That’s a 6.1% increase over last year.
Good thing no one actually wants most of those items (except for maybe gold rings).
Yesterday, Ben Popken from the Consumerist was on NPR’s “All Things Considered” talking about how the products we purchase at the grocery store are shrinking and yet we’re paying the same amount! You can listen to the interview here.
One thing that they didn’t talk about was just HOW EXPENSIVE these size reductions turn out to be. For instance, Tropicana recently reduced their 96oz. containers to “new improved” 89oz. containers but left the price the same (for this example we’ll say the price is $3.99 per container). What was the price increase as a percentage?
Here’s a look at the math:
Notice that the size reduction of 7.29% means a PRICE INCREASE of 7.87%! To put that in perspective, if Tropicana simply raised the price of the 96oz. container by the same percentage, the new price would be $4.30! This is why companies like size reductions. They’re much sneakier and give the companies much more leeway to significantly raise prices!