A retailer’s perspective: Eco-conscious purchasing and its benefits

A retailer’s perspective: Eco-conscious purchasing and its benefits

How can catering to the demands of modern eco-conscious consumers increase consumer loyalty and net profit?

What do consumers care about?

Retail store owners commonly tell me, “my customers are different than yours… they won’t buy the same things.”  When I opened my store in 2007 everyone was looking for big box kibble brands. I did not offer to special order. Instead, I meticulously built an educated customer base. My store has been fortunate to grow exclusively through word-of-mouth. The education we provide has expanded our reach internationally proving that nearly all people are legitimately interested in learning more.

Pet parents don’t have to leave the grocery store to buy pet food so when a pet parent takes the time to drive to an independent pet supply store it suggests that they are seeking better products, knowledge and personal interaction. People will buy more unique products if you engage with them to gain their trust. You earn trust by demonstrating that you share your customers’ values.

From 2015 to 2019 sales of natural, eco-conscious and organic products grew 22% to $225 billion. From 2019 to 2020 organic, pesticide-free produce sales increased 8 ½ fold.1 73% of consumers surveyed in 2020 said that “a reduced impact on the environment” affected their purchasing decisions. 41% are willing to pay more for natural and organic goods. Historically, organic grass-fed purchases increase an average of 7.5% per year. From March through July of 2020 these sales increased by 52.1%. This shows that there is an increased demand for holistically raised animals.

In 2020 “lost trust” from consumers resulted in a $2.5 trillion loss for corporations and global brands. It is estimated that demand for recycled plastic will increase to $66.73 billion by 2025. Chemical regulations do little to nothing to keep consumers safe. News continues to spread about hazardous chemicals found in toys, furniture, electronics, and clothes. Consumers are now holding businesses accountable for creating safe, tested and healthy products.

Your choices drive both loyalty and profit

Sometimes I hear retailers say, “I don’t think natural products are as profitable and I can’t afford to lose sales.” I have found this not to be true.

I risked limiting my opening inventory to only natural and eco-conscious products despite a nationwide economic downturn. Without advertising my sales grew by 35+% year over year. This is what I learned:

  • The impact one store has on the environment is far greater than that of any single consumer.
  • When you sell the same products as big box stores and online giants you are choosing to compete head-to-head with them. They have bigger advertising budgets, get discounted rates for bulk purchases, and primarily offer Chinese manufactured, chemical-laden, and high-heat processed products. It’s not possible for other retailers to effectively compete with them. In doing so you are choosing to sell inferior products without gaining any advantage for doing so.
  • You can make the choice to provide conscientious products and consumer education. This aligns your business with consumer demand and unique products that can’t be purchased at big box stores. You will gain loyalty, not just sales.
  • Small businesses keep money in the local economy. Local companies tend to buy and sell locally, thus creating local revenue. Money spent on corporate products just goes to shareholders. 
  • Pet parents become loyal to a retailer when they feel special. Unique products or education help achieve this. The majority of my customers act as influencers which lead to many referrals for my business.  Referrals gain online distance sales which would otherwise be directed to competitors such as Chewy.com or Amazon.com.
 
Profitability chart Cost for your customer Profit for your business Does it retain consumer loyalty? Your stores profit on 10 equal dogs
“Cheap” kibble ($55/28lbs) $35/mo $8.30/mo No – available at Big box & Online $83/mo
“Expensive” kibble ($140/22lbs) $75/mo $23/mo Maybe – Sometimes. Available online  $230/mo
Raw ($257/40lbs) $142/mo $43/mo Yes – Not carried by Big box or Online $430/mo

I don’t switch pet parents to fresh foods for the sake of profit. Yet it’s important for business owners to realize that “cheap” kibble is at least 5.2x less profitable. Ubiquitous products decrease loyalty to your business.

An assortment of sourcing and processing contaminants have been found in tested kibbles including poorly regulated, heavy metal laden mineral isolates and pesticides.6 There are risks associated with all food products. The riskiest being peanut butter, ice cream, cheese, melons, nuts and vegetables. Fresh AND cooked foods are not risk free. But science tells us that fresh foods are less likely to contribute to elevated inflammation levels and chemical contamination. This frequently results in a better user experience (and greater loyalty) when used correctly.

The same can be said for hard goods. A bed or a toy that a pet parent is happy with will result in referrals and additional purchases. For example, a $200 dog bed would make you $20/year over 5 years plus referrals. While a $30 dog bed will likely make you $15 in one year that it lasts but is unlikely to gain repeat sales or referrals.  

How much do pet products really contribute to climate change?

Consumers are increasingly educated about the benefits of naturally raised agricultural animals. Brent Jarvis of US Wellness Meats says, “the animals play an important role in building rich soils. While they graze, they’re also composting grasses, and amending the soil. This allows life under the surface of the soil to flourish, which in turn feeds the green plants above the ground. Green grasses capture atmospheric carbon and pull it into the soil where the subterranean microbial community goes to work. It’s really a matter of letting nature do its thing.” 

How processing contributes to climate change

Each chemical, additive and antibiotic requires its own industrial production process. As an example, Corn Gluten Meal contains 16 chemical and antibiotic ingredients each creating an environmental burden. These chemicals are then combined in order to produce ethanol, corn steep liquor and corn gluten meal in yet another polluting industrial process. Again, the industrial production of high-heat processed pet feed creates greater environmental burden.

Manufacturing plant workers are regularly exposed to these dangerous chemicals. Modern consumers associate corporations with human and environmental rights violations. Small, independent and local companies are associated with ethical and natural products. It’s easier to gain consumer loyalty by selling products from smaller companies.

High-heat processing vs fresh foods

High-heat processing has a massive carbon footprint. There can be in excess of 100 high-heat processed components, produced in multiple industries, blend to create a final ingredient panel. Even purchasing a product where only the final product is high-heat processed is a dramatic ecological and health improvement. 

Fecal output and the environment

Kibble produces nearly twice the fecal output of any other type of food. Thus, resulting in nearly 2x more plastic bags* in the environment each month. In addition, pet parents are grateful for products that reduce output and will refer other customer to buy those products to achieve the same results.

*Most “biodegradable poop bags” are chemically treated plastic that break into smaller pieces.  

Things you can do today to separate your business from others?

  • Urge manufactures to pay for Terracycle. Allow your customers to donate to your Terracycle fund if they’d like to. This allows pet parents to see that your mission is bigger than making money.
  • Help pet parents identify which products can be recycled by placing recycling bins next to products that are recyclable. This also urges them to return to you when they are ready to recycle a product, potentially gaining another sale.
  • Put up signs in the store that educate people about your products and how they compare to others. For example, I have a sign in my store that states that there are no legal limits on heavy metal contamination in pet toys. We advise people to wash any toys that are not purchased at (audited by) my store. This dramatically increases our toy sales.  
  • Avoid buying from corporations that don’t specialize in pet products. You may know a corporation for their toothpaste and macaroni. Ask yourself if you believe they could make a quality, ethical pet food, too.

Do you want to be a leader or a follower in establishing trends? 

You can be on the cutting edge of the best and most well-considered product seller. Or you can be a follower of the trends of your nearest competitors. It is not 20 years of experience that has made my business internationally renowned. It is my dedication to selling unique products and taking time to provide education to my customers. The way I see it, your business can’t stand out or be successful if you are just like your competitors. Unless you have the largest budget around you need to be different. Becoming eco-conscious may be the best guideline to attain success.