Home Consumer Six Tricks Companies Use to Hide the Impact of Tariffs

Six Tricks Companies Use to Hide the Impact of Tariffs

https://www.vecteezy.com/photo/11926410-people-in-electronics-store

By Jeff Somers

As the chaos and confusion surrounding America’s tariff policies continues to swirl, one truth remains a constant: A lot of things are going to get more expensive. No matter what happens to tariffs in the courts or as the result of trade deals with other countries, the prices of many products are going to increase due to tariff pressures, and they probably won’t be going down again any time soon.

 

 

Faith Based Events

Companies know their customers aren’t thrilled about price increases, and some will employ a bit of basic trickery to hide the increased costs of their items from you by keeping the sticker price relatively unchanged while compensating for tariff costs in other, less obvious ways. Here are six tricks to watch out for if you’re wondering whether an item you’re about to by has been affected by tariffs.

Shrinkflation

Shrinkflation”—the practice of subtly reducing the amount of a product you get for the same price—isn’t new. Companies have been introducing “new” and “improved” versions of products that are just smaller versions in new packaging for years as a strategy to hide price increases. The strategy works because few consumers take the time to notice just how many ounces or items are contained in the package.

Companies will likely be leaning into shrinkflation strategies with a vengeance to hide tariff costs. By reducing the amount of product you get, they can keep the price nominally steady while shaving their costs to compensate for the tariffs they’ll be paying. Make a note of the size and quantities of the products you already have in your house and pay attention the next time you go shopping—you might find you’re getting a lot less for the same price.

 

 

Skimpflation

A subtle way to make up for added tariff costs? Use cheaper ingredients or components. Reducing the quality of what goes into a product reduces costs, which allows the price to stay the same. A recent real-world example involves Scott’s toilet paper, which advertises 1,000 sheets per roll. The number of sheets has remained the same, but the weight of a 4-pack has gone from a little over 2 pounds to just 1 pound, 7.6 ounces in recent years. Something changed—either the thickness of the sheets, or the components used in its production—and the result is a cheaper product being sold for the same price.

Continue reading


Disclaimer

The information contained in South Florida Reporter is for general information purposes only.
The South Florida Reporter assumes no responsibility for errors or omissions in the contents of the Service.
In no event shall the South Florida Reporter be liable for any special, direct, indirect, consequential, or incidental damages or any damages whatsoever, whether in an action of contract, negligence or other tort, arising out of or in connection with the use of the Service or the contents of the Service. The Company reserves the right to make additions, deletions, or modifications to the contents of the Service at any time without prior notice.
The Company does not warrant that the Service is free of viruses or other harmful components