User Tag List

+ Reply to Thread
Page 1 of 7 12345 ... LastLast
Results 1 to 10 of 67

Thread: Why must some companies make price increases that are sneaky--not straightforward?

  1. #1
    Points: 61,049, Level: 60
    Level completed: 35%, Points required for next Level: 1,301
    Overall activity: 18.0%
    Achievements:
    Tagger First ClassSocialVeteran50000 Experience Points
    pjohns's Avatar Senior Member
    Karma
    14531
    Join Date
    May 2012
    Location
    Tennessee
    Posts
    7,906
    Points
    61,049
    Level
    60
    Thanks Given
    19,461
    Thanked 4,225x in 2,708 Posts
    Mentioned
    42 Post(s)
    Tagged
    0 Thread(s)

    Why must some companies make price increases that are sneaky--not straightforward?

    One practice that I simply despise is downsizing.

    I do understand that inflation is a reality; and that companies must, therefore, periodically pass along those higher costs--including wholesale costs of the product itself; labor costs; rent on the building (if it is not owned outright); and any other costs associated with the production of goods.

    But a straightforward price increase is certainly an honorable way to achieve that.

    Downsizing, on the other hand--in the apparent hope that many people will just not notice the slightly smaller package--is not really honorable.

    For instance, the 23.6-ounce container of body wash that I regularly purchase is now just 22.0 ounces. (The container it comes in is of an irregular shape--so I really cannot describe it by the typical geometric terms--but the new bottle is designed just like the old bottle.)

    If the company had simply increased its wholesale price by less than seven percent, so that its retail outlets might increase their own price from an even $3.00 to $3.26, it could have achieved the same end--but without any deception.

    I suppose that I just do not like deception in marketing.

    Correction: I know that I do not like deception in marketing.

  2. The Following 5 Users Say Thank You to pjohns For This Useful Post:

    DGUtley (09-09-2020),donttread (12-14-2020),Matt Dillon (09-23-2020),MisterVeritis (09-08-2020),Rationalist (12-15-2020)

  3. #2
    Points: 41,437, Level: 49
    Level completed: 76%, Points required for next Level: 413
    Overall activity: 0.2%
    Achievements:
    Recommendation Second ClassSocial25000 Experience PointsVeteran
    Lummy's Avatar Senior Member
    Karma
    6307
    Join Date
    Apr 2018
    Posts
    12,618
    Points
    41,437
    Level
    49
    Thanks Given
    4,948
    Thanked 6,307x in 4,359 Posts
    Mentioned
    60 Post(s)
    Tagged
    0 Thread(s)
    Kind of a mystery, I think. Perhaps a slightly smaller package has better eye appeal? Hmm ...

    Yeah, I don't like what they do either, but they've always done this kind of thing.

  4. #3
    Points: 61,049, Level: 60
    Level completed: 35%, Points required for next Level: 1,301
    Overall activity: 18.0%
    Achievements:
    Tagger First ClassSocialVeteran50000 Experience Points
    pjohns's Avatar Senior Member
    Karma
    14531
    Join Date
    May 2012
    Location
    Tennessee
    Posts
    7,906
    Points
    61,049
    Level
    60
    Thanks Given
    19,461
    Thanked 4,225x in 2,708 Posts
    Mentioned
    42 Post(s)
    Tagged
    0 Thread(s)
    Whenever a company gives more of its product to customers (in a special), it blares, in large letters: "25 Percent More!"

    But I have never yet seen a can (or a bottle) declaring, "25 Percent Less!"

    Just an observation...

  5. The Following User Says Thank You to pjohns For This Useful Post:

    Matt Dillon (09-23-2020)

  6. #4
    Points: 61,049, Level: 60
    Level completed: 35%, Points required for next Level: 1,301
    Overall activity: 18.0%
    Achievements:
    Tagger First ClassSocialVeteran50000 Experience Points
    pjohns's Avatar Senior Member
    Karma
    14531
    Join Date
    May 2012
    Location
    Tennessee
    Posts
    7,906
    Points
    61,049
    Level
    60
    Thanks Given
    19,461
    Thanked 4,225x in 2,708 Posts
    Mentioned
    42 Post(s)
    Tagged
    0 Thread(s)
    Oh, one other matter:

    I recently noticed that the kitchen trash bags that I use have been downsized from 45 to 40. That is an 11.1 percent reduction. (The product is now eight-ninths of its previous size.)

    A 12.5 percent price increase--nine-eights, or 112.5 percent--is all that would be necessary to equal that.

  7. #5
    Points: 52,081, Level: 55
    Level completed: 76%, Points required for next Level: 469
    Overall activity: 0.2%
    Achievements:
    SocialVeteran50000 Experience Points
    jet57's Avatar Banned
    Karma
    2378
    Join Date
    Jun 2017
    Posts
    19,121
    Points
    52,081
    Level
    55
    Thanks Given
    1,698
    Thanked 2,368x in 2,004 Posts
    Mentioned
    284 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by pjohns View Post
    One practice that I simply despise is downsizing.

    I do understand that inflation is a reality; and that companies must, therefore, periodically pass along those higher costs--including wholesale costs of the product itself; labor costs; rent on the building (if it is not owned outright); and any other costs associated with the production of goods.

    But a straightforward price increase is certainly an honorable way to achieve that.

    Downsizing, on the other hand--in the apparent hope that many people will just not notice the slightly smaller package--is not really honorable.

    For instance, the 23.6-ounce container of body wash that I regularly purchase is now just 22.0 ounces. (The container it comes in is of an irregular shape--so I really cannot describe it by the typical geometric terms--but the new bottle is designed just like the old bottle.)

    If the company had simply increased its wholesale price by less than seven percent, so that its retail outlets might increase their own price from an even $3.00 to $3.26, it could have achieved the same end--but without any deception.

    I suppose that I just do not like deception in marketing.

    Correction: I know that I do not like deception in marketing.
    Nobody pitched a bitch when ice cream went from 1/2 gallon to 1 1/2 quarts at the same price!

    Deceptive marketing is how they get you to do what they want - spend your money.

  8. The Following 3 Users Say Thank You to jet57 For This Useful Post:

    John Galt (12-13-2020),Peter1469 (09-09-2020),pjohns (09-09-2020)

  9. #6
    Points: 143,748, Level: 91
    Level completed: 20%, Points required for next Level: 2,902
    Overall activity: 76.0%
    Achievements:
    Social50000 Experience PointsOverdriveVeteran
    carolina73's Avatar Senior Member
    Karma
    43645
    Join Date
    Sep 2019
    Posts
    57,482
    Points
    143,748
    Level
    91
    Thanks Given
    56,063
    Thanked 43,650x in 28,240 Posts
    Mentioned
    154 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by pjohns View Post
    One practice that I simply despise is downsizing.

    I do understand that inflation is a reality; and that companies must, therefore, periodically pass along those higher costs--including wholesale costs of the product itself; labor costs; rent on the building (if it is not owned outright); and any other costs associated with the production of goods.

    But a straightforward price increase is certainly an honorable way to achieve that.

    Downsizing, on the other hand--in the apparent hope that many people will just not notice the slightly smaller package--is not really honorable.

    For instance, the 23.6-ounce container of body wash that I regularly purchase is now just 22.0 ounces. (The container it comes in is of an irregular shape--so I really cannot describe it by the typical geometric terms--but the new bottle is designed just like the old bottle.)

    If the company had simply increased its wholesale price by less than seven percent, so that its retail outlets might increase their own price from an even $3.00 to $3.26, it could have achieved the same end--but without any deception.

    I suppose that I just do not like deception in marketing.

    Correction: I know that I do not like deception in marketing.
    They have choices. Give you less, raise the price or stop selling the product.

    What would you do? If you do not read the product information then is it deceptive? If they gave you 7% more and raised the price by 7% then would you or the average person in the store notice?

    I used to buy chicken broth from Kroger brand and then during COVID I could only find Swanson. I found out why Swanson charged double. The Kroger brand was heavily diluted. I have switched permanently, but the price is what most consumers see when they are buying 100 items.

    People buy price and that gives you volume needed to pay for everything that makes the product. If Cambells comes in 10 cents lower then people will switch most times without even trying it first.
    Most people buy Chinese junk from Wal-Mart that they know will not last because it is cheap. My Stainless Grill from Wal-Mart rusted out in a year. The Stainless part not the base.

    Not that I disagree with you but most consumers just want price.

  10. #7
    Points: 61,049, Level: 60
    Level completed: 35%, Points required for next Level: 1,301
    Overall activity: 18.0%
    Achievements:
    Tagger First ClassSocialVeteran50000 Experience Points
    pjohns's Avatar Senior Member
    Karma
    14531
    Join Date
    May 2012
    Location
    Tennessee
    Posts
    7,906
    Points
    61,049
    Level
    60
    Thanks Given
    19,461
    Thanked 4,225x in 2,708 Posts
    Mentioned
    42 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by carolina73 View Post
    They have choices. Give you less, raise the price or stop selling the product.
    This is correct.

    And I would therefore opt for the second choice--without any hesitation.

    Quote Originally Posted by carolina73 View Post
    What would you do? If you do not read the product information then is it deceptive?
    Well, it is misleading, at least.

    If they did not intend to be misleading, they would not have mimicked the (highly irregular) shape of the previous bottle.

    Quote Originally Posted by carolina73 View Post
    If they gave you 7% more and raised the price by 7% then would you or the average person in the store notice?
    Dunno.

    But are you truly suggesting that "the average person" is not really very intelligent?

    Quote Originally Posted by carolina73 View Post
    [T]he price is what most consumers see when they are buying 100 items.
    I simply do not know whether this is true, or not.

    Certainly, it is true for those who come to the supermarket armed with 25 or 30 coupons. (It seems to me that they are not purchasing what they really want--or need--but are just buying to the coupons.)

    As for others, I am not so sure.

    Quote Originally Posted by carolina73 View Post
    People buy price and that gives you volume needed to pay for everything that makes the product. If Cambells comes in 10 cents lower then people will switch most times without even trying it first.
    I would probably be inclined to try the less-expensive rand--but than switch back to the original choice, if it were not as good.

    I deeply believe in saving money--but without sacrificing quality. (If the only way to save money, in a particular instance, is to sacrifice quality, then I will simply refuse to do so.)

    Quote Originally Posted by carolina73 View Post
    Most people buy Chinese junk from Wal-Mart that they know will not last because it is cheap. My Stainless Grill from Wal-Mart rusted out in a year. The Stainless part not the base.
    I make a very strong distinction between inexpensive and "cheap." (The former refers to price alone; the latter, to quality. Oh, and I simply do not agree with that old bromide that claims that "you get what you pay for.")
    Last edited by pjohns; 09-09-2020 at 01:23 PM.

  11. The Following User Says Thank You to pjohns For This Useful Post:

    Peter1469 (09-09-2020)

  12. #8
    Original Ranter
    Points: 859,011, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 92.0%
    Achievements:
    SocialCreated Album picturesOverdrive50000 Experience PointsVeteran
    Awards:
    Posting Award
    Peter1469's Avatar Advisor
    Karma
    496555
    Join Date
    Jun 2011
    Location
    NOVA
    Posts
    241,683
    Points
    859,011
    Level
    100
    Thanks Given
    153,214
    Thanked 147,565x in 94,409 Posts
    Mentioned
    2552 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by pjohns View Post
    This is correct.

    And I would therefore opt for the second choice--without any hesitation.



    Well, it is misleading, at least.

    If they did not intend to be misleading, they would not have mimicked the (highly irregular) shape of the previous bottle.


    Dunno.

    But are you truly suggesting that "the average person" is not really very intelligent?



    I simply do not know whether this is true, or not.

    Certainly, it is true for those who come to the supermarket armed with 25 or 30 coupons. (It seems to me that they are not purchasing what they really want--or need--but are just buying to the coupons.)

    As for others, I am not so sure.



    I would probably be inclined to try the less-expensive rand--but than switch back to the original choice, if it were not as good.

    I deeply believe in saving money--but without sacrificing quality. (If the only way to save money, in a particular instance, is to sacrifice quality, then I will simply refuse to do so.)


    I make a very strong distinction between inexpensive and "cheap." (The former refers to price alone; the latter, to quality. Oh, and I simply do not agree with that old bromide that claims that "you get what you pay for.")
    I have very rarely seen coupons for the stuff that I buy. I don't bother hunting for them.
    ΜOΛΩΝ ΛΑΒΕ


  13. The Following User Says Thank You to Peter1469 For This Useful Post:

    pjohns (09-09-2020)

  14. #9
    Points: 143,748, Level: 91
    Level completed: 20%, Points required for next Level: 2,902
    Overall activity: 76.0%
    Achievements:
    Social50000 Experience PointsOverdriveVeteran
    carolina73's Avatar Senior Member
    Karma
    43645
    Join Date
    Sep 2019
    Posts
    57,482
    Points
    143,748
    Level
    91
    Thanks Given
    56,063
    Thanked 43,650x in 28,240 Posts
    Mentioned
    154 Post(s)
    Tagged
    0 Thread(s)
    I used to sell a product. This was years ago.

    You could but the product made in our European factory for $18 each
    You could but the USA made product for $25 each
    You could buy the same product as the Engineered product for $35 each

    I set the line up in Europe with the same materials to make sure that it was the same. It was a global Fortune 500 company. It was the same product.

    We had people buy mostly the cheaper product with the blue label
    We sold a very large number of the USA made "same product" with a yellow label at the medium price.
    We sold still a very significant number of the Engineered product at the highest price. Made at the same time with a different label applied.
    We sold the same product under the Sears marketing style of Good-Better-Best even though they were all the same and it more accurately described the price instead of the product.

    Another example is when we had to change a color of a painted product when we had a problem in the change over to water based paints for the spray booth. It no longer worked because it was painted a different color.

    Consumers rarely pay attention to what they are buying. Apparently you do and you are one of the few calling them on it. When they are marketing the product, then they are confident there are not many of you. That is why they have price points set. They will slap a pretty label on it and some people will buy it because it costs twice as much for the same product.
    When I made parts for companies like Stanley Tool they did not even care what was in the package. They only cared about the shade of yellow, the size of the package, how many went on a pallet, the position of the label...
    They obviously don't think you are checking either.

  15. The Following 4 Users Say Thank You to carolina73 For This Useful Post:

    barb012 (09-23-2020),Matt Dillon (09-23-2020),Peter1469 (09-09-2020),pjohns (09-09-2020)

  16. #10

    tPF Moderator
    Points: 473,135, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 69.0%
    Achievements:
    Social50000 Experience PointsTagger First ClassYour first GroupVeteranRecommendation First ClassOverdrive
    Awards:
    Master Tagger
    DGUtley's Avatar tPF Moderator
    Karma
    200769
    Join Date
    Jul 2016
    Location
    Northeast Ohio
    Posts
    52,922
    Points
    473,135
    Level
    100
    Thanks Given
    17,060
    Thanked 46,039x in 24,874 Posts
    Mentioned
    886 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by jet57 View Post
    Nobody pitched a bitch when ice cream went from 1/2 gallon to 1 1/2 quarts at the same price! Deceptive marketing is how they get you to do what they want - spend your money.
    Actually, I did. I wrote the Smith's Dairy Corporate Office in Orrville, Ohio, and complained.

    praline-pecan-ice-cream-smiths-01.jpg
    Any time you give a man something he doesn't earn, you cheapen him. Our kids earn what they get, and that includes respect. -- Woody Hayes​

  17. The Following 2 Users Say Thank You to DGUtley For This Useful Post:

    jet57 (09-09-2020),pjohns (09-09-2020)

+ Reply to Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts