Skimpflation is a term that refers to companies cutting corners on quality in order to cut costs. The result is a less than stellar experience for the customer. This can include a long wait, a poor quality product, or a bad journey. It’s a widespread problem that affects many industries, including the food industry and the travel industry. In the UK, skimpflation has affected travel by increasing flight prices and disrupting the quality of services and food.
Companies around the world have been experiencing the impact of skimpflation on their bottom line. As a result, they’re finding it more difficult to attract and retain employees. Several industries are experiencing a shortage of workers to meet demand, making it difficult for them to deliver the same quality. The biggest effect on consumers will be rising prices. However, skimpflation won’t affect every consumer directly. As a result, companies may find it easier to cut costs where they can.
Another common example of skimpflation is when a company cuts services and charges the same price for less. This happens because the business is trying to reduce costs and maintain margins. However, it also results in a lower quality product, resulting in unhappy customers.