Think twice: True pricing

from Onboard Hospitality 90 June/July 2022

In conversation: Bill Carrejo

70 / THINK TWICE

Think twice about pricing

As onboard buyers haggle with suppliers over contract prices Ariane van Mancius, of Now New Next, talks us through the True Pricing concept which she believes should now drive all negotiations and debate around sustainability…

Every product and ingredient used onboard has taken its own, unique journey. It's a trip that rarely makes a positive impact on the planet but the negative effects are rarely reflected in its price. If you want to get serious about sustainability this needs to change and you need to focus on true pricing, a concept developed by the Impact Institute over the past six years. True Price (trueprice.org) is an organisation based in The Netherlands which considers the costs of the CO2 emissions, water, soil and energy use, possible malpractices such as child labour or other exploitation, as well as underpayment for the labour and small farmers in the chain.

Think impact

This thinking shows that the actual costs of a product are not hypothetical; the costs exist but are paid or absorbed by other people, usually somewhere else in the world, or by future generations. Purchasing something which appears cheap means passing on the real costs to others. By working with a true pricing system, we can pay ‘nature’s invoice’ as well as the social costs involved in our buying behaviour,

rather than handing these on. If we start to pay the real price this contribution can be used for remediation, so damage caused by the production Purchasing something process is restored which appears cheap or compensated for. means passing on the real costs to others elsewhere in the world or Another part of the revenue can be used to prevent future damage. to future generations Think practically The True Price mission is already being used in practice in the De Aanzet supermarket in Amsterdam, which not only displays a product’s market price, but also the other hidden costs. This show the consumer in a clear and precise manner which are the most sustainable options and gives them the opportunity immediately to pay the true price for a given product. At the end of 2021, I also opened the first

Learn more

True Price Cafe in the world to see how consumers react to the concept within a catering and hospitality setting. The café, working with key suppliers, reveals the actual costs usually invisible to the consumer, letting them pay the real, True Price for their coffee, tea or soft drink. It is a ‘living lab’, with ample space and opportunity to learn about and discuss true pricing too. First indications demonstrate a positive reaction among consumers; most appreciate the transparency and a large number are prepared to pay the premium for sustainable products.

Think airlines

True pricing can be applied anywhere and KLM is already working on true price airline tickets. We must all calculate the true price of our products and services, in aviation a huge amount is hidden. To be truly sustainable you must know your trueprice costs. •

Focus on hidden costs

The ultimate aim of a true price system is to reduce the hidden costs as far as possible so that the buyer in the end will no longer need to pay a premium for a more sustainable product.

Change the system

The True Price remediation process can be managed by the True Price Remediation Platform which True Price is currently constructing. This platform connects shops and organisations that use true pricing with supply chain parties, NGOs and companies that take care of remediation. Every additional euro paid by a buyer goes to one of these charities. This is how you can contribute directly to system change.

Identify pain points

The goal of true price is not to make things more expensive - that is a big misunderstanding - but rather to recognise that in the current situation we take from future generations or from our planet. The goal is to see where the pain points/biggest costs are and then innovate to reduce that and lower the True Price gap by innovation in the chain.

Support global good

The True Price movement believes the global economy is broken. Economic growth has produced prosperity for many but has also been a key driver behind some the largest societal problems. It believes a sustainable and inclusive economy is possible. This is an economy that respects universal rights by preventing any breach or remediating wher breaches are made.