Blooming where I am planted! | I've worked in the consumer packaged goods industry for my whole career and believe me, this is nothing new. It's a fine line for manufacturers to walk...they have to figure out what the price elasticity is (i.e., at what price + product characteristics will consumers walk to another brand) to figure out how they can change things and make a profit in the face of rising raw material and labor costs. So, do they reduce the size of a tissue, or do they put fewer tissues in the box? Or do they just raise the price? Or do they raise the price and then offer a ton of promotions (i.e., coupons, store sales) to buy their own volume and retain loyalty while the consumer adjusts to the price increase? There are many different ways to skin a cat. |