Marketer's Mantra -- "Green is the New Green"

Want to grow revenues faster? Build market share? Fatten the bottom line?

Then, Go Green -- Live Green -- and Buy Green! That's the marketing mantra to turn Eco-friendly consumer choices into extra revenue and profits for marketers. What's good for the environment is now good for business.

Everyday, millions of consumers make pro-environment choices often paying a premium to do so -- think organic milk. Sometimes, but not often, green choices work in the consumer's favor. My family recently stopped buying individual bottles of Poland Spring water and are now simply refilling reusable bottles. We save about $10/week offset only by the minor inconvenience of filling and washing the bottle.

On a grander scale, we recently made a pro-environment choice at considerable personal expense. We traded in our gas inhaling Yukon XL SUV (12 MPG city) for a Lexus RX Hybrid (31 MPG city). We start saving money on gas right away -- perhaps as much as $3000 a year. But, we have to wait 10 years before we recoup the $30,000 in cash we paid to make up the difference between the trade-in value of our Yukon and the dealer price on the Lexus -- and that's not considering the time value of our money.

On top of this, we paid a $4,000 premium for the hybrid model versus the standard Lexus RX 400. The dealer -- to his credit -- admitted that it will take 3-5 years to pay back this money. I am betting though that we lose money on this investment as well. The chances of keeping the new car for 5 years or more are low, given rapid improvements being made in car technology. Who wants to drive an obsolete car, when they can "re-cycle" it and enjoy a new car's improvements in comfort, safety and fuel economy?

Fortunately, my family can afford to make this kind of green choice -- although my financial advisor might advise us not to make too many economic decisions like this. But how about the car dealer? Are they sharing our pro-environment investment?

Turns out, the local dealer is making 3 additional margin points on the hybrid. That doesn't seem like much until you factor in the razor thin margins in the business of car dealerships. A 3 point increase in margin -- 8% to 11% is a big deal. What's good for the environment is good for business courtesy of the consumer.