Cost Analysis

Here is Part Two of my client’s recent questions.  If you missed it: Part One.

(Note: this discussion was with a Miessence client, so I use Miessence as an example a lot here, but you can apply the general principles to evaluating other products of any type or brand just as easily).

Her second question…

“2) Cost – I definitely consider cost when I shop, and my initial reaction to the Miessence line was that is was more money than I usually pay for personal care products.  So, I decided I would monitor how long the moisturizer lasted and was pleasantly surprised that it lasted about six months; that seemed reasonable to me.  So… How do I best consider / justify cost in light of environmental impact?”

And here was my reply back to her…

“2) To be perfectly honest with you, I can’t even fathom trying to figure out the exact math on this.  It would be a great high school math project, I bet!  But, a general weighing out of the true cost analysis can be done somewhat intuitively, I think, by asking the types of questions I discuss throughout the video series.

For just one example, carbon emissions.  A company that runs its manufacturing facility on wind power and offsets their global shipping emissions will, environmentally speaking, cost less long term than a company that uses tons of non-renewable energy in its manufacturing and does nothing to offset its transport emissions – even if the more energy intensive company is closer geographically.  Also, with most products on the store shelves, they’ve been shipped more than once all over the place before landing in our homes – vs ordering direct from a manufacturer.  In Miessence’s case, the cost of the products does reflect the wind powered manufacturing and the carbon offset work the company does.  It’s all wrapped up into the price – similar to how some customers are willing to pay a little more for wind or solar energy for their homes through 3rd part suppliers.

And actually, in Miessence’s case, even at full retail price they are right in the middle range price point (not economy drug store stuff, but also not super high end fancy schmancy stuff either) for these types of products – and that’s including all these environmental benefits (organic ingredients, fair trade/pay for workers in fields, no toxic ingredients for our bodies or waterways, carbon negative manufacturing and shipping practices, recyclable packaging with R&D working on compostable packaging…).  And that’s not counting the additional 20% off all orders option customers have via the lifestyle membership.  Compare this to other mid-range price point brands on the market that are full of toxins, use non-recyclable packaging, do nothing to offset their manufacturing and shipping burdens, likely pay people poor wages along the supply lines, and offer no ongoing regular discount options to customers…“

Bottom line?  No matter what the product is we’re talking about – food, personal care, cleaners, furniture, clothing, energy… whatever…

True costs are more than just the retail price sticker.

But what if budgets are tight – as they are for most people?

Thankfully, more companies are beginning to take innovative approaches to serve customers who want to vote with their dollars by purchasing more healthful and sustainable products but who may not have the budget to do it as often as they’d like.

Check out this video.  Again, I use Miessence as an example, but you can apply the same principles to evaluating other companies.

 

In the end, as I always tell people in my general label reading seminars…

YOU decide what matters most to you when you weigh out all the variables.  But becoming more mindful of the ‘true costs’ – the hidden social, economic, and environmental costs – behind our daily choices is critical for a sustainable future.

As we support one another in finding safer and more sustainable choices for every area of our lives, we are participating in and adding momentum to the bigger movement of history that is at work to restore sustainable life to the earth.  What an exciting journey!