It all comes down to money, even when we’re talking ‘green’. Especially in a recession. Our hearts may be in the right place, but it’s becoming clear that Canadians and others are not willing to pay a premium for environmentally-friendly products when there are economically-friendly options.
Even though ‘going green’ is now mainstream, it’s hard for many to put their wallet where their mouth is. According to a report released by The Boston Consulting Group in Toronto, only 18 per cent of Canadians say they’ll accept a higher price for green products and 78 per cent said they are unwilling to pay the exorbitant sums attached to green options.
Some say it’s high time for companies to apply some downward pressure on pricing of their products, while at the same time highlighting the benefits, both environmental and health, of their merchandise, thus clearing up some of the confusion facing green-minded yet wary individuals.
And in today’s economy, there must be some longer-term economic reason to support green alternatives.
For example, consumers say they will not cut back on, or will cut back less on energy-efficient appliances and baby care.
It is evident that smart consumers take into account the health of their loved ones. And in the case of appliances, the price premium for energy efficient models is actually seen as a long-term price discount in the form of energy bill savings.
The companies most at risk of being by-passed by consumers are those with vague or non-existent value propositions. Organic bottled water? Forget it! $50 bottle of shampoo? Can’t afford it!
As financial pressure affects our decisions more and more on a day-to-day basis, it may start to incite change on the part of retailers and purchasers alike who are coming to realize that it shouldn’t necessarily have to cost more to support a green marketplace. In fact, a recession may be just what was needed to help erode the high mark-up on eco-friendly products, allowing companies (and the earth) to stay in business.
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