Consumers expect prices to rise from time to time. But some of the biggest price increases don't show up on the price tag.
Many shoppers are familiar with "shrinkflation," when companies reduce the amount of product in a package while keeping the price the same.
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"Soap, deodorants -- usually a lot of the personal hygiene items are getting smaller and more expensive," said shopper Sean Noll.
But consumer experts say that's just one of several tactics that businesses use to increase profits without drawing attention to higher costs.
WATCH as a consumer expert explains the sneaky ways companies are raising prices:
Kyle James of ConsumerAffairs recently highlighted six sneaky ways companies quietly raise what consumers pay.
1. Shrinkflation
Shrinkflation occurs when companies reduce the amount of product in a package while maintaining the same price.
Shoppers often notice it in products such as chips, cereal, coffee, and pet food. The package may appear unchanged, but consumers receive fewer ounces or servings than before.
"Most shoppers are not going to notice if they lower the amount you get in the bag," James said. "But they are going to notice if they raise the price even 50 cents or a dollar."
2. Skimpflation
Another growing trend is "skimpflation," where consumers pay the same amount but receive a lower-quality experience.
Hotels, for example, have reduced housekeeping services and other amenities while keeping room rates largely unchanged. Businesses may also cut staffing levels, making customer service harder to access.
3. Smaller sizes hidden behind new packaging
Some brands change packaging designs or container shapes, making it harder for shoppers to notice a reduction in size or quantity.
A refreshed look can sometimes distract consumers from the fact that they're getting less product than before.
4. Regular prices disguised as sales
James also warns consumers to be skeptical of constant sales promotions.
Some retailers advertise items as being discounted even when the "sale" price is close to or the same as the product's regular selling price.
5. Extra convenience fees
Convenience comes at a cost.
Food delivery, grocery delivery, and other services often add fees that significantly increase the final amount consumers pay.
"Food is the biggest one with delivery fees and extra fees just for the convenience of takeout or pre-prepared meals," said retail expert Trae Bodge. "Try to get into the habit of doing these things less or rather than having something delivered, at the very least, go and pick it up."
6. Subscription creep
Subscription services frequently raise prices by a dollar or two at a time; increases that can be easy to overlook.
"If you don't pay attention, you just kind of go along with it -- before you know it, you're paying another $50, $60, $100 a year," James said.
How to spot hidden price hikes
To avoid spending outside your budget, ask a few questions before making a purchase:
- Did the package size change?
- What is the unit price?
- Is the quality or service still the same?
- What is the final cost after fees?
- Would you still buy the product if it weren't advertised as a sale?
For shoppers already feeling squeezed by rising costs, paying attention to these hidden price hikes can keep you from spending more while getting less, so you don’t waste your money.
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