However, manufacturers are doing everything they can to make sure we don’t notice. “They know this is a sensitive issue. You know the taste, packaging and price of your favorite products. If you realize that something is going to change, that leads to some disappointment. A manufacturer obviously wants to avoid that.”
An average consumer knows the price of five products they buy on a regular basis, Billiet knows from research. “For most other products, we don’t know the volume, the unit price or the quality of the ingredients.”
If a manufacturer wants to pass on a large price increase, they can implement it in various areas. “If a package gets 20% smaller and the price goes up 20%, the change is less noticeable, but the product becomes about 4% more expensive.”
