Pattern description

Used products are collected and either sold in other parts of the world or transformed into new products. The profit scheme is essentially based on low-to-no purchase prices. Resource costs for the company are practically eliminated, whilst the supplier's waste disposal is either provided, or associated costs are reduced. This also addresses customers’ potential environmental awareness ideals.

Inventive problems

Application examples

British company Greenwire, which specialises in recycling old mobile phones and laptops for reconditioning and resale, pursues a similar strategy. The company organises pick-ups, quality checks, refurbishment, and repair processes so that these products can be resold to customers at low prices, especially in developing countries. Corporate clients are attracted to the convenience and eco-friendly methods of disposal or sale of their old electronic goods, and so provide low-cost (or even cost-free) resources for Greenwire (companies have the option of receiving a payment or having the amount donated to a charity of their choice).

US-based furniture manufacturer Emeco was founded in 1944 and uses readily recyclable materials such as aluminium, wood, PET (polyethylene terephthalate from plastic bottles etc.) and WPP (wood polypropylene, from wood substitute fencing etc.) to manufacture a variety of designer furniture products. In a unique example, it entered into partnership with Coca-Cola to better exploit the Trash to Cash business model. A plastic version of Emeco’s Navy Chair is made from some 111 recycled Coca-Cola bottles. Thus the company conveys a strong environmental image through its production techniques and marketing. By using the Trash to Cash business model, Emeco attracts ecologically aware customers within the furniture market. In addition, its products are functional, fashionable and affordable, generating high demand and revenue for Emeco.

References

The Business Model Navigator: 55 Models That Will Revolutionise Your Business