All across the globe we are seeing a massive increase in prices and reduction in quality. In fact it’s so prevalent, it has a few nicknames. Shrinkflation and Skimpflation are two practices of reducing the quality of goods and services to maintain margin, and reducing the actual contents of goods and quality of services while increasing the cost. Customers have noticed the change in gas prices, groceries and now even our toys. If you are a new entrepreneur, inventor, or toy maker you may think that Shrinkflation doesn’t affect you, but you’d be wrong my friend, it certainly does!

When a company performs a cost reduction exercise under a normal economic climate, they take a look at their product and make small, simple changes. The goal is typically to reduce cost without affecting overall aesthetic or playability. But when companies have to make up for 10% or more in lost margin, there’s no way around affecting the size and sometimes the quality of a product. A lower margin industry wide, and changing consumer expectations is something you could stay acutely aware of over the next year.As an inventor these monetary changes could affect the categories you focus on and as an entrepreneur or maker, it can affect the amount of components you need for your toy or game to stay competitive. If you want to maintain a cash-positive toy business you’ve got to look at the bottom line, and that means adjusting when margin and revenue take an unfortunate tumble.


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