Rising Costs Survey Results

Three weeks ago, I reported that I had discovered Post brand cereals had hidden their cost increases in just their economy sizes of cereals, so that it was actually cheaper to buy the smaller sized cereal boxes as they were cheaper per unit oz.

I then asked the question: How would you rather see a company deal with the rising cost of goods sold?

with three possible responses:
1 - Just raise the price, I know it's going up
2 - Shrink the size, you've done it before
3 - Hide the cost increase in just the economy sizes

83% chose answer #1 - Just raise the price. 16% chose answer #3 - Hide the cost increases in just the economy size.

I think, if I am able to interpret these statistics, that Americans really just want to be shot straight on prices. For decades, CPG companies have tried to, and possibly succeeded in, deceiving the public. They shrank bags of sugar from 5 lbs to 4, so that the price didn't have to increase. Post cereals made their economy size actually more expensive, counting on the public not price comparing the brand against itself. Who knows what else they have done to manipulate prices and profits. Is this really necessary?

I know that it is not often I price compare a brand against itself. You just assume that the company makes an economy size for a reason - to save on packaging costs. I don't think I'm lazy so much as time strapped, as I am sure most Americans are these days. I want to get out of the store as quickly as the next guy. I have blog posts to write when I get home!!!

I guess I see this as an important lesson - don't trust those big guys out there, and don't try and hide your price increases. If I have to raise prices at the bakery, I'll just raise them instead of trying to be sneaky about it. If anyone asks, I'll say 83% of you guys suggested I not try and hide the fact when they confront me on it.