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Sustainable Pricing

posted at 4:14 pm
on Nov. 18, 2006

Comments: 6 so far

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Have you ever had this happen to you: You have a thought in your head, a sort of big thought, like a new way to think about art, or a great invention, or a politic consequence that no one seems to be saying, and then you suddenly trip over that idea at a mall or in a newspaper?

It just happened to me.  I was wondering what life would be like if every item sold had to have its sustainable price put on it.

In other words, if you buy a cordless phone, if there was something on the package that said how much that company would have to charge if it was also responsible for making sure that phoen could be completely recycled to an earth-neutral substence.

Or how much they’d have to charge to ensure that they could go on making that phone model forever.

I mean, a phone is made out of plastic from fossil fuels, and rare earth metals, and maybe a bit of rubber.  Part of why you can buy it for $26.99, is that it’s produced using materials from the planet that the company will never replace.  It’s the same reason little kids can sell lemonade for $0.25 per cup—they’re taking sugar and ice from the house, and they don’t have to replace them.

How much would that phone cost, if the company had to also somehow return that material to the earth—pay for the phone’s recycling cost, for example, or contribute to alternate energy research, or make the phone entirely out of materials that were renewable?  A lot more.  A hell of a lot more.

I was going to call this concept, “sustainable pricing” and just like processed food has to have its nutritional content, processed goods have to have their sustainable price printed on the label.  We should know what our lifestyle is actually costing us.

If I buy a chair made of wood, and another made of plastic, I should be able to see the true cost of the plastic one.

Then I sat down in front of my email, and Joel Achenbach has written the cover story to the Washington Post magazine this week.  It has passages like this one:

Earthaven is a low-budget, backwoods advertisement for the alternative view. Its members are attempting to craft a new society, built not around economic growth but around the idea of sustainability and what they call “permaculture,” the goal of creating modes of living that will never damage the planet.

And this one:

“If everyone lived at the lifestyle of Americans,” says Jim McMillan, who works on alternative energy for the Department of Energy, “we’d need five planets.”

It’s time to change something, and I think that a great first step is to stop hiding the internal mechanisms of consumerism from the people who consume.  When I was in elementary school, I got taken to a farm to see how they milked cows.

It was a small farm near Calgary. It probably had 200 cows, and I think they made a decent perentage of income from the tour groups, school and otherwise, they hosted.  But why didn’t they take me to the meat rendering plant?  Why don’t they take school kids to the dump?

Why don’t they take kids to—well, part of the reason is that kids in North America can’t see many of the places where the truly significant industrial process happen.  Kids ought to be taken to Butte, Montana or a clothing factory in Thailand.

But our kids aren’t the ones that get to visit that factory.

Overheard

“Oh boy! Another great opportunity for personal growth!”

...who said it?

“I’m not bitter about what happened to me as a child, and my mother was instrumental in keeping me from being so. ... She taught me to be grateful for my life regardless of what that entailed, and that’s directly related to the image of Christ on the cross and the example of sacrifice that he gave us. What she taught me is that the deliverance God offers you from pain is not no pain—it’s that the pain is actually a gift. What’s the option? God doesn’t really give you another choice.”

...who said it?

After over a decade of user testing, it is clear that the way we search the web is similar to the way we would search our home for valuables as it was burning to the ground. Frantically.

...who said it?

“We must shift the focus of companies back to the customer and away from shareholder value ... The shift necessitates a fundamental change in our prevailing theory of the firm… The current theory holds that the singular goal of the corporation should be shareholder value maximization. Instead, companies should place customers at the center of the firm and focus on delighting them, while earning an acceptable return for shareholders.”

...who said it?

“We would accomplish many more things if we did not think of them as impossible.”

...who said it?

Comments

 

 

 

 

 

Taking kids to the rendering plant or the dump are great ideas. I know part of the reason I hate throwing things out (vs. recycling or, better yet, reusing) is that my dad would take me along when he had to drive dead-beyond-reusability appliances or yard waste to the dump. A) it stunk and B) there was an awful lot of trash.

 

Posted by Christina
  at 1:07 pm on Nov. 19, 2006

 

 

 

David Korten's "When Corporations Rule the World" (1995) talks a bit about sustainable pricing -- I recommend the book. I'd love to see pricetagging as you describe.

Short of government regulation, though, I wonder if the idea would fly (beyond the obvious pickup of already-eco-friendly manufacturers). Perhaps an army of guerilla citizen-pricetaggers could help with the labelling process.

Corporate Responsibility gets a lot more (mainstream) press on this side of the pond, in my estimation, but so far it's all "voluntary", though the government is thinking of levying a Green Tax.

 

Posted by Wesley
  at 6:12 pm on Nov. 19, 2006

 

 

 

Going to the dump should be a mandatory field trip. I came across it by "accident" at a crappy job where I drove into the dump in a U-Haul behind all the other garbage vehicles, to dispose of the insulation we ripped out of said crappy job. Needless to say, it was an eye-opening (and nose-closing) experience.

 

Posted by hermitdeb
  at 7:19 am on Nov. 20, 2006

 

 

 

Wes,

I was thinking a Web site would be the answer: wiki-powered, by product name and UPC (mark of the devil, etc. etc.)

People could provide their best estimate of what the true price of a product is; I looked it up some more and economists call these "externalities" -- things that aren't taken into account when pricing is done.

Deb and Chri,

Yeah, dump is a great field trip. Where else should school kids go? I think a grocery store warehouse, and a paper producery.

 

Posted by Travis Smith
  at 10:41 am on Nov. 20, 2006

 

 

 

It's funny that you mention this. Recently, I've thinking of getting rid of a bunch of stuff. But it made me think, what do I do with this stuff? Do I throw it out or put it in a recycle bin or give it to the Good Will? Will they throw out items I find undesirable or will they sell them to others?

It bothers me that there are so many items that we use daily that wear out or become un-usable. What can we do with things that take up so much space that are no longer wanted?

 

Posted by Kathryn
  at 9:09 pm on Nov. 26, 2006

 

 

 

I like the web site idea. It would be a start.

Kathryn -- I was disappointed last time I did a major move at how much of my precious junk was rejected by Goodwill. They wouldn't take my perfectly serviceable bike, for instance, because it had rust. So I left it in the street and it was gone within two hours... The best thing to do is to be there while they go through your stuff, so you can ensure that the items they don't want don't just end up thrown away.

 

Posted by Wesley
  at 1:08 am on Nov. 27, 2006

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