Are Take Back Programs Right for the Cleaning Industry?
Officially known as Extended Producer Responsibility Regulations, take-back programs are not just a passing trend. They are gaining significant traction in the U.S. and globally. Several jansan manufacturers of professional cleaning equipment have already launched such programs or are seriously considering them, indicating a shift in the industry's approach to sustainability.
Companies like Apple, Adidas, Dell, and IKEA introduced take-back initiatives on a limited basis about two decades ago. The concept is simple: consumers return used products to the manufacturer, which can then refurbish the equipment, recycle it, or recover reusable components—such as batteries, plastics, and metals—for use in new machines.
The benefits are significant for the manufacturer and the environment. That’s because these programs:
Reduce waste, especially electronic waste (e-waste) such as computers and phones.
Lower the volume—and cost—of waste sent to landfills.
Lessen a company’s overall environmental footprint.
Improve efficiencies and potentially cut manufacturing costs.
While some manufacturers may worry that take-back programs could increase product costs that must be passed on to customers, research suggests otherwise. In fact, these programs can lead to cost savings. By refurbishing and reusing components, manufacturers can reduce their purchasing and production costs, ultimately benefiting both the company and the consumer.
Further, a Harvard Business Review (HBR) study found that once consumers learned about a manufacturer’s take-back program, they were willing to spend 4.8% more on specific products. Further, on subsequent shopping trips, their spending increased by 5.9% and 9.8% compared to their initial product purchase.*
In short, instead of deterring buyers, take-back programs encouraged them to buy even more from this company or manufacturer.
Why do consumers—and why would cleaning professionals—value these programs?
Among the reasons the HBR researchers reported are the following:
They see greater value in a product when manufacturers offer take-back options.
They gain control over how equipment is disposed of. They can return it directly to the store or distributor from which it was purchased or through the manufacturer’s own pick-up programs.
Overall, take-back programs help benefit manufacturers by improving their reputation and generating customer loyalty.
However, there are some considerations.
At the top of the list, manufacturers must identify suitable products for take-back programs. Such programs may not be suitable for all products. They must also ensure effective execution of the program by:
Actively promoting the program in advertising and product marketing materials, and on social media.
Clearly inform customers about eligible products (and which are not eligible).
Maintaining efficient return systems, as mentioned above.
Overall, the Harvard researchers concluded that take-back programs offer several benefits, many of which manufacturers may not be aware of. This includes the fact that “the more consumers know about these programs, the more likely they are to purchase take-back eligible products.”
It is for these reasons and many others that The Ashkin Group intends to encourage more professional cleaning industry manufacturers to adopt take-back programs—not only because they demonstrate their support for sustainability, but because take-back programs simply make good business sense.
-Steve
Source Referenced:
“Why You Should Offer a Take-Back Program for Your Old Products,” by Anna Tari and Remi Trudel, Harvard Business Review, February 26, 2024.