The Power of Consumers’ Dollars
One of the things I’ve observed about consumer spending is that the average person rarely considers how much power they possess. It may sound a bit dramatic, but every time someone makes the choice to purchase a brand for the first time, every time a repeat purchase of a staple is made, every time a consumer switches brands in a certain category, etc. all of those decisions affect the velocity (sales per distribution point) for brands, which is then tracked and analyzed.
Brands fight for the shelf space they have, and they fight for share of voice on digital platforms. Brands work to grab and maintain consumers’ attention in ways that are sometimes evident, and other times inconspicuous. The power consumers wield with every purchase can prove, for example, whether or not a campaign was successful, or if a new price point was appealing enough to entice consumers to switch brands.
There are many factors at play when making purchasing decisions. When consumers buy products from mission-driven companies they are supporting a stated cause. For example, purchasing Fair Trade coffee helps to ensure that farmers are paid a fair price for their crop. Buying products from companies that are committed to ethical manufacturing helps to ensure that workers are treated fairly. If buying goods from mission-driven companies is something you are interested in prioritizing, here are some tips:
Do your research. Before you buy learn about the company. There is a lot of slick marketing, so make sure claims are substantiated. One way to do this is via certifications (see next bullet) and read labels. You can also take a peek at reviews, and ask questions via social.
Look for certifications. There are a number of certifications that can help identify products that are made ethically and sustainably including Fair Trade, Upcycled Food, Rainforest Alliance, Demeter Biodynamic, and Animal Welfare Approved.
Support small businesses. When you buy from small businesses, you're supporting local communities and encouraging competition in the CPG industry.
Choose reusable packaging. Choosing products with reusable packaging will help reduce your environmental impact.
Recycle and compost. When you're done with a product, make sure to recycle or compost it properly to reduce the amount of waste that goes to landfills.
Having said all of that, it doesn’t always have to be about taking a stand on an ethical issue. Sometimes consumers just want to try something new. But whatever your reason for purchasing certain brands, be aware that you have a lot of power with each dollar you spend!
