Saving Money, Saving Fuel: Is the Hybrid Worth It?

Car buying - you cringe just at the thought of it. The tedious search for safety testing results and drivability reviews is at hand, not to mention the new set of payments that will go along with this vehicle. This is the point at which to decide to go new or used. Both have their benefits and downsides, and their balance varies depending on the situation. Of course, those tasks exclude the other decisions inherent in the process: Style of vehicle (sedan, SUV, crossover), engine size (the 4-cylinder is efficient, but the 6-cylinder has a great kick), color, and packages (GPS and audio system or just the audio, but what about the moonroof?). Recently, a new option is under consideration by the average car buyer: hybrid or conventional? At first glance, the appeal of a hybrid is overwhelming; the improved fuel economy, partial silent operation, and green appearance all make it a difficult treat to resist. However, with all the hoopla around hybrids, seeing through the marketing spectacle is important to make an informed decision on whether they are a beneficial option for you. Indeed, the impact on your wallet may actually be higher if you purchase a hybrid!

Let’s get a few things out of the way. First, hybrids don’t automatically mean amazing gas mileage. Yes, they will be better, often significantly so, than their equivalent conventional model, but all too commonly, the difference is not nearly large enough to expect to pay less in the long run. I recently purchased a new vehicle, and was torn between two sedans, one was a hybrid, and the other was a normal 4-cylinder. With the hybrid, research found that I should expect an average of 35 MPG for my driving style (40% city, 60% highway). On the other hand, the conventional vehicle (which I drive now) has demonstrated an average of slightly above 28 MPG, based upon the on-board computer. Now, I’m all for reducing our usage of oil, but was the hybrid worth it? Looking into the costs, I discovered quite a sticker shock - the hybrid was nearly $8,000 more! Assuming I drive 10,000 miles a year, at 28 MPG, the conventional engine burns 357 gallons of gasoline. At $2.00 a gallon, the annual fuel cost is $714. With the hybrid, getting 35 MPG, I’d have used 285 gallons, resulting in an annual fuel cost of $571. Therefore, the hybrid would only save me $143 annually in fuel costs. At this rate, to pay off the $8,000 premium, I’d have to drive for 55 years (or hope fuel prices rise substantially)! Ignoring the 10-year lifetime of the batteries, the payoff simply was not there.

In my case, the decision was simple. The costs were simply too high. To partially offset the diminished mileage between my vehicle and the hybrid, I practice the standard efficient driving techniques, driving under 70 on the highways, accelerating and braking at moderate speeds, and coasting, instead of driving, towards red lights, just to name a few. Only a few days ago, I found myself on a local road with a posted speed limit of 50 MPH. Setting the cruise control to 53 MPH, I took a look at the real-time fuel consumption meter, and then did a double-take. The car was consistently getting over 39 MPG! This non-hybrid vehicle was performing better than the hybrid equivalent, and all it took was careful and intelligent driving.

The point to drive home (pun intended) here is not that hybrids are bad or a poor financial decision, rather, their usefulness is extremely dependent on your normal driving patterns. Consider a hybrid when the price variance is less than a few thousand, you tend to drive mostly in the city (hybrid mileage is opposite conventional cars, the city range tends to be higher), and the difference in mileage is significant. This entire situation assumes a new car purchase with no leasing.

Joseph Winn is the President/CEO of GreenProfit Solutions, Inc. which assists businesses in becoming environmentally responsible. You may view their website at www.greenprofitsolutions.com or e-mail Joseph at jwinn@greenprofitsolutions.com .

New or Used Car - Which is Greener?

As much as you try, bicycling and public transportation just won’t cut it. Perhaps your home is far from a transit hub, or you simply live in a region where public transportation is ineffective. Bicycles are out of the question for any length of trip because your bike lanes are approximately 12 inch strips on the right side of the road (welcome to my city). Even carpooling, while beneficial for certain destinations, cannot always assist in getting groceries and other necessities. So, as green as you strive to be, there’s no way around having a car.

Do not despair! There are many options available that can help minimize your impacts. The first decision should go without saying, but with marketing messages coming from all angles, rational thought can be swayed by its influence. Most simply, buy the largest vehicle you need, yet the smallest you can manage. While that new 7-seater with half-ton pickup bed seems like a great idea for transporting landscaping supplies concurrently with the soccer team, you have to ask yourself; will the majority of this vehicle’s use be embracing its many features? If not, you can likely look to a smaller, more efficient, and cheaper mode of transportation.

Now that you have identified the class of vehicle, it’s time to decide between new versus pre-owned. Unfortunately, from an environmental standpoint, there is little agreement amongst researchers on which is the “greener” choice. While an older, inefficient vehicle is obviously less desired than a new and extremely efficient hybrid or compact car, further questions arise on the fate of the original one and energy/resources used for the construction of the new vehicle. Without delving into conjecture and independent statistics, leave it at this: If you absolutely need a car, pursue the best value for the dollar over its lifetime, including both new and used in your consideration.

Use the EPA’s Green Vehicle Guide to learn about the overall emissions and fuel usage from a variety of vehicles, including your own to use as a baseline. While you may not see a direct impact on your wallet from reduced emission levels, you are making a choice that benefits everyone, at no additional cost to yourself. As an example, an EPA SmartWay or higher rated vehicle is so clean, it would have to be driven many thousands of miles to equal the air pollution generated by running a lawn mower for one hour (Of course, this raises many valid questions about the lawn mower). In addition, residents of certain states may purchase vehicles with a Partial Zero Emission Vehicle (PZEV) rating, nearly the same standard hybrids such as the Civic and Prius are required to meet. The tailpipe emissions of these cars are often cleaner than the ambient air in your own city! Don’t take that as an endorsement to breathe through your car’s exhaust, but understand the improvements being made on vehicle emissions.

One final note: In 2008, the EPA changed their MPG reporting standards. This means that vehicles of model year 2008 or later are using the new numbers, however, 2007 and earlier models are based on a separate calculation. When shopping for used cars, it may appear that an older model achieves substantially better fuel economy than the new model, but this difference is more than likely attributed to the changed reporting. Why was this done? To confuse the consumers in an already stressful situation? No, rather, the new fuel economy standards should better reflect the normal usage of a vehicle (A/C on more often, driving at faster highway speeds, etc.). What does this all mean to you, the consumer? Finally, the numbers you see on the sticker are likely what you will see when driving. On the Green Vehicle Guide mentioned earlier, the EPA has posted adjusted MPG numbers for some older model year vehicles for appropriate comparison.

Now if only they would help decide between the hardtop and convertible...

Joseph Winn is the President/CEO of GreenProfit Solutions, Inc. which assists businesses in becoming environmentally responsible. You may view their website at www.greenprofitsolutions.com or e-mail Joseph at jwinn@greenprofitsolutions.com .

Junk Mail – How Can It Be Stopped?

Financial institutions seem to get it… By reducing your paper use, you can also dramatically reduce greenhouse gases. By promoting services like e-statements and online bill pay, your institution can also save money. For those of us who do not understand the correlation between paper and climate change, here are a few facts:

It takes trees to make paper…lots of them. Trees are the planet’s “filters”. A tree takes in carbon dioxide (a greenhouse gas) and produces live-giving oxygen. According to Conservatree, just 1 carton (10 reams) of 100% virgin copier paper uses .6 trees, and 1 tree makes 16.67 reams of copy paper or 8,333.3 sheets. Now, let’s factor in pulp processing. Besides the tremendous energy usage to operate these paper mills (that’s more greenhouse gases), the converting of pulp to paper takes a tremendous amount of water which also has to be reprocessed and re-filtered…again, more energy and greenhouse gases. And last, the inks. Most printing is still performed with petroleum and solvent based inks. Not only does that keep our country dependent on oil, but these inks contain toxins which can eventually end up leeching into public water supplies through old landfills.

So, let’s get back to how you can rid your company of the most common annoyance and help the cause: junk mail. Nobody wants it, you did not ask for it, yet it continues to show up in your PO boxes, day after day. In fact, the organization 41pounds.org estimates that weight to be the amount of junk mail every American receives in just one year. If your organization is diligent, then you might try to sort through those items which can be recycled, but for the majority, this so far is not the case. Most junk mail gets thrown out with the trash, and ends up in landfills. Here is just some of the impact:

• More than 100 million trees are destroyed each year to produce junk mail. 42% of timber harvested nationwide becomes pulpwood for paper.
• The world’s temperate forests absorb 2 billion tons of carbon annually. Creating and shipping junk mail produces more greenhouse gas emissions than 9 million cars.
• About 28 billion gallons of water are wasted to produce and recycle junk mail each year.
There is an easy solution: Catalog Choice offers a free service wherein you can use their website to unsubscribe from various mailings. As mentioned earlier, www.41pounds.org , also offers, for a nominal fee, a comprehensive unsubscription program to help your company in stopping that annoying flow of unwanted catalogs, coupons, credit card offers, and just about anything else you do not wish to see in your mailbox.

You can do your organization a favor and help your community and planet in the process. Now, can someone tell me how I can stop that endless flow of junk e-mail?

Photo courtesy of TELportfolio on Flickr.

Joseph Winn is the President/CEO of GreenProfit Solutions, Inc. which assists businesses in becoming environmentally responsible. You may view their website at www.greenprofitsolutions.com or e-mail Joseph at jwinn@greenprofitsolutions.com .

A National Recycling Standard

I recycle, at least, I try to. Lifelong dedication to the environment, and I still wonder whether that envelope I’m holding is accepted in our paper recycling program. Are the plastic windowed ones allowed? If so, does the window have to be under a certain size? What about shiny paper? Usually it is excluded, however, junk mail is specifically mentioned as accepted. Of course, that doesn’t cover the plastics. Bypassing the issue of the numbers, a separate discussion altogether, take the example of plastic shopping bags. These items must be deposited elsewhere for recycling (the thin bags get trapped in the machinery and clog it), even though they are tagged with otherwise-included numbers. Did I mention that if otherwise excluded items wind up in the recycling pile, the entire batch is considered contaminated and subsequently thrown away? No pressure. Move to another city and the accepted items are likely completely different. With such a convoluted system, what hope does the average person trying to do their part have?

Recent news reports from USA Today, claim that the incoming Obama administration will be appointing former EPA administrator Carol Browner as energy “czar” to “coordinate energy issues across the federal government” . An entirely new position in the United States, surely her responsibilities will solidify as she grows into her role. Coordination is a wonderful idea; by keeping a unified focus in all federal activities, real progress can be made in energy policy. Energy, however, is not nearly as closed a field as implied. To make substantive impact on the global environment, they will need to focus on all aspects of energy use, and guarantee that we are using our energy efficiently and intelligently.

This is where the stories converge.

Recycling, at its very core, is intended to reduce the need to expend resources in making something new when an already-produced equivalent exists. If one were to ask a person why they might use recycled paper, a logical answer may include the following: “So we don’t have to cut down more trees”. The same goes for bottled water or a can of soda - why go through the effort of producing more virgin plastic when a recycled bottle already sequestered the necessary energy? In essence, recycling is the act of being more intelligent with our energy (and resource) use.

Suddenly, recycling sounds like a topic upon which the administration will wish to focus, but how to do so? Waste services are privately owned enterprises operating independently or on contract with municipalities, not the federal government. It is doubtful they would be open to nationalization, nor is that necessarily a good idea, but what about some standards? Is there anything else the federal government has a hand in regulating by allowing its operation by the private sector? Bingo, organic foods. Currently, the USDA provides standards for independent certifying bodies to inspect operations for compliance. If approved, they are permitted to use the USDA Organic seal on their product, providing standardization and ease-of-use for consumers.

I propose a similar system for recycling. Instead of the current labyrinth of policies, simply have a universally-recognizable logo printed on all products meeting the federal government’s recycling standard. The EPA (presumably the lead agency on the issue) will then go about assisting and approving existing waste disposal/recycling companies. Upon certification, they will be capable of processing a given criteria of materials, for example, plastics coded 1-6, clear and green glass, aluminum, and specific forms of paper, for all of their existing customers. The difference now is that on the disposal end, we do away with the traditional recycling logo and affiliated marks, and replace them with a custom EPA Recycle logo, in the same vein as the USDA Organic logo. For citizens living/working within a service area of an EPA-approved waste disposal company, they can rest assured that if they place an EPA Recycle labelled product in their recycle bin, it will be properly recycled. Market forces will push waste operators to achieve the EPA distinction to accommodate the demands of their clientele, as well as product manufacturers adopting its use on appropriate products.

Such a system eliminates the consideration of plastic code numbers (many people don’t even know they exist), cardboard versus paperboard recycling, or any number of other issues that can and do arise daily. Reference the success of the USDA Organic seal. Average citizens regularly seek out organic options, a change partially brought about simply by the addition of a standardized logo.

We have a golden opportunity ahead of us as we welcome a new administration strongly committed to the environment. A national recycling standard will help bridge the gap between the U.S. and, according to Swiss Recycling News, Switzerland, the global leader, standing at 76% . As of 2007, the EPA reports the United States had a recycling rate of approximately 33%, a value needlessly diminished by confusion, contamination, and general ignorance of the current situation . Americans want to recycle, but when presented with a hodgepodge of policies nationwide, it can make even the most green of people simply throw it away.

Joseph Winn is the President/CEO of GreenProfit Solutions, Inc. which assists businesses in becoming environmentally responsible. You may view their website at www.greenprofitsolutions.com or e-mail Joseph at jwinn@greenprofitsolutions.com .

Greening Your Holidays

With the Holiday season fast approaching, our thoughts here at GreenProfit Solutions, as everyone else, are turning to plans for celebration with good friends and family. We started wondering how we could combine the Holiday festivities with Going Green. After doing some research, we came up with a few ideas:

The results of our research estimated that in America alone, over 2 billion holiday cards will be printed and mailed, over 38,000 miles of ribbon will be used, and more than 50,000 square miles of wrapping paper will decorate all of those presents Santa will deliver to all of the good boys and girls. (Hmmm...I wonder if reindeer powered sleighs are eco-friendly?) And what about the traditional Christmas tree? Millions of those will be left on curbs, and hundreds of thousands of artificial trees will find their way to landfills. So how can we all enjoy our Holidays and be still green conscious?

Here are a few tips:

No Plastic Bags - we didn't mention those in the above estimates but Americans send over 350 million tons of plastic bags to landfills each year! (The Environmental Protection Agency estimates that between 500 billion and a trillion plastic grocery bags are consumed worldwide each year). Plastic bags are petroleum based, the inks used may contain lead, and are not recyclable through residential or most commercial recycling programs. Many end up as litter, negatively affecting our wildlife on land and in our waters. Why not keep a supply of reusable fabric bags in your car, and use them when you shop for gifts? Then after the holidays, they make heavy duty carriers for your food shopping, at the home improvement store, and everyday use.

No Artificial Trees - these are also made from petroleum products and are not recyclable. If you can, buy a live tree and plant it in your yard after the holiday. You may also be able to donate the tree to your community or city. What about a cut tree? Unfortunately, most conventional tree farms use large amounts of chemical pesticides and fertilizers. A better option, if it is available in your area, is to buy an organically grown cut tree. Green Promise has compiled a list of organic growers. Regardless of which cut tree you buy, many municipalities now collect these and turn them into mulch.

Go e-Cards - Traditional paper cards not only take a toll on our trees, but also add huge amounts of carbon to our atmosphere to process the pulp into paper. Most of the inks used are solvent based and contain toxins which can find their way into water supplies. There are so many great interactive e-cards you can buy online, or better yet, create your own with family photos, music and even videos. Try creating one free at Save A Tree Cards or 123Greetings. Save trees, save paper and with no postage required, save money!

Go Real for Tableware - Use real plates and silverware, especially if you have an Energy Star efficient dishwasher. If you must use disposable items, make sure they are recyclable. Check the number in the triangular recycle logo. If it is a 3 or less, chances are it can be recycled IF you make sure it is not "contaminated" with food. Avoid buying Styrofoam, as this normally cannot be recycled and is also a petroleum based product.

Wrap it Up - Have any magazines, decorative paper bags or old posters around the house? Here's your chance to reduce your clutter and put it to use as wrapping paper. If you must have traditional wrapping paper, you can purchase recycled paper and cotton ribbons (some are also made with non-toxic soy based inks) online at Fishlips Paper and Paper Source.

Let It Shine - With the popularity of LED's, you can now purchase strings of lights and even decorative ornaments made with these ultra low power Light Emitting Diodes. These use much less power than traditional bulbs, (about 60-80% less), thereby not only reducing your Holiday "carbon footprint", but also reducing your energy costs. You may also want to consider purchasing a timer to save even more!

Joseph Winn is the President/CEO of GreenProfit Solutions, Inc. which assists businesses in becoming environmentally responsible. You may view their website at www.greenprofitsolutions.com or e-mail Joseph at jwinn@greenprofitsolutions.com .

Green Your Thanksgiving

As the Holiday Season approaches, we all tend to resort to our own family traditions, which may not include any thought of sustainability. One possibility? Start some new Green traditions. Here are a few ideas for a Green Thanksgiving from Lynn Colwell, and her daughter, Corey Colwell-Lipson, authors of the book: "Celebrate Green":
Decorations:
— It's easy to make Thanksgiving decorations green because so many of them are edible. Colwell likes to decorate with gourds and berries. "It looks beautiful, it's colorful, it's enjoyed first and then consumed," she said. These items could also be composted.
— For place settings and wreaths, gather natural materials you can easily find in your own yard - branches, pinecones, beautiful autumn leaves. Not only will it create less waste, but you'll also have fewer items to store, since everything is disposable. It's fun for kids, and better yet, it's free. For daily green decorating tips with a natural feel, check out decorator Danny Seo's blog.
—Find new uses for things you already have. "We were setting a Thanksgiving dinner for a talk we gave, and we didn't put too much planning into what we would do. We did a hunt around the house," said Colwell-Lipson. "We had a fun time opening cupboards and putting things together, and came up with 90 percent of what we needed there. We found a glass bowl, and had idea that if we filled bowl with leaves, pinecones, berries, and put a glass plate on top, it became a seasonal centerpiece. We found some table cloth that wasn't so fancy - it was my grandmothers. It's not something you would have picked up at the store, but with everything else it worked."
Place Settings:
—"Many people don't have enough glassware and they buy disposable items," said Colwell-Lipson. "It's not good for the planet. So, to bring meaning into the place setting, you could ask each guest to bring their own, and tell the story behind it. It could be their grandmother's, or it could be from a thrift store. People laugh and learn and reduce their footprint."
— You could also try a thrift store for place settings, tablecloths and flatware. Mix and match to add character to your table.
Giving Thanks:
— Colwell's idea for a new tradition: Ask each guest to bring an item that represents something they're thankful for. "Put the items in a glass bowl or spread it down your table, and ask everyone why they brought each thing," she said. "You create a tradition, start a conversation, and ask a question that many people never ask on Thanksgiving."
— If you need to cut back a little this Thanksgiving, whether you're doing so in a green way or not, "look at it as an opportunity and not as a punishment," said Colwell. "When you were a child, you were creative. Talk to your family about how to make it fun and spend less money on food. Get neighbors together for a potluck. There are wonderful ways to do it."
— Look to the past. Ask grandparents how they celebrated with less, and how they brought together the family. "We've been convinced that we need more than we do, and we need to spend money to be happy," said Colwell. "We don't believe that's true."

Joseph Winn is the President/CEO of GreenProfit Solutions, Inc. which assists businesses in becoming environmentally responsible. You may view their website at www.greenprofitsolutions.com or e-mail Joseph at jwinn@greenprofitsolutions.com.

Differentiating by Going Green

As any experienced financial institution marketer knows, differentiating your business from your competitors is a primary key to attracting new prospects and members or customers and retaining them once they decide to do business with your institution. But will the same “hook” that attracted them to become your customers/members be enough to maintain their loyalty? Let’s examine a few strategies:

Low Price: As people are always price conscience, especially in this slow economy, this can be an excellent method to attract new customers/members. However, unless your company plans on being a “discount house” operation, you will need to evolve a different strategy to retain those customers/members, otherwise they will simply seek out the next big discount elsewhere.

Great Products: Every business advertises great products. Why is your product better than your competitor? Provide your prospects with a reason to walk in your door. Then make sure your products are updated and tweaked regularly to ensure a competitive edge.

Great Service: This strategy typically does not attract new customers/members, unless you detail how your service will exceed your competitors. On the surface, there is nothing to differentiate your company from your competitors. Of course, great service is a major key to customer/member retention.

There are many other innovative marketing strategies being employed in the marketplace which are based upon surveys. These studies can give you an understanding of your target market’s concerns as well as focus on the latest trends. One such trend which every major survey (Harris, Nielsen, Mintel, Intellitrends) has been following is Going Green. With unstable fuel prices, new energy tax credits, and the promise of an upcoming New Green Economy, there has never been a better time to incorporate Green into your company’s business practices and products.

Will Going Green help attract new customers or members? According to Intellitrends, nearly 35% of those surveyed considered a company’s environmental policies before purchasing. Monster Trak reported that, for college graduates, this number was above 80% and 92% of these “Gen Y’s” were seeking to work for a company with a solid environmental and corporate social responsibility policy.

Even with all of the news and surveys on Going Green, business journals have estimated that less than 2% of all small and medium sized companies in the U.S. have begun any green initiatives at all. Pity. According to the Makovsky Green Gap survey, people are looking for businesses to take the lead in improving the environment. That could be a once in a lifetime opportunity to differentiate and really make a difference.

Joseph Winn is the President/CEO of GreenProfit Solutions, Inc. which assists businesses in becoming environmentally responsible. You may view their website at www.greenprofitsolutions.com or e-mail Joseph at jwinn@greenprofitsolutions.com.