What do you think about companies making chip bags smaller but not reducing the price?

Question

http://articles.moneycentral.msn.com/Investing/CompanyFocus/TheIncredibleShrinkingDoritosBag.aspx

Answer 1

Sorry, tickle. But its true. And its not just chip companies. Its happening all over.

Chips, cereal, peanuts, cookies, all of these things are taking a hit. They are reducing the weight in each package by only a little bit, but keep the price the same, that way we as consumers don't know that they are actually raising the prices.

Its a little underhanded, but oh well. Thats why I'm starting to just make as much as I can from scratch. Tastes better, healthier, and oftentimes its less than half the price of the commercial product.

Answer 2

yep ...think of cost reductions of pennies or of fractions of pennies per bag, container, whatever, then multiply that amount by millions and millions of bags sold and pretty soon you are looking at real money. Call it savings or improved profits but don't expect the consumer to win at this game. And this model isn't just used by chip makers alone, this is a part of the "hidden" inflation that is unlikely to be registered by the economic indicators everybody relies on. Oh well !!!

Answer 3

they are doing it to reduce the producetion cost.  it does not change the amount (weight of product in bag) you pay for.  this way they can increase their profits and avoid charging the customer more.

Answer 4

I think they need to keep up with the rising fuel costs, the same as everyone else.  You are talking about large corporations, who are trying to make a profit, which is harder all the time when fuel costs are going through the roof1 ... Try venting on the oil-producing countries instead.  I heard on the news the other day that they are swimming in multi-billion-dollar profits from the rest of the world!