StartThis Idea #2: The Never-Ending Supply Company
A better way to keep stocked on certain home & office essentials...
A subscription-style consumer goods company that uses automation to maintain a consistent supply while taking back environmentally sensitive casing to be recycled.
Categories: e-commerce, direct to consumer, recycling, subscription, sustainability
Skills needed: automation, responsible waste management, shipping and logistics, sustainability literacy, wholesale markets
The Pitch
An on-demand subscription service for batteries, printer ink, light bulbs, and all of those household items that still have a shell that can’t be tossed in the trash. It can allow consumers to replace key products immediately (so many of them wreak havoc on life when they no longer work!) and takes the pressure off of individuals to seek out sustainable recycling options.
The never-ending supply company is a simple business model that takes the flat subscription-style process and applies it in an as-needed manner to everyday products that are more difficult to dispose of.
From the consumer’s perspective, this is a game-changer. The availability and convenience of recycling is one of the biggest indicators of how much of a household’s waste gets diverted away from landfills. Plus, the direct to consumer model takes the waiting out of replacing key electronic components like batteries and printer ink. A never-ending supply company leverages the expected lifecycle of these products and delivers backups before they’re needed.
The process is so simple, it’s almost shocking that it hasn’t been done already (#StartThis)! When the consumer places their first order, let’s say for a new set of printer ink, their order arrives with two of what they ordered. The initial order covers the first replacement, so the consumer doesn’t have to wait. Along with their order comes a prepaid shipping envelope that fits the empty canister. Into the envelope goes the old one and it’s recycled properly as soon as it arrives back at the distribution centre.
Along the lifecycle of each new shipment, the system is automated to generate a new replacement order for the account as soon as a package is received back. On the consumer end, it’s like having the thought, we should pick up more batteries, and having them arrive just as the existing package is running out.
We all have that jar of dead batteries in a junk drawer somewhere. No more putting off the trip to the recycling centre! Be free!
Background
Very few things in this world are more frustration-inducing than trying to print the single most important document of the day only to have the ink trickle out of the printer in its last, feebly gray attempt to survive the job. Plus, once the replacement comes, half the time it’s impossible to figure out where to take spent lightbulbs (that contain mercury, for some reason) much less make the time to drop them off.
The world is at its breaking point when it comes to consumption and waste. If consumers still don’t have more sustainable options for their household products, a huge opportunity is available in pairing consumer purchasing power with easy recycling options, so the environmentally sensitive materials get where they need to go.
I can imagine this model working for businesses and individuals with tons of different products. Think hospitals, law firms, big box stores, and any person or business that uses materials that require special attention.
Some product options for a recyclable packing subscription model are:
· Light bulbs
· Printer ink
· Batteries
· Razors and shaving creams/aerosols
· Syringes
· Knives and tools
Data points & research
· The U.S. produces about 14% of the world’s electronic waste; of approximately 45 million tons of electronics thrown out in 2016, only 20% was recycled [Forbes]
· Many domestic recyclers end up shipping their waste abroad where some may be recycled or repurposed, but often at great expense of local populations. [Forbes]
· Americans produce about 4.5 lbs of household waste per day [EPA]
· Of all household waste, 35% is recycled or composted [EPA]
· Americans dispose of over 3 billion batteries per year [Cleanlites]
Strategy notes
The shipping element is fairly cost prohibitive, so it’s important to consider what items are worth keeping in scope to maintain margins, especially if the shipping labels are prepaid.
Products would have to be:
· High margin
· Low shipping cost (weight and size)
· Ongoing use (as opposed to one-time)
A key message in defining the market here is the upgraded interpretation of a subscription model. Rather than being based on time (renew item every month), it’s based on use (item renews when one arrives for recycling). Since the initial order delivers double the required amount, each subsequent order maintains a backup, so the consumer never waits for the replacement. The under/over supply is always balanced.
It would make the most sense to partner with manufacturers, or at least leverage a front-end distributor. No matter what, it’s key to avoid purchasing the products at or close to retail, but instead working to white label them or wholesaling sell them at a higher margin.
With low overhead and little need for brick and mortar location, the biggest elements to conjure for success here are wholesale access to the available products, courier or mail infrastructure, plus relationships with local recycling companies.
Possible names or tagline
Never Ending Supply Company, RecycLoop, AlwaysThere, ReStore