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CIRCULAR-BUSINESS-MODELS5 MIN READ

Run the Reuse Unit Economics

Calculate the break-even logic for a reuse packaging loop using trips, loss, cleaning, and handling costs.

A meal-kit company wants to replace a $0.42 single-use insulated liner with a reusable tote that costs $7.60 and requires cleaning and reverse logistics. Reuse break-even: avoided disposable cost per trip minus cleaning and handling must repay asset cost and expected loss. The common trap is counting the tote as circular on purchase day instead of after it completes enough returned trips. Baseline Single-use liner cost avoided per order = $0.42. The baseline is the cost you truly avoid. Do not include costs that still remain, such as outer cartons or delivery labor. Reuse operating cost Cleaning and inspection =…

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