Nov 10, 2021
NPR reported economist Alan Cole’s concept of Skimpflation - the idea that consumers are receiving less value for their dollar because businesses are reducing quality of goods and services while maintaining prices. So instead of pricing going up (inflation), quality is being reduced.
We can see this all around us in longer wait times, fewer goods on shelves, lower quality packaging, and smaller quantities. For most large businesses, it’s far simpler to reduce the amount of rice in a box by 8% than it is to increase the price of the box by 8%.
But small reductions in quality for a brand are like moths to a sweater. Small hole after small hole after small hole and eventually the sweater disintegrates. If you’re Amazon or 3M or Walmart and you have a bazillion sweaters, you will survive. If you’re a small business, it’s likely that you wouldn’t.
Listen in as Michelle and JoyGenea discuss Skimpflation and the opportunities it creates for small businesses to message their story of quality to their customers and clients.