Our Perspective
What this means for leaders navigating growth, change or transformation in their organisation.
The Real Pricing Risk
Sustainable sourcing can command a premium, but only when value is unmistakable. Simon-Kucher & Partners indicates that many consumers will pay around 10% more for products credibly sourced with sustainability in mind. That’s not a licence to mark up; it’s a signal to make benefits concrete, comparable, and verifiable.
The real risk isn’t “pricing too high,” it’s unclear value. When sustainability is framed as virtue rather than outcome, buyers default to price comparisons. The result is strained margins, longer diligence, and preference shifting to competitors who translate sustainability into operational and commercial gains.
Define Measurable Value
Start by anchoring sustainability to outcomes buyers already track. That means moving beyond materials or certifications to the levers that shape performance, risk, and growth. In our experience with growth-stage organisations, this normally shows up as senior buyers asking for hard outcomes while teams lead with ethical claims.
Consider which value drivers you can quantify today:
- Supply assurance: fewer stockouts, shorter recovery times, stronger supplier redundancy.
- Quality and yield: lower defect rates, fewer returns, and better line efficiency.
- Risk mitigation: reduced regulatory exposure, smoother audits, fewer chargebacks.
- Revenue upside: access to tenders, price acceptance in key segments, brand preference.
Evidence That Travels
Winning at your target price requires proof that survives scrutiny across procurement, finance, and the board. Treat each claim as a testable hypothesis, not a slogan. Build a shared evidence model that makes comparisons easy and defensible.
Strong proof often includes:
- A clear baseline and a counterfactual: what improves versus the current state.
- Independent verification: recognised third‑party assessments and traceability data.
- Unitised economics: cost-to-serve, defect reduction, and lifetime value shifts, expressed per unit or per contract.
- Portability: case studies and calculators that translate across segments without rework.
Leadership Implications
The leadership job is to codify this evidence into a coherent value narrative, then protect it in the market. That means setting discipline internally and simplifying choices for buyers externally.
Practical moves that change outcomes:
- Align product, procurement, sales, and finance on what to evidence—and what to stop promising.
- Establish price guardrails by segment tied to proof strength, not aspiration.
- Equip teams with one-page value maps linking sustainability inputs to measurable outcomes and return on investment, so conversations stay grounded.
As sustainability shifts from ethical preference to performance expectation, organisations that make value clarity effortless will keep price power and move faster while others debate the premise.
Sources:
Simon-Kucher & Partners Sustainability Report