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Why Shrinkflation Is A Great Pricing Strategy In Inflationary Times Providing a little less of something for the same price is smart business.

By Gene Marks

Key Takeaways

  • You can only raise prices so much. Keep your prices the same — and your customers happy — amid rising inflation.

Opinions expressed by Entrepreneur contributors are their own.

Want to make more money this year? Or at least protect your profits? Consider shrinkflation. You may have heard of this — or maybe not. But shrinkflation is a powerful pricing strategy that you should consider in these times of higher costs that are cutting into your margins.

So, what is shrinkflation? It's when you charge the same price for something that you've always charged, but this time, you deliver just a little bit less. If that sounds unethical or immoral, it's not. In fact, it's being practiced all over the place by some of the world's largest brands.

Take Walmart, for example. Their Great Value Paper Towels used to be 168 sheets per roll, but now it's 120 sheets. Did the price change? Nope. Charmin toilet paper used to be 650 sheets per roll and now only contains half of that — at the same price. A bag of Doritos used to be 9.75 ounces, and now it's 9.25 ounces, which means you're getting fewer chips at no discount. Hefty's Mega Pak went from 90 to 80 bags without changing the price. Burger King includes fewer nuggets, and Domino's is delivering fewer chicken wings, but all at the same price (who's getting chicken wings from Domino's anyway? It's a pizza chain!)

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