The assumption when shopping at the grocery store or buying a “meal deal” at a restaurant is usually that the more you buy, the better deal you receive. It might not make a huge difference, but if there is a small discount on larger purchases, it incentivizes customers to buy more. But sometimes the math just doesn’t add up. This is where the stupid tax comes in. When four pieces of an item costs $2 but 8 pieces costs $5, that’s the stupid tax. Somehow companies do get away with this because many customers are under the assumption that buying more will get them a better deal, but we’ve created this list to warn you that is not always the case.
Fine print and price tags should always be read closely because apparently it is quite common for stupid taxes to be snuck in on anything and everything. You can find it on “family size” packages of products at the grocery store, in the various shipping options when ordering something online, and on menus advertising various deals. Even at bake sales and garage sales operated out of schools and individuals’ driveways, read the signs carefully. They might have made a typo when pricing their greeting cards, or they might be trying to swindle you.
We reached out to budgeting expert Becky Goddard-Hill of the Family Budgeting blog to hear her thoughts on the "stupid tax". First, we wanted to know if she had any examples of encountering this tax out in the wild. "25% off flowers with a big shiny sticker that are already DEAD!" she said. Oh yeah, I've seen that stupid tax before too. We also asked Becky why she thinks people sometimes fall prey to this kind of ridiculous pricing. "People are in a rush, and looking to save a quick buck, so if it says 'bargain' in stand out advertising, they are likely to snap it up without pausing the think it through," she explained.
Next, we asked Becky for her best money-saving tips to avoid stupid taxes. "Consider every purchase before you buy and ask yourself these three questions: do you really need it, can you afford it and is it really a good deal? These three questions put the shopping breaks on and help you think it through," Becky told Bored Panda. "Keep trying it – write the questions in notes in your phone and check prior to every purchase that looks too good. Running through this list will soon become a habit and could save you every time." Lastly, Becky added, "Treat your money with care and respect and consideration just as you would anything precious to you and it will serve you well as a result. Look after it and it will look after you."
If you'd like to gain more wisdom and insight from Becky, be sure to check out her Family Budgeting blog right here and her books right here.
The funny thing about the stupid tax is that it’s not always clear whether a seller is trying to pull a fast one on their consumers or if they genuinely made a mistake by miscalculation. They might have wanted to provide a better deal with their larger product or for those who purchase more, but not everyone is great at doing math in their heads. And everything requires a proofread before being sent to print; sometimes we just don’t catch the small details.
Unfortunately, inflation might be making the stupid tax even more rampant. Companies are adjusting the size of their products constantly, so even if the price has not changed over time, customers might be getting less product in each package. This idea of “shrinkflation” is being discussed more and more as inflation has reached a 40-year high. Jon Miltimore addressed the topic in his recent article for Fee titled “Yes, the Products You’re Buying Are Getting Smaller—Even Though Prices Are Not”. He explained that it’s easier to notice when prices rise, but sometimes packages can become smaller without consumers noticing at first glance.
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Miltimore explains that shrinkflation can be in reference to quantity or quality of a product lessening, while the price stays the same, and it is just as bad as prices going up altogether. He went on to note some examples of companies sneakily adjusting their packaging without informing customers like Kleenex boxes now containing only 60 tissues compared to 65 previously and Chobani Flips yogurt cups shrinking to a measly 4.5 ounces when they had been 5.3 ounces before.
At the same time, Domino’s Pizza has begun selling an eight-piece pack of chicken wings for the same price as the ten-piece pack they used to sell. Crest tubes of toothpaste now contain only 3.8 ounces when they used to have 4.1, and 32-ounce bottles of Gatorade have been replaced with 28-ounce bottles. In fact, the Gatorade bottles cost even more now than they previously did. Okay, I’m sure you get the point: there are countless brands trying to rip off their customers due to inflation. So don’t forget to check those price tags and product weights closely, "stupid taxes" may be included.
Some companies really stand by their additions of the stupid tax though. In a recent article for Quartz, Clarisa Diaz spoke to several company representatives about their contributions to shrinkflation. “Inflation is hitting everyone…we took just a little bit out of the bag so we can give you the same price and you can keep enjoying your chips,” said a representative for Frito-Lay in reference to Doritos bags shrinking during the pandemic. And when it comes to the Gatorade bottles having a new look and conveniently including four less ounces to drink, a company representative said, “Basically we redesigned the bottle, it’s more aerodynamic and it’s easier to grab. The redesign generates a new cost and the bottles are a little bit more expensive…this is only a matter of design.”
If you’re looking to avoid the stupid tax and keep an eye out for shrinkflation, Edgar Dworsky, founder and editor of Consumer World, provided some tips in an article for Today. He explained that this practice is nothing new and many companies feel pressure to participate in shrinkflation, but if you want to get the most bang for your buck, don’t be scared to look to other brands. Store brands are typically the last ones to shrink, and if they provide a comparable product, why not purchase them instead? He also notes that you can always check the price per measure or per unit that should be on store labels. “It helps you compare the price per ounce or per 100 sheets, for example, of differing brands and sizes of the same item," Dworsky notes. Lastly, he recommends becoming net-weight conscious. “Learn the net weight of the products you regularly buy. Memorize them. And when you shop, check the net weight to make sure it has not changed.”
Sometimes a stupid tax is more obvious than others. If two products are right next to each other, it can be easy to compare them. But when it has been months since you last purchased an item, you might not know off the top of your head how much it should cost. Unfortunately, we are also very susceptible to flashy advertising and any messaging that disguises itself as a deal or discount, so it’s important to be vigilant to avoid stupid taxes. For example, some of the photos on this list feature something along the lines of “Previous price: $149, now available for only $160 for a limited time!” Don’t let the red lettering and the slash through the original price fool you, this is a stupid tax in action.
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Some people might think that imposing a stupid tax is completely up to the business owner and that it is a matter of “survival of the fittest”. If someone does not realize that a price has increased or they are getting ripped off, they deserve to be swindled! But it is just not ethical for companies to try to trick consumers. If someone has a disability or is elderly and does not have the vision that they once did, they might have a hard time spotting a price discrepancy. And grocery shopping should not require jumping through hoops. Everyone deserves to pay the lowest price possible, not just the people savvy enough to read the fine print.
