Let’s Talk… Skimpflation!

Have you stayed in a hotel that no longer offers a breakfast buffet? That has a pool “out of order”? Been to a restaurant and wondered if they forgot about you? Or had your flight recently canceled? 

Enter the world of “skimpflation”, a term coined to describe a reduction in the quality of service that represents a pain for consumers not captured by the traditional inflation stats. 

Businesses coming out of the pandemic are facing a two fold problem. First, the cost of goods is at an all time high. They are battling inflation at every turn. Second, they are having a hard time finding and keeping talent. What this has led to is many companies are cutting back or skimping on services that used to be normal and customary.

People going to Disney now report having to walk for over a mile to get to the park, as parking lot trams are still not in service. Nationwide Domino’s pizza delivery times are getting longer and longer as there aren’t enough drivers. I would think that Black Friday this year is going to be a mess because I’ve found it’s hard to get good service on a normal day. 

Customer satisfaction is at its lowest level in 15 years, according to the American Customer Satisfaction Index. What are some things you’ve noticed that businesses are skimping on to save money?

The content in this material was created for educational and informational purposes only and is not intended as an investment advice.

The opinions voiced in this material are for general information only and not intended to provide specific advice or recommendations for any individual.

Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities.