While “sustainability” has become something of a buzzword in the IDC—as in other sectors—in recent years, the term means different things to different people. Reflecting this diversity, independent dealers have been rising to the challenge in different ways, adopting new and varied strategies to help reduce both their own carbon footprints and those of their customers.
Sourcing choices at 1st Source
Sustainable products account for 30 percent of Minneapolis, Minnesota-based 1st Source’s $8 million annual sales. The dealer’s largest customers in the category are casinos, movie theaters and food service establishments; while top-selling products include food service disposables and chemicals.
“In food service, we’re seeing market share increase, especially for environmentally friendly options such as clamshell to-go containers, straws and cups,” reports CEO and president Greg McLeod. “In chemicals, we are seeing significant growth in probiotics—chemicals that contain beneficial bacteria. Unlike many ‘forever chemicals,’ probiotics continue to work overtime: you can put them in a urinal or down a sewer drain and they will keep on breaking down clogs and blockages for 28 days. We are also working to position ourselves in front of PFAS as more states are creating mandates to eliminate them, much as they did combustible products 10 or so years ago.”
McLeod admits when it comes to sustainable products, there’s been some trial and error: “The first paper straws were horrible; everyone hated them.” Today, however, there are biodegradable straws which no longer disintegrate as you sip your drink. He also recalls how the grease would soak through the early iterations of clamshells, made of bamboo; and the cure at the time wasn’t much better than the problem—some manufacturers sprayed the containers with a chemical that prevented leakage but was harmful to human health. According to McLeod, it took a while, but the company has since found shells that are both leakproof and chemical-free.
Another product that has suffered from slow uptake is the 100-percent compostable cup. Here, however, the problem isn’t a design flaw. “Think of the number of cups casinos or sports arenas go through,” McLeod explains. “The cups perform okay, but they haven’t reached a doable price point, so customers aren’t beating a path to our door for them.”
In fact, price is often the main deterrent to sustainability sales. “Selling sustainability is a delicate balance and for some it comes down to price,” McLeod acknowledges. “We try not to preach, so if customers want to buy Styrofoam, we try to educate them without being sanctimonious. But sometimes it’s just what they can afford.”
1st Source has found that customers tend to think about sustainability in phases. “A lot of companies make the switch in steps, starting with recyclable, then biodegradable, then compostable,” McLeod elaborates. And equally, manufacturers tend to take it one step at a time, based on everything from demand to availability: “One of our suppliers makes biodegradable products out of sugar cane, which has to be shipped from Hawaii and other regions where it grows. Now—although I’m not sure of its success so far—the company is making some products out of elephant grass, which can be grown in regional areas and on land that’s too poor for more traditional crops.”
“Sustainability is a way to differentiate yourself from the big boxes, but how important it is depends on the company,” concludes McLeod. “But there are definitely customers who want to know if things are sustainable and PFAS-free, and many of the younger generation expect it, so I see demand continuing.”
EVs at EZ
At EZ Office Products in Madison, Wisconsin, sustainable products account for about 35 percent of sales. Midsize entities large enough to offer food service—such as schools, factories and other facilities with a kitchen—are the major purchasers in the segment.
“Sustainability is our ethos; it’s a way of life, our way of doing business,” enthuses vice-president Gary Molz. “We look to reduce our carbon footprint in everything we do. We run our business 100 percent on wind power. We know what an impact sustainability can have. We look at the bigger picture. We look for ways to help our customers and community be more sustainable.”
This philosophy is also behind the company’s recent purchase of a 100 percent electric delivery vehicle.
“It wasn’t a decision made overnight—we’ve had our eye on an alternative fuel vehicle for over a decade,” explains Molz. “We considered an EV made by International Harvester that came out 10 years ago, but it could only travel 45 miles between charges and was five times more expensive. The technology has since evolved and EVs are becoming more practical. So, we kept looking and found that GM manufactured a delivery truck under the name BriteDrop in Canada; but for whatever reason, the sales weren’t there. So, they rebranded it as a Chevy and started sending them out one at a time to Chevy dealers. We are the first in the area to have one, but I think they will become popular. It’s met all our safety and sustainability goals. We’re proud of it, as it is another step in our sustainability journey.”
Molz lists some of the EV’s key features: a long-lasting battery; a 300-mile range between charges; and a cargo area design that accommodates shelving, “like a traveling warehouse.” Safety features for drivers include six cameras, seat adjustability to a range of positions and relative quiet compared to gas or diesel engines. As for fuel savings, Molz says it’s too early to gather data on this metric, but he expects costs to be significantly lower.
Measuring on the Richter scale
Richter Total Office, Souderton, Pennsylvania, is another fan of the Chevy BrightDrop and has already racked up savings since its introduction. The company made its purchase before the incentives to invest in EVs were repealed by the current administration.
“The credit was a huge incentive for us to buy when we did and losing it really hurts,” laments president Andy Richter. “We saved $23,000–24,000 thanks to the credit, so we got an $80,000 EV for under $50,000.”
And according to Richter, the benefits just keep on coming: “We are saving 60 percent in fuel costs—around $6,000 a year. We are also saving because there’s little maintenance. We still have to rotate tires and check brakes; but there’s no engine, no transmission, no oil changes, no emissions. The battery has a 100,000-mile or three-year warranty, which will last us about eight to 10 years. And most of our routes are under 120 miles, so there’s almost zero risk of running out of energy. Today we drove it 135 miles and still had 20 percent battery left. And getting a charging station wasn’t expensive—about $1,400 for the charger and installation.”
Like Molz, Richter also raves about the BrightDrop’s shape and storage capabilities. “It’s really an actual delivery vehicle. The side doors slide open and it’s easy for our drivers to get in and out. Since there’s no engine, there is also storage up front. It’s much more functional than our other eight vans and two box trucks. I would recommend the vehicle 1 million percent—even without the tax credit, considering the fuel savings plus low maintenance.”
BOS-ing the three “Rs”
In Chicago, Illinois, BOS (Business Office Supplies) has focused its sustainability efforts on helping customers recycle, reuse and refurbish furniture. In fact, the company has enjoyed so much success in this area that it has opened a separate company, AOI (Affordable Office Interiors), to handle it.
“When BOS clients redo their offices, they often have leftover furniture that can be reconditioned or repurposed,” explains president George Lucas Pfeiffer. “We send in our decomposition team to let them know their options. Some of it can be reworked in their new office or we can sell it in AOI’s showroom. Some companies, especially smaller ones, don’t have the capital to buy new or may have short-term leases. Other clients are driven by sustainability, since it’s really good to repurpose furniture so it doesn’t end up in landfill.”
This helps companies reduce their carbon footprints and hit their environmental targets: “We can issue an environmental impact report for them, to show the impact repurposing their furniture has, so they can show it to customers, employees and other stakeholders.”
Pfeiffer goes on to outline the multiple advantages of repurposing furniture: “Sometimes, used furniture can be reworked for the new office; or if AOI sells it, the customers can receive a credit. It also means they don’t have to pay someone else to remove and dispose of it. For us, if we can install a new office and remove and resell the used furniture, we not only make money but also make it easier for customers to choose us, since we offer a complete package. Being sustainable also helps us internally. It is part of our DNA—and increasingly, people want to work for people and companies that care about the environment.”
And for those in need of new items, BOS sells more than 350 furniture lines and can thus help steer eco-minded clients toward the most sustainable manufacturers on the market.
The sustainability forecast
The dealers we interviewed all believe sustainability will be crucial for the IDC in the years ahead.
“For dealers looking to get into selling sustainability, I recommend starting slowly and using your networks—people like me, who have gone down that road—so you can avoid the mistakes we have made,” advises 1st Source’s McLeod. “I have yet to meet a peer who is not interested in helping. Also, do your research look on the Internet; do a quick ChatGPT search. Talk with vendors—and especially your customers—to find out whether they are interested and how important sustainability is to them. I am also a big believer in samples. I have found people are more willing to buy when they can touch a product and see it in action.”
Pfeiffer suggests a major component of selling sustainability is working out how best to tell the story: “We don’t manufacture furniture, but we can help clients understand where they can be more sustainable. Dealers can add sustainable options and learn how to guide interested customers toward them to generate more business.”
Both Richter and Molz see EVs gaining popularity, while Molz extends his faith in sustainability beyond the product itself. “Independent dealers are the very definition of sustainability,” he explains. “In 100 years, I doubt we’ll be selling a lot of pens; we don’t know what we will be selling. We don’t know what the future will look like. But as independent dealers, we are not stuck. We can decide what we sell—and we will be selling whatever people are buying then.”
Lisa Veeck is associate editor of INDEPENDENT DEALER and owner of Clean Communications, a full-service content-generating firm specializing in office products, cleaning and maintenance, and healthcare industries. She can be reached at lisa@cleancommunications.biz or 773-484-7412.