Green Spring Training

(Originally published in the March 2012 issues of Merchant Magazine and Building Products Digest.)

March is my favorite month.  Why?  Spring is in the air, at least in some parts of the country.  And baseball is just around the corner.  And now, some market research has come out demonstrating that green building is poised to lead this industry out of the doldrums.  Things aren’t back to normal, or back to a new and different normal, not just yet.  But if you’ve been working to bring your retail or wholesale operation into the green big leagues, this could be your breakout season. 

The study from McGraw Hill reports some interesting numbers that should inspire optimism.  The share of new single family homes built to a LEED or equivalent standard reached 17% and rising to about a third of the market in five years.  Builders report that marketing green homes is easier and the majority of customers are willing to pay a little more.  Among builders who are doing some green projects, 39% report that green work is having a positive impact on their bottom line, compared to 90% of builders who are fully dedicated to green.  There were similar results for green remodelers.

I want to focus on one takeaway from this.  The reason dedicated green builders and green remodelers report better results – and are looking forward to better prospects, too, I might add – is because they are focused.  They have the knowledge and skills, and therefore the credibility.  They know what they’re doing and they believe in it.  These are the companies driving green forward and these are the companies getting the bigger share of the projects.  If you’re looking to grow your green business, these are the pros you want on your team.

Given the strength of this trend, making green building an increasing focus of your own business is an obvious forward thinking strategy.  Equally important is building strong relationships with the leading green builders and remodelers in your market area.  This may seem obvious, too, but to build productive relationships these four key points are worth repeating.

First, be prepared to walk your talk.  No amount of schmoozing will win customer loyalty in this arena without expertise and knowledge to back it up.  Don’t rely on manufacturers and product knowledge to see you through.  Go the extra mile and develop internal expertise in LEED or other residential green building programs.

Second, go to them.  Don’t expect them to come to you.  Visit them at their office, their job site, green building association meetings, trade shows and conferences.  Most regions have a USGBC chapter or equivalent – join it.

Third, bring value to the relationship, right away.  If you can help them win a new project, introduce them to a talented new sub, point them to an innovative new solution, they will come to see you as vital part of their business ecosystem.  When this happens, they will start bringing value to you.

Fourth, dig deeper and find expert builders, remodelers, retrofitters with specialisations that make sense for you and your region.  Energy retrofitting, rainwater harvesting, green roofs, and solar are all hot areas – maybe they’re ripe for building new relationships, too.  Develop the right product categories they need, host in-store events, and develop referral programs.

At the end of the day, it’s the customer relationships that sustain any business, especially during lean times.  This industry is adopting green building at an accelerating pace and demand is showing signs of picking up.  It’s the leading builders and remodelers who are winning an increasing share of the business.  By getting together you can build a solid team and make this a winning year.

Boosting Sales With Green Paint

(This article was originally published in the July '11 issues of Merchant Magazine and Building Products Digest.)

The new normal looks to be a mix of fewer home sales, but more remodeling and redecorating. Meanwhile, all indications are that green products and materials continue to enjoy strong demand. And if customers are more discerning when evaluating so called “green” purchases, they’re also looking for more local solutions, or at least made in the USA, too. To me, these conditions paint a clear picture about how to change with the times and boost sales in the second half of the year. Yep, I’m talking about paint.

Let’s assume every LBM dealer sells paint and other brush-on coatings. By now, every dealer should have at least one low-VOC offering – low, as in 50 g/l or less. Nearly every major manufacturer offers at least one line, so there’s really no excuse. But making the minimum effort with one line of marginally “green” paint is leaving money on the table. The industry has matured and there are lots of good options available. Now that economic conditions have made a move toward more sprucing up, it’s also time to spruce up the paint department.

In addition to directly contributing to the top line, a strong paint department can bring in new customers and boost sales in other product categories, too. Therefore, evaluating and refreshing a strategically important category like this deserves an appropriate level of understanding and commitment. And every case is unique. So, there’s much more to say about this topic than I can squeeze into the remaining space of this column.

But with that caveat, there are two things to look at when improving this category: mix and merchandising. The product mix should have a strong anchor brand that will bring in customers and deliver credibility. While national manufacturers may have a quality low or no-VOC line and a suite of economic incentives to close the deal, it might be more beneficial to bring in a strong “green-only” brand, either instead or in addition. Brands such as Yolo, AFM Safecoat and Mythic have steadily built up big reputations with both health-conscious and sustainability-minded homeowners and professionals.

With an anchor established, fill in with niche products. With growing demand for non-toxic, all-natural products, adding a natural or clay paint line could make sense. Earth Paint or Ecos Paint might be good options. And for protecting the natural look of wood, whether walls, floors or exteriors, there are natural options, too. Vermont Natural Coatings, made with poly whey, and Rubio Monocoat, made with flax, are two worthy options, as is Penofin Verde, made from rosewood oil. There are more options out there, including ones from small local manufacturers that might be just the thing for the “locavores” in the community.

As with any good mix of new products, effectively merchandising them is essential. If you’re bringing in a new product line, work with the manufacturer to help with promotional pricing, advertising, and an in-store event. Just as important, make sure all your staff is fully briefed with relevant product knowledge.

Communications strategy is also important. Make sure advertising and promotional messages are aligned with current remodeling and redecorating trends - accentuate healthy living, comfortable home environments, and natural aesthetics. Point out that “green” paints deliver added benefits, such as having low or no odors, which should be important for the pro customer, too. In the store, create hang tags, signage and end-cap displays that get people thinking. And finally, don’t miss obvious cross selling opportunities. For example, put natural paints together with non-toxic putty, reusable drop cloths and recycled paint trays.

Practical Green Merchandising

(This piece originally appeared in the April 2011 issues of Merchant Magazine and Building Products Digest.)

Choosing winning product lines and getting them into the hands of customers is an art that, when practiced well, makes good merchants great.  The last few years, there’s been a rush by manufacturers to get their green innovations to market.  Many are going to be clear winners and will make a difference in transforming the built environment.  Unfortunately, along with the rush has been the slapdash - products presented as earning LEED credits, or being less toxic, or ecologically benign, when they are not.  Whether by deliberate deception or honest mistake, green washing has created confusion and skepticism in the market. 

It’s not so easy to pick green winners, but there are practical steps that merchandisers can take to reliably evaluate the green-worthiness of any product.  In general, the goal is to identify merchandise that meets certain criteria, both yours and your customers’.  There are a variety of product certifications and, of course, LEED and other green building rating systems provide relatively clear criteria.  But there is no master green products list to go by, and no matter how comprehensive, certifications and building rating systems are not going to cover all the product categories stocked in most stores and yards. 

But if you’re willing to roll up your sleeves and “green it yourself”, there’s another way to look at whether the merchandise you choose to sell is green worthy.  Start by asking:  Does it harm or benefit the environment? Does it pose health risks or promote healthy lifestyles?  Are communities positively or negatively affected in its manufacture?  Does it work?  Will it sell?  These questions should take in the entire lifecycle of the product, which includes looking at the impacts relating to raw materials, manufacturing process, distribution, use and disposal. 

The broad categories addressing human health and safety, ecological safety, and social responsibility provide the background for more specific product criteria and attributes – a partial list:

• Energy – products that conserve energy, produce renewable energy or are made from renewable energy sources. 
  
  
• Water – products that conserve water usage, especially the use of fresh, potable water, also product alternatives that don’t pollute water sources or aquatic eco-systems.
  
  
• Toxic chemicals – products that are made with non-toxic or least toxic, low risk chemicals and other components.
  
  
• Healthy and sustainable practices – products that contribute to healthy and sustainable practices, such as rainwater harvesting, composting, etc.
  
  

The evaluation process starts with the manufacturer who should provide credible product information, preferably with third-party documentation supporting their green claims.  That may not be enough.  Consult with independent experts and review third-party information on the internet, too.  There are several helpful databases online that will show what’s known about specific chemicals.  Comparing products in the same category will help to identify the “greenest” in class.  Finally, there must be a judgment about whether or not the product does the job and will sell – get a sample, take it for a test spin.

If the green merchandiser is defined by product selection, he or she is also defined by products not selected.  There are plenty of useful products for which there may be better or greener options.  But there are also junk products for which the only “green” option is that they simply not exist.  Every dealer in this supply chain has experience with junk, if only by accident.  These are products so poorly designed, manufactured so cheaply, and are so obviously heading straight for the landfill that they cannot be justified no matter how low the price point.  Eliminating the worst junk from inventory is not only practical, it’s also a virtuous step toward sustainability.

8 Great Projects for Greening Operations

(This article originally appeared in the March 2011 issues of Merchant Magazine and Building Products Digest.)

Want to be leader in the green building arena? There’s no better way than to demonstrate your commitment and know how by actually implementing projects on your own facility. Anyone can stock certified merchandise. And it’s easy to put out a few green hang tags on the shelf or signage proclaiming your eco virtues, too. But to really set yourself apart from the “me too” crowd, build valuable relationships with other leaders in the industry, and save money in the process, you’ve got to walk the walk. These days, it’s a little easier than it used to be. Depending on the type of project there may be government incentives available or a relatively motivated local bank ready to finance something with a solid green profile.

1. Energy retrofit – Make your facility energy efficient with better lighting, insulation, and mechanical systems. Then add renewable energy generation, too. Undertaking this kind project will pay dividends for decades to come. In the short run, build valuable relationships with those firms doing the work. In the longer term, as energy prices continue to rise, enjoy predictably lower costs.
   
   
2. Living roof and/or living wall – Installing a living roof delivers multiple benefits, including saving energy and giving your team experience in a young, fast growing market segment. Combine with water recycling systems for additional “wow” factor.
    
3. Cool roof – If you’re not ready for solar panels or a living roof, think about this: if the roof isn’t white, you’re might be paying too much for air conditioning. Paint it white, save energy – it’s that easy.
    
4. Water recycling – At first glance, conventional financial models may not make the quantitative case for water efficiency projects – water prices are kept artificially low. But if you’re operating in a region with stressed water resources, taking steps to reduce your demand can set a powerful example for your community. There may even be rebates available. Install HET toilets, rainwater harvesting and gray water recycling systems, and gain valuable experience you can use to promote these green practices to your customers, too.
    
5. Recycling for batteries, fluorescent lights, paint, electronics, etc. – This may prove to be more difficult than it sounds, especially if there’s no local, infrastructure, but will be well worth it in the end. These products contain toxic heavy metals and other components that pollute ground water. There are a variety of programs available benefiting a range of non-profit activities.
    
6. Zero waste – Reducing the waste generated at your facility will engage both staff and customers, and may reduce your waste haulage bills, too. Remember the Three Rs will help you get there – Reduce, Reuse, Recycle.
    
7. Replace portion of parking lot with community vegetable garden and bicycle racks – Don’t discount this project as being impractical or too costly. There will be plenty of people in the community willing to lend a hand. Encouraging bicycling reduces the carbon footprint associated with your facility. Planting instead of parking does the same and can provide fresh vegetables for employees, customers, or members of the community in need.
    
8. Shorten supply chain – Sourcing product and materials closer to home reduces transport costs. Depending on where manufactured, imports may already carry a high carbon footprint because of inefficient coal-fired electricity generation. On the other hand, local products can earn LEED credits for local building projects and, generally, will appeal to a growing number of customers preferring products and materials made in the USA.

Universal Green Product Database? Yes, Please!

(This piece originally appeared in the February 2011 issues of Merchant Magazine and Building Products Digest.)

I sound like my grandpa, but today’s green merchandisers never had it so easy. Back in my day – 2005 – there were few residential green building programs or product standards to consult. Online lists and databases of verified products were sparsely populated and behind the market. When I was asked to develop a green merchandising program, it was a challenge we met only by doing lots of extra work vetting products ourselves and assembling our own database. Though our methodology would be easy for non-experts to implement, the burden on a typical merchandising department is simply too great.

Thankfully, the last several years have seen tremendous maturation in the green building sector. The trails have been blazed and today’s merchandise managers have a growing number of information resources at their disposal. But trails are trails, and until sustainability is a fully mature, mainstream superhighway, (ironic choice of metaphor, I know), successful merchandisers must still invest time in evaluating their green product choices. There is still no universal green product database. On the other hand, there are a small number of valuable online resources that make the process of identifying “greenest in class” products a little easier.

The GreenSpec database from BuildingGreen.com has been one of the most trusted sources of green product information for years. The editors evaluate products against their own stringent criteria and avoid accusations of favoritism or bias by not accepting advertising or listing fees. It’s not a comprehensive list, but the products listed are often best in class. BuildingGreen offers news and analysis, too, and is a valuable resource that every dealer and distributor in the green building space should utilize regularly.

In the recent past, a common criticism of green building rating systems organizations is that they failed to provide relevant product information, also. Wisely, both national residential green building programs are developing their own green product information resources. The NAHB is creating a database of products that the NAHB Research Center has evaluated and approved for use in their National Green Product Standard program. However, it is virtually useless at this stage with a clunky interface and only a handful of products listed.

Alternatively, the GreenHomeGuide.com, founded in 2003 and acquired by USGBC in 2008, is not a simple directory of products. The site is based on expert advice delivered as focused “Know How” pieces or as answers to inquiries in the “Ask a Pro” section. Providing this kind of contextual information about products and materials can be extremely valuable for gaining knowledge about the category, alternatives, performance, and installation issues that simple databases will not provide. While it offers no product directory, per se, it does link to the GreenSpec directory.

There are other product lists and directories worth a look, too. Product certifying organizations, such as Scientific Certification Systems (www.scscertified.com), list certified products on their websites. But the need for reliable, transparent product information is huge and still largely unmet. New online directories have emerged to try to fill the gap. One of the best designed attempts to provide a LEED-oriented directory of products is EcoScoreCard.com, but it’s still too young to be comprehensive.

Green building culture values transparency and third-party verification, which has led to greater focus on life cycle analysis (LCA) and environmental product declarations (EPD) as a standard method for manufacturers to communicate the sustainability profile of their products. If widely adopted, such standardized product data would make development of a universal database feasible. That’s exactly what’s needed in order to create mainstream scale at the retail end of the green building supply chain.

Oil Dependency and the LBM Supply Chain

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

The oil spill in the Gulf of Mexico is a huge environmental calamity, but it should serve as a wake up call for the LBM supply chain for another reason. Why? The spill will certainly have an impact on local economies and local LBM dealers. But the spill is emblematic of a much bigger issue, the end of cheap oil. And that will shape the future of this industry, bringing tough challenges and green opportunities.

Many analysts are pointing out that most, or all, of the world’s easy oil has been extracted and what’s left is vastly more challenging, energy intensive, and expensive to get – pumping oil from 5,000 feet deep on the floor of the Gulf is but one example. Meanwhile, according to a US Department of Energy report, new oil discoveries are lagging consumption. And some analysts have pointed out that the point of peak oil production may have been reached, or may be reached soon.

Peak oil, as the phenomenon is known, is based on the work of a Shell Oil geologist, M. King Hubbert, who showed that just as an oil well reaches a peak in production long before the oil deposit runs dry, so too, does an oil producing region have a peak in its production curve. Once the peak is reached, production volumes flatten out, then decline. Add the fact that worldwide demand for oil is growing, (car sales in China and India are going through the roof!), and if we are at or near a peak oil situation, then oil prices will surely rise and perhaps very rapidly.

The LBM supply chain is predicated on cheap transportation costs. When fuel prices rose dramatically during the summer of 2008, many distributors and dealers took hits to their already thin margins. While that price spike was due, at least in part, to Wall Street speculators, it provided a taste of what an expensive oil future will bring – higher transport and commodity costs, and marginal businesses going bust.

So, how can you prepare and create resiliency within your organization? First, start shifting your own product mix. Identify those products most vulnerable to rising oil prices and find better alternatives such as local and green products. This will also help you meet the rising demand for such products as the green building movement continues apace. Look especially at those solutions that help your customers, (or their customers,) become more sustainable or self reliant. Also, find opportunities to supply a greater range of need within your community or operating area. If gas prices rise dramatically, your customers will be looking for one-stop shopping.

Dealers and distributors should also be actively seeking ways to reduce gasoline or diesel use within their own operations. Electric vehicles or diesel trucks that run on locally-sourced waste cooking oil might be viable options. Increasing drop ships, from manufacturer to dealer, or from distributor to end-user, will help, too, but only marginally.

Finally, get involved in community efforts to create local resiliency to oil energy shocks. Transition US, (www.transitionus.org,) is a new and growing network of groups throughout the country – 69 at last count – aiming to find ways within their own communities to reduce their dependence on oil. Groups like these are gaining influence with local policy makers, and their efforts naturally support green building and like-minded local businesses. Your involvement will help you identify emerging opportunities, make important connections within your community, and get support for reducing your own oil dependency.

Taking Stock of Your Green Stock

(Originally published in the January 2010 issue of Merchant Magazine.)

There’s an old bit of business wisdom that goes something like, “you can’t improve what you don’t measure.” It seems appropriate to spend a little time thinking about that. For one thing, it’s January, a natural time to assess where we are, resolve to make improvements and chart a course for the rest of the year. For another, it’s a fundamental principle underlying every serious sustainable business initiative. It’s a simple formula: identify the right things to measure, create benchmarks, set goals for improvement, monitor performance, and adjust as necessary. Whether the economy in 2010 comes roaring back or stays about the same, it’s clear that there are revenue-boosting and cost-saving benefits for companies that get serious about sustainability.

As merchants, the core business is all about the product mix with basic metrics tracking sales, velocity, inventory, etc. Assuming staff is trained and products are merchandised well, these metrics can be useful for identifying the poorest performing SKUs to eliminate and which categories to strengthen. But to address the needs and desires of the growing number of “green” customers, these metrics fall short. How many of your products would contribute to LEED credits? What percentage is Energy Star rated or would qualify for rebates? Which products are heavy energy consumers or contain the most toxic chemicals? And where are they manufactured – locally or the other side of the planet?

Some “big box” retailers and major mainstream product manufacturers have benchmarking programs in place and are mobilizing their marketing teams around them. For example, WalMart introduced its Supplier Scorecard a couple of years ago and last year announced its Sustainability Index Consortium, an effort to define standards for a variety of product categories. They’ve also announced goals to reduce packaging and increase the number of green products on the shelves. The Home Depot rolled out its EcoOptions program in 2007 with 3,000 products and announced a goal of increasing that number to 6,000 by 2009. Their website claims to have sold over one billion such products since the program’s inception. Proctor & Gamble also announced an initiative to benchmark chemicals used in their products with a goal of reducing toxics. All of these efforts have garnered positive press and “greened” their respective reputations.

The basis of those kinds of goals and marketing claims are the assessments, but these kinds of programs, and their benefits, are not exclusive to big companies. My firm recently helped a group of much smaller companies create green product criteria against which we characterized about 250,000 individual SKUs. The result is a starting point from which these companies can create meaningful business goals, merchandising programs, and marketing campaigns. More importantly, they now have a new set of metrics that will help them measure performance and progress toward their goals.

Imagine a dealer or distributor who wants to become the energy efficiency leader in their market, but they have no idea how many Energy Star, or other energy-saving, products they already sell. They’re literally in the dark with a meaningless, maybe even dubious, goal unless and until they know their starting point. Only after assessing their product mix, can this imaginary dealer resolve to double the number of Energy Star products, properly train and incentivize staff, and begin to make the marketing claims that would lead them to their goal. For real-world dealers and distributors, the benefits of such benchmarking could lead to greater sales, deeper organizational knowledge, and competitive advantages. By any measure, that’s not a bad way to approach the new year.

Get Ready for Green Home Builders

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

This year may be remembered for its gargantuan financial meltdown and economic crisis. It may also be remembered as a foundational year for green home building for two big reasons. First, energy and water conservation are more important issues than ever before. With government incentives, such as rebates and weatherization financing, and water rationing looming in some regions of the country, energy and water efficiency are top of mind concerns for home owners and new home buyers. Second, green homes are selling faster than non-green homes. This has been borne out by research conducted by various local green home building programs, but a recent press release from the US Green Building Council indicates that new homes meeting the LEED for Homes standard built by Pulte in Las Vegas, are selling about twice as fast as their conventional homes. The LEED for Homes program is barely a year old and already there’s a ten-fold increase in new homes slated to be certified this year. With production home builders now taking notice, you can bet that a dramatically larger percentage of new housing starts will be green.

If a rebound in new home construction will be led by green, how can retailers position themselves to benefit? To get a broader perspective on this question, I organized a virtual roundtable discussion with some green building professionals. It seemed everyone wanted to talk about LEED for Homes and rising consumer demand. Why? While it’s not necessarily a good fit for every project, it’s a national standard and a strong brand, which is especially good for production builders. New home buyers are already looking for energy efficiency and healthy indoor air quality, so a credible national green certification for homes will help builders sell their green homes quicker, which is what we’re already seeing. And to meet the growing demand for green homes, the new professional credential, LEED AP + Homes, is rolling out this year, which will dramatically increase the number of professionals working in the area. This is precisely where retailers should take notice.

“Retailers who are serious about serving their pro customers need to get themselves educated about the changes transforming the home building industry,” says Michael Strong, president of GreenHaus Builders (www.greenhausbuilders.com) of Houston, Texas. He was one of the first to build a LEED for Homes project, 2008 NAHB Green Building Advocate of the Year, and has been building green for years. He recommends retailers have at least one staff member go through the LEED AP + Homes training and to bring the rest of the staff up to speed – floor staff and buyers. “Nothing’s more frustrating than to spec a product, educate my supplier, only come back for a second purchase to find they no longer stock the product because they didn’t understand it,” says Strong.

Education and training was also a main theme for Heather Gadonniex, LEED AP, and president of sustainability consultancy Green it Group, (www.greenitgroup.com.) “When I meet with major retailers or distributors looking for help in getting into the green building market, I find there’s enormous confusion about green building guidelines and product certifications,” she says. Part of the blame must go to product manufacturers whose sales and marketing people often add to the confusion. But retailers must ultimately know about the products their pro customers want and develop the expertise to anticipate their needs as technologies, green building guidelines and product certifications evolve. “Retailers should look for products from manufacturers who provide back up documentation to support the validity of their green product claims and, when necessary, obtain third party certification,” says Gadonniex.

While LEED for Homes is a national standard, it includes credit for locally produced materials and innovations appropriate for local conditions. Of course, there are also local and regional green building programs that very often offer a simpler alternative for local builders. According Clarke Snell, author and principal of Think Green Building, (www.thinkgreenbuilding.com), a green and natural builder in North Carolina, thinking local is the right approach. “Building for local climate conditions with locally produced materials is what builders should be focused on, therefore it should be the focus for retailers, too,” says Snell. “Selling FSC certified lumber products from the other side of the planet just doesn’t make sense.” While sourcing locally might be hard for big box chains, it could be a valuable differentiator for knowledgeable independents.

My Winter Solstice List

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

While the events of the last few months have been monumental, stimulating an enormous volume of concerned thought and conversation among friends and acquaintances, citizens and economic actors, spinning out the various scenarios for economic recovery, change in government, and the sacrifices we may all have to make in the coming year, my thoughts this time of year naturally turn to the cool stuff I want. I admit that sounds a bit shallow, selfish and not really all that “green”. But in this case, the products on my wish list are really innovative, green, and maybe even virtuous.

First on my list is the WaterMill, from Element Four (www.elementfour.com), a product that produces clean, fresh drinking water from the air. Fitted to the outside of a home, this nifty little device condenses the water vapor in the air by drawing it through an air filter and over a cooling element. The droplets of water collect, up to 13 quarts a day, then pass through a carbon block filter and an ultraviolet sterilizer, before going onto a dispensing point inside the home. Performance will vary with local air conditions – very humid air yields more water and dry air less. Aside from an obvious appliance for any off-the-grid shelter, imagine the usefulness of the WaterMill in a drought or post-disaster situation. After a hurricane or earthquake, solar-powered WaterMill stations could provide some relief.

Continuing on the theme of self-reliance, the second product on my wish list provides free heat from the Sun. The SolarSheat from Your Solar Home, (www.yoursolarhome.com), is a do-it-yourself thermal solar heating solution for a single room. It’s well designed, and simple, so that virtually anyone can perform the installation and get it right – a first, or near first, for a renewable energy product. In colder climates, space heating comprises a large part of a family’s energy budget, which means that the SolarSheat can save money, too.

There’s another product on my list that will also save on home heating bills: ThermaProof™ Windows from Serious Materials, (www.seriousmaterials.com), a super insulated, exceeds EnergyStar requirements by 400%. Energy efficiency will be a hot issue across a range of product categories in the coming year, but these windows have already staked out a significant performance lead over their nearest competitors. It’s a result of Silicon Valley innovation getting together with green building know-how – the products are produced in Sunnyvale, CA. And they didn’t stop with windows, as they also produce ThermaRock, an energy-saving alternative to drywall, and will soon launch EcoRock, another drywall alternative made with 85% recycled content and manufactured with 80% less energy.

Last on my list is a nifty little water saving device that can turn virtually any residential toilet into a high-efficiency dual flush. It’s called Perfect Flush from Brondell, (www.brondell.com), and it seems like a perfect solution for generating big water savings without having to tear apart the bathroom. The retail price is significantly less than buying and installing a new toilet, and there will likely be rebates available in the near future. It’s well designed and easy for just about anyone to install correctly. Finally, it’s customizable so the user can dial in the most appropriate water flow for each flush.

These innovations are cool and functional, but they're tip of the iceberg, so to speak, with hundreds more cool new innovations in the pipeline. They also represent some important new steps toward water and energy conservation in ways that promise an exciting new year to come.

GHG and Retail

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

When the topic of green building comes up in our industry, it usually starts up the debate about certified lumber. SFI or FSC? Which is better? Is chain of custody certification worth the trouble? The questions are valid, but the debate is essentially over and has become a distraction from understanding the real issue driving the green building movement. Carbon. It may bring as much change to the hardware and building materials channel as the “big boxes” did decades ago. Let me explain.

The green building movement continues to gain solid support from state and local governments. Solid? San Francisco recently passed mandatory green building guidelines that are the most stringent in the nation, but it’s not another example of West Coast eccentricity. What’s driving the green building movement on the West Coast and the rest of the country isn’t some “tree hugger” ideology, but a science-based approach to curbing green house gas (GHG) emissions, which includes carbon dioxide.

The building industry accounts for nearly half of all green house gas emissions, which includes both embodied energy – the energy required to produce the building materials and move it to where its needed – as well as the energy required for operations, such as lighting, heating and cooling. (See www.architecture2030.com for more information on this, as well as really nice graphics that illustrate the depth of the issue.) Cities and states are focusing on green building related policies as one strategy for limiting GHG emissions because that’s the sweet spot.

A major component of every green building program concerns energy usage. Adding renewable energy, like solar or wind, can earn a building project lots of green points. So too, can adding a host of energy saving features. While federal rebates for solar may end soon, most pundits predict a future that includes more rebates for renewables and energy saving products, coupled with ever stricter building codes. In fact, there is a movement afoot to set the green building standard at carbon neutrality, or zero-energy, well before 2030.

This increasing focus on energy and carbon reduction will create business opportunities and threats. Ikea recently announced their intention to sell solar panels and other home energy products in the next five years. Is this a sign of some big changes headed for this retail channel? Could be. New products in the pipeline will make it easy for do-it-yourselfers to install small-scale solar and wind systems for room additions, out buildings, etc. There’s lots more new energy saving products coming our way, too. Because these products deliver big margins, it’s attracting the attention of retailers like Ikea. And because “alternative energy” is becoming mainstream, established “alternative energy” retailers, such as Northern California’s Real Goods, are seeing tremendous growth opportunities. It’s a sure bet that in the years ahead there will be new retailers focused on meeting the demand for carbon-free energy and challenging traditional home improvement/hardware dealers in that category.

What will all this mean for traditional home centers and building materials retailers? For those that are energy savvy, the new wave of carbon-busting products will add growth to the bottom line. Retailers today that have a solid lineup of Energy Star products and, perhaps, a relationship with a solar installation outfit, have a head start and will be well positioned to take advantage.

Merchandise and Merchandising

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

As far our industry is concerned this economy is absolutely abysmal, but there is a silver lining. The only aspect of our little corner of GDP that seems to be moving in the right direction is green building, both in terms of projects in the works and the products that go into them. In past columns, we’ve talked about a variety of things you can do as a retailer to take advantage of this growth. Now, we turn our attention to the core issue: selecting and selling quality green products.

If the goal is to stock green building products your customers want, it will help to know a little about green building guidelines. For our purposes here, we can generalize what guidelines call for and categorize the products according to resource, energy and water conservation; and indoor air quality. Sourcing products and materials locally is also a plus.

Here’s a short list of green building products everyone should probably stock:

• GreenSeal certified, low-VOC paint
• Low-VOC, formaldehyde-free adhesives, caulks and sealants
• Formaldehyde-free, recycled content insulation
• Energy Star lighting – fixtures, CFLs and LEDs
• EnergyStar ventilation
• High-Efficiency Toilets (HET) – more than one model!
• Tankless water heaters

One can go much farther, of course. There are hundreds of green building products one could put on the retail floor, too many to talk about here. And probably you already have many of the less obvious ones, such as pipe insulation. But once you’ve source them, you have to sell them.

The first big question most merchandisers pose is whether or not to put green items in their own section, end-caps, or mix products in with the rest. It’s a good question and generally the answer is, “Yes!” A large home center in Northern California, Friedmans Home Improvement, has 20 feet of shelving at the front of the store with a broad sampling of green products, in addition to end-caps, and mixing the green products in with their conventional brethren. Since most people shop by category, the green products must be found with the other product in their category, along with appropriate signage. Segregating green products into green-only section is a recipe for failure. On the other hand, adding end-caps to highlight a product line or a solution, such as green paints, recycled rags, and recycled paint rollers, is generally good retailing practice for promoting any sort of product.

I mentioned signage above, and there’s more to say about that. Since we’re talking about selling green building products, it’s important to identify them on the shelf for your customers. Shelf talkers that indicate whether a product meets green building guidelines are simple enough to produce. Adding posters and banners that call attention to green building products, the fact that you have them, where they can be found in the store, prompting questions, etc., all contribute to creating a positive selling environment.

Finally, if you have contractor sales desk there are several little things you can do here that will make a big difference. First off, educate your sales staff about the guidelines in your area and the products you sell. Have them ask each customer that comes to the desk about their interest in green building and what you’re doing to help them. Second, have at least one binder at the desk with product literature for each of the green building related products you stock and those you can source through special orders. Third, have signage on the desk that talks about what you’re doing, brochures about the local green building program.

Get Connected: building community around your store

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

For generations, the hardware store was a focal point in the community, where folks could get great advice, discuss the issues of the day, or catch up on the latest gossip. Obviously, things have changed as “big box” retailers have muscled in and literally changed the landscape. And it seems the bigger “the box”, the less community connectedness. In contrast to that disturbing trend, a recent report from Conscientious Innovation, a sustainability think tank, found that consumers ranked feeling connected to family and community as their most important sustainability issue. Also ranking high was the desire to support locally-owned businesses. These results lead to an important insight - forging deep connections within your local community just may be one of the greenest ways you can grow your business.

Last month we talked about things you can do to “green up” your store’s operations, suggesting that offering CFL, battery and paint recycling provides a valuable community service. Recycling programs provide convenience to your customers, but deliver something more important to your community. By diverting toxic waste, such as mercury that accumulates in the food chain, from the local landfill where it can leach into the ground water, you demonstrate a concern about the health and well being of your patrons.

But to get really connected with your community, you’ve got to get involved. Contact your local green building organization - it might be a city agency or a local non-profit – call them on the phone as soon as you’ve finished this article, go to their meetings, and let them know you want to be involved. This will get you access to valuable know how and help you connect with local green building leaders. Most cities with green building programs embrace interested retailers and will even include them in promotions. In San Francisco recently, the city took out ads in the local paper promoting the local hardware stores stocking green building products.

But don’t stop with green building, connect with other non-profit organizations. If your store is locally owned, join the Business Alliance for Local Living Economies, or BALLE, (www.livingeconomies.com). BALLE’s mission is about building community through local business networks. They can help you build the “buy local” advantage in your market. Don’t forget to support your local schools and parent groups. Making a small donation of organic compost for the school garden, participating in their fundraisers, sharing information about non-toxic alternatives – those small ways of showing your support will help to build long-lasting relationships. There are probably other organizations in your area that are focused on protecting local watersheds and bays, wilderness areas or providing job opportunities for young people. Find out what your staff members are interested in and encourage them to get involved, too.

You should also consider participating in local green events where you can educate your local community members about what your store is doing to make less-toxic, environmentally friendly, and resource conserving choices available. Better yet, host a green event at your store. If you’ve gone out and developed relationships with local green building and other sustainability organizations, you should find no shortage of enthusiastic help. Enlist the aid of your local green product manufacture and distributors, as well. After all, they are an important part of your community, too.

Getting connected with concerned community groups will make you feel good about offering eco-safe and non-toxic alternatives. It will also build your reputation and generate excellent word-of-mouth referrals, bringing new appreciative customers into your store. You can do good and do well and that’s what getting connected is all about.