Last night, I had an epiphany. When debating the economics of organic, sustainable, green, or (insert buzzword here) food production, we’re speaking the wrong language.
When consumers hit me up with their activist food production spiel, I always respond with, “Yeah, but how much are you willing to pay for ground beef?” In discussing it with my wife, I realized a lot of folks don’t know what a reasonable price for ground beef is.
Sure, the moms of the world know. But, that means one person out of a household of four actually knows what a good deal on beef is. No wonder I get blank stares when I ask if folks are willing to shell out $7 a pound for their precious (insert buzzword here) beef. They have no idea how much it should cost.
The next time I engage in this conversation, I’m going to put the price increase in terms of fast food. How much extra would you be willing to pay for the two cheeseburger meal at McDonald’s?
Most folks probably have a price point of around $5 in mind for a fast food value meal. If you tell them putting their food production policies in place would raise their favorite value meal price to around $10, perhaps that would put it in terms they understand.
Years ago, I took an economics class in college. A lesson that sticks with me is the relationship between price increase and the frequency with which a person purchases said item. For example, consumers would accept a 500% price increase for salt. After all, most folks probably buy two large containers per year. However, if you applied the same 500% increase to say frozen pizzas, I bet a lot of folks would stop eating frozen pizza.
Point is, let’s engage consumers with stuff they purchase frequently. Hopefully this tactic will give them pause in sticking by their (insert buzzword here) ideals.
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