It takes two to tango (Episode Six)

Let’s say that a certain eco-friendly product went through all the first stages: it made it to the possible-alternatives list in the consumers’ minds, its features were relevant and interesting enough to generate desire. A number of people are willing to buy it (yay!)… what happens next? Well, there’s a huge chance it will be more expensive than the traditional version, and price does matter when we make a purchase decision.

There are two main reasons for the higher prices to happen. The first one is related to how young green products are if we compare them to their old equivalents: whenever a new service/product/knowledge/technology sees the light, it will be more expensive than the existent options. Maybe it’s because of lack of scale, maybe it’s because it’s exclusive and niche-oriented, but the point is that it takes a while for its price to lower and to make the good comparable to other possible choices.

The second reason could be simply stated as “It’s expensive to be sustainable”. Companies that are really committed to living up to sustainability standards have to invest a lot of money and time supervising their own operations, their suppliers’ and their commercial channels’. This might involve:

• Making sure their suppliers and distributors don’t have underage employees.
• Buying raw materials that are certified by competent authorities that ensure there’s not overuse of a certain resource.
• Modifying their production processes in order to reduce the amount of energy used, reduce their emissions, and treat effluents before discharging them.
• Redesigning distribution routes in order to reduce carbon emissions from the trucks.

... and so on and so forth. So it’s not that crazy that part of that cost is eventually transferred to the final price. There are people willing to pay a premium for this, but let’s face it, not all of us would. However, price is sometimes tricky and can include a benefit that can't be seen at first sight. Energy efficient lamps last way longer than the traditional ones, and help cutting electricity bill amounts down. This last feature is also valid for other appliances, such as efficient washers and TVs.

There is one more potential barrier: what if you go to the store looking for a particular item and you don’t find it? Chances are you’ll feel disappointed and buy a substitute, and perhaps won’t try to find the green option in the future. That turns you into a huge lost for the company, because you went through the whole purchasing process, and the lack of availability ruins it at the very end of it. It could get worse if you decide to tell other people what happened to you and they also feel disinclined to give green a chance. Bottom line: availability is just as important for eco-friendly options as for any other kind of product.

With this sixth episode we’ve gone through the whole purchasing or selling process, depending on where you decide to stand. I hope you enjoyed the ride so far, and that you come back for some final comments!