Scrap Tires: A Pricing Strategy for a Recycling Industry
- Topics:
- Pricing Strategy
- Tags:
- Data Management,
- Software,
- Sensitivity,
- Replacement Value,
- Recycling,
- Pricing Strategy,
- Pricing,
- Marketing Research,
- Marketing,
- Industry,
- ...
- Source:
- The Edward Owen Company
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Overview: The evolution of scrap tires from garbage, to environmental problem, to valuable resource has come about in little more than a decade. The calls for recycling strategists to develop an economic model that mutually benefits suppliers and users, a framework that will identify lucrative opportunities within the rubber recycling industry. This model goes beyond the historic value of recycled material and is based upon the replacement value of virgin materials that are used in current processes. Replacement values are calculated using a database of products along with the volumes and grades of rubber and other additives consumed and acceptable percentages and specifications for inclusion of recycled material. The database also includes the volumes and prices for various virgin materials and current pricing by grade and quality for recycled crumb rubber. User sensitivities toward substitute and/or recycled materials are also taken into account. These sensitivities relate, not only to acceptable recycled content within each product, but comparative price sensitivity as well. A second database catalogs recycling methods. The focus of the article is on using untreated crumb rubber to produce the various grades of recycled crumb rubber for the greatest profit. Surface treatments and devulcanizing processes are rapidly coming to market. They can and will effect the value of crumb rubber. However, these are so new to the market that prices are either unavailable or not yet stabilized.
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Format: PDF | Size: 134KB | Date: Jan 2003 | Pages: 9
