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SELLING TO PROS FLE GROWING BY JOHN CAULFIELD THE GREEN SECTION OF YOUR SALES For many homeowners, “green” equals “safer”. But contractors still resist choosing green products on their own. O ver the past 20 years, products that claim to be less harmful to the environment have entered the mainstream, as energy efficiency, sustainability, and more recently, resiliency and wellness have worked their way into the vernacular and codes for residential and commercial construction practices. Spending for green residential construction in the United States is forecast to hit US$100.4 billion in 2018, from US$55 billion in 2015, according to a recent survey that Booz Allen Hamilton prepared for the U.S. Green Building Council. That survey also projects that spending for green residential maintenance and repair would reach US$40.2 billion in 2018, compared to US$22 billion in 2015. The 2018 figure would represent nearly 18 percent of all green maintenance and repair spending. In Canada, as in the U.S., consumers drive demand for green products. “People are concerned about any chemicals coming into their homes, and are looking for alternatives,” says Wendy McKinley, a customer salesperson for Frasers Pro Home Centre in Berwick, N.S. A growing number of homeowners are also taking control over their energy and water consumption costs. However, Canadian home improvement dealers say many of their pro customers still resist choosing eco-friendly products unless their clients specify them. “Demand is slight among pros,” says Brad Butt, purchasing manager for Stan Dawe Ltd., in Corner Brook, Nfld. “We’re a little behind the rest of the country when it comes to building codes. So green building products are a very small part of our inventory.” Moffatt & Powell in London, Ont., which gets 95 percent of its sales from contractors, also doesn’t stock many green products. “There’s practically no demand,” says merchandiser Kevin Brownlee. Consumer-oriented retailers, on the other hand, have found green products to be a reliable niche. Last November, Lowe’s Canada conducted an online survey of 13,000 customers and employees, and 44 THIRD QUARTER / 20<strong>17</strong> Hardlines Home Improvement Quarterly www.hardlines.ca
found that consumers were more likely than pros to request green products. In 2016, green products accounted for 11 percent of sales for Lowe’s Canada’s RONA- and Réno-Dépôt-bannered stores, according to Jules Foisy Lapointe, director of sustainable development. With a few exceptions like Frasers, independent pro dealers seem to have ceded the green products market to their larger, national competitors, most of which have had some form of “eco” labeling for years. Home Hardware Stores’ EarthCare label has been around since 1991, and is currently attached to 872 products, according to a company spokesperson, who adds that Home’s eco-friendly Natura brand is one of its fastest-growing paint products. Home Depot Canada’s Eco Options program dates back to 2004, and during the ensuing years customer expectations— about products and the retailers that sell them—have changed. “We have seen a significant transformation in the market to be more sustainable on not only products but also how businesses operate, whether through improvements in supply-chain efficiencies, reduction of energy consumption by investing in solar power, or implementation of sustainable packaging design,” says Paul Berto, Home Depot Canada’s director of corporate communications, external affairs, and sustainability. SAVVY CUSTOMERS REQUIRE PRODUCT KNOWLEDGE Eco labeling is important to the sale of green products, says Lapointe, because it helps to simplify customers’ choices. “The benefits of some green products, like low-VOC paint or longer-life light bulbs, are easier for customers to understand,” Lapointe explains. “But the benefits of other products can be complicated and confusing. A lot of customers still don’t know what ‘chain of custody’ is, or what the certification of forests and mills actually means.” A label, he says, tells customers that the retailer is accountable for a product’s green claims. And products tagged “eco responsible” in RONA’s stores might provide more information. Dealers agree that selling green products requires their associates to convey a higher level of product knowledge, because eco-conscious consumers ask a lot of questions. “It’s never a simple discussion; I’ve had 30-minute conversations over a can of paint,” says Joel Hirshberg, president and co-owner of Green Building Supply in Fairfield, Iowa, a 25-year-old company that claims to be the first green building products specialty retailer in the U.S. Hirshberg says that what most consumers want from green products is safety. “It’s all about health; they couldn’t care less about LEED points.” McKinley at Frasers agrees that more consumers are “doing their homework” before coming into the store for green products. “So your salespeople need to be on their game”, which means stores need to step up their efforts, too, with better PK training. To that end, RONA is updating videos it has used since 2009 to train its employees on selling green products. Frasers separates some green products from the rest of its inventory. McKinley notes, too, that code changes over the years are causing dealers to feature greener products in their lighting and plumbing departments. Frasers recently switched to Knauf as its insulation supplier, which refers to its “eco batts” that take into account Knauf’s production practices. Frasers also calls out green products in its advertising. “When you push ‘eco’, you’re hitting a whole different market,” says McKinley. In 2015, customers told Home Depot Canada they wanted more LED lighting. So the chain expanded its assortment of Energy Star-certified LEDs by more than 50 percent, and added several value-pack sizes from Philips, Cree, and Ecosmart. Now, “our Energy Star LED light bulb section is extensive and growing,” says Berto. Depot also identifies eco-friendly products in its appliance, window, door, and HVAC departments, and features Energy Starcertified products in its weekly flyers. TESTING WHICH CLAIMS ARE BELIEVABLE As green products have proliferated, so has “greenwashing”, where manufacturers make unsubstantiated or exaggerated claims about their products’ benefits. “You have to be aware of production at all of the steps,” says McKinley, whose company primarily relies on suppliers to verify their claims. Home Depot Canada’s defense against greenwashing, says Berto, is to “leverage” recognizable and reputable certifications like Energy Star, WaterSense, EcoLogo, the Forest Stewardship Council, Organic Materials Research Institute, and Design for Environment. RONA recognizes more than 100 green certifications in different product categories, but also has its team work with thirdparty verifiers to make sure products sold as green actually perform as claimed. Hirshberg, though, doesn’t trust any certification programs because, he says, “they’re all pay-as-you-go propositions.” His family independently analyzes every product it sells, many of them on his own house. “It’s a longer process, not something you can do overnight, but half of the products we test fail.” Green Building Supply, which operates a 10,000-square-foot store, generates between $3 million and $5 million in annual sales, about 85 percent of which are online. Hirshberg says his site has “thousands” of customers across the U.S. And he hasn’t given up on selling to pros, either. “You have to educate them, hold their hands, and work with them on price. And it’s important to have the product available when they want it,” especially when it comes to paint and finishes, he adds. www.hardlines.ca Hardlines Home Improvement Quarterly THIRD QUARTER / 20<strong>17</strong> 45
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Page 6 and 7: NEW YORK • PARIS • TORONTO •
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Page 20 and 21: EXECUTIVE INTERVIEW BERNIE OWENS TI
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Page 24 and 25: FEATURE remind dealers and Canadian
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Page 28: WSB TITAN RANK 2015 2016 change # 1
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Page 37 and 38: November 14-15, 2017 Sheraton on th
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