Is Less Consumption Good for Retail?

(This was originally published in the June 2011 issues of Merchant Manager and Building Products Digest.)

The confluence of the Great Recession with growing awareness of how “consumerism” contributes to climate change, has led to a surging movement of people simplifying their lifestyles and sharing more of the things they need, rather than blindly acquiring more stuff.  In other words, more people are becoming more conscious consumers or disavowing the “consumer” label entirely. 

This is disaster for retailers, right?  Not necessarily.  For retailers committed to green business practices, it’s just another opportunity to serve their community.  And there are several ways that less consumption can be good for your bottom line, as well as for the planet.

As for the planet, it’s clear that there’s a broad spectrum of negative environmental impacts associated with manufactured products, which the short internet video, “The Story of Stuff” (www.thestoryofstuff.com), does a good job explaining.  It takes energy to make things and move them from one side of the planet to the other.  Then there’s disposal and the potential for toxic leachates to pollute groundwater.  The more we consume the greater the impacts, so obviously, the less we consume the fewer the impacts.  That’s the 30,000 foot view. 

Understanding this system is the first step in developing green business models that replace these inherent negative impacts with profitable, regenerative outcomes.  All well and good, but how can a merchant make money by selling less stuff?  One strategy is rethinking goods in terms of services, i.e., selling fewer goods, but selling more of the services those goods provide.   

While this has been a recent innovation in industries such as flooring (see InterfaceGlobal.com) or in extended producer responsibility (EPR) policies, the idea’s been around for a long time in our industry in the form of tool and carpet shampoo rental.  It makes sense to rent something that won’t get used very often.  And growing household preference for just that kind of economic conservatism is reshaping the kinds of relationships people are having with their stuff. 

A well known example is Zipcar.  For decades, no product/consumer relationship was as intimate (and Freudian) as the one between people and their cars.  But today, people are leaving that paradigm behind for the planet-friendly and economical choice of car sharing.  It is, perhaps, a new kind of “consumer” status symbol, but it is emblematic of a deeper movement that is redefining the role of manufactured goods in people’s lives and what it means to “consume”. 

People are looking to share almost everything:  cars, bikes, tools, and even skills.  The magazine, Shareable.net, tracks this growing phenomenon and reports about the rise of neighborhood work groups – neighbors organizing themselves to help one another tackle home projects.  That kind of thing recalls the days when communities came together for barn raisings.  Meanwhile, professional trades people are branching out into new kinds of projects and are looking for short-term rentals of specific tools, rather than having to invest in “retooling”. 

If customers want and need less stuff, then retailers must adapt.  Begin marketing your rental department’s green virtues.  For those not yet renting tools and equipment, now’s the time to start.  Talk to your pro customers and ask them what they need.  And I suggest diving even deeper.  Facilitate neighborhood work groups in your area and help create local tool lending libraries.  Rent space in your parking lot for Zipcar or other car-sharing.  Think outside the box, too.  Rent electric cargo bikes (www.cargocycling.org) or portable solar power generators for off-the-grid construction projects (www.portablesolarpower.net).  Getting into the shareable mindset will not only lead to more innovation, but will unlock new income streams and forge new customer relationships.

Sorting out the Recyclables

(This article was originally published in the September '10 issues of Merchant Magazine and Building Products Digest.)

Nothing says “green” like recycling, or so many people assume. Since the pioneering programs in the 1970s, it seems that now the habit has become ingrained, collection infrastructure ubiquitous, and recycling is among the greenest of virtues we Americans can claim. However, all is not what it seems. Like most issues in the realm of sustainable business and green building, there are various shades of gray, not to mention green.

In today’s green building and green consumer markets, “recycled” and “recyclable” have become the low-hanging fruit for marketers eager to pin green credentials on their products. But these attributes alone don’t necessarily signify sustainable or green in any meaningful sense. Context is everything. What kind of material? What percentage is recycled, and is it post-consumer or post-industrial waste? How relevant is “recyclable” if in fact the material is not recycled? In addition, LEED guidelines vary by application and product type, so a building material with some recycled content may or may not earn LEED credits depending on how and where it’s used. It behooves the merchandiser to dig a little deeper to determine whether these terms indicate real value or are simply a “greenwash.”

In the LBM and home improvement supply chain, aluminum, steel, glass, plastics, paper and wood are the predominant materials potentially recycled or recyclable. Aluminum, glass and steel can be used again to manufacture the same kinds of products indefinitely and can therefore be truly RE-cycled. For example, products like Maze Nails (www.mazenails.com) typically contain a high percentage of recycled steel, as do most steel products made in the USA. Generally, plastics and paper can be used again to manufacture things of lesser material integrity in a limited number of cycles, and are therefore DOWN-cycled. A great example here is Green Fiber (www.greenfiber.com) cellulose insulation, which is made from over 50% post-consumer recycled paper.

Whether a material is recycled, downcycled, or even upcycled, it’s a good thing, since manufacturing from recycled feedstock is often orders of magnitude less energy intensive than manufacturing from virgin feedstock. So, buying and stocking products with recycled content is a good thing, too, creating a market for such products and keeping the demand cycle going, so to speak.

But when evaluating products, all “recycled” and “recyclable” claims are not created equal. Post-consumer recycled content trumps post-industrial every time. Claims that don’t make this distinction should be assumed, if true, to be post-industrial. Is this still good? Yes. Is it the mark of truly sustainable product? Not always. Post-industrial recycled content is usually scraps and cuttings that may or may not be easily put through the production process again. In some cases, such as “re-grind” in the world of plastics, it’s easily reprocessed and is normal operating procedure. Generally speaking, it’s also harder to earn LEED credits with post-industrial recycled content.

The term “recyclable” is next down the list. In fact, it’s very often misused by over eager marketers and can be deceptive. If the material is recyclable in theory, but not in practice, then the claim is probably not worth the virgin paper it’s printed on. In fact, deceptive claims of this sort violate the FTC’s Guides for the Use of Environmental Claims. Where there is no recycling infrastructure, per se, a manufacturer may have a “take back” program, which accomplishes the same thing.

In sorting out products claims concerning recycled content and recyclability, manufacturer transparency and third-party certifications can help separate the green from the greenwash. It can also help to determine whether the product will meet your customer’s LEED project requirements.

Systems Thinking, Green Roofs and Shelter

(This originally appeared in the June '10 edition of Merchant Magazine and Building Products Digest.)

Ultimately, the ways in which homes are designed and built influence the kinds of products and solutions that make their way into the “shelter supply chain.” The green building movement has blossomed over the last ten years, and the thinking at its core has, too. References to “systems thinking” occur more frequently in conversations concerning all aspects of building science and practice. Buckminster Fuller would be happy. But it’s early days and there is much more progress to be made. The carbon footprint of the building industry is still 2 or 3 times above where it will need to be in order to meet whatever carbon reduction target eventually becomes national policy.

The next waves of innovation are pushing forward more holistic solutions, creating new opportunities for the long term. Savvy dealers and distributors could do well to begin making moves in 2011 into green roofs and modular shelters.

A green roof is exactly what it sounds like – plants growing on the roof. The idea is old, but current approaches are based on the latest systems thinking. A good green roof system takes in the entire building ecology and watershed. Storm runoff is managed, perhaps rainwater is harvested and reused within the building. The plants effectively filter rainwater, provide habitat, and maybe even food for inhabitants. The building’s energy requirements for heating and cooling are reduced, as are heat island effects. Organic wastes are composted, loops are closed. The overall CO2 footprint is reduced. A green roof provides many services for the building, its occupants, and its neighbors, what a permaculture practitioner would call “stacking functions.”

The number of green roof installations is growing and there could soon be tax credits to keep it growing. Savvy dealers would do well to start learning about green roofs, visit local projects, and scout products. New product innovations are coming to market that are contributing to better systems with greener materials, built faster with easier maintenance, etc. Consider the whole system and how you might innovate within your own organization to grow this aspect of your business next year. Learn more at Green Roofs for Healthy Cities, (www.greenroofs.org,) an industry association. Most importantly, build relationships with local green roof designers and builders.

The other wave of opportunity is with modular shelters, a perfect example of holistic design that contributes to sustainability and self-reliance. This may not seem obvious, but at bottom, we are really in the business of providing shelter. Rather, the shelter is the continuing service that customers are getting from their building system, the components of which are sourced from various places and assembled by various workers. Why not provide shelter more holistically?

There has been growing interest in green prefabs and modular building for use on homesteads, back yards, and even roofs. New designs incorporate the greenest materials, are solar powered, collect rainwater and even come with a green roof. (For an example, see Tensen Eco Buildings, here www.tensenbuildings.co.uk.) It’s not hard to see the appeal. These products are much less expensive and more feasible than buying a bigger house or financing a room addition. Building permits may not even be necessary. As more people seek to become self-sufficient, growing their food, and simplifying their lives, these cool little shelters are even becoming preferred ways to live.

A hundred years ago, this supply chain sold goods to people with sod roofs and even sold homes. Thinking of your own dealer or distribution business as a member of the “shelter supply chain” will help position it for the inevitable low-carbon future to come.

Making Energy Efficiency a Growth Engine

(Published in the September '09 issue of Merchant Magazine and Building Products Digest.)

It’s been said that there are no certainties in life except death and taxes, but I propose that there is at least one more – energy efficiency. At least, in the realm of residential construction and the retail supply chain there is no doubt that both market and government requirements for energy efficiency will continue to grow for the foreseeable future. There are several drivers, and suppliers who understand them can shape their retail strategies and tactics to maximum benefit.

Let’s start with the macro-economic trends. Regulations are toughening energy efficiency requirements in building codes and making green building guidelines mandatory. Nascent energy retrofit programs will likely continue for years, supported by rebates and other incentives. Carbon regulations coupled with supply and demand issues ensure that the long-term trend for fossil fuel prices is rising. Home buyers are seeking, and will continue to seek, more energy efficient homes, and home builders are learning that energy efficient homes are easiest to sell and at premium prices. Lastly, product manufacturers will continue to rollout technology innovations that make it easier to build energy-efficient homes and retrofit existing ones. The upshot of all this is that there will be a growing number of pros and homeowners looking for options that contribute to energy efficiency.

For dealers and distributors, the obvious strategic play is to position the firm as an authority on energy efficiency. The key to making this work is finding ways to build energy efficiency knowledge into the fabric of the organization, and this requires an investment in people. Involve everyone at the beginning. Identify key management and staff, send them to training, and make them responsible for creating a plan for including additional staff, identifying key products appropriate for your region, creating effective merchandising programs, and reaching out to key customers. While LEED seems the obvious choice, I recommend having a look at the Passive House Institute, (www.passivehouse.us), which promotes the most innovative approaches to energy efficient building design.

While there are a growing number of product and material innovations, it’s important to choose products that work in your region and clearly demonstrate that you’re on the leading edge. Energy lost through windows is enormous, so why not stock the most efficient options and make them the centerpiece of your merchandising effort? Serious Materials, (www.seriousmaterials.com,) a Silicon Valley producer of insanely efficient windows, is a good place to start.

With organizational knowledge in place and innovative products on the shelf, the next step is connecting with customers. Signage in your store and yard should be a given, and the overall message hierarchy should emphasize staff expertise, low cost of ownership, rapid payback, rebates and incentives. There should also be plenty of opportunities for customers to educate themselves, therefore hangtags, booklets, kiosks, and other ways of offering customers more “drill down” are key. Most product manufacturers will gladly help with this task, so don’t be shy about asking them to contribute. Finally, host energy efficiency workshops led by your most capable staff and invite local weatherization and retrofit firms, (keep in mind there are a growing number of non profits doing this work, too,) as well as city leaders, green building experts and, of course, your best customers.

From new home construction to home improvement projects, the leading priority is, and will continue to be, energy efficiency. Dealers that invest the energy in making themselves experts, will have created a growth engine that will carry them through the next business cycle and beyond.

Green Building and Greenwashing

(Published in the August '09, Merchant Magazine and Building Products Digest.)

The green building movement continues apace and more LBM dealers continue to ask how they can prepare. One of the best things a dealer can do is get their key staff trained in the most relevant programs in their area, whether it’s LEED or a regional program. Developing this knowledge base in the organization can only be a positive and, if pursued intelligently, can be leveraged for competitive advantage. But knowledge of guidelines is only half the battle since, as a merchant, the bottom line is still the bottom line – you have to stock and be effective at selling the green materials and products that green builders want, or should want with the proper education. And education is, of course, one of the most important aspects of selling. Which brings up the question – how do you know which products to stock?

The first part of the answer should be obvious - ask your customers. You have to get close to your customers, learn about the projects they're working on, and for goodness sake, ask them what kinds of products you should stock for them. Having some background in green building guidelines will help you ask the questions intelligently, but even so, a green builder who encounters an interested, responsive retailer is practically a customer for life, so go do it!

But relying on your customers to tell you what they want is, again, only half the battle. Developing expertise in your product categories and discerning the “real deal” from the “greenwash” requires some study of product certifications and getting to know the manufacturers.

Product certifications exist to protect against false claims and many are so good that green building rating systems like LEED incorporate them as standard. Among them, for example, are GreenSeal’s GS-11, the standard for low-VOC paint and coatings, and FloorScore, for low-emitting flooring products. But for uncertified products, the honus is ultimately on the merchandise manager to determine whether the product is truly green, is good enough to stand behind, and whether customers actually want it. After all, if a product fails to satisfy, for whatever reason, the dealer’s reputation can suffer right along with the manufacturer. And reputations are damaged most when the charge is “greenwashing.”

In short, greenwashing is the false or exaggerated claims about a product – that it’s “LEED certified” (LEED is a building rating system, not a product certification) when it’s not, or that it has any number of “green” qualities that are vague, untrue and/or unverified. In the realm of green building, the merchandise manager can help him or herself tremendously by asking manufacturers for 3rd-party LEED credit analysis or other documentation that demonstrates the veracity of the claims being made. A manufacturer that has gone the extra mile to produce an environmental product declaration (EPD), for example, demonstrates not only that the product qualifies for LEED credits, but that they take green building seriously. That’s a good sign.

It’s also a good idea to attend the green building expos and talk to manufacturers directly – there are regional shows in almost every part of the country with the USGBC GreenBuild show being the largest national show. This is where you’ll find the best information on new products and their performance characteristics short of trying them yourself. And why not try them yourself. Only with this kind of commitment will you find those gems that your customers should be using and when that happens your green building reputation will be golden.

Green Optimism and the Emerging Economics of Trust

(Published in the June '09, Merchant Magazine and Building Products Digest.)

It seems there’s less talk these days about the bad economy and more about things we can do to take action. Action is inherently hopeful which is psychologically empowering, but the real dollar value lies in the fact that that those businesses that take action when economic conditions change create their own opportunities. And over the last several weeks, this is exactly what I see happening. After multiple conferences and talking with hundreds of businesses and entrepreneurs, I’m hearing optimism about green business opportunities and a genuine desire to be more, or even much more, sustainable. And this is leading to an emerging economics of trust that our industry needs to embrace.

The big economic trends all point to “green”, of course, clean energy, energy and water conservation, clean technology, federal spending and regulation, etc. The green building movement is positioned to explode over the next several years. There are more green building programs that require 3rd party verification and the USGBC’s LEED program is pushing 3rd party life cycle analysis (LCA) for products and materials earning LEED credits. And there are more 3rd party certifications that cover a wider variety of product categories. The message to manufacturers is that not only must they produce products that meet green building guidelines, they must do so sustainably, and it must be demonstrated to a trusted, impartial third party. “Trust, but verify,” a former president and product pitch man once said. And manufacturers are doing it, ensuring that this will be one of the most important ways to establish their credibility in the marketplace, with huge implications for brand building, marketing and sales strategies.

Consumer attitude trend lines continue to slant “green,” as well. Energy saving is top of mind for most at the moment, but awareness about the long term issues of climate change, drought, eutrophication, toxic chemicals, food security, etc. hasn’t abated. Consumers are still buying greener products, but more people are suspicious of corporate greenwashing. In fact, one emerging trend shows people moving away from “consumerism” altogether and toward greater personal responsibility. More people want to do more with less: less negative impact on their family’s health, the environment, and energy budget, and more quality of life. As a result, a host of social media websites like GreenGuide.com and GreenMaven.com are popping up, attempting to deliver the real truth about this green product or that greenwasher, creating rapidly growing communities that trust in the “wisdom of crowds.” More importantly, sites like these can establish or obliterate the credibility of a retailer or a product in flash.

I’ve recently spoken with a surprisingly large number of product manufacturers, some in unexpected product categories, who are planning to undergo some sort of third-party certification or documentation to give their claims a credibility boost in the market. Product certifications and other documentation are increasingly important to retail and distributor merchandisers who process loads of product data everyday but don’t have the expertise or the time to independently verify all manufacturer claims. More often these days, the first question a buyer asks when being sold a green product is, “who says?” That’s a good sign, because many retailers and distributors I talk to are attempting the more difficult task of creating trustworthy merchandising programs for their stores and yards. The starting point and the foundation for these programs must be on building collections of quality, verified products that the sales staff understands with confidence. Those who get it right will inspire trust and have good reason to be optimistic about their future.

Self-Reliance is Back

(Published in the May '09, Merchant Magazine and Building Products Digest.)

When the First Lady planted the White House vegetable garden this spring, it did more than just promote home gardening. It harkened back to the Victory Gardens that were commonplace during the Second World War, when our society pulled together for the war effort, and our culture was imbued with the virtue of self reliance. And it seems that our culture, which has been criticized over the last generation as being both selfish and disposable, might be taking a taking a sharp turn toward self-reliance and sustainability. Anecdotally, this seems true. A friend of mine has forsaken anything packaged and has taken to making her own cleaning products, toothpaste and yoghurt. On a recent trip to Portland, I saw more rain barrels and front-yard vegetable gardens than I could count. Though I don’t know for sure, I’m inclined to believe that book sales for Emerson and Thoreau are on the upswing, as well. All this, of course, creates opportunities for the savvy retailer in our industry.

Let’s start with gardening. Not only were sales of organic gardening products up last year, but more households were growing their own food. According to the National Gardening Association, an estimated 36 million households participated in food gardening in 2008 and projected that number to increase 19% to 43 million households in 2009. In a separate report, they find that “9 out of 10 households, believe that it’s important to maintain their landscape in a way that benefits the environment,” although only about half are knowledgable about how to do so. That gap is the retailer’s opportunity – a budding population of food gardeners with a thirst for knowledge.

For those dealers with garden centers, (those without might reconsider), it should be relatively easy to source organic soils, plant foods, pest control products, and drip irrigation kits, as these product categories have been growing for years and most L&G distributors stock them. Seeds can be a different matter and here I recommend Seeds of Change, (www.seedsofchange.com,) who stock a wide variety of organic and heirloom varieties. Getting your staff educated is also a key component. In California, there’s a fantastic program called Our Water Our World, (www.ourwaterourworld.org,) a non-profit funded by state and utility grants that provides free training and education for store staff on pesticide-free methods for controlling typical garden pests. There are similarly focused non-profits and organic gardening organizations around the country, so they should be easy to find.

There’s lots more to household self-reliance and sustainability than simply planting a garden. For example, installing a rainwater harvesting system, which I wrote about last month, adds another key input toward the sustainable food garden. But along with inputs come the outputs, such as waste. Households generate lots of organic waste, with food scraps accounting for a big chunk of what goes to the local landfill, where it’s consumed by anaerobic microbes that produce methane, a green house gas that is 25 times more powerful than carbon dioxide. The solution is simple: composting. Composting organic waste produces a nutrient rich soil amendment, which every gardener knows is essential. There are some good composters on the market that look attractive on the retail floor, such as those from EnviroCycle, Terracycle, and the Earth Machine. Some, like the Green Johanna even work in cold weather and can handle meat and bones. An alternative to conventional composters is the worm bin, such as the Worm Factory, which works well for those folks without a yard.

Little “economic recovery” gardens, irrigated by rainwater, with soil amended by composted organic waste – a great story all around, full of merchandising opportunity for the savvy and self-reliant retailer.

Water Self Reliance

(Published in April '09, Merchant Magazine and Building Products Digest)

With April, comes Earth Day and a host of local events all over country and of every description, from creek clean ups to huge music festivals. The media is full of green stories and more people than ever want to know about green building, saving energy, solar and wind power, retrofitting, etc. But often overlooked and under reported is the water crisis and what homeowners and builders can do about it. While those in regions used to drought and limited fresh water supplies might be prepared, communities in regions just coming into drought could use some help in becoming more water self reliant. For retailers, this represents an opportunity to do well, and do good.

There are many products and practices available for reducing household water demand, many of which can earn sizable rebates. Highlighting these products, with signage that details benefits, cost savings and local rebates can boost your sales – make sure you have the rebate forms on hand. Weather sensing irrigation controller, such as Cyber-Rain (www.cyber-rain.com) offers a cool, internet-enabled product for both home owners and landscapers. Dual-flush toilets also qualify for rebates that can sometimes cover the entire retail price of the product. And Caroma’s (www.caromausa.com) new Profile Smart is 1.28/0.8gpl and even incorporates a sink on top of the tank, capturing and reusing that graywater for even greater savings.

Another water-wise strategy is rainwater harvesting, an emerging opportunity for retailers. Regions of drought and abnormally dry weather are spreading across the West, Midwest and South, so it makes sense to capture the water when it rains for use in garden irrigation and other non-potable applications. Innovative new products now make it easy for a home owner to install their own system, eliminating the mosquito and debris clogging problems of home-grown rigs. Starting at the gutter, RainTube, (www.raintube), offers an enclosed system the lets water in and keeps debris out. Next, cutting the downspout and fitting diverters is where many homegrown projects go wrong, but a slick new kit makes it easy to get it right. The RainReserve Diverter, (www.rainreserve.com), incorporates a filter, is mosquito proof, comes with tools and is made from recycled and biodegradable plastics. Once fitted, the home owner can use the RainReserve website to locate their own used barrel to reuse. A cool alternative to the barrel is the RainWater Hog, which looks like a piece from a giant construction set and is designed to be sited almost anywhere. An in-store display incorporating products like these with useful information about your local drought conditions and benefits of rainwater harvesting could prove valuable to your community.

For the slightly more committed, graywater systems and composting toilets are two other water conservation strategies that are gaining some mainstream momentum and are worth learning more about. Graywater systems capture and reuse water that’s already been used for bathing, cleaning, laundry, etc. Very often, local codes can be very restrictive, but they’re beginning to be reviewed and modified in response to current and forecasted drought conditions. Composting toilets, of course, use no water to begin with and that’s generating more interest in them. As people learn to overcome their fears and misconceptions about how they work, the retail opportunities will grow. And while the systems can be expensive, there are rebates available, and SunMar, a leading manufacture of residential units, offers a program for non-stocking dealers. Even better, a demo unit on your store floor would be a nice way to test the water, so to speak, in your local market.

Time for a Green Event

(This article appeared in the October '08 issues of Merchant Magazine and Building Products Digest.)

Fall is here. And for do-it-yourselfers, their attention has turned to pre-holiday home projects, like painting a room or making the house a little more energy efficient. For green builders, this is the season of two of the most important green building industry events, West Coast Green, in San Jose, California and Greenbuild, in Boston. West Coast Green happened in late September, (see what you might have missed here: www.westcoastgreen.com,) and has firmly established itself as a leading showcase for building innovation and education for pros and homeowners. Of course, the US Green Building Council’s Greenbuild Conference and Expo, coming up in mid November, (visit their website, here: www.greenbuildexpo.org) is the big green building event. So, with home projects and green building topics top-of-mind for many of your customers, it might be time to host a green event at your store.

Hosting a little green event in your store can bring in some of your best customers, as well as new customers. It can also bring other less tangible benefits including creating positive word of mouth, strengthened relationships with community leaders, and staff enthusiasm. The best part is that it doesn’t have to cost very much, especially if you elicit support from your suppliers and local organizations. Let me share some examples of what some of the best green retailers are doing on the West Coast.

Creating a workshop around a cool product or new building technique can bring in motivated customers. American Clay (www.americanclay.com), a natural plaster product from New Mexico is being stocked by a growing number of green retailers throughout the country. It’s a beautiful alternative to paint, but it takes a little extra know-how to apply it correctly, so the manufacturer and their dealers host workshops in the store. These little events cost virtually nothing to produce and have proven to be a boon for the retailers. Customers pay for the workshop, buy the product, and come back with their friends. A more traditional home improvement dealer in Northern California, Central Valley Building Supply, added the line last year and has hosted several American Clay workshops, finding that sales of other products get a boost, too.

Having a sexy, niche product can be an effective draw, but that’s not the only way to attract motivated customers. Virgil’s Hardware Home Center in Southern California recently hosted an event promoting water conservation. With support from the local water authority and their suppliers, they set up product demos and distributed rebate information, connecting customers to the right products for their project and the right rebate information for their community. Given that rebate information can be confusing to some people, it provided a real community service, saved their customers money and boosted sales.

There are other simple themes one can create an event around – one retailer I know offered 15% off for all women on a Women’s Day promotion and set up tables with information from local non-profit organizations promoting awareness of common household chemicals. The main point is to create an event that will be compelling in some way. But that’s not enough – you need to get the word out to your customers and influential members of your community. Have your cashiers hand out small flyers with every purchase for a couple of weeks in advance – print double-sided on recycled paper, of course. But most importantly, make a few personal phone calls to local green building advocates and community leaders and let them know what you’re doing. It boosts your reputation and will boost your business. Oh yes, and remember to have fun.

Walking the Talk: making your store a little greener

(This appeared in the June '08 issues of Merchant Magazine and Building Products Digest.)

The demand for greener product choices is clearly growing from both pros and consumers. Last month we talked about what makes a product green and how to identify them. Stocking greener products will help retailers take advantage of this growing business opportunity, but is that enough? Not necessarily. Advertising and other communications are essential, of course, but to effectively connect with the green customer, there has to be credibility behind the claims. If you, the retailer, are not “walking the talk” it may all be for naught.

Most everyone these days has heard the term, “greenwashing.” Cynical attempts to jump on the green bandwagon, misrepresentations of environmental claims, and hypocrisy are the kinds of things that earn the “greenwash” label and it can result in losing customers fast. So, what can retailers do to walk the talk and build lasting relationships with their new green customers? There are three really easy things a retailer can do to start building their green cred: 1) become a community resource, 2) reduce operational impacts, 3) increase staff’s product knowledge.

1) Many cities have programs in place that make it easy for retailers to become a community resource for recycling batteries, paints, and fluorescent lighting. Being a collection point for these kinds of items provides a valuable service to your community. These programs, whether through your local city government, utility or third parties, also provide opportunities to connect with local schools and non-profits that will be happy to promote the good work you’re doing. Make sure the store and lumber yard are recycling their own waste, and inform your pro customers about recycling on the job site.

2) Operational impacts are sometimes hidden from customers, but doing something in this area can save money and build brand loyalty, especially when your efforts are known. Change lighting from inefficient incandescents and T12’s to CFLs, LEDs and T5’s. Swap out your inefficient toilets for High Efficiency Toilets (HETs) and/or waterless urinals. These measures often come with aggressive rebates – take advantage! If your locality has a Green Business Program, participate!

3) Getting your staff educated about the greener choices on the shelf is the easiest of all to accomplish. Most manufacturers and distributors are more than willing to come into your store and educate your staff on the ins and out of their soy-based sealer, energy-saving-device, or zero-voc paint. Product knowledge sessions are a good way to get even your crustiest department heads on board and you can incorporate them into an in-store event.

There are other things retailers can do, of course, such as put solar panels on the roof or use bio-diesel in your delivery vehicles. The main issue, however, is that retailers that make a genuine effort to reduce the impact of operations, educate staff, and take advantage of community programs, while stocking greener products, will establish themselves as the green leaders in their communities.

What Makes A Product “Green”?

(This article appeared in the May '08 issues of Merchant Magazine and Building Products Digest.)

Last month’s Earth Day is now behind us and the media frenzy around all things green was truly impressive. Major retailers and manufacturers, from Wal-Mart to Clorox, sought to establish their “green” credentials, announcing initiatives, reformulated products, carbon offsets and renewable energy plans. As the news stories and advertising begin to subside, most of the rest of the retailing world is taking notice and asking what they can do to better address the rising demand for greener products and services.

In this, and future columns, we’ll seek to answer those questions in ways that help independent retailers in the hardware and home improvement channel win over new customers and reinvigorate relationships with existing ones. So let’s start with one of most frequent questions I’m asked: What exactly is a “green” product?

As with most questions of this sort, there are simple answers and slightly more complex answers. OK, simple answer first: green products pose no health threat to the user, are good (or at least not harmful) for the environment, and are made in ways that do not negatively affect the communities where they’re made or the workers who make them. This, of course, is an ideal that most “green” products approach but cannot attain if no other reason than most production and distribution requires energy in the form of fossil fuel, which carries with it some serious negative impacts in the form of air pollution and green house gas emissions.

So let’s look at a slightly more complex, more useful definition of what makes a product “green.” And to do that, we need to consider the context. Who’s buying the products in the first place? In our business, we generally serve two types of customers, building professionals and consumers, each with their own set of motivations and criteria.

For building professionals, the relevant context for products and materials are green building guidelines, such as LEED (Leadership in Energy and Environmental Design) from the U.S. Green Building Council (USGBC), as well as numerous local and regional programs. These programs define design and construction criteria that make commercial or residential buildings energy and water efficient, healthy, and with minimal negative impact to the environment, specifying material and product characteristics that earn credits, or points. Building projects that gain enough points are awarded “green” status, such Silver, Gold or Platinum in the case of LEED. Using lumber certified by the Forest Stewardship Council (FSC), for example, will earn LEED credits, as will using low-VOC paints, adhesives, and caulks, materials with renewable or recycled content, etc.

While the USGBC and other programs don’t identify specific product brands, other resources do. One of the best building product guides comes from Building Green, a well respected organization in the world of green building, who publishes the GreenSpec Guides. GreenSpec is also online at www.greenspec.com. These guides ostensibly cut through marketing noise to identify the best-in-class products for use in any green building project. If you’re a retailer with a strong pro customer base, GreenSpec is a must have publication for your buyers and contractor sales team.

For the consumer market, the task of identifying green products is a little more involved because there is no comprehensive program like LEED to guide product choices. A good place to start is with the consumers themselves. While green builders may be motivated by lower operating costs, enhanced rent and real estate values, or regulation, (building green is becoming mandatory in some communities,) consumers are increasingly motivated by concerns for the environment and personal health issues. It is this rising tide of shifting consumer attitudes that is powering the growth of Whole Foods, for example. These consumers tend to be skeptical of manufacturer claims, respond better to word of mouth than traditional advertising, and are willing pay a little more for a greener product.

Product certifications don’t yet exist to help us identify products in every category for the increasingly green consumers, but they’re catching up. Energy Star has been around for awhile, of course, with nearly universal recognition, and it’s expanding to include new electrical products, such as cordless power tools. The EPA recently introduced a similar program for water-related products called WaterSense, which covers High Efficiency Toilets (HET), faucets, showerheads and irrigation products. The growing popularity of organic foods and other products has helped to drive demand for organic supplies for the garden. Lawn and garden products that carry the OMRI (Organic Materials Review Institute) label have been certified to comply with the USDA’s National Organics Program. And of course, there are other products in these categories that would certainly be considered green but aren’t covered by these certifications, such as smart power strips that shut down phantom energy loads, solar lighting, water purifiers, and composters.

Identifying green product choices for the rest of your store gets a little trickier. Cleaning products, for example, is probably the most vexing category because there’s no trustworthy certification program and manufacturers are not required to disclose ingredients. Unfortunately, unverified claims can’t always be trusted and some claims, even if verified, might not be relevant. For example, a household cleaning product might be biodegradable, but may contain ethylene glycol, a chemical that studies have shown to be linked with reproductive harm. That’s obviously important since women are the primary users of cleaning products in the home. Non-profit organizations, such as the Center for a New American Dream (www.newdream.org) and Healthy Child Healthy World (www.healthychild.org) offer good background information on common chemicals and even make a few product recommendations.

There are a growing number of products coming to market that do represent greener choices for both consumer and building professional, outpacing the ability of certifications to keep up. By looking for products that conserve resources and promote healthier living, asking questions of your suppliers, and doing a little research, you can do a lot on your own to begin offering greener choices to your customers.