The Incredible Shrinking Package

How do consumer packaged goods companies hold the line on prices even when material and fuel costs go up? It's easy — downsize the product package.

As we noted in January, shrinking packages are an all too common outcome of recessionary times, when product manufacturers are squeezed on one end by escalating costs, and on the other by resistance from consumers to pay more for products they favor.

An article in the February issue of Consumer Reports addressed the topic, offering specific examples of product packages that have gotten smaller while the price has remained the same.

The fact is, this practice has been going on for years.Continue reading...