Have you ever noticed that certain food items that you buy don’t seem to last as long as before? This could be due to the practice known as short sizing.
The practice of short sizing consists of slightly reducing package sizes while keeping the prices near the same level. This has the effect of reducing the amount of food required to be manufactured thus reducing the manufacturer’s cost. In some cases, the packaging remains identical but the amount of food in the package is reduced. As prices are kept the same, manufacturers increase their profit margin. Some manufacturers claim that the practice is used to prevent the need to raise prices but the effect for the consumer is the same, less food for the same price.
Short sizing can and does happen in other retail packages such as shampoo and cleaning supplies but it can be seen most often in food products.
Short sized packages are typically slightly smaller than the previous packages which they replace. For example, a 1 litre jar of peanut butter might be reduced to 975 ml or a 500 g box of crackers might get replaced by a 450 g box. The small change has the effect that many consumers will not notice the smaller size and simply purchase the product as they had before.
Slight reductions in sizes, especially to odd sizes can also make it more difficult for shoppers to perform unit cost calculations for comparison shopping. 5$ for a 500 ml can of juice makes it easy to calculate a 1$ per 100 ml unit cost. 5$ for a 475 ml can of juice however is a bit tougher to calculate the unit cost of $1.05 per 100 ml. By making it more difficult to compare unit costs, it is hard for grocery shoppers to know if they are really getting a good value for their food dollars. Although I can’t find the original study, reportedly, in a UK study : “When provided with only the total price and weight for six different sizes of baked beans, just 7% of consumers could accurately calculate the lowest unit price.”
Does it bother you that packages are shrinking without getting any cheaper?
Update: Another article about short sizing: http://www.moneyville.ca/blog/post/1033350–why-juice-boxes-are-10-smaller-but-cost-the-same