Pfand System

Understand Your Buyer > 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.


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