IIUC, this exposes the high-welfare egg co to more risk. It’s hard to sell 1 million eggs for one price, and 1 million for another price. So they probably have to choose to sell at the low welfare price constantly. But this means they build up a negative balance that they’re hoping ethical consumers will buy them out of.
It’s hard to sell 1 million eggs for one price, and 1 million for another price.
Are you sure this is the case? It’s common for B2B transactions to feature highly customised and secret pricing and discounts. And in this case they’re not selling the same product from the customer’s point of view: one buyer gets a million ethical eggs, while another gets a million ordinary (from their point of view) eggs.
Not sure at all! It still seems like the ordering is tricky. They don’t know how many ethical eggs they’ve sold when selling towards the consumer. There’s not a guarantee of future ethical eggs when buying the certificate.
Maybe it works out OK, and they can sell 873,551 eggs at a regular price after that many certificates were bought, and the rest at the higher price. I know very little about how the food supply chain works
IIUC, this exposes the high-welfare egg co to more risk. It’s hard to sell 1 million eggs for one price, and 1 million for another price. So they probably have to choose to sell at the low welfare price constantly. But this means they build up a negative balance that they’re hoping ethical consumers will buy them out of.
Are you sure this is the case? It’s common for B2B transactions to feature highly customised and secret pricing and discounts. And in this case they’re not selling the same product from the customer’s point of view: one buyer gets a million ethical eggs, while another gets a million ordinary (from their point of view) eggs.
Not sure at all! It still seems like the ordering is tricky. They don’t know how many ethical eggs they’ve sold when selling towards the consumer. There’s not a guarantee of future ethical eggs when buying the certificate.
Maybe it works out OK, and they can sell 873,551 eggs at a regular price after that many certificates were bought, and the rest at the higher price. I know very little about how the food supply chain works