Tuesday, December 9, 2008

"Holistic Margin Management"

From Industrial Market Trends we see this:
"Across the supermarket, manufacturers are trimming packages, nipping half an ounce off that bar of soap, narrowing the width of toilet paper and shrinking the size of ice cream containers," one Los Angeles Times report states. "Often the changes are so subtle that they create 'the illusion that you are buying the same amount,'" a pricing consultant explained to the L.A. Times. The Consumerist blog calls it the Grocery Shrink Ray, wherein a product is sold in a smaller size at the usual price.
Apparently, in the biz, it's called "Holistic Margin Management." Are the CPI people capturing all this?