{"id":6117,"date":"2025-12-23T10:15:24","date_gmt":"2025-12-23T09:15:24","guid":{"rendered":"https:\/\/www.sweco.lu\/?p=6117"},"modified":"2025-12-23T10:27:54","modified_gmt":"2025-12-23T09:27:54","slug":"why-the-simple-sales-model-struggles-with-sustainability","status":"publish","type":"post","link":"https:\/\/www.sweco.lu\/en\/actualites\/autres-en\/why-the-simple-sales-model-struggles-with-sustainability\/","title":{"rendered":"Why the simple sales model struggles with sustainability"},"content":{"rendered":"<section class=\"block block-share block--white\" >\n\t<div class=\"block__inner\">\n\t\t<div class=\"col--12 col--wrapper col--center\">\n            <div class=\"col col--12 editor-content col--center\">\n                <div class=\"share\">\n                    <p class=\"share-text\">Share on: <\/p>\n                    <div class=\"ss-inline-share-wrapper ss-hover-animation-fade ss-with-counter-border ss-inline-total-counter-left\"><div class=\"ss-inline-share-content\"><\/div><\/div>                <\/div>\n            <\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n<section class=\"block cb block--white\" >\n\t<div class=\"block__inner cb__inner cb__inner--one\">\n\t<div class=\"col--12 col--center col--wrapper\">\n\t\t<div class=\"col col--6 editor-content\">\n\t\t\t<h1>Why the simple sales model struggles with sustainability<\/h1>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-6120 size-large\" src=\"https:\/\/www.sweco.lu\/wp-content\/uploads\/sites\/28\/2025\/12\/model-1024x597.jpg\" alt=\"\" width=\"1024\" height=\"597\" srcset=\"https:\/\/www.sweco.lu\/wp-content\/uploads\/sites\/28\/2025\/12\/model-1024x597.jpg 1024w, https:\/\/www.sweco.lu\/wp-content\/uploads\/sites\/28\/2025\/12\/model-300x175.jpg 300w, https:\/\/www.sweco.lu\/wp-content\/uploads\/sites\/28\/2025\/12\/model-768x448.jpg 768w, https:\/\/www.sweco.lu\/wp-content\/uploads\/sites\/28\/2025\/12\/model-520x303.jpg 520w, https:\/\/www.sweco.lu\/wp-content\/uploads\/sites\/28\/2025\/12\/model-800x467.jpg 800w, https:\/\/www.sweco.lu\/wp-content\/uploads\/sites\/28\/2025\/12\/model-514x300.jpg 514w, https:\/\/www.sweco.lu\/wp-content\/uploads\/sites\/28\/2025\/12\/model-772x450.jpg 772w, https:\/\/www.sweco.lu\/wp-content\/uploads\/sites\/28\/2025\/12\/model-652x380.jpg 652w, https:\/\/www.sweco.lu\/wp-content\/uploads\/sites\/28\/2025\/12\/model.jpg 1255w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n\t\t<\/div>\n\t<\/div>\n<\/div>\n<div class=\"block__inner cb__inner cb__inner--one\">\n\t<div class=\"col--12 col--center col--wrapper\">\n\t\t<div class=\"col col--6 editor-content\">\n\t\t\t<p>The way we sell products matters as much as the way we design them. One of the most common revenue models in business\u2014the\u00a0simple sales model\u2014has powered the industrial economy for more than a century. But while it remains effective for growth, it is structurally biased toward short-termism. And in a resource-constrained world, that is becoming a problem.<\/p>\n<h2 class=\"wp-block-heading\">The Logic of Simple Sales<\/h2>\n<p>In the simple sales model, a company manufactures a product in short period of time, sells it once, and immediately transfers both long term\u00a0ownership and responsibility to the customer. Revenue is realized at the moment of sale. For consumables such as food, this approach makes sense: the product is designed to be used up, and responsibility naturally shifts to the consumer. But for durable goods\u2014tools, electronics, furniture\u2014the logic breaks down.<\/p>\n<h2 class=\"wp-block-heading\">Short-Term Value, Long-Term Impact<\/h2>\n<p>Consider the case of a cordless drill.<\/p>\n<ul class=\"wp-block-list\">\n<li>Production time: A matter of days , from raw materials to final assembly.<\/li>\n<li>Product lifespan: Typically\u00a03\u20135 years\u00a0in private use.<\/li>\n<\/ul>\n<p>The company\u2019s financial interest exists only in that short production window. Once the drill is sold, its entire lifecycle\u2014years of use, maintenance, and eventual disposal\u2014falls outside the manufacturer\u2019s responsibility. At most, they are bound by a legally mandated warranty period.<\/p>\n<p>The result: manufacturers optimize for low production cost and fast turnover, not durability, repairability, or end-of-life recovery.<\/p>\n<h2 class=\"wp-block-heading\">Another Example of Linearity<\/h2>\n<p>Take a coffee machine. Designing it for repair means higher upfront costs: sturdier components, modular construction, and maintaining a stock of spare parts. It also adds complexity to operations, from logistics to after-sales service.<\/p>\n<p>By contrast, a non-repairable, cheaper machine fits neatly into the sales model. The economic incentive is clear: prioritize the disposable version. Even when some premium brands succeed by offering durable, repairable goods, these remain niches in a market that overwhelmingly rewards low price and rapid replacement.<\/p>\n<h2 class=\"wp-block-heading\">Systemic Reinforcement<\/h2>\n<p>This isn\u2019t only about corporate choices\u2014it\u2019s embedded in the system. Accounting and financial structures mirror linear logic.\u00a0Depreciation rules, for example,treat products as assets that inevitably lose value until they are written off, not as resources with recoverable potential. The mindset behind this concept assumes obsolescence, not renewal.<\/p>\n<p>Consumers reinforce the cycle too. While surveys show growing interest in sustainability, actual buying behavior still favors low upfront costs. Repairable products often lose against cheaper, disposable alternatives on the shop floor.<\/p>\n<h2 class=\"wp-block-heading\">The Missing Piece: Total Cost of Ownership<\/h2>\n<p>A blind spot of the sales model is that it ignores the\u00a0Total Cost of Ownership (TCO)\u2014the full cost of a product over its entire lifespan, including purchase price, maintenance, repair, energy use, and eventual disposal.<\/p>\n<p>Most consumers focus only on the\u00a0initial purchase price\u00a0because that is the number presented to them. Manufacturers rarely highlight TCO because doing so would expose the hidden costs of disposable designs. The result is a\u00a0systematic information gap: people buy the cheapest option at the counter but end up paying more in the long run through frequent replacements, repairs, or inefficiency.<\/p>\n<p>By not integrating TCO into product comparisons, the sales model perpetuates\u00a0short-term decision-making\u2014further reinforcing the linear logic of fast turnover and hidden waste.<\/p>\n<h2 class=\"wp-block-heading\">The Invisible Costs: Externalities<\/h2>\n<p>The linear sales model also ignores\u00a0externalities\u2014the environmental and social costs of production and consumption that are not reflected in market prices. A factory can pollute rivers or emit greenhouse gases without bearing the full cost of those impacts. Instead, society at large pays through degraded ecosystems, health costs, or climate change. The first signs of this logic shifting are emerging.\u00a0CO\u2082 taxes, introduced in some countries, put a price on emissions. But so far, these remain modest compared to the true external costs, and they only address a fraction of the wider impacts such as resource depletion, toxic waste, or biodiversity loss. Until externalities are consistently priced in, the sales model will continue to promote products that look cheap at checkout but are expensive for society.<\/p>\n<h2 class=\"wp-block-heading\">A Big-Ticket Example: Cars<\/h2>\n<p>If drills and coffee machines illustrate the principle, cars show the scale of the challenge.<\/p>\n<ul class=\"wp-block-list\">\n<li>Traditional sales model: The buyer pays once, becomes the owner, and takes on all responsibilities for fuel, maintenance, insurance, taxes, tires, depreciation, and eventual disposal. Manufacturers earn revenue only at the point of sale and have little incentive to design for low total cost of ownership.<\/li>\n<li>Circular alternatives: Some automakers and mobility providers are experimenting with\u00a0\u201cmobility-as-a-service\u201d\u00a0models. Here, the manufacturer retains ownership and responsibility, while customers pay for use (per month or per kilometer). This aligns financial incentives with durability, efficiency, and end-of-life recovery.<\/li>\n<\/ul>\n<p>The car industry highlights both the\u00a0limitations of sales\u00a0and the\u00a0potential of alternative models\u2014and given its enormous resource and carbon footprint, it\u2019s one of the sectors where rethinking the model matters most.<\/p>\n<h2 class=\"wp-block-heading\">Why It Cannot Be Fully Circular<\/h2>\n<p>By design, the simple sales model locks businesses into the\u00a0take\u2013make\u2013dispose\u00a0logic:<\/p>\n<ul class=\"wp-block-list\">\n<li>Revenue ends at the point of sale.<\/li>\n<li>Responsibility ends at the warranty.<\/li>\n<li>Incentives end at production.<\/li>\n<\/ul>\n<p>The model therefore rewards short lifespans and repeat purchases\u2014exactly the opposite of what circularity requires.<\/p>\n<h2 class=\"wp-block-heading\">A Model at Odds With the Future<\/h2>\n<p>To be clear, the sales model is not inherently \u201cbad.\u201d It built much of the prosperity we enjoy today and continues to work in certain contexts. But it is structurally misaligned with sustainability goals. Alternative business models\u2014leasing, product-as-a-service, remanufacturing\u2014create incentives that extend beyond the sale. They tie revenue to durability, reuse, and resource recovery. These models are not easy to scale: they are capital-intensive, logistically complex, and often more expensive upfront. But without experimenting beyond sales, the incentive to design for long-term value will remain weak.<\/p>\n<h2 class=\"wp-block-heading\">The Way Forward<\/h2>\n<p>The simple sales model is familiar, efficient, and transparent. But in its current form, it locks businesses into short-term logic while ignoring long-term consequences\u2014especially when\u00a0total cost of ownership and externalities are left out of the picture. If we want to align business with sustainability, we need models that extend accountability\u2014and opportunity\u2014beyond the point of sale. Until then, the simple sales model will remain what it has always been:\u00a0a short-term engine running on long-term resources.<\/p>\n\t\t<\/div>\n\t<\/div>\n<\/div>\n<\/section>\n\n\n<section class=\"block block--white latest-insights\" >\n\t<div class=\"block__inner latest-insights__inner\">\n\t\t<div class=\"col--11 col--wrapper\">\n\t\t\t\t\t\t\t<div class=\"col col--12 editor-content latest-insights__title\">\n\t\t\t\t\t<h3 class=\"h3 hyphenate\">Other news<\/h3>\t\t\t\t<\/div>\n\t\t\t\n\t\t\t\t\t\t\t\t<div class=\"col col--4 insight\" data-clickable=\"true\">\n\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"520\" height=\"296\" src=\"https:\/\/www.sweco.lu\/wp-content\/uploads\/sites\/28\/2026\/04\/Giewerei-\u00a9-Ville-dEttelbruck-520x296.jpg\" class=\"attachment-insights-featured size-insights-featured wp-post-image\" alt=\"\" \/>\t\t\t\t\t\t<div class=\"insight__content editor-content\">\n\t\t\t\t\t\t\t<em class=\"cats\">Projects, Other<span class=\"cats__sep\"><\/span>April 8, 2026<\/em>\t\t\t\t\t\t\t<h3><a href=\"https:\/\/www.sweco.lu\/en\/actualites\/projets-en\/giewerei-first-groundbreaking-wunne-mat-der-wooltz-district-in-wiltz\/\">Giewerei: first groundbreaking! Wunne mat der Wooltz district in Wiltz<\/a><\/h3>\n\t\t\t\t\t\t\t<p>Giewerei in Wiltz launches with 155 affordable homes in a sustainable district, combining circular design, adaptability and community living. <span class=\"readmore\">Read more<\/span><\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"col col--4 insight\" data-clickable=\"true\">\n\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"520\" height=\"296\" src=\"https:\/\/www.sweco.lu\/wp-content\/uploads\/sites\/28\/2026\/04\/Batiments-du-futur-520x296.jpg\" class=\"attachment-insights-featured size-insights-featured wp-post-image\" alt=\"\" \/>\t\t\t\t\t\t<div class=\"insight__content editor-content\">\n\t\t\t\t\t\t\t<em class=\"cats\">Other<span class=\"cats__sep\"><\/span>April 8, 2026<\/em>\t\t\t\t\t\t\t<h3><a href=\"https:\/\/www.sweco.lu\/en\/actualites\/autres-en\/buildings-of-the-future-what-if-true-innovation-were-invisible\/\">Buildings of the future\u2026 What if true innovation were invisible?<\/a><\/h3>\n\t\t\t\t\t\t\t<p>Buildings of the future focus on invisible innovation from phase 0, aligning strategy, performance and sustainability across the full lifecycle. <span class=\"readmore\">Read more<\/span><\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"col col--4 insight\" data-clickable=\"true\">\n\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"520\" height=\"296\" src=\"https:\/\/www.sweco.lu\/wp-content\/uploads\/sites\/28\/2025\/12\/AdobeStock_1572788864-520x296.jpeg\" class=\"attachment-insights-featured size-insights-featured wp-post-image\" alt=\"\" \/>\t\t\t\t\t\t<div class=\"insight__content editor-content\">\n\t\t\t\t\t\t\t<em class=\"cats\">Uncategorized<span class=\"cats__sep\"><\/span>December 23, 2025<\/em>\t\t\t\t\t\t\t<h3><a href=\"https:\/\/www.sweco.lu\/en\/actualites\/uncategorized\/why-do-more-with-less-is-not-a-circular-design-principle\/\">Why \u2018Do more with less\u2019 Is NOT a circular design principle<\/a><\/h3>\n\t\t\t\t\t\t\t<p>Why \u201cdo more with less\u201d is a linear efficiency rule, not circular design. True circularity requires lifecycle thinking, reuse, adaptability, and refusing waste. <span class=\"readmore\">Read more<\/span><\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/section>\n\n<section class=\"block form-block block--lightgray\" id=\"contacteng\">\n\t<div class=\"block__inner form-block__inner \">\n\n                    <div class=\"col--11 col--wrapper\">\n                                    <div class=\"col col--4 editor-content form-block__title\">\n                        <h3 class=\"h2 hyphenate\">How can we help you?<\/h3>                    <\/div>\n                    <div class=\"col--12 col\"><\/div>\n                \n                <div class=\"col col--4 editor-content\">\n                    A team of experts is ready to support you and explore how we can assist with your request. When you submit this form, someone from our team will contact you. 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\n\t<\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>Why the simple sales model favors short-term growth over sustainability, and how ignoring total cost of ownership and externalities blocks circular value creation.<\/p>\n","protected":false},"author":185,"featured_media":6120,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"none","_seopress_titles_title":"Why the simple sales model struggles with sustainability","_seopress_titles_desc":"Why the simple sales model favors short-term growth over sustainability, and how ignoring total cost of ownership and externalities blocks circular value 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