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RoughDog

Anyone feelin inflation take a bite out of their ass?

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Starting to really feel inflation bite in everyday items such as food.

There is inflation, then came shrinkflation and now it appears there is gradeflation.

Buy pack of 4 oranges and used to get one bad one and three good ones.

Lucky if there is one good orange in a pack now.

 

What you think?  QE and Brexit?

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10 minutes ago, StackerNoob said:

Definitely noticed an uptick in shrinkflation over the last 5 years. Have you seen the size of multipack choccie bars now? I could inhale the entire pack and I wouldnt even cough!

I used to inhale them anyway.... just takes less breath now :D 

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Shrinkflation is an interesting one. In a normal capitalist economy producers would just raise prices instead of shrinking products. They are selling a product, they want to sell as much product as possible. If £1 is inflated to be worth 80p in real value the producer is losing out on that value by shrinking the product size and keeping the price at £1. They should be selling the product at the same size for £1.20 (£1 in old money), and keep their value take the same. I don't understand why they are trying to hide inflation. The wages they pay also remain static nominally, but that would not be enough to offset the fall in millions of sold item value would it? 

Is selling the product at £1 (80p in value) going to sell more product than if it was priced at £1.20 (£1 in value)? Is it that equation? Perhaps the psychological amount of £1 is easier to spend? 

Why are the doing it? I would be happy to pay more, instead we are tightening our belts and they are hoping we don't notice. 

 

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2 hours ago, BackyardBullion said:

Well, there is also greedflation

Sainsbury's are the worst

Onions are 3x the price when wrapped in a red net....

 

Onions.jpg

That is ridonkulous! I assume punters are falling for it or else it wouldn't still fly.

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2 minutes ago, bluemoon said:

That is ridonkulous! I assume punters are falling for it or else it wouldn't still fly

No not "falling for it" or "ridiculous", well maybe the latter. Just laziness on the part of the punters, onions in a bag is far more convenient, rather than pick up loose ones and put in a plastic bag yourself.

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2 minutes ago, sovereignsteve said:

No not "falling for it" or "ridiculous", well maybe the latter. Just laziness on the part of the punters, onions in a bag is far more convenient, rather than pick up loose ones and put in a plastic bag yourself.

Even at my old age I keep getting surprised at what consumers are willing to spend money on. Seems like thoughtlessly throwing money away to me. Makes doing business easier in one respect, then on the other hand I keep thinking "nah they won't go for that" when thinking up business ideas. Here is a chap who sells snow . Yep, people buy snow. Not sure if he's managed to sell one to an Eskimo yet, but the way things are going...

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19 minutes ago, bluemoon said:

That is ridonkulous! I assume punters are falling for it or else it wouldn't still fly.

Mrs BYB has a nickname for me, "Onion Man" because every time we are shopping I point out to people reaching for the netted onions that they are 3 times the price....I get looks of amazement - but I am sure that later on they think what a weirdo!

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4 minutes ago, BackyardBullion said:

Mrs BYB has a nickname for me, "Onion Man" because every time we are shopping I point out to people reaching for the netted onions that they are 3 times the price....I get looks of amazement - but I am sure that later on they think what a weirdo!

The hero Tesco deserves, but not the one it needs right now...

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It was the same a christmas for brussel sprouts.  Dirty loose peel your own £2.40 per KG or about 10 peeled and washed in a tiny bag for £1.99  which worked out about £14 per kg.  Plus you are taking home more needless plastic.

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6 minutes ago, BackyardBullion said:

It's Sainsbury's........

Oh yeah. Didn't spot that, just wanted to do my batman quote! 

 

As for shrinkflation, when it comes up every Christmas in the papers people complaining about the Quality Street tins/tubs getting smaller, I always think they're missing a trick by not having an advertising campaign with the slogan: "Quality, not quantity..."

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4 hours ago, RoughDog said:

Starting to really feel inflation bite in everyday items such as food.  There is inflation, then came shrinkflation and now it appears there is gradeflation.

Buy pack of 4 oranges and used to get one bad one and three good ones.  Lucky if there is one good orange in a pack now.

What you think?  QE and Brexit?

There have been some significant crop losses due to cold weather, rain/lack of rain.... It's called the Grand Solar Minimum. So expect food prices to keep rising. Plan B includes stocking up on food. It is also the continuous QE and devaluation of fiat. Every fiat goes to zero in the end - every single time.

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36 minutes ago, sixgun said:

There have been some significant crop losses due to cold weather, rain/lack of rain.... It's called the Grand Solar Minimum. So expect food prices to keep rising. Plan B includes stocking up on food. It is also the continuous QE and devaluation of fiat. Every fiat goes to zero in the end - every single time.

Last couple years been hard, 2017 was very wet and the summer of 2018 very dry, spuds and carrots sturggled.     If it wasn’t for the supermarkets keeping the cost to farmers so low food will be a lot higher.   

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4 hours ago, BackyardBullion said:

Well, there is also greedflation

Sainsbury's are the worst

Onions are 3x the price when wrapped in a red net....

You're saying its greedflation to take a basic commodity, apply some labour to sort for quality and add presentation ?  Might want to think on that ;)  I'd call it adding value, and its up to people if they want pay for the service.  It also benefits you as the higher margin goods boost the retailer's gross margin, so they dont need to add so many pennies to the loose product.

 

3 hours ago, KDave said:

...Is selling the product at £1 (80p in value) going to sell more product than if it was priced at £1.20 (£1 in value)? Is it that equation? Perhaps the psychological amount of £1 is easier to spend? 

Why are the doing it? I would be happy to pay more, instead we are tightening our belts and they are hoping we don't notice. 

Yes, you've got it.  Individuals may not change purchases, if one in 10 might dont buy the product based on a higher price, thats lost revenue and reduced turnover.  And we shouldn't see this as hidden or underhanded, its in plain sight if interested to see.  As consumers we still obtain the goods we desire, and lets face this applies to luxuries.  Though agree some chocolate bars in some shops are ridiculous (bearly larger than fun size), we can chose to seek out a larger size elsewhere.

This is market economics, it works well enough. Anyone want controlled economy with government directed prices?

 

Edited by Martlet

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I think shrinkflation, gradeflation, hideflation or whatever are attempts to hide inflation.  What I don't quite understand is how they will ever increase the size of the chocolate bars or packets of crisps back to the normal size in the future.  If they do the price jump will be big.  Inflation or devaluation only seems to go one way.   Stinks of desperation to me.

 

 

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