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Salim Solaiman

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Consume More, Pay More

In todays age of hyperconsumption, we are doing the exact opposite. We are Consuming More, Paying Less. e.g. buying a bigger bottle of soft drink or larger box of corn flakes because it's a bit cheaper.

Isn't this current practice a bit strange?

Who buys more generally speaking?
The person who has more money & vice versa. Should it not be the opposite?

I see a couple of benefits by applying the idea of Consume More,Pay More. First, it enables pricing which is in line with people's income - it costs less. Secondly, it may reduce the thoughtless hyperconsumption of a section of population, hence less waste in the environment and may help prevent obesity, health issues, etc. This idea popped up as I was reading Scott Armstrong's conversation. Here's the link: http://www.ted.com/conversations/6677/why_do_companies_retain_intell.html

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Closing Statement from Salim Solaiman

Seems not much interest around the idea there.
Thanks for the contributors here.
In our current economic system where marketing efforts actually pushing higher consumptions through different way , that we mostly buy now on instinct not out of necessity with exception of one or the other industry like healthcare may be. This hyperconsumption is also putting pressure on our environment as well due as more we consume more we throw away the wastes like packing material.

Moreover vast majority is unable to even buy their necessity. In such situation to make things worse someone with more disposable money in pocekt has the opportunity to buy at less price when s/he buys bigger quanitity. My thoughts it should be other way , because they should be responsible to pay more as they are generating more waste to environment.

May be my thought doesn't make sense ........:)

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  • Oct 30 2011: Are you speaking about consumption of FINITE RESOURCES?
    That's about all we have. They're finite. You cannot keep consuming them.
    The oceans will not replenish themselves unless we cease all fishing.
    Then, they may and maybe not take too long either. Then, we might be able to more intelligently
    and economically (no waste economically) 'manage' them, or manage our behavior.

    We have to get off of oil, coal and gas immediately to make anything work for survival.
    All the various kinds of consumption discussed here are almost all tied into oil.
    Manufacturing, packaging, shipping, etc.

    What we can artificially manufacture using a limited amount of finite resources, is exactly the way it is going to go
    for the simple reason we are using everything up. Who will be able to afford what is left? Because of its scarcity, the price will be exorbitant.
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      Oct 30 2011: Friend , my focus is to much narrower scale.
      In today's business model , which is purely GREED driven is rewarding the people who has more to consume or waste more at lesser price, my idea is just to revert it so that atleast people tend to go for hyperconsumption at least think of the hit on their purse as they are least bothered about the hit to environment because of their thoughtless consumption or buying spree..
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    Oct 30 2011: It would be interesting to see how you cold make this work. The obvious problem is that it's cheaper to produce and sell goods in bulk, than in small packages. (I buy containerloads of stuff from Taiwan, and sell them with a good markup here in Europe). You could counteract this effect by getting government involved, and by tuning the sales tax so that big units are taxed higher than small units. The big question in my head is how you could do that, without bringing trade to a standstill.
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      Oct 30 2011: Hi Jorgen thanks for your thoughts with real points around.
      Well it's just an idea to brainstorm about which was focused mainly to endusers & producers.
      Yes my myopia just missed other members involved in the total value chain.......
      The link between economy of scale and production cost is undeniably established in our current business model.
      Just was thinking how we can embrace more social and environmental elements with in our business model , keeping aside tax issue.....
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        Oct 30 2011: I support your idea, that people with large resources should spend less of them on senseless consumption, and more on things that create jobs and real prosperity. Some preachers are working on it, with limited success. Governments are mostly pulling the other way: "Please consume more, and help speed up the economy".

        Personally, I believe that intelligent taxation is a good way to go: Low (or no) taxes on the part of your income that you need to survive, very high taxes on income that goes towards excessive consumption, even higher taxes on speculative short-term investments (= gambling), and generous tax deductions for investments that are good for society as a whole.
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          Oct 30 2011: Hi Jorgen
          Thanks for enriching the discussion with your thoughts.
          Myself also was pondering about Tax could be an way out which you nicely coined as "Intelligent Taxation".

          Issue is, this taxation element is in the hand of gorvernment , about which I am skeptical for different reasons, one of which is their thoughtless myopic action for shorterm political gain that you nicely described above "Please consume more, and help speed up the economy".

          In most economies governments are puppets of different interest groups excluding the bigger chunk of general people.

          Your idea will work better if governement really can think and act independantly instead of it's current puppet status.

          It's really great to meet you here. Have a good day.
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        Oct 31 2011: Government started out being very much like what we think of as "Mafia" today: Thugs competing to rob people of their food and valuables, and society gradually organizing itself round one set of thugs, as the lesser evil (and far more profitable for the thugs).

        Every time I'm disappointed about the myopia of my government, I think of this, and get a LITTLE comforted. We're not living in an ideal world - but it's a lot better than the one they had here 1500 years ago.
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    Oct 29 2011: Nice thought.
    Here it is done that the more goods are luxurious the more tax is added to the price.
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      Oct 30 2011: You are right Frans, about luxurious goods......
      My thinking is around day to day consumables which actualy bring lot more garbage in to environment & our super markets are full of such offers , most people comes out with lot more instinctive buying than they actually need.....
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    Oct 29 2011: When one buys in bulk, it's more economical because there is less packaging and less travel to and from the source.
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      Oct 30 2011: Hi Iynn
      You are right about economic scalability.
      Here I am focusing another face of economy, which enables someone with better economic power , paying lesser buying bulk , which s/he might not need even or at least push them for hyperconsumption.

      There are multiple way the hyper consumption being pushed , one is serving consumables in bigger conatiner where total cost of packaging is less but definitely packaging material used is bigger than if someone was to buy only that s/he needs.

      Other model of pushing hyperconsumption is, if one buys 1 unit say one pays 0.50 dollars and actual need is to buy 6 units , but offer says if s/he buys 12 units of same size and quantity price is 5.00 dollars. Here comes the wastage .....
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        Oct 30 2011: Yes, I see your point. Hyperconsumption . . . a new term for me.
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          Oct 30 2011: Well I am not sure how reperesentative the term hyperconsumption is...... better word seems to be Hyperbuying....as we buy just for buying sake many times.....

          You see how the industry of Self Storage is growing.....!
          People buy things for which they don't have space in thier home so rent storage space and keep those there which they never will use may be.......on the other hand we have lot starving people.........

          http://en.wikipedia.org/wiki/Self_storage