Selling the Green Bundle Part of the ProTeam Package of Green Cleaning Support Materials

2 Why? Differentiate your business – Break the “commodity” mold – New marketing opportunities Grow your business – New customers – New business with existing customers Improve profitability – Sell more to current customers – Sell a more profitable mix – the “Green Bundle”

Agenda What is Green Cleaning? Why is it Important? Building the Green Bundle Market Opportunities Typical Objections Final Thoughts

4 What is Green Cleaning? Effective cleaning that protects health without harming the environment. “…products and services that reduce the health and environmental impacts compared to similar products and services used for the same purpose.” Complete, “bundled” approach – Not just changing a product or two – Includes chemicals, paper, liners, entry mats, equipment, tools… – Includes training, services, support programs, and more

5 Green vs. Traditional Cleaning Green CleaningTraditional Cleaning Comprehensive ProgramSingle Products Focus on HealthFocus on Appearance Focus on PeopleFocus on Cost Shared ResponsibilitySuppliers are “Tolerated” Perceived as Added ValuePerceived as a Commodity

6 Cleaning as a Commodity Perception that all cleaning products are the same Focus on cost reduction Maintain “acceptable” appearance Tends to neglect cleaning’s impact on – Indoor air quality – Occupant health & safety – Occupant performance & productivity – The environment as a whole Distributors compete on cost and terms

7 Common Misconceptions Green products are expensive Green products are not effective Green cleaning is too complicated Green Cleaning is a fad – it will pass

8 In Reality… Green products are competitively priced Green products can be more effective and have higher ROI A good program is easier to monitor, train, and maintain Green Cleaning is real and here to stay – Over 1000 registered LEED projects (1000 – 2000 unregistered) – Federal Agencies – States – Cities – School Districts – Private Building Owners

Importance of Green Cleaning Cleaning’s Impact on Business Cleaning’s Impact on Education Cleaning’s Impact on Health Care Cleaning’s Impact on Custodians Cleaning’s Impact on the Environment

10 Cleaning’s Impact on Business Building Owners & Managers – Complaints – Tenant retention – Profitability Building Tenants & Occupants – Productivity – Litigation – Marketing

11 Cleaning’s Impact on Education Children are not simply miniature adults Indoor air 2 -5 times as polluted as outdoor Asthma incidences riding dramatically – 160% increase in children under 5 years old – 4.8 million children affected – 14 million missed school days Cancers – #1 disease related cause of death in children – 8,500 children diagnosed with cancer every year Impacts teachers and staff as well as children

12 Cleaning’s Impact on Education If children are sick in class or too sick to attend class… How will they learn? If teachers and staff are sick during the day or too sick to report… How will they teach?

13 Cleaning’s Impact on Education Creating a better learning environment – Improvements on standardized test scores – Charles Young Elementary School Battling the budget cuts – Documented improvement program – Documented results

14 Cleaning’s Impact on Health Care Nursing Homes & Assisted Living – 3,350,000 residents – 2,000,000 full & part time staff Hospitals – 660,000 patients per day – 4,535,000 FTE staff – 100,000 hospital trainees – Countless visitors Many of these people are exposed 24 hours per day

15 Cleaning’s Impact on Health Care Many patients suffer with compromised immune systems Difficult to isolate patients & staff from cleaning functions One key issue – nosocomial infections – Approximately 2,000,000 patients acquire these infections annually – Over 70,000 result in death every year – Approximately one-third are preventable

16 Cleaning’s Impact on Custodians Over 3,000,000 custodians employed in the United States Workman’s Compensation Turnover – Hiring – Training – Motivation Levels of service

17 Cleaning’s Impact on the Environment 6 billion pounds of cleaning chemicals 4.5 billion pounds of paper 500 million pounds of equipment 35 billion plastic liners

18 The Impacts of Cleaning - Summary Cleaning’s impact felt in 2 ways – The results of the cleaning activity – The effects of the cleaning activity NOT an indictment of the cleaning industry – Dedicated professionals – Responding to market needs & pressures The new Green Cleaning market

Building the Green Bundle The Green Bundle Concept Cleaning Chemicals Equipment & Accessories Paper & Liners Entryway Mats

20 The Green Bundle Traditional sales approach – Respond to customer request – Sell features, advantages, benefits – Compete on price The “New” Green customer – Looking for advice & support – Needs complete package – chemicals, equipment, paper, more… – Compete on knowledge & support The “Experienced” Green customer – Looking for the best tools, products, programs – Compete on service & responsiveness

21 Choosing Cleaning Chemicals Work with dedicated suppliers Concentrated products – closed dispensing systems General purpose, restroom, carpet, & glass cleaners – Green Seal GS-37 standard Other typical cleaning chemicals – California Code of Regulations – maximum allowable VOC levels Floor finishes – Metal free, long lasting – minimize recoating & stripping – Minimize or eliminate burnishing – Green Seal GS-40 standard Green Seal vs. EPA’s DfE Program

22 Choosing Equipment Improve productivity Enhance ergonomics Durability, longevity, ROI Use of post-consumer recycled content – Carts – Mop handles, buckets, wringers – Recycling bins Replace “traditional” tools – Micro fiber cloths vs. paper wipers – Drain “snake” vs. concentrated, toxic drain opening chemicals

23 Choosing Equipment Vacuum cleaners – Ability to capture “local” dirt, dust & contaminants – Ability to retain small particles – filtration system – Ability to maintain power as collector loads Carpet extractors – Ability to recover water – carpets should dry within 24 hours – Ability to heat water where appropriate – Ability to conserve water Buffers & burnishers – Active vacuum attachments to capture & retain dust

24 Choosing Paper Products & Liners EPA Comprehensive Procurement Guidelines Bleaching – process chlorine-free Other “green” opportunities – Using large roll dispensers – Using “hands-free” dispensers – Replacing c-fold towels with roll dispensers

25 EPA Guidelines ItemPost-Consumer Fiber %Recycled Fiber % Toilet Tissue20 – 6020 – 100 Paper Towels40 – 6040 – 100 Paper Napkins30 – 6030 – 100 Facial Tissue10 – 1510 – 100 General Purpose Wipes4040 – 100 Plastic Liners10 –

26 Choosing Entryway Mats 80 – 90% of all dirt comes in on people’s feet Grills, grates & mats should be used – At ALL entry points – Inside & outside doors – Be chosen for local conditions Appropriate length – typically at least 2 steps – 12 feet Proper & adequate maintenance Consider total life cycle when choosing matting materials

Selling to the Green Cleaning Market USGBC – LEED Program Commercial Office Buildings The Government Education Systems Health Care Facilities Hospitality Building Service Contractors

28 US Green Building Council Mission: To promote buildings that are environmentally responsible, profitable, and healthy places to live and work. “Certifies” green buildings 5,000+ “corporate” members 43 Local Chapters

29 USGBC – LEED Program Leadership in Energy and Environmental Design – LEED NC – New Construction – LEED EB – Existing Buildings – LEED CI – Commercial Interiors Nationally-recognized, voluntary, consensus-based standard for high-performance, sustainable buildings. Emphasizes key elements of the whole building – Sustainable sites, water and energy efficiency – Materials, resources, and indoor environmental quality.

30 LEED Projects 167 Certified Projects 1,000+ Registered Projects – Federal – GSA, DoD, EPA, USPS, DOI, USDA – States – MO, NY, PA, CA, WI, WA, OR… – Cities – Chicago, LA, NYC, Austin, LV… – Universities – Washington, MIT, Duke, UM… – Schools – Detroit & Seattle Public Schools… – Building Owners – Hines, CB Rich Ellis… 1,000 – 2,000+ Unregistered Projects

31 LEED For Existing Buildings 85 Total Points (Credits) – Certified: points – Silver: points – Gold:48-63 points – Platinum:64+ points Cleaning Industry Can Deliver 13+ Credits – Sustainable Sites (2) – Water Efficiency – Energy and Atmosphere – Materials and Resources (6) – Indoor Environmental Quality (5) – Innovation Credits (?)

32 Not JUST for LEED Credits Reduce environmental and health impacts Reduce liability, legal costs and insurance Reduce regulatory and inspection load It’s good for business – Improve tenant satisfaction – Improve tenant retention – Improve productivity – Improve “product” quality – Improved quality of work life – Improve employee retention

33 Commercial Office Buildings Focus on “Green” buildings – Public buildings (longevity) – Vulnerable occupants – High profile and Mission Cost – Products – Procedures Declining budgets – tie to: – Better productivity – Improved health – Reduced liability Influencers – USGBC – EPA

34 Commercial Office Buildings Green Buildings Affect Productivity – Productivity improvements range from 0.5% to 7%. 2% is generally accepted. – Average cost for space based on cost per salaries and benefits equals $130/sq ft. – 2% improvement equals $2.60/sq ft. Position cleaning as an investment – Similar to investing in computers or other technologies – Improve productivity and quality.

35 Government Agencies FAR Section 23.7 “…consider environmental factors when purchasing products and services E.O Greening the Government Through Waste Prevention, Recycling and Federal Acquisition E.O Greening the Government Through Leadership in Environmental Management RCRA Section 6002 Comprehensive Procurement Guidelines …recycled content in janitorial items MOA Aug Committee on Purchase, NISH, NIB, DOI, EPA

36 Educational Systems Focus on Children – Children are not miniature adults Student Performance – Charles Young Elementary School – Improvements on Standardized Tests – Creating a better learning environment Declining budgets – tie to education Influencers – CHPS – EPA Tools for Schools – PTA/PTO – Healthy Schools Organizations – Unions – NEA & AFT

37 Charles Young Elementary School Before Restoration 1996 Post Restoration 2000 Attendance 89% 93% Student health complaints Frequent Infrequent-Normal Very much reduced Math Scores Below Basic 49% 24% Math Scores Basic or Above 51% 76% Reading Scores Below Basic 41% 25% Reading Scores Basic or Above 59% 75% 49% 27%

38 Health Care Facilities Focus on “Healthcare Without Harm” Critical, Semi-Critical & Non-Critical Cleaning Hazardous waste, mercury, recycling Declining budgets – tie to health outcomes Influencers – Health Care Without Harm – Hospitals for a Healthy Environment – IEHA, ASHES, EPA – Other

39 Hospitality Focus on “green” and upscale facilities Issues – IAQ (i.e. fragrances) – Residential Issues (i.e. dust mites) Laundry & Warewashing Cost – Products – Procedures Marketing Influencers – Green Hotel Association – Green Seal – EPA

40 Building Service Contractors Focus on cost reduction & competitive advantage Issues – Workman’s Compensation costs are rising – Cleaning service viewed as a commodity Require chemicals, dispensers, equipment, paper, more… Provide leadership, training, support Influencers – ISSA – USGBC – Green Seal

Typical Objections Does Green Cleaning cost more? What does Green Cleaning mean? Are you saying we’ve been cleaning wrong all this time?

42 Does Green Cleaning Cost More? Typically cost neutral If current systems are meeting standard – may improve costs If current systems are sub-standard – may increase costs

43 What Does Green Cleaning Mean? Effective cleaning – Which protects health – Minimizes environmental impact Holistic/comprehensive approach – Complete program – Includes products, paper, equipment, procedures, training… Green Cleaning is NOT just swapping a product or two

44 Have We Been Cleaning Wrong? NO! Green Cleaning simply takes advantage of – New technologies – New Procedures Allowing us to clean effectively – At a competitive price – Protecting human health – Minimizing environmental impact

45 Final Thoughts Green Cleaning can re-establish the value of our industry – Protecting human health – Protecting property – Improving performance & productivity – Protecting the environment Selling a Green Bundle can help your company – Gain new customers – Increase sales to existing customers – Improve profitability – Make a difference

Selling the Green Bundle Thank You!

47 © 2005 ProTeam, Inc. All rights reserved. ProTeam The Vacuum Company, Cleaning for Health, and Team Cleaning are registered trademarks of ProTeam, Inc. All other trademarks used are the property of their respective holders. The American Lung Association does not endorse products. This presentation was developed by The Ashkin Group, LLC