In order to increase your profits in any business, you have to be able to do one of two things. You either have to sell the same product or service to the consumer for more money, or you have to be lower your costs in some fashion.
In order to get consumers to pay more for your product, you need to justify the cost increase by making the product more valuable to them in some way, shape, or form. Lowering overhead can sometimes be a bit easier than justifying an increased price, but the most difficult part of cutting overhead is picking exactly what part of your production or operations you are going to cut money from.
For those of you who are of the mindset that you “can’t have your cake and eat it too,” you might want to have a look at the potential benefits that greening your business can have on your bottom line.
If you’re contemplating taking your business to a greener level, odds are that you’ve already got some of the pieces of the puzzle in place. It may only take a few minor changes to your facility or production methods to make your business worthy of being certified green, and that certification will give you the instant added value to justify a minor price increase.
Many green minded consumers are aware that operating a green facility requires upgrades that cost money and extra effort to ensure that waste materials are being recycled or disposed of properly. Just knowing that you are taking the extra steps necessary with your production, packaging, and clean up efforts to protect the environment will often be more than enough for green consumers to pay a bit more for your product, because you’ve managed to make a connection with them on a social level in addition to providing a valuable product.
Any upgrade to buildings and equipment will cost you up front, but a huge benefit of greening your operation is the cost savings that you’ll start to see once new, green equipment has paid for itself. A lighting renovation may cost a few thousand dollars to complete, but you’ll begin getting repaid on that investment the moment that your first utility bill arrives in the mail. Once the initial investment has been repaid, you’ll begin reaping the outstanding rewards of eco-friendly lighting.
The same effects can be seen in upgrading to greener equipment and vehicles – once the initial investment has been repaid, you’ll begin to see big benefits in your cost of operations and your overall efficiency.
Improving Employee Relations
The cross section of consumers who are looking for greener products from greener businesses is growing every single day. Odds are that you’ve got some green minded consumers on your very own work force. Those employees will very likely be happy to see you making the transition to greener operations and the morale of your workforce could very well improve.
Employees want to be part of a team that cares and that demonstrates compassion. By taking the necessary steps to ensure that your business is taking social responsibility, you can help to create a happier work environment and a more loyal workforce.
First image credit Vectorportal
Second image credit Detour Designables