Council/Group pricing Proposal
Again Again’s group pricing strategy to disincentivise end-users away from single-use waste packaging.
Use case:
At times, an ‘umbrella’ group, such as a council or commercial property owner, undertakes to partially or fully subsidise the containers for associated vendors who trade ‘under their umbrella’. This significantly lowers the hurdles to adoption for these vendors, by reducing or abolishing the need for capital outlay from them. In doing so, this can be a strong tool to encourage the establishment of a local network.
In a fully commercial deal, this investment and the resulting hire fees charged to the participating vendors might lead to a profit share arrangement for the investor. Councils particularly have not shown an enthusiasm to manage such a revenue stream. Thus, in lieu of this, we propose that a gradient pricing offer be made to the associated vendors, such that Again Again’s platform is priced proportionately with the vendors’ own contribution and commitment to getting rid of SUP. The more commitment they make, the more economical the platform is for them.
In doing so, we leverage the advantage gained to drive local adoption with an economic lever at point of sale.
Proposal:
Again Again’s platform fees will move to the following three tiers:
Best | Better | Good | |
---|---|---|---|
Cost per serve (Platform plan) |
16c | 19c | 22c |
Vendor commitment/action taken to access best pricing |
Gets rid of SUP entirely | 50c tarriff per unit on SUP | No commitment or change |
Notes | No SUP visable or available to customers |
Must be an added fee for the SUP item (not a discount for reuse) |
note:
When establishing this pricing model, some concerns were raised that this constitutes anti-competitive behaviour (against the single-use packaging (SUP) providers.) On account of this, we have self-reported the proposed pricing framework to the Commerce Commission for their review. We had numerous discussions with them, and they were at pains to note that their advice is not legally binding, but only suggestive – only a court can give a legally binding decisio). None the less, the suggestion is that as we are not acting with the SUP providers, that this is not price fixing and is not in breach of the law.