Thread by @finshots

• There are fewer rides in Disneyland for you to ride on now.

• Dominos is taking longer to deliver orders

• Airlines have been canceling a lot of flights off late.

What's going on, you ask? 🧵(1/9)

Well, what's happening is a phenomenon termed Skimpflation.

What it essentially means is a drop in the quality of services as businesses struggle to cope with a labor shortage and rising material costs. Let’s take a look at this with an example. (2/9)

Imagine you own a restaurant. Costs are rising but people aren’t visiting your place like they used to, especially after Covid.

Now, you can pass some of these costs to consumers, but not everywhere. (3/9)

What if staff wages are on the rise, or the laundromat is charging a lot for washing your table linen? It’s hard to pass these costs on to consumers.

So you start cutting down on inputs. (4/9)

You could either choose to run the restaurant with only 5 waiters instead of 6 or you let go of the extra cook. And these changes manifest into poor customer experience. (5/9)

People may have to wait longer for their dishes or might have trouble ordering the dish in the first place. So you’re basically offering customers a sub-par experience by skimping on quality. And this is exactly what skimpflation is. (6/9)

It can be seen in many forms - maybe the airline known for serving meals during the flight has stopped the service altogether, or hotels are cutting down by skimping on cleaning services or reducing their offerings at the breakfast buffet. (7/9)

Either way, it’s leading to major customer dissatisfaction.

What’s more, is that it’s almost impossible to account for skimpflation in the official figures. How are you going to quantify the quality of service? It isn’t that easy. (8/9)

Have you noticed skimpflation around you? Let us know.

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And hey, you know who would never skimp on quality service? @joinditto !!

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