operating procedure
I recently had a conversation with a friend who knows a great deal about this subject.
“You see marketing stories like this over and over,” Freeman told me. “Fabric softeners cut the sheets from 40 to 36 — same size box and same price. Ketchup switches from a glass bottle to a smaller plastic bottle and the price stays the same. Some companies mess with cap and lid sizes as a way to increase consumption. Want a bottle of laundry detergent to run out faster? Then increase the cap size slightly. (Many people use a capful per load.)”
Freeman then pointed out other ways companies subtly manipulate spending. “Think of the famous lather, rinse, repeat instructions on shampoo. Like you really need to do that. Same things happen with chips, cereal, and on and on. Just consider: maybe a box of cereal hasn’t gone up in price much in the past decade, but I guarantee you that the average box size has certainly decreased.”
Another friend, Jeffrey, chimed in: “I always wondered why, if the cost of packaging is so expensive, do cereal companies reduce the amount inside the box but the leave the size of the box alone?”
“They also do this with cereal bars,” Jeffrey said. “A while back, General Mills came out with Fiber One bars. The box is the same size as all the other boxes but there’s only five bars in the box, not the standard six bars that are in every other box. Nature Valley does the same thing with their family size box of granola bars. You open the box and only half of the box has product. It’s the same thing as lying but it’s disguised as ‘marketing’ so it’s okay.”
Savvy shoppers
Again, I’m not sure it’s lying, but it’s obvious that shoppers don’t like to be duped this way. But both David’s e-mail and Jeffrey’s comments reveal they don’t appreciate being tricked. They’d rather have the same package size but see the price increase. I would, too.
Food inflation is a hot topic in the United States right now. I think we’re all beginning to realize that the things we love cost more. But some of us would rather pay the increased price than have manufacturers try to hide the inflation with packaging.
For more on this subject, take a look at Nickel’s thoughts on product packaging. He observes that suggested portion sizes are increasing even as package sizes are decreasing. You may also be interested to read about unit pricing in the GRS archives.
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It’s happening here in Malaysia too ! Especially after the recent fuel price increase. As usual, you can see in the size of foodstuff.
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watch the corporation (http://www.thecorporation.com/) for its raison d’être, it’s here to make money, has all the ‘rights’ that you and I have, but no moral conscience to guide it..
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You know, they aren’t just reducing the size of the finished product, they are reducing the quality of the finished product as well.
I haven’t eaten a twinkie in about 5 years – they changed the whole thing. Granted it’s junk and I know it’s junk. But I still ate them occasionally. The quality has suffered on many things like that, and the price? Just keeps going up!
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To make the arguement that all this downsizing is for the best because of obesity or any other health issues is a moot point, in my opinion. I don’t need the government or some grocery store dictating the choices I make and then telling me they’re doing me a favor.
Being aware of what you purchase and not just blindly throwing anything in your basket is the best defense against these new “marketing” tactics. I find that its almost always better to buy in larger quantities when you can and separate as you like after you get home.
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It’s happening in other consumer industries too. For instance, airlines aren’t raising fares that much even though their costs are skyrocketing (obviously they use a lot of fossil fuel). Instead they’ve been hiding the cost increases by lowering service (no more meals) and adding fees (the “free” ticket with your frequent flier miles is no longer free. many major us airlines now charge even for the first checked bag.)
I wish all these places would just raise their prices instead of this trickery. I am not mad at being tricked, per se; I am more frustrated at how difficult they are trying to make it to comparison shop. (I’m sure they would prefer no comparison shopping at all!)
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I don’t know if anyone else noticed, but Kraft reported record profits yesterday – on a smaller number of units sold. How did they do it? You guessed it: raising prices and decreasing packaging volumes. Caveat emptor, indeed.
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Aren’t they so sneaky. It is sad because I have not really taken notice to the price increases at the grocery store. I have a set budget to meet for groceries and always seem to stay under it.
I think I need to pay more attention.
Austin Hike and Bike
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It’s funny that a marketer would consider these tactics as “genius” because the average consumer would not notice the changes that you pointed out. But a savvy consumer would call these practices “deceiving”. I wonder if marketers forget that they are consumers as well and this affects them too…
I never noticed this about laundry detergent. I guess I can start using less to save money. Unless they watered down the formula’s as well so that a smaller amount will not be as effective…
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I can’t say I agree with the tactic of creating smaller sizes, but something has to be done with the rising food prices.
The manufacturer can raise prices, but no one likes to pay more for products. Loyal customers might switch over prices, it’s really simple and very likely.
Changing the package size saves them money not only in product cost, but in shipping the product as well. And they realize most consumers won’t catch it.
I really don’t think they are trying to raise profits in situations like this, I think they are just trying to keep costs low for the consumer, even if at the end of it all it’s not a good deal for the consumer. Rising prices must be passed on to everyone in the supply/consumption chain.
Look at it this way … 6oz of yogurt vs. 8oz is less calories, and you probably won’t notice much of a difference in the amount when you sit down to enjoy it in the morning. Maybe they are just trying to help us with our diet’s and healthy eating lifestyles.
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I’m the Dave mentioned in the post, and as it happens, it was the Lucerne yogurt pictured that I was writing about. I don’t have any problems with the change of the packaging size. My objection was that it was done without any indication to the consumer at all. There was no sign on the shelf indicating any change, there was nothing on the package itself – even the sale sign was the same: 10 cups for $5.00. Unlike most of the readers here, I would say that your typical consumer would walk up, see the same 10/$5.00 sign, and throw a bunch of them into their cart, without ever realizing that they had just bought 25% less product for the same price. I understand that prices are increasing, but a company will make me much happier if it is open about that. Instead, many companies make pronouncements about “holding the line on prices” while deceiving us by giving us less for the same amount of money. It’s as annoying to me as a consumer as the various ads for cars that say things like “buy a new whomper 3000 for under $20,000″ when the fine print says “actual price: $19,999.99, tax, license and dealer markup not included”
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I find it interesting that there’s actually some economic pressure on companies to change their traditional “consume more” marketing strategies. As someone who’s concerned about health, I’ve always been annoyed by package up-sizing. I remember when the normal serving size for yogurt was six ounces, not eight ounces. I guess everything old is new again.
That said, it’s not personally relevant to me because we stopped buying packaged food years ago (except for graham crackers for our toddler). The price was always higher than bulk foods and the environmental impact of the plastic and cardboard depressed me. I’m glad I now live someplace where I can buy in bulk locally, instead of by mail order, but even mail order purchasing was worth the effort.
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@dorothy, would you mind expanding on what you mean by bulk? What exactly do you buy? Ingredients or made food?
Grains? Beans? Rice? etc?
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Banks, phone companies, and utility companies also raise rates and increase “hidden fees” — in most cases, you have to check your bill carefully to spot the changes. It’s your money, take responsibility for it and stop blaming the “evil” corporations. They are responding to higher gas prices and market fluctuations just like everyone else. Their business is making money. My business is making (and saving) money, too. So I take the time to check prices and make sure I know where my money is going. It surprises me that so many people blindly throw items in their cart, then complain that they are being “duped.”
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Yeah, and all the while, wallets keep shrinking as well.
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Maybe eating 25% less for the same price (without knowing it) would actually be a cost SAVINGS in the longer term. Let’s face it, America is fat, and it could really use the health costs savings and productivity increases of being in better shape.
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While I agree it’s not right to charge the same price for less product, portion sizes have doubled and tripled since the 1970′s.
for example, see here:
http://steinhardt.nyu.edu/nutrition.olde/PDFS/young-nestle.pdf
Cutting portion size will combat rising obesity problem among americans.
Just sayin…
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I had to add a small rant. A lot of companies are shortcutting ingredients.
The prime example I remember was a while back. I was at costco and wanted Vanilla ice cream for desert (for a party.) I picked up a Breyer’s 4l container. Everyone knows that Breyer’s is the ‘all natural’. It even said “All natural” on the front.
I was putting it in the freezer when I realised it didn’t say “All Natural Ice Cream” anymore, which I’m sure it used to… it said “All Natural Vanilla”. And sure enough, it was real vanilla. The ice cream? Not very all natural.
Everyone is feeling the squeeze. Granted, I feel very misled due to the packaging switch in this case, and have no tolerance for it… but it has become a bit harder to shop well in this environment. I’ve had to check cheese and cold cuts recently – I noted an increase in calories; more fat, less protein. Surprise!
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Just, most items sold in bulk are ingredients (spices, flours, nuts, etc.), but I’ve also seen some made foods (chocolate chips, cookies, granola bars, trail mix) sold in bulk.
I hated when pumpkin went from 16 ounces to 15 many years ago. The recipe for pumpkin pie still required one can of pumpkin and one can of evaporated milk (also shrunk), but the same amount of spices. It took me a while to figure out why I didn’t like pumpkin pie as much any more. Now I’ve cut down on the cloves a bit.
My favorite ice cream is fighting back. Their container says, “Still 1/2 gallon” on it.
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This is a great motivation to switch to bulk products and fresh foods – a trend we’ve already been undergoing for other reasons in our household.
We have a produce store less than a mile from our house with bulk rice and beans, and all the fruits and veggies we could desire – for cheaper than grocery stores. And grocery stores are starting to add bulk bins in this area, especially the higher-end stores.
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We’ve noticed this trend with ice cream, orange juice, yogurt, and cereal.
One thing to really watch out for is that grocery store tags can lag behind the size change. So the new smaller bottles are in place (with the same great pricing!) but the grocery tag has the old size and, more importantly, THE OLD PRICE PER UNIT (cents per ounce or dollars per quart or whatever). This is just plain misleading and false. I had to complain to my store twice after a couple of weeks where the old price per unit stayed in place, even though the quantity had changed.
I just wrote an article about rising grocery prices and our efforts to start using coupons to save money… seems like lots of us are seeing the same trends.
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We buy some ingredients (like grains, vegetables, and fruit) and some prepared foods (like dried pasta, cereal, and cheese) and some things that could be classified either way (like flours, olive oil, and dried fruit). Most of our produce comes from our CSA. We don’t ever buy ultra-processed foods like granola bars or frozen dinners (just not interested), although my husband buys a bag of corn chips once or twice a month. We do most of our cooking on weekends because we both work full-time.
Our usual grocery store is an anarcho-syndicalist cooperative that makes all of this pretty easy by selling things like oils and cheeses in bulk, which is unusual in my experience. I don’t follow their politics, but I appreciate that they let us buy even household products like soap, shampoo, conditioner, and laundry detergent in quantities of our choice using our own containers. And they’re pretty hostile to consumer culture in general (they put entertaining little signs under the white sugar bin and the bunny graham crackers our son loves saying, “We didn’t want to carry this but you all kept asking for it so now we do”–they’re responsive revolutionaries!) which makes it a very nice place to shop with a preschooler.
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Adrienne said: “They have 2 choices – raise prices or decrease sizes. The fact that they often choose to decrease sizes is because of the CONSUMER. I’ve done a lot of consumer research for companies and let me tell you that even a small price increase can result in a dramatic decrease in sales (esp. for items where consumers are really price sensitive – like detergent). Companies are only responding to consumer behavior (which is what they should do).”
I’m not doubting this is true. I’d prefer higher prices though because it annoys me when I have to replace products more rapidly then I’m used to. I then feel like I’m paying double (buying twice) even though that isn’t true.
I first noticed this downsizing example in the mid 80s when I was in school and broke. One item I bought regulary went from 40 ct to 32 ct. no price change. That’s a big decline – and also meant I had to buy more, when I was used to a “box” lasting me x amt of months.
Those slim cereal boxes look funny to me btw.
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Given the option between paying more for the same size product, or pay the same price for less product, I would opt to pay the same price for less product. I am not that disciplined yet in money matter, so this forces me to tone down my consumption.
Of course, there are exceptions, such as for rice, flour, and other staple foods.
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I noticed this yesterday as well. I had bought a 300 oz bottle of laundry detergent last year for about $10. Yesterday I bought the same brand, same price, but it was half the size, 150 oz!
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I have a toddler and noticed this trick being used with diapers a while ago. Both major diaper brands (in Sweden where I live) almost simultaneously reduced the number of diapers in their packages, without changing the price or size of the package.
A newspaper called up one manufacturer and asked why they did not just increase the price instead. The answer was some story about the consumers being “accustomed” to a certain price and they didn’t want to change it. They also asked customers, and sure enough. Many hadn’t noticed the change in number of diapers.
I do check unit prices myself, but if it’s a product I buy regularly, I won’t check the unit price every time, so it is more difficult to notice a decrease in amount of product than a package price increase. I guess that is true for most people, and that’s exactly why this trick is being used.
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Yea, definitely sneaky. I work day stocking at my local Safeway and I see it all the time. The new Tropicana containers are much smaller now. Pay attention to the little details when buying so you don’t get ripped off!
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The thing that get me is that, even with 6oz instead of 8, there is more calories and sugar in it, almost to a point of repulse.
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My personal favorite is how the packaging is designed so that the extra color makes the package look wider. I’m okay with companies shrinking products to cope with rising prices, but I think they shouldn’t so try to hide it slimy marketing.
Caveat Emptor
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I’ve noticed this sort of thing, and it really bothers me. One thing that really got me was regarding the microwave popcorn we (used to) buy. For years we’ve bought Pop Secret because it had real butter, even though it was more expensive. We just noticed the package now says “real butter flavor.” Whatever that is. Cheaper for them, but they haven’t passed the savings on to us.
~Kate
Which Proverbs 14:1 Woman?
http://www.proverbs14-1.blogspot.com
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It’s true they might be doing it to cut costs, but that’s what manufacturers always do. When did you last see a business plan that said, hey let’s make LESS profit?
It’s sneaky, albeit only just as sneaky as every other marketing trick. But we hate being tricked, and when we work it out, we get angry.
It can hit you where it hurts too. When I left Australia in 2001 there were 11 biscuits in a packet of timtams. 7 years later and I’m back, and there’s only 9. Where have the other timtams gone???
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Many stores, at least the ones I frequent, have “per unit” pricing information right on the shelf tags. Kroger/Fred Meyer here in WA is an example. With that information, you can easily see which quantities and packaging represent the best values. Frequently I’ve found two “half pound” sizes selling for considerably less than the “one pound” size. All legal, all above board. Let the buyer beware. I think that’s what Caveat Emptor means, isn’t it DJ?
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@Nicky, nope. I was just in Aus and there are still 11 in a packet. The crushed ones have 9, Mint Slices still have 12. The Tim Tams sold in the US have 11 as well.
That’s a standard packet, not double coat or caramel crisp or whatever.
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Also, for those saying we should show our displeasure by not buying that product, you should go one further and contact the company and tell them WHY. Not everyone will notice the price difference so their sales may not suffer too much but if you tell them you have noticed then they may take that into account. Customer opinion is all.
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First reduce the Size? Then reduce the Quality? What’s next, the Culture? Oh No! What’s life – or yogurt – without Culture?
Seriously, buy bulk and shop only by unit cost.
-Jeff Yeager
Author, The Ultimate Cheapskate’s Road Map to True Riches
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I have to say i’m glad. I noticed it first with the ice cream. And it makes sense, smaller containers means more can be shipped.
When I look at the waste my own family generates with food. (i.e. I rarely buy a loaf of bread because we can’t use it before it goes bad) smaller sizing makes alot of sense. I’m glad to see it being on more than just ice cream.
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I prefer to buy my cereals, grains, pasta and beans from bulk bins. I purchased containers that I clean and refill over and over again. There’s a lot less landfill waste that way. I can also buy exactly the quantity I want.
I wish bulk bins would become more popular in the US. When I went to Canada, I was envious of their seamingly endless variety of bulk buy foods.
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Eh, I kind of like that some items are getting smaller. Most packages have 2-3 servings in them. I’m seeing more single serve foods that may cost more per unit, but it keeps my calorie count to a reasonable lunch portion. If I buy a package of Thai sesame peanut noodles, it has 2 servings in it. I’ve never found a coworker that wants to share half my instant Thai sesame peanut noodles. I save money because I’m throwing less away.
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Now ,Now. You probably dont realize it but these companies and their High level executives figured out a way to screw the public. Aha , not so fast, Mr. Gray, I buy the off brand at Walmart and Sams. So go ahead make the box bigger the bag smaller or whatever. But why dont we see more companies using recylced packaging. I’ll tell you why because that would require some work and its much nicer sitting on the sailboat since you really cant work with technology available anyways. One day the old fogeys are going to choke in the very technology they created. Like now. Is it a recession or just a hic-up. Nah nah nah nah nah, time to retire the biz.
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I can tell you, as someone who works in finances for a major food company, that product packaging isn’t nearly as expensive as you might think.
also, up to a certain point, slightly smaller boxes actually run better in production and increase the amount of product you can put on trucks and ship out.
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Quick frugal tip for microwave popcorn for a previous poster:
Get a brown lunchbag like you use for kids’ lunches. Put 1/4 cup popcorn kernels in it. Fold about an inch or so of the top bag a couple of times, so it doesn’t hit the roof of the microwave. Hit the Popcorn button on your microwave. It pops perfectly. I pour the popped popcorn into a bowl, then take a smaller bowl and put about a Tablespoon of butter in it, melt it, then pour it over the popcorn, and add salt. This is unbelievably inexpensive when you realize that you can buy a large plastic bag of kernals for under $2. My 2 yr. old grandson likes to help me make popcorn this way.
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It’s probably been said in the 80 comments before me, but I’m too Lazy to read them… perhaps they realize that there’s a price point where their customers buy the product. Any more and they will consider a different product.
For instance, maybe my Fiber One bar (a good product, I must say) budget is $1.50. If it goes up to $1.75 perhaps I go to South Beach bars, because they still remain under my budget. This way, I can still enjoy the I have grown accustomed to – even if I’m getting less of it.
…or you are right, they are just being sneaky. (I’m not even sure I buy my price adverse explanation
.)
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Like Sandy E. we also buy the plain popcorn in a plastic bag and cook it in the microwave. Instead of having the bag upright, we fold it once and staple it shut. Then place it sideways in the microwave oven. When I first heard about using a staple in the oven I was concerned, but it works fine and we’ve been doing it that way for a long time. Instead of using butter, we just drizzle a little extra virgin olive oil over the popped corn and then add salt. This makes for a quick, inexpensive and healthy snack.
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Watch for the next part of the cycle where the “Now with 20% more!” packaging hits the shelves at a marginal increase, then the smaller size is quietly phased out concurrent with a marginal increase on the larger package. Then the size is silently reduced again…
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@Xynrus, per unit pricing at Kroger is very hit or miss. Cans of coke have been listed as a per can price, yet 2 litre bottles are listed in a per litre price.
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@ Eder:
Really, here in Brazil there is a law that says companies must do that (warn the consummers). But it didn’t stopped at all. It’s common, sadly common…
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My husband and I noticed this a long time ago. He works at Safeway and has noticed a lot of companies doing this.
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I doubt the food industry will ever make everybody happy. If they make portions bigger, then they are blamed for obesity. If they make portions smaller, then they are accused of price gouging.
As someone who lives alone, I welcome smaller packages. It seems like everything in the grocery store is Family Sized, which just increases expenses for single people. I went to grocery store last weekend and wanted to buy one bratwurst. No such luck, they only come in packages of five. But I only wanted one. I didn’t have the appetite to eat five bratwursts, and I live alone! So I bought noodles instead.
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I have seen this before on ice cream. Probably some other products too — food is getting more expensive as a whole, so it will probably become even more common.
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I agree with posters who’ve suggested making food from scratch & buying bulk. I can make granola for a price similar to boxes of cereal, but much better tasting, free of HFCS and other chemical additives, and no extra charge for stupid commericals, cardboard boxes, or the “research” that they do to prove that their cereal is better for you.
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@Frugal Bachelor
It’s not the smaller packaging sizes we have a problem with here. It’s reducing the package size and LEAVING THE PRICE THE SAME.
If they were really motivated by trying to save us from ourselves, they could reduce the package and the price accordingly. But they don’t. Hence the feeling that we are being tricked.
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