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An interesting article caught my eye in the September issue of Progressive Grocer. The article titled, EXCLUSIVE: Ring Bros. In-store Experiment to Turn Waste Into Power, struck a familiar chord with me as a marketer.
Many ask how community-based independents can carve a place out for themselves—or even survive--in today’s super-charged, highly competitive marketplace, so this might give small business owners something to chew on.
In a nutshell: Ring Bros. is an independent grocery store in South Dennis,Massachusetts—on beautiful Cape Cod. The owner decided to test a new bioenergy technology in its store for two very good reasons:
• To save money and turn its organic waste into energy
• To increase revenues by selling surplus power to other businesses in the same shopping plaza; and to sell nutrient-rich compost, a natural by-product, to farmers.
The gist: the retailer received a $195,000 grant from the Massachusetts Technology Collaborative’s Renewable Energy Trust, an organization that develops and promotes clean energy. A system will be installed next spring using “anaerobic digestive technology” which breaks down organic waste and emits methane gas in the process. The gas can then be utilized to power a turbine, generating electricity.
Not only will Ring Bros. store recycle all of its own organic waste, save on costly locally-generated electricity and make money on the by-products; the retailer will no longer have to pay to have its garbage trucked away—consuming less fuel in the process.
While this new system will not rid the retailer of non-organic waste, it is estimated that Ring Bros. will save substantially on its waste management spend. In the grocery business, where margins are razor-thin, and profits measured in pennies on product offerings in many instances, these savings will go to the retailer’s bottom line.
Now it seems to me there’s a real marketing opportunity here. As some Daily Fix readers may recall, I posted a blog entry in August titled Marketing a Green Business. When businesses take measures to become more environmentally friendly, it’s not a bad idea to let the consumer know about it.
For independent, small businesses, marketing the higher level of service they offer the customer (hopefully they do!) along with a legitimately greener position, ought to strike a very positive chord in their communities.
What kinds of initiatives do you think small businesses can take to stake out their unique positions in today’s competitive marketplace?
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Comments
Ted,
Here are my suggestions for Ring Bros:
1. In-store signage sharing the news.
2. Handouts available at the entrances.
3. A press release.
4. An event in which they give some or all of the money earned on energy resales and compost sales to a local charity or community effort.
Posted by: Lewis Green | 10.05.07
Lewis,
All great ideas. I would hope that the local newspaper and radio stations would also be interested in interviewing the owners at Ring Bros to spread the news. . .and maybe generate some ideas for other local businesses. Thanks for your great suggestions, Lewis.
Posted by: Ted Mininni | 10.05.07
Hi Ted,
Very intersting post. Con-incidently I am thinking for my new business along the same green ines. BUt the costs of getting my product(bio-friend;y) out is far more than the products(which are non-recyclable/degradable), which I am looking to replace. WHat other ways can I explore i terms of additional revenue channels to cunter the costs without increasing RRP?
Posted by: hersh | 10.06.07
Hi Hersh,
Good for you--looking to launch a more environmentally friendly alternative to like products in the marketplace. You don't mention what your product is, but I would suggest you approach a number of manufacturers to get the best possible pricing. Then you might look into programs at state and local level that might support your efforts, and even offer you some tax or other incentives. That will help your profitability greatly. As to retail pricing, I hear what you're saying about not wanting to price your product beyond what the market will bear. However, most consumers are aware that green products command a premium price. . .you will have to position and market your brand and product in such a way that consumers understand the rationale for the pricing.
Good luck with your product launch, Hersh, and thanks for writing.
Posted by: Ted Mininni | 10.08.07
Great post.
We have locally owned, small chain here in Portland called New Seasons Market (http://www.newseasonsmarket.com/)
that has a pretty loyal following. They could do even better if they did some of these things. I think I will send a link to this blog entry to them through their Web site.
Posted by: Neil Anuskiewicz | 10.08.07
By the way, I got an *outstanding* response back from New Seasons. Their customer advocate even CC'd the CEO and President in his response. I am now even more loyal to my local grocery store chain. :-)
Hello Neil,
Thanks for passing along this really interesting blog. New Seasons Market is always looking for new and different ways to operate in a sustainable manner. The entire process of “anaerobic digestive technology” sounds very cutting edge and I am sure Brian, our CEO, and Lisa, our President, would love to know about this exciting technology.
New Seasons Market is already taking proactive steps to reduce the waste we produce. An exciting program that highlights our commitment to sustainability is our Green Team Program. New Seasons Market is always looking for new ways to reduce, reuse and recycle and our employee-led Green Teams deliver. Our Arbor Lodge store piloted the program and went from having two dumpsters to just one. For a grocery store to cut their waste in half is a huge achievement in this industry.
Currently the city of Portland is looking into ways to reduce the use of plastic bags and New Seasons Market has been invited to offer input into the situation. We are very happy to be involved in the process and hope the end result will help reduce waste across the city. You can learn more about other programs, like our Customer Recycling Program, by clicking here.
The Green Team Program, our efforts with the City of Portland and our customer recycling program are part of a larger picture that promotes sustainability not only in our stores, but also in the lives of our customers. We appreciate you passing along this interesting idea.
Best regards,
Daniel
Daniel Garcia
Customer Advocate
New Seasons Market
2004 N. Vancouver St.
Portland, OR 97227
Posted by: Neil Anuskiewicz | 10.09.07
Hi Neil,
This is terrific. It is just this kind of grassroots effort, in so many cities and towns, large and small, that make a difference. Your initiative with your local grocery chain proves the point. It's even better that they responded to your sending them the link to this post. It speaks well for New Seasons Market that they're on the lookout for ways to become more environmentally sound in their business practices. Kudos to you, Neil, and to your favorite market.
Posted by: Ted Mininni | 10.09.07
Ted,
I wrote back to the customer advocate and CC'd the President and CEO.
I said that Daniel's response was outstanding and had won them a customer for life.
Posted by: Neil Anuskiewicz | 10.09.07
Well done, Neil. When consumers and companies work together, much can be accomplished. And when consumers take the time to notice and appreciate what their local retailers or service providers are doing in a positive sense, don't you think it spurs them on to do even more in the same vein? We're talking human nature, here, after all. Who doesn't respond to a bit of appreciation?
Posted by: Ted Mininni | 10.10.07
Yes, I agree 100%.
That is why I sent the email. Frankly, I expected a sort of form letter but I was impressed with a response that was both fast and obviously involved some thought.
Posted by: Neil Anuskiewicz | 10.10.07
Oh, and yes my writing a follow-up indicating that I was very impressed with them was great. It is human nature to like encouragement and know you are appreciated.
Who knows, maybe I made someone's day at New Seasons?
I like to make people feel good with sincere compliments or comments. I do it all the time. It is *always* sincere and specific.
I always get to know people at stores and coffee shops I frequent and say hi and maybe make their day slightly more enjoyable by being cheerful and funny.
Posted by: Neil Anuskiewicz | 10.10.07
Neil,
I like your approach. We as consumers are quick to disparage companies that fail to meet our expectations for quality and service, but when do we give positive reinforcement to those that do something well? Of course we vote with our wallets, loyally purchasing their products or services. But feedback is very important. Note the ongoing discussions about the importance of blogging and social media as a way of connecting more closely with consumers. Marketers are eager to solicit unbiased consumer opinions and feelings about how they're doing. Establishing dialogue is so important in that regard.
Also: choosing to make someone's day by smiling or acknowledging them is a nice M.O., Neil. Maybe you've given DF readers some ideas, here. . .
Posted by: Ted Mininni | 10.11.07
Yes, I hate to sound trite but I think it is the least I can do to give something back to this world that has given me so much. Enough to eat. A roof over my head. A relatively happy life.
So I try to add to the good energy in the world a little bit each day and minimize adding bad energy. There is no shortage of that.
Posted by: Neil Anuskiewicz | 10.11.07
Ted/Neil,
I like the tenor of the conversation you're having. Maybe I'm getting more introspective as I get older, but I agree that we all need to be a little less harried in our lives and stop and smell the roses. Being pleasant and appreciative makes for happier people--and I think the world could use a lot more of that. Instead of complaining about all kinds of little stuff, we ought to just stop and reflect on all of our blessings and maybe reflect it outwardly. I don't mean to preach, but there are just too many negatives out there right now.
Posted by: Claire Ratushny | 10.11.07
Well said, Claire, I think Richard Curtis (the screen writer) has a good quote on this topic: the media reports a bullet but not a kiss.
There are a lot of good things going on in the world every day. We can choose to add to that.
I have absolutely no doubt that if somehow the this meme really took off, there could be a tipping point in the right direction.
Posted by: Neil Anuskiewicz | 10.11.07
btw, to be accurate, the quote from Richard Curtis: "The media report a bullet but not a kiss."
Posted by: Neil Anuskiewicz | 10.11.07
Neil & Claire,
I think you're demonstrating how to use social media and blogs in a positive way. Let's hope that good ideas spread. Thanks for sharing your thoughts.
Posted by: Ted Mininni | 10.12.07