The Business Aspects Of Going Green
By Mike Sawchuk, Vice Presdient and General Manager, Enviro-Solutions
In previous articles we have touched on the green of going Green. But many of you (building service contractors – BSCs) wonder if there is any money in going Green? Will it help you market your company and services? Will it cost you more to go Green and will the customer pay for it?
If you are concerned about these issues and others that relate to the financial aspects of going Green, you are not alone. Nor should you feel any guilt about asking these questions. We are all business-people, and whenever a business changes course or implements new systems or products, financial issues are very much a part of the process.
Recently, I was asked to address these issues. Below are some of the questions and my answers regarding the business case for Green cleaning.
Does it cost more to go Green?
The simple answer is that the cost to implement Green cleaning can range from being cost-neutral to costing considerable sums of money. Switching from conventional to environmentally friendly chemicals is mostly cost-neutral. Even though some Green cleaning chemicals may cost a bit more initially, remember these chemicals are highly concentrated, often designed to last longer than comparable non-Green cleaning chemicals.
As to costing considerable sums of money, this usually happens when the BSC must replace equipment such as vacuum cleaners, floor machines, carpet extractors and so forth in order to meet Green criteria, such as those established by the Carpet and Rug Institute. To help minimize the cost impact, many BSCs change to more environmentally responsible tools and equipment as older ones reach the end of their life cycle. This is especially true of vacuum cleaners.
If we use no Green cleaning products now, where do you suggest we start?
Examine what products you are currently using and which appear to be performing the best along with those that appear to cause such health problems as headaches, eye irritations, respiratory issues, red or rash skin, etc. Then ask your jansan distributor to help you find products that perform well, but without the harmful health affect.
From here, realize that going Green is a journey, not a destination. The key is to start and not stop until all products are Green, implementing Green cleaning practices, products and policies into other areas of your client’s facility. For instance, consider such things as microfibre clothes, mops and high-performance entrance matting systems (you may need to convince your clients to switch).
Microfibre is a more efficient cleaning tool, ergonomically friendly, which can help reduce the amount of cleaning chemicals used as well as water. Advanced entrance matting systems keep soil trapped; reducing the amount of cleaning necessary, thus reducing cleaning’s impact on the environment.
A next step would be vacuum cleaners. Although you can wait until the old machines wear out, many BSCs report that vacuum cleaners that have earned the Green Label from the Carpet and Rug Institute (CRI) are actually better built, longer lasting machines. As investment in these machines can pay off rather quickly.
How do I convince the customer that Green cleaning is necessary?
Just recently, the president of a major cleaning company in the New York/New Jersey area (United States) said most of her clients now request the use of environmentally preferable cleaning products and systems. This tells me many customers, especially larger facilities, are already moving in this direction and need little or no further ‘convincing’.
However, and again we are discussing the green of going Green, studies have come out that show our customers’ businesses can profit by going Green. According to the Shades of Green study by the Green Building Alliance, PNC Firstside Centre in Pittsburgh, a 650,000 sq. foot financial complex, reported a 26 per cent drop in employee turnover where Green cleaning was implemented. This is a huge savings for employers.
Another study by William Fisk, Health and Productivity Gains from Better Indoor Environments, indicated that productivity gains as a result of Green cleaning translate into an estimated savings of $0.58 per sq. foot. For the Pittsburgh financial building, this could be a savings of as much as $400,000 annually.
Further, studies indicate that Green companies have marketing and recruiting advantages. According to George Denise of Cushman & Wakefield, a property management and real estate company, “For a publicly traded company, social and environmental responsibility ratings by independent agencies can mean millions of dollars in value.”
He went on to say that these companies also attract the best college graduates.
Other reported gains that can also convince customers that going Green is to their economic advantage include:
• Some facilities report reductions in operating costs and insurance liabilities.
• Some government agencies in both the United States and Canada offer government incentives to go Green.
• Commercial office buildings report it helps them attract and keep tenants.
• A Green Building, especially if it has been LEED* certified, is usually viewed as a superior operated building, increasing its value.
What about attracting new customers? Will going Green help us in our own marketing and business growth?
At one time it was believed that providing Green cleaning helped a BSC stand out among its peers as a more technologically advanced company. Now many cleaning companies, large and small, offer Green cleaning. And because of this, firms that do not offer Green cleaning are being left behind.
In this sense, it is still a marketing tool. What BSCs must do is not only market the fact that they use Green cleaning products and systems, but also use this to show they add value to the facilities they clean. Cleaning is no longer an expense – but an investment. By hiring a Green cleaning company, they are reducing their own costs, improving worker productivity, reducing turnover, improving property values and enhancing the overall health of their facilities. What’s more, this makes you and your firm the Green cleaning experts in your city and a more vital part of their business operation, which can translate into improved customer retention.
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