Pfand System

Practical Sales Training™  > How To Convert > Pfand System

 

 

What is it?

Pfand Systems are where a deposit is used to ensure something is returned such as a glass or plastic drinks bottle.

 

Why does it work?

It works because it creates a positive feedback loop and may well appeal to the values, beliefs and dreams of your buyers. In the bottle example in Germany, consumers can, in effect, use empty bottles to pay for things. So, whilst the deposit they pay is tied up in the cost of the drink they buy, it’s up to the buyer to get the deposit back or lose it forever. It’s that fear of loss and immediate gratification, as well as knowing they are doing good that makes it a win/win.

 

How can you use it?

If you have a physical offering that involves an element that can be returned, recycled or even donated, then a deposit based system can be used to incentivise behaviour.

 

Hypothetical Example:

A local coffee shop could introduce a “Reusable Cup Pfand System.”

Customers pay an extra £2 deposit when they order their coffee in a reusable metal cup provided by the shop. When they return the cup (on the same day or a future visit), they get their £2 back. If they keep it, the shop retains the deposit, which covers the cost of the cup.

This system reduces waste (no disposable cups) and encourages repeat visits while tapping into customers’ eco-friendly values.

 

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