BiggerPockets Money Podcast

518; Shrinkflation: How to Outsmart The Grocery Stores’ Rising Prices

Apr 9, 2024

Phil Lempert, the 'SupermarketGuru', reveals the tricks behind 'shrinkflation' and how manufacturers inflate prices while reducing product sizes. Learn which products are affected most, how retailers are fighting back, and practical tips to save money. Discover how to outsmart the grocery store's rising prices and beat shrinkflation to keep more money in your pocket.

46:44

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Episode guests

Phil Lempert

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Quick takeaways

Shrinkflation reduces product sizes to maintain prices, impacting consumer purchasing power negatively.

Consumers can combat shrinkflation by being vigilant, checking product weights, and voicing concerns to companies.

Deep dives

Shrinkflation Defined by Products Getting Smaller

Shrinkflation refers to products getting smaller in size, often evident in the packaging, like more indentations in a drink bottle, more air in chip bags, or actual size reductions. This practice aims to offer less product while maintaining pricing. Factors like interrupted supply chains during global shutdowns and increased demand with limited supply due to the pandemic created a perfect storm for shrinkflation and inflation to impact prices negatively.

Introduction

2min

Navigating Inflation with Shrinkflation

3min

Navigating Rising Prices Amidst Shrinkflation

3min

Navigating Shrinkflation in Grocery Stores

25min

Navigating Shrinkflation's Impact on Household Essentials

5min

Shrinkflation: Impact on Consumer Goods

6min

Taking Control of Your Food Supply for Better Savings and Health

3min

Whether you know it or not, “shrinkflation” is costing you. You’re paying more for less, as manufacturers boast record profits. Your paycheck is getting eaten away faster and faster every month, but you’re left with the same amount of stuff. How did this happen, and when is it going to stop? Phil Lempert, AKA the “SupermarketGuru,” has been analyzing consumer behavior, marketing trends, and the retail landscape for over two decades. Now, he’s sharing thetricks manufacturers use to get you to spend more while expecting less.

Shrinkflation has become such a severe problem that even the president of the United States has recently mentioned its damaging effects on the American household. Phil gives us the inside scoop on why prices are rising while sizes shrink, how retailers are actually fighting back to get customers the savings they deserve, and which products are seeing the most shrinkflation today.

Phil also shares his top tips to beat shrinkflation and save more money every month, how to show the companies that you WON’T put up with their price gouging games, easy ways to identify shrinkflation, and the supermarket chains that give you the best bang for your buck. If you’re tired of seeing your grocery bill inflate while your bank account shrinks, this is an episode you cannot miss!

In This Episode We Cover

Shrinkflation explained, and how manufacturers are taking advantage of Americans

Products that are seeing the most shrinkflation and which items to avoid

Why America’s need for “choice” is making shrinkflation even worse

The grocery stores and brands that are the best for budget-conscious shoppers

How to identify shrinkflation and the sneaky tricks manufacturers play to get you to spend more for less

How to take action against shrinkflation and tell brands to STOP ripping you off!

And So Much More!

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