Dynamic pricing is how prices for amenities and products like hotels or flights change over time. Prices change over time based on supply and demand for those products. But that is not the case for groceries. "The struggle led by the organization [and] Dr. Michal Bitterman is a social and public struggle, the goal of which is to enable us to buy products from writers at a cheaper price as their expiration date approaches," the organization said in a press release. Natural Step is trying to convince retailers to sell groceries at different prices depending on how far away their expiration date is. Eating food even after its expiration date is safe, according to an April 2017 Business Insider report.
"Just because its expiration date is approaching, [the food is] still great to eat!" the organization said in a press release. "If the marketing chains agree to apply the dynamic pricing, which is practiced today in different countries in the world, we can lower the cost of living, allow the public to purchase food products at an equal price per capita and in addition - significantly reduce food waste in retail."The Economy and Industry Ministry and the Central Bureau of Statistics found that the Rami Levy supermarket chain was the cheapest in Israel in June 2021, with 68 common grocery items costing NIS 809. However, prices at other grocery stores was as high as 1,112 NIS for the same grocery basket. The average price among all supermarkets was NIS 926.
Additionally, an October 2018 Globes article mentioned that data showed that about one third of all food produced in the European Union was wasted that year.
"Today, supermarkets and retail chains operate in one big market failure - instead of putting most effort into selling all the existing products, they entitle the manufacturers to insane quantities of goods, which are simply destroyed instead of sold," Natural Step said. "It is time to stop this phenomenon. It's time to tell the retail chains: that's enough."
Dr. Bitterman has been in contact with retail chains, and they told her that dynamic pricing is unlikely, according to the press release. She said she plans to continue working for change.Natural Step is not the only Israeli organization looking to help add new systems of pricing for groceries to reduce waste.
Israeli start-up Wasteless created a dynamic pricing algorithm for grocery stores that lowers prices as a product's expiration date approaches. According to the company's website, $18 billion of potential revenue is lost in food waste from supermarkets.
In March 2019, Wasteless worked with an Italian company that was not named and reported that the client reduced waste by 39% while increased revenue by 110% and net margins by 1.2%. All three numbers exceeded goals from the 12-week collaboration with the client.
Zev Stub contributed to this report.