Future Trends: Sustainability
This is a selection from Humanly, Issue 02, which focuses on Generation Z and teen culture.
When it comes to sustainability, most brands are already thinking about how they can green their production and sourcing practices—but not everyone sees price points as tools for reducing waste.
Issue 02 • 2016 Get Issue 02
Enter a more sophisticated, dynamic approach to pricing that could have a huge environmental impact by creating a better match-up between supply and demand. Consider eggs: Most grocery stores slap one price on all their eggs, then throw them away by the dozen once they’ve reached their sell-by dates—an exponential waste when you consider not only the loss of the eggs, but the carbon footprint put towards growing, producing, shipping, and packaging them (it’s already estimated that 40% of food in the United States goes uneaten—meaning that Americans are tossing $165 billion worth of food into the garbage every year, according to the Natural Defense Council). A dynamic pricing model would automatically put those eggs that are nearing their expiration date on sale, motivating consumers to buy them up, while fresher inventory is kept to a more premium price. Dynamic pricing has already been enormously successful for industries including travel (Megabus’s celebrated $1 tickets), home electronics (Best Buy’s price matching), and professional sports (where ticket prices surge for particularly compelling matchups). But pricing for sustainability could significantly change buying patterns.
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