“But, there are companies that have offered to match the price of green products with the existing one,” says Pratibha. “When I am dealing with region-based clients and prepared to extend the existing consumption levels even to green products at the same regional level, the cost of the product remains unaltered. But when it comes to servicing segment wise like premium clients, the cost would differ. In which case I would have to bear the expenses or put it on the client. It’s not a win-win situation either ways.”
“We too have heard of companies customising the eco-product to suit costs but so far no one has come forward with any proposal. We would definitely like to introduce such products for our ISO clients and match costs,” says Amit.
“As far as Caere goes, most of our clients are pan-India, with a centralised system and hence, the feasibility of implementing eco-friendly practices at such a scale has not been possible. If one decides to take the eco path, then it should be on a pan-India basis and not partly. I would prefer to go all out and that depends on the cost of the eco cleaning products at a pan India level,” Prathibha adds.
“If green products were more affordably priced, then clients too would take interest in initiating eco-practices at their offices and factories. In fact, they would be keener as green cleaning practices enhance the company’s value. Being an ISO certified company, we advocate eco-friendly practices at all our offices and encourage our clients too,” says Amit Singh.
Eric Van Wetering, Managing Consultant of the Netherlands based ThinkTankz, agrees that the price of green products are a bit higher. “With green products there is a need for more development, processing and the use of more expensive basic materials. Costs of which have to be recovered somewhere and hence the higher prices,” he explains.
In conclusion, the prime reason for the demand curve rising only marginally is the cost factor. But, which product is not determined by cost? If cost is the baseline of every other product, then why is it that cleaning products still remain the elephant in the room?
It is a pity that innovations in the cleaning technology and sustainable product line though are ready & reliable in increasing efficiency, the industry is buckling under the pressure of price. When Intel co-founder Gordon Moore stated that the number of transistors per square inch on integrated circuits doubles every year, it became the guiding principle of the hi-tech industry. The Law predicted that this trend will continue into the foreseeable future. Moore’s Law was much more than just physics. The application of Moore’s Law with the generational improvement in the innovations of cleaning technology, integrated to profitability, foresees a sustainable future. Cleaning products alone is being projected as defying market economics. One major detrimental factor is the notion created in the market today towards eco or green. Given the scope for price improvements, Green is being projected for a niche market and meant only for select consumers. This decisive note is being advertised by every other player in the industry so much that the product has lost traction.
We have innovations in hand that can take the industry towards a future that we want. We have to understand that the product’s uptake comes with the client understanding of not just today’s innovations but tomorrow’s success. Products have to be expressed in terms of innovation that are here today, what will come out of the R&D tomorrow and what the future will look like across the horizon. We are probably not getting this across to the client and we have to.
Sustainability as business today is a transformation made in the past business and in creating that transformative change in the future is big time business. The need thus is to negate the cost factor in the light of what you forsee as your client’s sustainable future.
