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A database (or almanac) of the 'true cost' of almost
every
commoditised consumer good at the time and place of
retail. Certain (brave) retailers might wish to sell their
wares at "world price", for which customers pay the list
price in the World Price List.
The WPL is based on the prevalence
of supply chain
management, and offers a "birds eye" "view" of the true
cost of all components of the good as it makes its way
along the supply chain, where the true cost has no
connection with the agreed cost by the buying and
selling
parties at each transactional step. It takes into account
energy costs*, social costs (who are you diverting
from
other work by having them work on your product
instead),
pollutant costs, health costs (is your product addictively
sweetened using unnecessarily unhealthy additives, etc)
and various other secondary and tertiary derived cost
factors.
Obviously, there can be no definitive cost as it's a highly
complex map of contributory factors many of which will
remain unknown but this could act as a start, by virtue
of
consensus rather than accuracy. It would also
demonstrate
interesting effects as the price of a good will reflect
where it is sold, but may (or may not) vary across
different world markets.
In a way, this represents another model, other than
freemium or pay-what-you-want. This is "pay what it
truly
costs".
* There will also need to be development of Energy
Chain
Management - a structure much like SCM.
Wouldnt It Be Nice to Really Pay What You Wish?
http://freakonomics...-pay-what-you-wish/ [Ian Tindale, Sep 24 2009]
Why is coca-cola so expensive in Germany?
http://www.marginal...sive-in-europe.html [Ian Tindale, Sep 24 2009]
Amazon: The Undercover Economist
http://www.amazon.c...rford/dp/0316732931 Tim Harford's excellent book that discusses many of the issues addressed by the idea - very engaging. [zen_tom, Sep 25 2009]
[link]
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What unit of measurement would you use? Don't say "money", as this is notoriously unreliable as a measure of value. |
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[+] Nice to see you worked up my 'global green tax' comment into a full idea. I'd like to see some rough figures for common items e.g. mp3 player. Maybe they would be something like - |
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Labour: 2%
Supply chain and manufacturing energy: 50% (all CO2 global warming stuff)
Transport: 10% (all CO2 global warming stuff)
Advertising: 30% (second tier labour at inflated western prices)
Other unspecified: 8% |
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I really think we do need to collectively figure out those intangible, non commoditised costs, and start factoring them into the price of things. I'm not sure how best to do that, but taxation is the first thing that comes to mind - and that, in the form of carbon-counting (at least covering the "carbon footprint" cost of a businesses activites) is starting to be applied around the world - but yes, pollution, road usage - anything where an otherwise "free" commodity is exploited industrially, there should be some compensating cost that limits that exploitation to sustainable, sensible limits. |
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