Our conservation minded friends at Office of Sustainability posed this challenge:
The first question, regarding value and waste, gets lost in translation. Value is interpreted and perceived. If we follow the logic of the linked article, by spending a little more money you get much more pizza, then there is more value to the larger pizza. Now this is different from cost of production and price to customer. However, we can look at this as a customer acquisition cost. The increased production cost in the larger pizza is likely offset almost instantly at the moment of purchase.
Waste is not something I’m really all too familiar with. Loss is something I know. To the pizza proprietor, I don’t see any loss. They produce and the customer pays. Done and done. If you have extra pizza, because you are already overstuffed, then the customer should save it and eat it another time -which means they will require some kind of take-out box. Now how green that box can be I leave up to our preservation partners. But what we see is an opportunity for guerrilla marketing on that pizza box!
So I need to come clean about something, I’m a Master’s of Entrepreneurship alumnus. So when you ask questions about allocation of resources, it’s way over my head. Entrepreneurs don’t allocate resources, because we try to leverage resources. It goes against LEAN principles. Maybe our amigos in Management can answer that one?