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Bid Away Waste! And Some Choice...
Do we really need 10 different brands of toilet paper made by 10 different companies all fighting for our dollars?
When a major construction project is being undertaken, companies bid for the rights to build the project. Often the company with the best plan at the most affordable price wins the rights to build.
It my belief that product creation and manufacturing should be done this way to reduce waste and to drive innovation. How is that possible you ask? Well it reduces waste of space for retail, making the rental space needed to house the goods lower in price. As well, it reduces the excess in production of the same product; hence creating less waste.
In addition companies would have to rebid after 5 years to show that they either remain competitive or have used significant funds to refine the process making the product affordable.
Now how does this drive innovation?
That's a good question that I'm not sure of the answer yet, but I figure that the lack of access to creating a particular market should drive necessity in other spin-off businesses. Meaning more business that helps with the processes of cycle-business, where these businesses provide waste-use possibilities.
What other factors do we need to consider to reduce waste through a bidding system of product manufacturing.
I think another important thing to note is how the government would need to be involved in regulation and enforcement of the agreements of the project bid winners.
Mike Euverman
It would most likely stifle innovation though, as it would make it even harder to get a new item into the marketplace.
Costco already doesn't something similar actually. They have a research department that finds items and compares items. They then select on a few brands and sell them in their stores. They attempt to have one brand which is cheaper in price, but also lower in quality, and another which is higher in price but higher in quality. The consumer then has a choice between which price/quality as opposed to choosing between brands of the same quality and price.