Why Your Chapati is Getting Smaller But the Price Stays the Same

Have you noticed that the size of chapati at you favourite Kibandaski seems to reduce even though you're paying the same Ksh20 as you used to.

Or perhaps, you opened a packet of biscuits and found that they are fewer than before, even though you still paid the same price. You’re not imagining things. This phenomenon is called shrinkflation 

Shrinkflation is the practice of reducing the size, weight, or quantity of a product while maintaining the same price. It's inflation disguised as product optimization. 

Instead of raising prices directly, which is easier for consumers to immediately notice, manufacturers and vendors quietly shrink their products, hoping you won't spot the difference immediately.

Shrinkflation works best for companies and vendors because, unlike price hikes, they can still maintain their customer base given that consumers tend to go for cheaper options when the price of goods hikes.

Factor Behind Shrinkflation 

The main contributing factor to shrinkflation is the rising cost of production for goods. In Kenya, factors like the increasing price of fuel, raw materials (like maize for ugali or wheat for chapati), and transportation all put pressure on profit margins. 

Therefore, rather than passing these costs on directly through a price increase, which could alienate customers, manufacturing companies and vendors opt for shrinkflation. 

Consider your kidandaski, if the cost of wheat flour shoots up, they have 3 options:

1. Raise the price of the chapati from Ksh20 to Ksh25. This is a noticeable price hike that could make the vendor lose their customers.
2. Absorb the cost, which means less profit. A business can't do this for long and remain viable.
3. Keep the price at Ksh20, make the chapatis smaller or thinner. This is the classic shrinkflation move. The consumer pays the same amount but gets less than they are used to.

In most cases, any business will go for option 3 as it is a clever marketing strategy because it relies on consumer habits. It is easier for someone to remember the price of a product than its specific weight and size immediately.

How Shrinkflation Hurts You as a Consumer

On face value, it might seem harmless, but it still affects your finances.

1. You may spend more. For example, if you are used to eating two chapatis for lunch, when the size reduces, you may end up buying one more to be full. That’s an extra 20. If you eat chapati 4 times a week, that’s Ksh80 and Ksh320 in a month. This is money that you could have saved, no matter how small it is.
2. False sense of stability: Shrinkflation masks the real cost of living. Because prices on the shelves appear unchanged, many people underestimate how much the cost of living has gone up.
3. For businesses, it can erode trust among consumers. When consumers eventually notice that a product has shrunk, they often feel cheated or deceived. This can lead to a significant erosion of trust. Consumers may view the business as prioritizing profits over customer welfare. This psychological impact can cause consumers to switch to a competitor.

Shrinkflation is like a slow leak in your wallet; you don’t notice it at first, but it adds up.

So the next time your mandazi seems to have mysteriously lost weight, don’t just laugh it off. It might not be your appetite that’s growing. It might be shrinkflation, silently taking away some food from your plate.