Why are Coca-Cola still selling 500ml bottles of original Coke then? They put the price up rather than shrink the bottle. Even the bigger bottles, they still raised the price even when making the bottle smaller (1.5L instead of 1.75L).
I'm not saying what you describe didn't happen with some SKUs, from some manufacturers in some markets, but it certainly wasn't a blanket change across the board.
It's maybe a good example actually, more noise about the shrinking bottle than the rise in price from what I remember.
Logically, putting the price up has got to be more efficient, as you don't need to change packaging, distribution processes etc, you also presumably get better marginal costs i.e. making a product 10% smaller probably doesn't save 10% on packaging costs.
I'm not saying what you describe didn't happen with some SKUs, from some manufacturers in some markets, but it certainly wasn't a blanket change across the board.
It's maybe a good example actually, more noise about the shrinking bottle than the rise in price from what I remember.
Logically, putting the price up has got to be more efficient, as you don't need to change packaging, distribution processes etc, you also presumably get better marginal costs i.e. making a product 10% smaller probably doesn't save 10% on packaging costs.
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