Want to Stay in the Black? Try Going Green
Consumer Preferences Steadily Shift To Earth Friendly Businesses
Until recently, most American businesses had just one motive: to make a profit, preferably a big one. If that meant wasteful manufacturing processes, superfluous packaging and other practices that led to deforestation, toxic waste, and excessive greenhouse gas emissions, then so be it. Consumers didn’t seem to care as long as they got the product or service they needed.
That business paradigm, however, is changing quickly. And if you haven’t felt its effects yet, you soon will.
That’s because as concern for the environment and sustainable living continues to grow, consumers are showing significant changes in attitudes and buying preferences. Businesses would be well advised to adapt their practices swiftly or risk being left behind.
The Right Thing to Do?
In other words, GOING GREEN, is going to become central to a business’s profitability in the coming years. Why? Customers are starting to demand it. Recent polling shows 80% of American adults expect that businesses should be mindful of their environmental impact in the products and services they offer.
Forty-four percent surveyed believe damage to the environment caused by business practices is a very important issue and 18% think it’s extremely important. In all likelihood, for a growing number of your customers, living green and buying green is now the RIGHT thing to do.
Obviously, simply offering your product or service isn’t going to be good enough anymore, especially if you’re perceived as being indifferent to, or worse, as harming the environment and collective societal health in the process. If your business isn’t as green as it could or should be in just a few years time, then even the most vigorous “only profit matters” mentality isn’t going to save you.
Rewards Growing for Greenies
On the other hand, the rewards for making your business greener and more sustainable will be increasing. The market for green products and services is estimated now at $209 billion. That figure will only continue to grow as environmentally astute consumers seek out businesses that share their values. By gradually becoming a greener business, you eventually will sell more products, add more value and enhance your reputation over competitors who reject a more sustainable approach to doing business.
Surveys indicate that many consumers already are willing to pay a premium for greener products. Yet even large discounters such as Wal-Mart are getting on board with green practices. In its relentless efforts to cut costs, Wal-Mart has insisted on a more efficient, sustainable supply chain, thus reducing energy and transportation costs. Aveda, which makes a range of hair and skin care products, has gone to greener packaging (using recyclables) and biodegradable materials, and incorporates organic ingredients into its product lines.
So what can you do to begin the process of greening up your business?
- Commit your business to sustainability
Get educated on the issues and opportunities. If you’re starting a business, design it from the beginning with sustainable elements and products in mind. When it’s time for a renovation, introduce sustainable elements and practices. Use recycled materials, increase natural and low energy lighting as well as low VOC paints and carpets and solar power if possible. Reduce your waste, water consumption and overall energy use. If you operate vehicles, introduce hybrids or alternative energy units (compressed natural gas) to your fleet. All these things will increase your credibility with customers. Not only that, you may actually cut costs by adopting greener practices. - Offer greener products and services
Look for a “green need” in the marketplace and fill it. Make sure your offerings are truly green, made with environmentally friendly materials and packaged in like manner. But make sure your products work and are competitive with alternatives. You may have to educate your customers about the value of your sustainable products and services. If you’re charging a higher price, the customer must feel that it’s worth it. Also, do some local market research and see who’s on board and who’s missing the boat when it comes to sustainability. - Get the word out
Once you’ve introduced greener products, services and business practices, tell your customers and your community about it. Highlight your sustainability on a WEBSITE, create a blog, issue press releases, get involved with or even sponsor “green” community events. It’s important to show that you are not only offering quality products and services that customers value, but that you are being environmentally responsible and helping solve a problem that affects us all.
Written by Scott Wigton