Wednesday, March 15, 2023

Retail Opportunity Cost and $ contribution margin framework compared to true pricing, true cost for sustainability

Explanation by Jan Buining of Tasty Basics: 

I think we are talking about two themes that only touch each other to a limited extent.

Jean Paul Soest https://transitiecoalitievoedsel.nl/portfolio/true-cost-true-price/ is concerned with True price/ True costs. That is (in my words) about taking into account all the costs involved in production and distribution. Especially those costs that are currently not included in the cost price. For example, all kinds of damage to nature.

Ansgar John Brenninkmeijer is concerned with what he considers an irrational way of optimizing assortments, for example in retail.

The latter is indeed separate from JeanPaul Soest's focus.

The commonality is that both themes have a link to healthier and more sustainable consumption. Showing or passing on all costs incurred creates a pull towards more sustainable choices. The Anglo-Saxon calculation method of the Dutch Food Retailers (theme John) gives, without other stakeholders knowing, more margin (in Euros) on sustainable and healthy products. That inhibits a 'good' consumption. John gave a nice pitch about this at a TcV meeting in Aalden.

 
Hope this has created some clarity.

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