Green issues are once again front and center in many buyers’ minds. We look at how to make money AND save the planet at the same time!
by Lisa Veeck
Hurricanes caused by record warm water temperatures. Blazing heat searing much of the nation. Wildfires running rampant in the West. There’s no question: Mother Nature is not happy. As a result of these extreme climatic events, sustainability is slowly moving back into the spotlight, prompting many independent dealers to wonder if this time, the trend is here to stay.
Historically, sustainable products have often been far more expensive and less effective than their traditional counterparts. More recently, the COVID-19 pandemic brought sustainable product sales to a virtual standstill as customers and dealers scrambled to get hold of whatever personal protective equipment (PPE) and hygiene supplies they could from wherever they could. However, many dealers suggest that today, with the pandemic more or less behind us, the sustainable trend is not just returning but picking up speed.
Evolving trends
David Guernsey, president and CEO of Guernsey, Inc., Dulles, Virginia, is one of them: “We saw interest in sustainable products fall off the train during the pandemic. Manufacturers stopped producing the products because they weren’t profitable. There was no demand for them—or for much of anything besides PPE—during the pandemic; and as sustainable products made up a small part of most manufacturers’ product lines, they were one of the first things to go. But since the end of 2023, we’ve seen significant renewed interest. Everything from paper with recycled content to water bottles—anything with a recycling component has taken off.”
Guernsey goes on to suggest that location may play a role in this: “Our market is in the Washington, DC area, and I think there is more interest here than elsewhere. We have a presence in Harrisburg, Pennsylvania and Norfolk, Virginia, and the demand there is not at the same level.”
According to Greg McLeod, president and CEO of 1st Source Business Supplies, Minneapolis, Minnesota, sustainable products account for $3 million of the company’s $8 million annual sales. About two-thirds of those sales are in the upper Midwest, with the remainder in the Midsouth. Some of the most robust sustainable segments for 1st Source have been food service and entertainment, including movie theaters and casinos. While the company offers a broad range of sustainable products, one top seller is per- and polyfluoroalkyl substance (PFAS)-free food service containers.
“We recognized the dangers of PFAS five years ago, with them causing cancer and showing up in everything from bloodwork to breast milk,” says McLeod. “They are called ‘forever chemicals’ for a reason—they stay in the body forever. We knew there were containers made with bagasse [the fibrous waste product left over after the juice is extracted from sugarcane or sorghum stalks]. To make them more grease-resistant, the containers were sprayed with PFAS. We kept looking and now sell one made of bagasse and bamboo. It is 100 percent environmentally friendly and PFAS-free.”
Earth-friendly cleaning chemicals are also big sellers for 1st Source. “We sell Betco environmentally friendly chemicals with probiotics,” continues McLeod. “We recently contracted with a movie theater chain that was having issues with the cleanliness and hygiene of some areas, including restrooms. The problem is that often, workers will mop the area, but the offensive substance gets into the grout and resurfaces quickly, along with the smell. Probiotics eat the bacteria, removing both the source and the smell. The cleanliness and hygiene last a lot longer. It feels good to sell something environmentally friendly and cost-effective that works great.”
Nicole Mairena, principal and owner of Office Solutions, Yorba Landa, California, has also seen an uptick in interest in sustainable products since the pandemic, but acknowledges: “We are not there yet. In furniture, we are seeing some sustainable fabrics, such as those made with 100 percent post-consumer materials. Overall, many people care, but sustainable products often cost a bit more and companies are still dealing with inflation. The customers we find most interested in sustainable products are the design firms and many of them try to sway their clients toward them.”
Mairena compliments manufacturers for pushing the envelope in this regard: “More manufacturers are coming out with more sustainable products and their manufacturing processes are also becoming more sustainable. It’s easier to sell the concept when manufacturers, dealers and clients all want to move in that direction.”
However, sustainable sales are slower at McCartney’s, Inc. in Altoona, Pennsylvania. “Our market doesn’t care too much about sustainability—not like they do in a place like California,” reports Tracey Baker, head of the sales, design and marketing departments. “We have a lot of industry here and it’s a rural area, so there’s not as much money. Generally, sustainable products cost more.”
Finance director Randy Green chimes in with an example: “We offer carbon-neutral furniture that is only a 5 percent upcharge and are disappointed the market hasn’t been quicker to embrace it.” More positively, he adds: “Many furniture manufacturers are closing in on having their operations become net-zero emissions and carbon neutral. The industry is moving in that direction.”
Both agree that some demographics are more environmentally committed than others. “Penn State University is one of our more conscientious customers,” Baker says. Green elaborates: “The younger generation is more conscious of the environment, but most aren’t in decision-making roles yet. This will transition over time.”
And Baker acknowledges that time isn’t the only issue: “Our area has trouble keeping younger people here, so there are fewer younger people to move into those buying positions.”
Obstacles to uptake
Most dealers agree sustainable products cost a bit more, which is arguably the most significant challenge. “It’s a great revenue generator for those customers that care, but you have to find the right people,” cautions McLeod. “Most 1st Source customers have moved 100 percent away from Styrofoam, but it’s taken five years. Our experience has been it’s a tough sell for companies on a tight budget because foam containers are incredibly cheap. At this point, we only sell foam as a last resort and we don’t stock large quantities, so if they need truckloads, we are not a good source for them.”
It’s a similar story at Office Solutions, where Mairena emphasizes durability to cost-averse customers: “We explain that cheap furniture ends up in landfill in two to three years and needs to be replaced sooner. We encourage them to spend a bit more on a better-quality chair that is more sustainable because it will last 10 years or more. If a company just wants to check off that it has a chair for each employee, it probably won’t care and will buy the cheaper chair. But companies that are passionate about their projects know the health and wellbeing of their employees and ergonomics and sustainability go hand in hand.”
Yet even the most promising sustainability efforts can be derailed. “On some projects, sustainability sounds good and the customer gets excited about it; but after all the changes, the project can go from 50 percent sustainable furniture to 25 percent,” explains Mairena. “On the other hand, if a company wants a project to be, say, 60 percent sustainable, we can find the items so it achieves its sustainability goal.”
At McCartney’s, location is once again a factor here. “There’s a difference between DC, LA and Chicago and rural areas like where we are,” admits Green. “Here, the cost of living is up to 70 percent less, but that means 70 percent less income and profit for companies. So a five percent cost increase can be significant.”
Meanwhile, Guernsey suggests limited awareness is another obstacle: “Understanding and responding to questions about what is recyclable or what is sustainable can pose a challenge. You need to provide factual information, which means a different conversation. There are many sustainable products and claims. What’s the difference between 50 percent and 30 percent recyclable paper? The answer is there isn’t really a meaningful difference, although 50 percent costs more. You need to be able to answer these questions and offer suggestions that make sense for customers looking to improve their sustainability.”
Less is more
While most dealers acknowledge the ubiquity of Amazon today, few see it as a significant threat in this category. In fact, many shine a searching light on Amazon’s multiple deliveries and individual packaging for customers keen to reduce their carbon footprint.
“McCartney’s makes one complete delivery to the customer where Amazon might make five or six,” says Green. “Consolidated deliveries provide a more sustainable solution.”
Guernsey agrees: “Customers care about carbon footprints and have some angst over Amazon’s order sizes and delivery schedule. It’s not like you see a lot of Amazon deliveries being made with electric vehicles.”
Enduring sustainability
So how can independent dealers help promote a greater understanding of, and demand for, sustainable products? “We use manufacturers as a source of knowledge,” reveals Guernsey. “We have them present regularly to our sales staff and have them explain sustainability in a way that ensures our reps can then explain it to customers. There are other sources, like the internet, but manufacturers are more granular and have more to share. And if the sustainability trend continues to grow, we will all need to learn more about it.”
McLeod has three top tips: “First, you don’t need to be an expert. There’s a learning curve; if you wait to become an expert, you’ll never sell. Second, work it into every conversation. Ask what the customer is doing in terms of sustainability. This will tell you pretty quickly how they feel about it—like if they just say, ‘Send foam.’ But no harm, no foul: either way, it shows you are more than just an order taker. It also plants a seed for you to revisit next year, since things change. Lastly, I probably shouldn’t give this advice away, since it works so well for us, but in the spirit of helping other dealers: samples, samples, samples! Get things in the customer’s hands. You can talk about a product all day, but people are tactile. Give them a sample to try.”
Meanwhile, Baker recommends: “Pay attention to the market. Listen to your customers’ needs and move along with them. You can make changes in sustainability because you care, but if you are not in sync with your market, it won’t go well. Not recycling is one of the seven deadly sins in my home, but you can’t expect all customers to jump on the trend.”
Green concludes: “Attempt to lead by example. You can suggest new approaches to sustainability and set a good example with your efforts. You can give them product choices that are more sustainable and explain why they. But ultimately, the customer will decide what to buy.”