Redemption Value

Solution

I think if you were to charge a small deposit on each paper cup sold that was redeemable by a certain date with the return of the old cup and purchase of any item it would work on many levels.  First, it would drive return sales as people would want to redeem their deposit.  Second, people may actually collect these from trash cans and other people to increase their return value (basically getting free items).  Third, this may drive people to the ceramic mug.  Fourth, all deposits would go into an account earning interest until redeemed.  Now, we know that there will not be 100% participation and a certain amount of breakage (un-redeemed money) will come from those deposits.  They could then dedicate that money to awareness.  That could come in the form of training, recycling programs, recycling technology, etc.  They could even do some kind of match to all deposits that could go into that same fund.  I am sure that could be worked out as a tax deduction of some sort.