Prices in Rifuzl

Let’s talk this time about something that retailers generally don’t like to discuss—prices. But since I have nothing to hide, I’m happy to share Rifuzl’s stance on our pricing policy and answer a few questions that come up time and time again.

This article has been a long time in the making, as we couldn’t avoid various comments about prices. Especially in the first few months after opening, people would often “stumble” into the store, find some special, higher-priced item, and, with a comment like, “Wow, your prices are really steep!” rush right out.

And yes, of course, Manca and I took those comments very much to heart at first, but as time went on, there were fewer of them, and more and more praise for the store itself, the concept, and even the prices. To questions like, “Why are your prices so high?” or “Why is [insert any product] more expensive here than at [insert any discount store]?” there’s no single, clear-cut answer—and above all, it usually can’t be answered in a single sentence.

After just over a year in business, I think it’s only right that I take the time to answer some of the questions that visitors have frequently asked—both in-store and in comments and messages across the web.

"How can your prices be higher if the products come without packaging?"

That’s a very good question, since it seems logical that if we’re buying just the product, without packaging, it should be cheaper. Manca and I also mistakenly held this same belief before we began negotiating with suppliers, thinking that Rifuzl’s competitive pricing would stem primarily from the absence of single-use packaging. But we were wrong. And to err is human.

The first reason why products without packaging aren’t cheaper than those with packaging is that plastic packaging is practically free today and, in most cases, a completely negligible cost. Plastic is made from petroleum—more specifically, from a fraction that is waste at the refinery but can be used to produce various types of plastic. Thus, the cost of plastic (in the literal sense, not the figurative sense implied by the title of the RTV SLO documentary) for packaging is extremely low—practically free.

Another reason is that many processes in food production are already automated today, and packaging is part of that automation. The automation of production allows for a cheaper product, since there is no need to pay people for manual packaging. Larger companies today use machines that automatically package products in plastic, and because of this, we cannot even offer their products here, as we are not yet a large enough partner to collaborate with them. And since current legislation does not yet restrict those who pollute the environment with such packaging—or reward those who would invest in more environmentally friendly packaging (glass, returnable containers, bulk sales), we’re currently stuck in a vicious cycle. Fortunately, systemic solutions are on the horizon that will change this in the coming years, but more on that another time.

For now, smaller, local manufacturers and producers remain suitable partners for our collaboration. Those whose products are already available in sustainable packaging, and those who do not have automated production and can therefore adapt to our store’s requirements. But at the same time, this means we’re limited to a fairly specific pool of suppliers for our store.

Third, it’s worth noting that people often compare apples to oranges, and that simply doesn’t work. As a result, our product range—because we can arrange partnerships with local producers that generate no waste and have no other negative environmental impacts— is limited to products in the mid- to high-quality range, and the price reflects this. The suppliers who work with us are paid fairly. A large portion of our selection also comes from organic farming, which is inherently more expensive (lower yields, higher risk).

For those interested in the pricing and financial aspects of packaging-free retail, here are two articles from The Clean Kilo (UK) and Trash is for Tossers (USA). We fully agree with everything written there.

A concrete comparison: single-use plastic packaging vs. returnable glass packaging

We have suppliers who package products in glass, take the glass back, wash it, and prepare it for reuse. Examples of this in our region include Ekosirarna Kukenberger and Veganka (and many others, but I wanted to highlight these two in particular, as they recently decided to switch entirely to returnable packaging despite the higher costs and extra work involved). Let’s take a look at a comparison table showing where all the costs arise compared to sales in single-use plastic packaging:

At first glance, the comparative table above makes it seem pointless to deal with returnable packaging at all. But we’ve overlooked at least one aspect: that less visible aspect—the bill the planet sends us. In an email to all the stores he works with, Toni Kukenberger wrote at the end of his announcement that he is switching 100% to glass packaging:

And I can’t put it any better than that. An even better solution would be to have a glass recycling center, as I’ve publicly shared on my profile.

“I can get this product cheaper from a farmer/at the market/through a community purchase.”

We hear this comment sometimes, too—often in a spiteful tone, as if to say, “How dare Rifuzl sell this product for more than a farmer sells it on their farm or at their market stall!” But it’s unfounded. For smaller producers who sell exclusively at the market, through community-supported agriculture, or on their farm, it makes sense that you’ll be able to buy their products there for less (though not always!). Manca and I used to buy from these farmers even before we opened Rifuzl; they have smaller quantities that they’ll be able to sell entirely, and they often sell their products to us at the same price that everyone else pays.

So why don’t I see anything wrong with buying from them and selling the products in our store at a higher price? Because I believe that Rifuzl adds significant value, so:

• we’re open 6 days a week, from morning to evening, giving you more freedom to choose when to shop (most working people can never visit a market that’s only open in the morning),
• we’re conveniently located in a permanent spot for many people (free parking, proximity to public transportation, etc.),
• you can do all your shopping in one place and find more than you would at a market or farm, which means less driving, less time and effort spent on shopping, and therefore more time for the things that matter more in life (I won’t suggest what those things are, but I’m sure there are many things you enjoy more than shopping).

Some people would rather spend all day crunching numbers, hunting for discount coupons, and driving to six different stores—and even the farmers’ market—to buy whatever is cheapest at each location. People like that also come to Rifuzl for a specific product that, based on their market analysis, has turned out to be the best deal right here with us. Everyone decides for themselves, but in my humble opinion, there are better ways to spend your time, and I also seriously doubt the economic and environmental wisdom of such behavior.

How do you get a better price yourself?

As Rifuzl grows thanks to your regular purchases, we gain more and more influence with our suppliers and secure better purchasing terms as we expand. Economists call this phenomenon “economies of scale.” And the one who benefits most from this effect is you. How? At Rifuzl, we pass on the lower costs we achieve through larger purchase volumes to our retail prices, which in practice means that over time, the prices of our products decrease.

At Rifuzl, you won’t find sale items (except for products with a shorter shelf life) or loyalty cards, and we have no intention of using such manipulative tactics to attract customers to our store in the future. Product prices are realistic and not artificially inflated so they can then be seemingly reduced through discounts and promotions. In other words, prices are set to cover our operating costs and ensure our continued existence. And thanks to economies of scale—but above all because we’re doing something good and you, our customers, support us in this—our prices will go down on average.

A concrete example: as I’m writing this article, Manca at Rifuzl is in the process of adjusting the price of freeze-dried fruit—a product that many of you love. Last year, this was a new product on the market, and our supplier, Majini Hrustljavčki, was just getting started with this line of business. They purchased and freeze-dried small quantities of various fruits from farmers. Since demand for this product in our store was high, they purchased the fruit in much larger quantities this year, which means they were able to secure a significantly lower price. As a result, they were able to offer us a better purchase price as well.

In this situation, the retailer has three options. They can leave the shelf price of the product unchanged and pocket the difference resulting from the better purchasing terms. They can advertise a discount on that product in an effort to attract more customers to the store. Or they can transparently and straightforwardly lower the product’s price, thereby rewarding their customers for their loyalty.

We always choose this last option.

The price of freeze-dried fruit, which was previously 24.90 EUR/100 g, is now only 13.90 EUR/100 g. That’s a 44% reduction.

Rifuzl will never be the cheapest

The first subheading of this essay (“How can your prices be higher if the products come without packaging?”) is actually misleading. It implies that our products are generally more expensive, which is not true. Those of you who shop with us regularly and compare our prices with other stores tell us this as well. Of course, it’s important to compare apples to apples, not to pears.

Just as cars are different and don’t cost the same (even though they all serve the same purpose—taking us from point A to point B), not all products are the same either. Comparing the cheapest pasta at a discount store with Gabaroni’s organic pasta in Rifuzl’s selection is not appropriate. So let’s clarify one more thing here:

Rifuzl will never be the cheapest store. As I quoted Toni above, someone always pays the price—often our planet, of which we have only one. ?

But I promise that you’ll find affordable, high-quality products here, and that we won’t compromise our principles just to keep prices low. Because doing what’s right and doing good is more important than maximizing profits.

So that I’m not the only one speaking, I’ll conclude this essay with comments about our prices that you’ve sent us (I admit, I’ve chosen mostly the positive, encouraging ones). You’re welcome to comment on our prices below as well.

Yesterday I was at Manca’s store, and I have to say that I’m enjoying visiting you guys more and more ?. Yesterday was my fourth time at Rifuzl, and I’m slowly realizing the value of zero-waste shopping in my own daily life at home. I’ll admit, I don’t always succeed, but if I compare my habits from last year to this year, I’ve changed at least 50% and switched to sustainable products. As I already wrote to Sabina on Facebook / Mami v vrtu, I’ll say the same to you both. The food and other products offered at Rifuzl are full-flavored, high-quality, and—above all—have that authentic Slovenian taste, which makes them all the more valuable and satisfying. About two months ago—or maybe a little longer—I sent my assistant to you to pick up dish soap, olive oil, and I think one other small item. When she returned with the items, she told me that this just wouldn’t work because everything was so expensive, and that if I kept buying your products, I’d go bankrupt.

Well, days went by, then weeks, and lo and behold, this past Monday I realized I was running out of oil and my dish soap was also gone. I wondered when I’d bought them. I couldn’t remember, and I realized I’d actually had these products for a really long time—practically at least two full months and counting. So I started to realize that this kind of shopping really pays off. Great. Last week I bought butter and homemade Vegeta from you. Butter just spread on bread doesn’t taste very good to me. But I still eat it with homemade strawberry jam that I make myself. Yesterday, I also got some homemade potatoes from a friend, which I boiled, topped with butter from Rifuzl and Vegeta, and the flavors were perfect. Really great.

My dear friends, stay persistent and courageous, and I wish you as many satisfied customers as possible. You’ve already won me over, especially because your store has such a pleasant, homey atmosphere and Manca really loves to help ?.

Have a wonderful weekend and enjoy yourselves

Metka Knez

Hey! I completely agree with the following stories. Many people don’t even realize where their money is going. Coffee, cigarettes, wine every night… —all of which could be spent on buying wholesome, unpackaged foods that are better for our health in the long run. That way, we’d also save on the costs associated with health problems in old age. In short, it all kind of adds up, doesn’t it?

In my case, I adopted the zero-waste lifestyle as a student transitioning to freelance work. I never drank coffee or smoked, and my money certainly didn’t just fly out the door—everything was thoughtful and modest, with every purchase carefully planned. That’s why, personally, I find shopping without packaging more expensive, even though I support it wholeheartedly. Then comes the frustration—why can’t I do it? But I remain optimistic that my financial situation will improve soon, and I’ll be able to use my wallet to support what I believe in. For now, I’m doing my best—as much as I can.

But I get angry when well-off people say that ZW products are expensive.

@marusafakin

“Wow, what prices,” was my thought during my first visit. Unfortunately, it’s true that you can get a lot of things much cheaper when they’re packed in a plastic bag.

Despite that, I filled my canvas bags and jars with rice and legumes for about €20 and left that very same day for a month-long vacation, the challenge of which was precisely to live zero waste. I also brought along some oil, vinegar, and a few spices, and while on vacation, I bought only fresh fruits and vegetables.

Even though that “Rifuzlov” purchase—which was way too expensive—made up part of my main meal every single day, I came home with almost half of my supplies left. I only restocked today, almost two months later.

I don’t know… ~€15/month + fruits & vegetables. My dear Rifuzl friends, I’m going to give this some serious thought to see if it’s worth it financially. Unfortunately, a bag of chips is cheaper, as is all processed and unhealthy food.

Seriously, my only regret is that I waited almost a whole year to visit you. Thank you for showing Ljubljana (and all of Slovenia) what ZeroWaste really means! ?

@tomaz.kocman