Skimpflation explained: Why service feels thinner even when prices stay the same.

You have probably felt it. Restaurant Paneer Kadhai’s paneer isn’t as luscious, or the portions as full as before, mango smoothie isn’t as mangofull as before, or teacups that are getting smaller even though it costs the same, or hotel rooms are cleaned “on request” instead of daily and help desk experiences that take longer than before. This quiet downgrade has a name, “Skimpflation”, where we are paying the same (or even more) but the quality of what you get is trimmed.

What is Skimpflation?

It happens when companies hold prices steady (or raise them only a little) but cut back on quality or service via cheaper ingredients, fewer staff, slower delivery or stingier perks. Its certainly different from Shrinkflation, which cuts quantity (viz. fewer grams in packet). Unlike Shrinkflation, Skimpflation cuts the experience quality, like reliability, speed, attention and craft. This term, Skimpflation, was coined & popularized by Greg Rosalsky at NPR’s Planet Money in October 2021 and has since been used by Central-Bank Educators and Business Writers to describe what consumers are feeling every day, but no metric is tracking.

Why is it visible now?

The costs of doing business are rising (wages, logistics, compliance, etc.) but prices can’t always follow as customers resist sticker shock. to tackle this, firms trim service. Also, our marketplaces are price-anchored, where apps and aggregators sort by price first and firms are worried more about losing the “₹ tag” even if the offer weakens as it is easier to trim service than to reprint prices and trigger backlashes.

How you notice it day-to-day

Oh, its visible everywhere, from deliveries getting slower, to more bots (instead of live agents) providing support, to premium ingredients being replaced with budget versions in restaurants. Uber or OLA cabs in places like Bengaluru are sporting old, worn-out interiors. Even Primo-rated buses on Redbus are no longer giving the premium experience they gave before. Seen individually, each change seems small, however, taken together, they are quietly rewriting value.

What happened yesterday? (a fresh Indian Signal)

Skimpflation is no longer just a western talking point. Recently, a widely shared Linkedin Post by Lokesh Ahuja (IIM alumnus) captured how middle class is feeling the squeeze: not only less for more, but also thinner quality at the same sticker price. Business Today covered the post on 21st November 2025, highlighting how this quiet downgrade is now part of every Indian consumer’s life.

What will Skimpflation change?

Sticker prices will no longer be as informative as we will learn to judge offers based on time saved, hassle avoided or reliability as much as rupees saved. The divide between “basic” and “plus/ priority” will expand, and self-service might become the norm. Firms and brands will now try to differentiate themselves based on “promises kept” & “service levels upheld” rather than catchy slogans. Firms that will try to hide cuts in fine print will bleed loyalty, while those that disclose and compensate will win it.

What stays the same?

Regulatory baselines will remain the same, emphasizing safety, fairness and disclosure. Competition will also continue, even though the battlefield will expand from just price to time and dignity. Firms will still need profit margins and customers will still have budgets, so choices will be no longer about “whether to charge” but about “where to cut” or “what to charge for”. Overall, a smarter outlook is required from both customers and firms.

Smart habits for customers

Don’t just focus on the MRP, compare the effective price. Add the cost of delay, rework, extra fees and poor support. Often, “cheaper” simply isn’t.
Scan for explicit service levels and ensure that delivery windows, refund timelines and support channels are mentioned explicitly.
Check unit and quality cues like weight/ volume, material specs, ingredients, etc. to see if they are replaced with low-quality substitutes.
Prefer brands with make-better policies.
Remember….substitution signals Skimpflation.
Escalate early, politely and in writing as a clear record speeds up resolution.

Smart habits for firms/ managers

Pick a north star (speed, consistency, customer care, etc.) and protect it with your life. It is extremely important to build a solid reputation.
If it is needed to skimp on the base offer, be explicit, say so upfront, and avoid playing hide-and-seek with perks.
It is essential to decide and convey openly if repricing, re-coping or re-architecture is required. It is essential to reprice with reasons, re-scope with clarity and re-architect with automation for efficiency and with humans for healing.
It is useful to measure and publish a service scorecard with metrics like on-time %, refund speed, first-contact-resolution & TAT, so customers will find it easier to believe.
Empower staff to fix messes faster in the form of partial refunds, upgrades, credits, etc.

Most importantly….

Skimpflation is inflation’s subtler, more Machiavellian cousin-leaving price alone but compromising on everything around it, especially time and quality. It was first called out in 2021 by NPR’s Greg Rosalsky, but Indian Consumers are recognizing it just now. Guard thy wallet (and thine brand) by treating value as experience delivered- not just rupees charged. In a skimpflation world, trust is the premium product- and it’s the one that can’t be quietly cut.