Green and profitable: The Three R's of Green Business

As the economic situation continues to remain grim for businesses across the country and around the world, some companies are abandoning so-called green practices in an effort to save money.

What most of those businesses don;t realize is that truly green practices are are cost effective. A few require a long term perspective, but many offer short term savings as well.

This post is the first in a series of green business tips designed to transform your green business goals into more green in your pocket. Watch for a new idea or perspective on profitable green business every Monday.


The mantras of green is "Reuse, Reduce, Recycle"

It's a familiar phrase. We've all heard it. But are we getting it?

Many individuals and businesses only focus on the last part of that equation. And while recycling is a critical part of the green lifestyle, it's number three on the list

So what about one and two? Guess what? These are GREEN business practices that will save you money from day one!!

Think about it...

REDUCE

Switch from paper based project folders or memos to digital. You save paper, the cost of folders, toner, trash collection costs, and probably boost productivity time if you have documents that previously had to be re-keyed for edits or needed to be filed.

REUSE

Think of second uses for things. Or choose things that can be reused. The backs of used printer paper become notepads. Purchase second hand office furniture -- much of it is like-new. Replace disposable coffee cups with one real mug for everyone. Donate safe, non-toxic scrap materials to a local school's art program -- you may get a tax deduction! Shred incoming boxes to use as packing material for outgoing shipments.

Look around your business. See what can be reduced, without hurting morale or productivity. See what can be reused without affecting quality or safety. Solict input from employees to increase their buy-in and commitment.

Remember, recycling is number three. Save YOUR green first, with Numbers 1 and 2!

10 quick ways to be greener at work

Okay. no major lifestyle changes...these are 10 quick and easy ways to go greener at your company or home office. Each takes less than 15 minutes!

Tomorrow, 10 more for the house and car.

1) Instead of ordering printed business forms, get your business forms, employee forms and HR information online from sites like G.Neil.com, which offers lots of printable stuff like printable state-specific job applications. Time to make change: 5 minutes

2) Set your office computers to go into sleep or hibernate after hours, and use Wake on LAN to allow after-hours updates and remote access without wasting energy. Time to make change: 10 minutes

3) Next time you shop for breakroom supplies, replace the foam plates and cups in the lunch rooms with recycled/recycable paper and provide a recycle bin. Better yet, encourage people to bring their own mug and provide bio-safe dish soap. Time to make change: 5 minutes

4) Replace paper memos with electronic ones. Ban paper ones, ban printing the electronic ones. (Make the penalty for violation funny...like having to wear the paper memos pinned to one's shirt for the day!) Time to make change: 1 minute and some good laughs as people adjust to the new rules

5) Take out 10 light bulbs in your office and replace them with high-efficiency green light bulbs. Time to make change: 10 minutes, assuming no lawyers or other lightbulb joke participants are involved)

6) Install hand sanitizer stations in restrooms and breakrooms to reduce water and paper towel use. Time to make change: 10 minutes per station

7) Instead of placing a paper insert ad, spend 10 minutes a day promoting your company or product on Twitter, Facebook, LinkedIn or other social sites and networks. Time to make change: 10 minutes per day

8) Replace the toxic cleaners in your offices with green, safe versions. Or better yet, mix your own natural cleaners from things like baking soda and vinegar. Time to make change: 15 minutes or less per product

9) Send out a green tip of the day to employees (via the Internet, NOT on paper!) Encourage employees to submit their own green ideas and lifestyle changes to include in your list of tips. Time to make the change: 5 minutes or less a day

10) Change your subscription on two professional journals, bills or order confirmations from paper to online only. Do this once a week until everything that can be paperless is paperless. Time to make the change: 10 minutes a week

There you go! 10 quick changes, each 15 minutes or less! Ready, set, green!

Greener can be cheaper part three

Targeting needs, not marketing illusions

One of the great failings of the green movement in this country has been the failure to start the process by looking at where demand already exists but is not met, instead of trying to force a "green" version of products that may not have a significant market.

Creating and marketing a product not in demand results in:

Higher costs. The item needs to be advertised, promoted and otherwise pushed as "green." The potential buyer needs to be sold on your product, rather than happy to find what they already wanted.

More waste. High prices and low demand means more product will end in clearance racks, on discounter shelves and ultimately in the trash.

A bad reputation. The more green products are viewed as indulgent and overpriced, the more people will turn away from the green movement. That's bad for legitimate green manufacturers and providers, and ultimately, bad for the planet.


The lesson for would-be green businesses?

Make sure there is a demand
Check out the competition to verify that the demand is not being met
Find lower cost green raw materials or elements
Skip the gimmicks
Market your products at a price point that will encourage demand to remain high

Part two of greener can be cheaper

Co-op for raw materials

One of the biggest justifications for the higher cost of green products is the higher cost of organic or otherwise green materials.

One of the reasons for this discrepancy between the costs of standard and green materials is something called "economies of scale," a term that basically means that the more you use or make or grow or create, the cheaper it is per element.

The green world is no exception. But manufacturers seem to be forgetting this. Or ignoring it. Or perhaps just acting as though it doesn't apply to their product.

And that can be deadly to green businesses at all levels. Here's an example:

When a company decides to manufacture notebooks with recycled paper, they need to order the paper. Most green products have a limited run (more about why in a second.) So the company orders X reams of recycled paper, makes the notebooks. A price is set, based upon the materials and the perceived value of a green product at wholesale.

A wholesaler or a retail store gets the notebooks, and marks them up again to cover both the cost and the value-added of a green product.

They may also add in a factor to cover the cost of expected unsold product because of the higher sales price of green items. After all, they cost a lot more so people buy a lot less. That was the assumption from the start, when the run size was determined and the prices were set at each stage.

The problem is, that assumption is killing green products and green businesses!!

Let's start over.

The company who wants to make green notebooks finds other companies who are making green paper products. Together, these companies order a significantly larger amount of recycled paper. The paper manufacturer gives them a better price because it's such a large order(economies of scale).

The materials costs are now lower, so the price can be set lower. If the order for paper was large enough, it might be the same as or even lower than standard runs.

Now the notebooks go to the wholesaler or retailer. And because of the perceived value to customers and the lower wholesale price, they order many more. They may get an even better price. The cost to them is the same as a standard notebook, or at least close. Again, economies of scale.

A mark-up to cover anticipated unsold items isn't needed, because these notebooks cost the same as standard ones AND they have the appeal of being green. Easier to promote!

So now the price that the consumer sees is about the same as the regular notebook AND they have a good feeling, too. More notebooks sell, more are ordered and the cycle is in place.

Unless someone gets greedy and forgets that short-term gains equal long term losses, the notebooks sell, the costs remain low and the earth benefits. And we benefit.

For less.

Part one of greener can be cheaper

Step 1: Forget about the gimmicks.




A single baby blanket hand-tied with am organic hemp string before being adorned with a hand-lettered recycled paper diecut tag proclaiming its incredible greenness is cute...until you see the price. Is this product designed to improve sustainability for the average consumer or to allow the well-heeled shopper to congratulate themselves as they load this one perfect blanket into their SUV and head home to the 6000 square foot home for three people?

If the goal is to REALLY reduce waste and pollution and environmental abuse, a package of ordinary-looking baby blankets with an ordinary printed tag will reach far more people. Of course, the blankets can be green, whether that means organic or made without toxic dyes. And the labels and bags can be recycled materials. But because there is no need to shout, more people would buy them.

More demand would reduce the unit cost, as unit costs for manufacturing are higher for smaller runs. So even more people could buy green...probably many of them without even looking for green. And THAT is when green is real and not about show.