How to implement true prices in your business?
We offer organisations valuable, cost-efficient, and effective services to start their true price journey. We can support you with data, tools, communications, and cash register advice. Implementing true pricing into your organisation, internally and externally, has never been easier. True Price Database include data of 100+ products, from coffee and cocoa to jeans and diamonds.
How can true pricing help make your products more sustainable?
- It offers market players insights into their place in the value chain. On this basis, parties can reduce external costs through innovation.
- It offers more transparency to consumers and market players so that they opt for the more sustainable alternative. This leads to an increase in the share of sustainable products and will incentivize all market players to decrease external costs.
- It offers consumers or other market parties the opportunity to pay the true price. With the additional contribution, future external costs can be reduced.
Why incorporate true pricing in your organisation?
- Increase awareness of the external costs of products among consumers and employees through transparency;
- Improve the sustainability of your brand through transparency;
- Initiate the payment of true prices to allow consumers to restore, compensate and prevent (future) damage to nature and people;
- Lay the foundation for innovative projects to decrease the external costs within your supply chains.
What is the difference between True Price (organisation) and a ‘true price’?
True Price is the name of our organisation. We are a social enterprise based in Amsterdam (a Dutch private limited liability company). We were founded in 2012. You can read more about our history on the ‘about page’.
We see True Price as the movement of consumers, businesses and institutions that take action in incorporating environmental and social costs in prices. We envision a world where all products are sold for a true price to enable a sustainable global economy.
What is the ‘true price’?
A ‘true price’ is the sum of the market price plus all social and environmental hidden costs (also known by economists as negative externalities) throughout the whole value chain of a product. The difference between the market price and the true price is called the true price gap, or also referred to as the true external cost of a product. All external costs are expressed in the same (monetary) unit. In that way, they can be compared to each other, as well as to conventional prices.
The bar of pure chocolate that can be bought in the True Price Store has a market price of $3.12. The true price gap is $0.99. This includes environmental costs like carbon emissions, deforestation, and pollution, as well as social costs like underpayment of farmers, child labor, and forced labor. The true price is thus $4.11.
