While it does relate to price discovery--i.e., some folks just aren't willing to pay for an additional unit of quality at 10x--my theory is that the decline in quality is another hidden form of inflation. Thing continues to cost X even though regulations have increased costs Y, ship production to China and scrimp on the inputs. (Or have market forces do that for you.)
Problem is, you pay 10x for shirt that is made in the same factory as the cheap shiry, just has a different logo.
Speed Queen appliances are about 2–2.5x longer-lasting for roughly a 50–75% increase in purchase price.
Video games are a good example of an area where the pricing makes no sense. Inflation has risen, and they make like $20 or whatever off a brand new game in 1990s bucks.
Video game prices will go up more and more, it also kind of explains to me why prices rarely drop below $59 anymore, used to be on Steam some AAA games could be snagged up for $20 after a year, now you can barely find them on reasonable sales, they hold on to dear life on pricing.
Well skimpflation, with caveat that a remarkable amount to R&D is spend into value engineering to lowest price points, like you don't get to 50 cent FOB tshirt trivially. And frankly it's revolutionary - enabling developing country wages to buy clothing on a single day wage.
That said, it's 2026... if you want quality and only want to pay marginal increment, there's tons of Chinese ODMs turn direct to consumer, i.e. Quince. They'll sell you functionally top quality (spec for spec inputs if not better) with 1x markup vs 10x brand markup/premium.
Absolutely. It's the most visible in services shrinkflation.
To me, this is why we have regulation.
The CE mark in Europe and the UL mark in the US is supposed to provide a floor on quality.
That floor can be increased if we as a society decides that this is required.
You might be unwilling to pay for this increased quality, but you don't have a choice.
You are right, it's easier to bake in quality decreases (aka "cost reductions") to keep the price stable than increase the price. Users usually don't see it directly, and since the whole industry does the same there is no real alternative.
A good way to see this is in clothing: my wife likes to buy vintage clothes, part because of the style, but also because most of them are actually well made and sturdy.
Nowadays it's almost impossible to get the same quality and finishes, even with the more expensive brands. Due to the mass-production of low quality clothing, (most) consumers don't even have a clear idea of what "quality" looks like, which further reduces incentives for manufacturers.
For comparison, some niche menswear brands keep the quality stable (as their specific consumer base asks for it). Say Northampton leather shoes for instance (Crockett and Jones et al.), which are still made in the UK (not in an mafia-ran sweatshop in Italia for luxury goods...).
Their products are amazing, and...the price grows 5-10% per year steadily.
because quality signals are much more misleading these days.
can't trust reviews because theyre spammed with fakes. can't trust brands because private equity buy them out and enshittify.
I'd call it externalized costs of regulation and rising demands on production.
If end consumers were able to see an exact and measurable bump in prices the next day a new stronger regulation made production more expensive, voters would be more informed and the whole cost of doing things "better" would be clearer.
I think 10x is quite rare. Quality ends up actually curtailing costs to some degree (eg. fewer returns, cheaper marketing - word of mouth). Buy a Weber grill, I had 2 grills before my Weber that lasted 3 seasons between them. I bought the Weber at about 2.2x the cost of the bargain grills and 17 YEARS later it's still going strong, built like a tank. Saved a lot not buying more cheapo grills.