Sticker Shock
by Tracy Staton
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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