Transcript:
What is shrinkflation?
Shrinkflation is one way companies try to hold down their products' prices.
When companies face higher costs on things like
ingredients, energy or salaries…
…it can put pressure on them to raise the price of their product.
But if they raise the price tag…
…the sticker shock could drive customers away.
So instead, they might choose to make the product smaller.
Or, offer less of the product in the package.
This way, they can still offer the item without raising the price.
So if that bag of chips you bought seems a little lighter…
…maybe your friend ate some…
…or it might be due to shrinkflation!
So that's shrinkflation. Find more ways to know and grow your money at synchronybank.com.
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