Inflation has been impacting economies worldwide, and brands have developed clever tactics to maintain or boost profits while disguising price increases. These strategies often exploit consumer psychology, making it harder for shoppers to notice that they’re paying more for less. Let’s take a look at trickflation and eight other tactics brands use to profit from rising costs.
From subtle changes in packaging to outright manipulation of perceived value, these methods have allowed companies to thrive despite rising costs. In this article, we will take a look at a few of these tactics, including trickflation, shrinkflation, and greedflation, revealing how they work and their effects on consumers. By understanding these tactics, shoppers can make more informed decisions and protect their wallets from hidden inflationary practices.
Shrinkflation
Shrinkflation happens when brands subtly change the size or reduce the quality of their products while keeping the price the same. They are basically charging more for their products without obvious price hikes. This is a silent inflation tactic that relies on consumers not noticing changes in packaging or weight.
Shrinkflation is often used on food products, toiletries, and household items. For example, a snack bag might go from 200g to 180g, or rolls of toilet paper might lose a few sheets per roll, but the price still stays the same. This tactic banks on consumer habits because many shoppers rarely read labels or do per-unit cost comparisons before they add items to their cart. Shrinkflation often goes unnoticed. But this is just one of the tactics brands use to profit from rising costs.
Trickflation
Trickflation is when brands visually manipulate packaging to give the illusion of more value or quantity than is actually present. These companies will design bottles, cans, and boxes that look taller, sleeker, or fuller, while they contain the same or even less product.
One example is the taller Coca-Cola can, which is twice the price of the previous, shorter can, despite holding the same 12 ounces per can. This method relies on consumers’s visual instincts and quick judgment, distracting from the quantity inside the can. This method is very common in frozen goods, beverages, and snacks.
Greedflation
Greedflation is when companies raise the prices of their items far beyond the level that is needed to offset rising costs, using inflation as an excuse to increase their profits. This is less about responding to economic pressure and more about opportunistically padding margins. These big corporations will sometimes blame labor shortages or supply disruptions, but a lot of the time, their financial reports will show skyrocketing earnings.
For example, despite declining production costs, some diaper brand kept their prices elevated, blaming it on the lingering effects of the pandemic. This tactic especially affects lower-income families, which deepens inequality. Unlike most other forms of price manipulation, greenflation is overt, but they frame it so convincingly that many consumers accept it as a necessary consequence of inflation.
Stretchflation
Stretchflation occurs when brands market larger sizes or bulk packages that appear economical but actually have inflated unit prices. These “value” formats make shoppers think that they’re getting more bang for their buck, but the cost-per-unit often tells a different story.
A big cereal box or yogurt multi-pack might seem like a better deal, but the price often rises more than the extra amount you get. Many people believe buying in bulk always saves money, but that’s not always true. Without checking the price per unit, it’s easy to spend more without realizing it.
Cheapflation
Cheapflation tricks budget-minded shoppers by keeping prices low while quietly reducing the quality or quantity of the product. Something may look like a bargain, but it’s often smaller or made with cheaper ingredients. For example, a soap bar might be the same price but now melts faster, or a chip bag can be filled with mostly air and fewer chips. Brands use this trick to make you feel like you’re saving money, even though you’re getting less value overall.
Brands banking on customer loyalty and price sensitivity know many won’t notice the subtle downgrade until after purchase. This tactic blends affordability with deception, offering short-term savings that mask a long-term value loss. It’s especially common in personal care products, groceries, and household essentials. Cheapflation is another one of the tactics brands use to profit from rising costs.
Psychological Pricing
Psychological pricing is a classic tactic that tweaks numbers to make products seem cheaper than they actually are. Ending a price in .99 instead of rounding it up makes something seem like a bargain, even if the difference is just a penny. A $9.99 item feels much cheaper than one priced at $10.
This is especially effective when consumers are in a rush or distracted while shopping. Retailers also use pricing tiers, like the classic “Buy 3 for $5,” to nudge shoppers toward more expensive options without realizing it. While it is legal and very common, it manipulates perception more than value.
Premium Pricing
Premium pricing is when companies position a product as higher-end by giving it a steeper price tag, which is often far above production costs. Brands that use this tactic rely on prestige, emotional appeal, and perceived exclusivity. Examples of this are luxury perfumes, designer handbags, or artisanal coffee. Starbucks usually charges more than its competitors by selling not just coffee but also an experience.
This tactic depends on strong branding and consumer perception; it works best when the buyer believes they’re paying for something exceptional. While it might be profitable, it alienates budget-conscious shoppers, and it’s risky if the brand fails to meet elevated expectations. The quality doesn’t always match the inflated price.
Dynamic Pricing
Dynamic pricing is when prices are adjusted in real-time based on factors like demand, competitor pricing, and even browsing history. It is very popular in e-commerce and services like ride-hailing or airline bookings as it allows businesses to capitalize on peak times. A ride that costs $15 on a quiet afternoon could double during a concert or holiday rush.
While it may boost a company’s profits, it also creates frustration among consumers who feel taken advantage of during high-demand periods. Some industries even use AI to fine-tune prices based on behavior, which raises ethical questions. For consumers, dynamic pricing makes cost predictability difficult and adds stress to routine purchases. But there are more tactics brands use to profit from rising costs
Value-Based Pricing
Value-based pricing is when a company sets a price based on what customers think something is worth, not what it actually costs to make. Brands that use this method will charge more if a product feels special, luxurious, or status-boosting. It’s common with things like designer clothes, fancy cars, or premium skincare. People aren’t just buying the item; they’re buying the feeling or image that comes with it. If a product makes someone feel important or unique, they’re often willing to pay more, even if the actual cost to produce it is much lower.
A watch might cost $100 to make but sell for $1,000 because it signals wealth or sophistication. This model thrives on branding, storytelling, and lifestyle marketing. While extremely profitable in niche markets, it struggles when applied to everyday goods where perceived value is subjective and harder to sustain across broader audiences.
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