How to pass on increased costs of production to customers

The Watchdog programme on BBC TV last week included a story about how some manufacturers of household products have left the price of their product the same whilst reducing the volume of the product.  In some instances the design of the packaging, whilst looking the same, had been changed to accomodate the smaller amount.

It included one example of a cleaning fluid which used to have the volume displayed on the front of the bottle above the name.  When the company recently reduced the volume by a quarter the volume display moved to the bottom of the back of the bottle.

It would seem that marketing people in these organisations have been busy trying to find ways of passing on increased costs (or perhaps increasing margin) without the customer noticing.  Perhaps indicative of the culture of the business and certainly not a great way to build customer engagement.

Contrast this with a note I saw displayed in the bakery in the village where I live.  It's displayed below.

  
I talked to the proprietor about it.  She explained that whenever they increase prices they explicitly point it out to customers and explain why.  I asked her why she felt the need to do so.  Her answer: "I think customers come back to us regularly because they like what we sell and they trust us.  They know that we need to make a profit but also that we're not taking advantage of them.  We just daren't risk losing their trust, so we're always open and honest."

I think some of those marketing people should visit them.

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