Underpricing or Shrinking?

By closely examining the economic sensitivities of today's society, it can be understood that the phenomenon of shrinking products or decreasing service quality, while prices remain stable, has become a daily subject on social media. However, this issue remains inadequately explained and is still at the initial layers of analysis. Underpricing in Iran may have a historical background, and clear evidence of the struggle against this phenomenon can be found in historical or religious texts, but this phenomenon has never been configured in a modern context. After overcoming crises, Iranians have tended to bury problems and experiences rather than learning from them, forcing them to start from scratch each time. What does underpricing mean? It refers to the sale of goods or services for less than the established amount or standard. The phrase 'established amount' is key to understanding this concept; for example, if potatoes are sold with dirt, that is an instance of underpricing. However, the shrinking of food packaging, which has a specified weight and price, is considered shrinking and is not legally prohibited, although it psychologically affects the buyer negatively. Where does this issue begin? Governments focus on price stability, and producers aim to survive in crisis conditions. Both factors contribute to the emergence of this phenomenon in the economy. The issue always starts with government policies, and the quickest and least expensive way for governments is to pressure producers under the pretext of consumer protection to prevent them from raising their prices. Producers, feeling disarmed against this power, resort to underpricing. Is underpricing beneficial for consumers? Essentially, no, because in commodity discussions, the costs related to packaging, distribution, and labor do not significantly alter the final price of goods. However, consumers likely pay a fixed amount but receive less product. Therefore, the solution lies in bulk selling, which means selling products in larger packages and scales, reducing packaging costs and providing consumers with more final products. This has been proven by purchasing larger goods sold under family names. What should be done about the reduction in services? The complexities and dangers in service discussions are greater because there are no tangible criteria, and fewer people are aware of the nuances of service underpricing. For example, you might quickly notice the rapid depletion of internet services or the lack of warranty commitment, but you may not realize the deterioration in the quality of your dental fillings, or an insurance company can easily evade paying damages to your vehicle by citing fluctuations in car prices or other excuses. The most dangerous area of service underpricing occurs in health or medical discussions, as it directly relates to people's lives. For instance, we can feel the reduction of medical services in hospitals with some attention, but we have no experience of the deteriorating quality of the water we drink because we generally do not know which institution is responsible for controlling the quality of our drinking water, even though we pay a price for water each month. Another aspect of underpricing in goods and services markets is the simultaneous manipulation of quantity and quality, meaning you pay for a product with a previous mental content, but the product you receive may look the same or even better than before but lacks the previous content. For example, you pay for olive oil or butter in a specific packaging, but at some point, the producer decides to offer your favorite product in new packaging but with lower quality, and in practice, you do not notice these complexities and continue your purchases. The same applies to services; in service markets, we also see greater diversity in service delivery, but essentially these services are the same as before in new packaging but at a higher price, and we all share a different experience in paying bills with others. What is the experience of countries in dealing with such problems? The existence of powerful specialized minorities outside the realm of official authorities and in interaction with various media is effective in this regard, although responsible institutions for controlling the quality of goods and services can prevent these problems by focusing more on their inherent duties. However, the main prerequisite for success in addressing such issues is the general public's familiarity with their legal rights in purchasing goods and services and insisting on what is our right and guarantees improvement.