Sep 11, 2020
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Entrepreneurship Expert Explains The Harm Of Double Price Tags

Small issues such as the type of price tag and its design should be left to the discretion of the stores. This opinion was expressed by Vladimir Buev, President of the National Institute for Systemic Research of Entrepreneurship Problems.

So he commented on the initiative of the Union of Consumers of Russia to oblige retail chains to use double price tags and indicate in them not only the cost of packaging the goods, but also the price per unit - a liter or a kilogram.

He explained that the marketing ploy to reduce the standard volume or weight of a product in a package is called shrinkflation. The situation when in appearance a briquette of butter, a bag of cereals or a bottle of milk does not outwardly differ from the kilogram and liter counterparts standing nearby, but they cost the same or cheaper, does not become a hoax, because all the basic information is still indicated on the package.

If a consumer once felt deceived because of shrinkflation, then he will not buy a product of this brand anymore, but from now on he will carefully read the data about the product. There is no deception here, - quotes Buyeva "Economics Today".

The expert noted that the obligation to indicate additional information about the product on the price tag is justified if it comes to the need to inform about the presence, for example, of a substitute for a familiar substance. However, recalculating the price tags for liters and kilograms is an excessive measure, the expert believes. He expressed confidence that the Russians "are not so stupid as not to count them at the counter if necessary."

Now retailers have the right to choose themselves, indicate to them the cost of a unit of goods or unit of weight. However, given the fact that packages have different weights or volumes, it is not always easy to find out which is actually cheaper. Therefore, some hypermarkets in Russia have been using double price tags for a long time, allowing consumers to compare prices for a basic unit of goods - kilograms, liters, and so on. However, the obligation to do this for absolutely everyone will become an excessive regulation measure, Buev is convinced.

In this initiative, one can go to extremes and generally return the Soviet system of packaging GOSTs, when it was possible to produce goods only strictly in kilograms, liters, or variations of 0.5 and 0.75 of these measures. But in this way the business is again driven into a rigid framework. And the additional costs that he incurs are included in the final price of the goods, - explained the expert.

Buyev recalled that the world is moving towards removing barriers to business if they do not threaten the quality of the product and the health of the consumer.

Earlier wrote that the Union of Consumers of Russia applied to the Ministry of Industry and Trade with a proposal to make double price tags mandatory and indicate on them, in addition to the cost per package of goods and the price per unit of weight or volume. This, it was stated, could help buyers compare the cost of one type of product of different volume, and also negate the tricks of manufacturers to reduce weight or volume while maintaining the usual cost.

However, according to Buev, the innovation will essentially not change anything and will not force manufacturers to stop tricks with packaging. The specialist stressed that "business does not go to cunning marketing moves from a good life", and since the struggle for consumer money is serious, packaging of 450 grams, 900 milliliters and the like will appear on store shelves for a long time.

The Ministry of Industry and Trade also did not support the idea of ​​introducing double price tags. The department considered that this could overload buyers with information, which would only bring them additional inconvenience.

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