The system of commerce that we operate within has the underlying principle that if you buy more then you should pay less. Buy two get one free. 33% extra free. Bulk-buy discounts available. The thinking is that the more that is shipped then the lower the distribution cost, the lower the associated overhead and the greater the return upon the initial production investment.
If I can sell more then I can make more and the more I make the lower the unit cost will be. Also if I sell more then I can cut out the competition as they won’t be able to sell their product.
If I buy more and get it at a lower cost, then I can afford to either sell it on cheaper and undercut my competitors or I can sell it at the same price and improve my margins.
This all sounds good but leads to a distortion in the market. Because it is cheaper the more I buy then I am encouraged to over-buy, that is to buy more than I need which results in waste. And because I over-buy then producers are encouraged to over-manufacture after all, if I can make more then I can make it even cheaper so I’m going to sell more. This results in huge stockpiles of cheap product filling up expensive warehouses and kitchen cupboards. As much as 30% of the food we buy in the UK ends up as landfill.
Those with most money can buy the cheapest and those with the least money pay the most. And in the same way if you are a big company you can put pressure on your suppliers and force the priced down leading to bigger companies getting bigger and smaller companies struggling on low margins.
When I was in Stockholm I commented on the price of bread to my friend who lived there. It cost between £5 and £8 per kilo. He responded by saying that that is why they have a bread shop in every street. Small bakers can afford to make a living. Cheap product was sacrificed to ensure sustainability.
I know it will never happen but some day we should take a leaf out of our Nordic cousins’ book and focus on quality and availability rather than just price. If you want to buy more you should pay more.
Thoughts from a Guerrilla Worker 