Six Tactics Companies Use to Conceal Tariff Effects
Quick Summary:
- Tariffs and rising costs: U.S. tariff policies are causing prices of various products to increase, and companies are employing strategies to mask these cost hikes.
- Shrinkflation: Companies reduce product size or quantity within packaging while maintaining the same price. Consumers may get less for the same cost.
- Skimpflation: Product quality declines as cheaper materials or ingredients like high-fructose corn syrup replace more expensive components.
- Price creep: Incremental price increases disguised by changes in packaging or product appearance make it difficult to notice the overall hike.
- Exclusion of items: Items that traditionally came with extras (e.g.,batteries,manuals) now exclude them,reducing company costs without modifying sticker prices.
- Mysterious fees: New fees on digital services and online products disguise direct price hikes, framing changes as unavoidable costs rather than price inflation.
- Assembly required: Products ship in unassembled forms to minimize shipping costs while shifting assembly labor onto consumers.
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