The 80-20 Rule

Still think consumers will absorb a 20 percent price premium for products with a sustainable or eco-friendly story? Well a recent survey by cultural trend tracking firm BrainReserve might have you thinking otherwise.

According to the study, the economic environment is still weighing heavily on consumers minds, with close to 80 percent of folks saying a 20 percent price increase would be too much to bear.

Consumers even are becoming less willing to pay more for stuff that’s better for their own bodies, much less than planet. Nearly half (44%) of U.S adults report that their diets are becoming less healthy as food prices rise, with 52% buying fewer organic products and 48% spending less on health and wellness overall, says the BrainReserve study.

As far as price increases go, 73 percent of adults say a 20 percent increase in the cost of apparel would result cutbacks. If soda, juice and bottled water prices increase 20%, seven in 10 adults say they will reduce their purchases, 58% say they'll switch to private-label brands and 36% say they will eliminate the category completely, say the findings. Even among refrigerator staples, a 20% price hike for milk would make 44% cut back, and a 22% hike would cause 25% to stop buying milk altogether.

"Price increases have a straight-line impact on spending and we're treading in lethal waters as the costs of basics jump 10, 15 or 20%," says BrainReserve’s Faith Popcorn.
"There's very little that's safe in commerce today, beyond value channels and value brands in staple categories."