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.

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.

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.

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.