5 Reasons Why Small Businesses Are Turning to 'Shrinkflation' Amid Rising Costs
Sunday, 19 May 2024, 13:00
5 Reasons Why Small Businesses Are Embracing 'Shrinkflation' Strategy
The past few years of supply chain problems and rising prices have been challenging for small businesses across industries. In response to these difficulties, some small businesses are turning to 'shrinkflation' as a strategy to manage inflation without raising prices, helping them remain cost competitive.
Key Reasons Small Businesses Are Embracing 'Shrinkflation':
- Profitability (64%): 64% of business owners use 'shrinkflation' to boost profit margins without increasing prices.
- Production and supply chain costs (44%): 44% implement 'shrinkflation' to offset rising production expenses.
- Improve business operations (32%): 32% adopt 'shrinkflation' to maintain business continuity.
- Price competition (24%): 24% utilize 'shrinkflation' to navigate market competition and pricing pressure.
- Less availability of materials (24%): 24% resort to 'shrinkflation' due to decreased product/material availability caused by supply chain disruptions.
Small businesses face pressures to stay profitable amidst global challenges, prompting them to consider innovative strategies like 'shrinkflation' to address cost and pricing concerns.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.