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Sticker Shock

by Tracy Staton
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Nelson gives the example of New Leaf Paper, which makes a range of green paper products. "Today, given the way the industry is structured, it costs more to create postconsumer recycled paper than it does to use virgin wood," she says. "If you want to be part of the solution, and you don't want to be involved in the destruction of old-growth forests, you have to pay a premium for that."

Not every single manufacturer touting an environmentally sound product has similar grounds for explanation, however. Goldman cites one carpet maker that sells a "green" line of products that cost more than those in its conventional line but aren't much more sustainable. "They slapped the label on and charged more," she says. "It happens."

Then there's the old line item on a balance sheet called goodwill. Upscale brands are able to charge more for their products because of that ethereal, intangible price booster: prestige. Consumers who look for their bamboo sheets at Neiman Marcus shouldn't be surprised that they are more expensive there than the equally green bamboo sheets at JCPenney are. "Take soy candles, for instance," says Danny Seo, an environmental-lifestyle columnist and the author of the Simply Green book series. "There are some fancy-schmancy versions out there for $30, $40. But you can get one at Target for five bucks."

"You're seeing some green products trying to appeal to a totally different group of consumers to position themselves in the luxury market," says Steve French of the Natural Marketing Institute. "They're selling the notion of a full experience, with the fundamental idea that less is more - which is what environmental products should be [about] in the first place."


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ISSUE: Oct 1, 2007
American Way Cover - 10/1/2007