What Else To Look For In The Battle Against Inflation
We hear about inflation a lot lately. Gas prices are up. Electricity is up. And there isn’t much we can do about it. If we need it, we need it. Most folks adjust the budget accordingly to make those mandatory items affordable. But that means less money for everything else.
Which brings us to everything else.
Have you noticed poorer quality shoes and clothing? How about the amount you are getting in the cereal box?
If you’re not careful, you’ll get less, and you’ll pay more for it.
At the Ashland Community Credit Union, we’re trying to help you save more money and make better money decisions every way we can. One way is to join our Credit Union and take advantage of lower loan interest rates, and higher savings yields. Click here for more information about joining the Ashland Community Credit Union.
One more way is to help you save more of what you already have. That takes knowledge, and we’re sharing some here:
Here are some things to be on the lookout for the next time you take your wallet to the store.
Shrinkflation: Less for the Same Price
One of the most common ways businesses mitigate the rising cost of goods is through shrinkflation—the practice of reducing the size, quantity, or weight of a product while keeping its price the same. This allows businesses to maintain their profit margins without scaring off customers with overt price hikes.
For example, instead of charging more for a pack of cookies, a company might reduce the number of cookies in the package. You might not notice the slight changes in product size, making it easier for businesses to absorb higher input costs without impacting sales as drastically.
Tiered Product Lines: Now it’s called Premium
Be on the lookout for premium options, that aren’t really all that different than the original. They just cost more. If you see “premium”, you’ll likely see “original” and then you’re likely looking at “shrinkflation” (see above).
For example, a coffee shop might add a lower-cost house blend to their menu at the price of what they used offer, while still offering artisanal, specialty roasts at a new premium price.
Loyalty Programs and Discounts
Many grocery stores and retailers have enhanced their loyalty programs, providing discounts that help offset the perceived cost increases caused by inflation. Offering rewards points, discounts, or special promotions helps customers feel like they’re getting more value, even if prices have risen.
That’s not so bad. But realize that the discounts don’t last forever, and you are likely receiving more marketing material in your inbox.
Streamlining Operations to Minimize Price Hikes
You may notice less inventory. You may notice fewer workers, or longer lines at the checkouts. Restaurants may streamline their menus to reduce waste and cost. Businesses don’t want to increase costs just to cover inflation, they want to keep costs low. Competitive businesses will cut back on expenses, and pass that savings down to you. You give up some customer experience in a trade for better value.
Bottom line, you’re paying more no matter what you do. By pointing out these “not so obvious” signs of inflation,we hope you’ll be able to save more money during these challenging times. If you need more help with paying the bills, saving money, or loan approval, please let us know.
At the Ashland Community Credit Union, we are people helping people. That’s what we do, in every way we can.
