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BiographyDennis Salazar

Columns

  • A group I belong to recently had an interesting online debate about why sustainable packaging was "always" more expensive. The reasons and theories cited included freight and transportation costs, greedy manufacturers or a shift from some materials to others creating shortages, among other factors.

    Most of the wide variety of comments posted were accurate to some degree, but I was surprised no one mentioned the first rule of business -- the one even non-business people often quote.

    Sustainability and the Law of Supply and Demand

    If more people bought any specific green packaging product, more companies would manufacture it. Eventually -- probably sooner than later -- the market price would be reduced due to increased competition.

    In addition,

  • A few weeks ago, I had the opportunity to attend the sprawling Housewares Show at Chicago's McCormick Place, where more than 1,200 exhibitors showcased the best their companies and industry had to offer. I took full advantage of the opportunity to conduct an informal "sustainability survey" as I visited each exhibitor's booth. I inquired about their green objectives and initiatives, and the responses varied tremendously. I suspect that to some degree, the exhibitors reflect the population as a whole. As I listened to the varying comments on sustainability and packaging, I was reminded of the Kubler-Ross "Five Stages of Grief," which famously describe our natural and very human resistance to change. In my conversations with exhibitors, all five stages were clearly
  • What does it cost for a manufacturer to deliver a more sustainable product or package to our retail store shelf and what should the resulting price be to us as consumers? There is a perception that going green increases a manufacturer's cost, but does it really? We have found that the answer is, not usually, especially if it is done correctly. There is also an equally inaccurate idea out there that we as consumers are willing and perhaps even eager to pay a premium for a more sustainable product or package. As a consumer who happens to be in the packaging business, the answer is definitely not, unless the higher price is truly necessary and justified. These perceptions open the door for Consumer Packaged Goods (CPG) manufacturers to quietly raise prices. Today I confirmed what I already