(WBBM NEWSRADIO) — If you've heard of shrinkflation, a local business writer says you should learn about skimpflation.
Shrinkflation is the term used to describe the practice of selling reduced portion sizes at the same or higher price than the larger item. The White House called out shrinkflation in the snack industry before the Super Bowl earlier this year.
Skimpflation describes companies that make the same product with cheaper materials in order to cut costs. Chicago-based business writer Jennifer Waters said it’s prevalent in the food business and elsewhere.
“You see it in food products, but you also see it in hotels, where you might not get your room cleaned every day,” she said. “That, sometimes, is a labor issue, but it’s also a way for them to save money.”
Waters said the practice has been normal in the travel industry for decades.
“Think about the airlines: Twenty years ago, you could get on a plane, get a pillow, get a blanket and something nice to eat — and still have leg room and elbow room — and not have to pay for your baggage and other things,” Waters said. “That’s an example of skimpflation.”
Sometimes, skimpflation is not about cost; Waters said some manufacturers turn to low cost alternatives during disruptions in their supply chain.
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