Why Does Cookie Monster Hate Shrinkflation?

Let’s Get Started!

There’s a fuss about something called shrinkflation. It’s when companies sneakily reduce the size of their products but keep charging the same price. And guess what? Cookie Monster from Sesame Street isn’t happy about it. 

He tweeted, “Me hate shrinkflation! Me cookies are getting smaller.” Even the White House joined in, sharing Cookie Monster‘s tweet and saying, “C is for consumers getting ripped off. President Biden wants companies to knock it off with shrinkflation.”

What Is Shrinkflation?

It is when companies make their products smaller but still charge the same price. Imagine if you bought a pack of cookies, but each cookie was smaller than before. That’s shrinkflation. Companies often do this when their costs go up, so they don’t have to raise prices too much. It used to be that people didn’t pay much attention to size changes, but now they do. 

For example, some folks noticed there were fewer sheets in their toilet paper rolls, and there’s even a subreddit about it. And there’s talk that Oreos might have less cream compared to the cookie part. It’s all about companies trying to keep profits up while making products smaller.

No One Likes It!

Consumers aren’t fans of this. Who likes feeling tricked, right? Ioannis Evangelidis, a marketing professor, coined the term “shrinkflation aversion” to describe how people feel about it. In his 2023 study, he found that folks feel cheated when products get smaller, even more so than if prices go up. At least with a price increase, people understand what’s happening. Evangelidis suggests that clear communication could make this concept seem fairer. In a talk with Canvas8, he said, “When companies are open and clear about changes, people are more likely to accept shrinkflation.”

What Are The Experts Saying?

But what about small businesses? When costs rise, they’re in a tough spot. Anthony Salerno, another marketing professor, thinks they should consider their customers’ feelings. It’s simple: when you really like something, you notice even the smallest changes.

Salerno advises small businesses to focus on quality to justify smaller sizes. He gives an example: local coffee shops often sell pricey coffee beans that are grown organically and sustainably. These shops could highlight the quality of their products to make the smaller size more understandable.

Let’s Wrap Up!

Even in the worst situation, where products get smaller, it’s still better than skimpflation, which is when quality is reduced. According to Salerno, people might notice this phenomenon more easily, but skimpflation makes them angrier and they might stop buying the product altogether. He advises that if a company has to shrink products, they should first look at what others in their industry are doing and not make the changes too drastic, or else customers might get suspicious.

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