Comments on: Question of the Day – Inflation http://allfinancialmatters.com/2008/04/14/question-of-the-day-inflation/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Sat, 11 Feb 2012 20:32:19 +0000 hourly 1 http://wordpress.org/?v= By: BD http://allfinancialmatters.com/2008/04/14/question-of-the-day-inflation/comment-page-1/#comment-284359 BD Tue, 15 Apr 2008 14:05:48 +0000 http://allfinancialmatters.com/2008/04/14/question-of-the-day-inflation/#comment-284359 Even without inflation, I'd prefer to see smaller more expensive packages of junk food. Even without inflation, I’d prefer to see smaller more expensive packages of junk food.

]]> By: Lily http://allfinancialmatters.com/2008/04/14/question-of-the-day-inflation/comment-page-1/#comment-283944 Lily Tue, 15 Apr 2008 03:16:02 +0000 http://allfinancialmatters.com/2008/04/14/question-of-the-day-inflation/#comment-283944 As a consumer, I am indifferent between smaller sizes or higher prices (assuming that the per unit cost of the changes are the same). As an economist, I'd rather see price increases. By changing sizes, companies incur a "menu cost" because they have to manufacture new packaging, reprogram assembly lines, etc. This is an additional cost that no doubt gets passed onto consumers. I find it interesting, though, that people comment on portion sizes. I bet a large number of those who prefer more "appropriate" portion sizes buy plenty of other things in bulk. As a consumer, I am indifferent between smaller sizes or higher prices (assuming that the per unit cost of the changes are the same).

As an economist, I’d rather see price increases. By changing sizes, companies incur a “menu cost” because they have to manufacture new packaging, reprogram assembly lines, etc. This is an additional cost that no doubt gets passed onto consumers.

I find it interesting, though, that people comment on portion sizes. I bet a large number of those who prefer more “appropriate” portion sizes buy plenty of other things in bulk.

]]> By: Yana http://allfinancialmatters.com/2008/04/14/question-of-the-day-inflation/comment-page-1/#comment-283645 Yana Mon, 14 Apr 2008 22:13:44 +0000 http://allfinancialmatters.com/2008/04/14/question-of-the-day-inflation/#comment-283645 I'd rather see higher prices than manipulative creative marketing. I’d rather see higher prices than manipulative creative marketing.

]]> By: sam http://allfinancialmatters.com/2008/04/14/question-of-the-day-inflation/comment-page-1/#comment-283635 sam Mon, 14 Apr 2008 22:03:06 +0000 http://allfinancialmatters.com/2008/04/14/question-of-the-day-inflation/#comment-283635 I would rather that they kept the price the same, kept the size the same, but just reduced the calories. Calories must cost something? They don't just fall out of the sky. I would rather that they kept the price the same, kept the size the same, but just reduced the calories. Calories must cost something? They don’t just fall out of the sky.

]]> By: No Debt Plan http://allfinancialmatters.com/2008/04/14/question-of-the-day-inflation/comment-page-1/#comment-283522 No Debt Plan Mon, 14 Apr 2008 19:51:10 +0000 http://allfinancialmatters.com/2008/04/14/question-of-the-day-inflation/#comment-283522 I'd rather see a direct price decrease AND a portion size decrease. Not directly related to groceries, but going out to eat is ridiculous. My wife and I can easily stuff ourselves on the portions for one person these days. I’d rather see a direct price decrease AND a portion size decrease. Not directly related to groceries, but going out to eat is ridiculous. My wife and I can easily stuff ourselves on the portions for one person these days.

]]> By: Joe @ SimpleDebtFreeFinance.com http://allfinancialmatters.com/2008/04/14/question-of-the-day-inflation/comment-page-1/#comment-283444 Joe @ SimpleDebtFreeFinance.com Mon, 14 Apr 2008 19:06:10 +0000 http://allfinancialmatters.com/2008/04/14/question-of-the-day-inflation/#comment-283444 I've seen the same thing in Yogurt over the past year, but I've noticed companies portraying it as "healthier" while quietly reducing the size. I think those new "eco-friendly" water bottles are the same. They market them as using less plastic, so they're better for the environment and they shape it to "fit your hand more naturally" but the overall volume has also gone down... I think it's just another dishonest item on the list of marketing used by food producers and packagers. I’ve seen the same thing in Yogurt over the past year, but I’ve noticed companies portraying it as “healthier” while quietly reducing the size. I think those new “eco-friendly” water bottles are the same. They market them as using less plastic, so they’re better for the environment and they shape it to “fit your hand more naturally” but the overall volume has also gone down… I think it’s just another dishonest item on the list of marketing used by food producers and packagers.

]]> By: TheMightyQuinn http://allfinancialmatters.com/2008/04/14/question-of-the-day-inflation/comment-page-1/#comment-283426 TheMightyQuinn Mon, 14 Apr 2008 18:55:54 +0000 http://allfinancialmatters.com/2008/04/14/question-of-the-day-inflation/#comment-283426 Since we're only a family of three, i would rather see the size reduction--we can't finish a 1/2 gallon of ice cream in a month! I don't consider it very "sneaky", since i purchase based off "price per size" (e.g. weight), not "price per item". Since we’re only a family of three, i would rather see the size reduction–we can’t finish a 1/2 gallon of ice cream in a month! I don’t consider it very “sneaky”, since i purchase based off “price per size” (e.g. weight), not “price per item”.

]]> By: Esmond http://allfinancialmatters.com/2008/04/14/question-of-the-day-inflation/comment-page-1/#comment-283400 Esmond Mon, 14 Apr 2008 18:37:09 +0000 http://allfinancialmatters.com/2008/04/14/question-of-the-day-inflation/#comment-283400 There are so many substitution goods that increasing prices may reduce overall profits for that product. Instead, it may be better (and healthier) for package size reduction. I won't get into the psychological effect of eating from a big bowl vs. a small bowl (or the one where people can't tell the difference), but the way that most people eat, they can afford to eat a little less ;) There are so many substitution goods that increasing prices may reduce overall profits for that product. Instead, it may be better (and healthier) for package size reduction. I won’t get into the psychological effect of eating from a big bowl vs. a small bowl (or the one where people can’t tell the difference), but the way that most people eat, they can afford to eat a little less ;)

]]> By: brandon http://allfinancialmatters.com/2008/04/14/question-of-the-day-inflation/comment-page-1/#comment-283364 brandon Mon, 14 Apr 2008 18:11:44 +0000 http://allfinancialmatters.com/2008/04/14/question-of-the-day-inflation/#comment-283364 Re: food, in today's culture, I think I'd much rather see size reductions. Our portions are already too large and perhaps smaller packaging will indirectly promote eating less. Re: food, in today’s culture, I think I’d much rather see size reductions. Our portions are already too large and perhaps smaller packaging will indirectly promote eating less.

]]> By: Beth http://allfinancialmatters.com/2008/04/14/question-of-the-day-inflation/comment-page-1/#comment-283292 Beth Mon, 14 Apr 2008 16:57:17 +0000 http://allfinancialmatters.com/2008/04/14/question-of-the-day-inflation/#comment-283292 I agree with you...I'd rather see the direct price increase. Rising prices have already put certain 'normal' items (i.e. ice cream) on the back burner for me. Besides, I admire those companies who are honest vs. any one of their competitors...regardless of their prices. I agree with you…I’d rather see the direct price increase. Rising prices have already put certain ‘normal’ items (i.e. ice cream) on the back burner for me. Besides, I admire those companies who are honest vs. any one of their competitors…regardless of their prices.

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