NERC | Northeast Recycling Council

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Marketing Plan

COST-EFFECTIVE OPPORTUNITIES FOR
NORTHEAST MATERIALS EXCHANGES

PREPARED BY:
CENTER FOR SUSTAINABLE BUSINESS PRACTICES
SCIENCE & TECHNOLOGY DEPARTMENT
BRYANT UNIVERSITY

GAYTHA A. LANGLOIS, PH.D.
BRENDAN SWEENY
MARYANNE MAZZOTTA

MATERIALS EXCHANGES MARKETING PLAN

COST-EFFECTIVE OPPORTUNITIES FOR INCREASING UTILIZATION

TABLE OF CONTENTS
REPORT SECTION PAGE
New England and New York Materials Exchanges

4
History of the Exchanges

4

1) Overview of the New England and New York Materials Exchanges

5
Developing a Marketing Strategy

7

1) Marketing Research Approach

7

2) Limitations and Problems

7

3) Barriers to Expansion of Materials Exchanges

8

4) Target Audiences for Materials Exchanges

9
Low/No Cost Marketing Strategies for Materials Exchanges

14

1) Strategies for Targeting Business Markets

15

2) Strategies for Targeting Non-Profit Markets and Community Groups

17

3) Strategies for Targeting Residential or Individual Consumer Markets

17

4) Matching Users and Generators

18

5) Computer Databases for Storing, Organizing, and Tracking Listings

20
Possible Partnerships for Materials Exchanges

22
Funding Mechanisms and Self-Sufficiency

23
Questions Raised for Materials Exchanges

25
Recommendations for Materials Exchanges

27
References Cited

29
APPENDIX I: Fact Sheets for Member Exchanges

30
APPENDIX II: Contacts for Exchanges

67
APPENDIX III: Sample Computer-Generated Brochures

68
APPENDIX IV: Sample Press Releases

73
APPENDIX V: Materials Exchanges Success Stories

78
APPENDIX VI: Other Exchanges and Sources of Information

83
APPENDIX VII: Templates for Internship Descriptions

87

MATERIALS EXCHANGES MARKETING PLAN

COST-EFFECTIVE OPPORTUNITIES FOR INCREASING UTILIZATION

NEW ENGLAND & NEW YORK MATERIALS EXCHANGES

Established in 1987, the Northeast Recycling Council, Inc. (NERC) is a 501(c)(3) organization. NERC’s new mission is to advance an environmentally sustainable economy by promoting source and toxicity reduction, recycling, and the purchasing of environmentally preferable products and services. NERC's voting membership includes officials from Connecticut, Delaware, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont. NERC's advisory membership includes private businesses, municipal governments, utilities, state recycling organizations, and non-profit organizations.

HISTORY OF THE EXCHANGES

To address the growing need for diverting materials from landfills, state governments throughout the Northeast have assisted in the development of Materials Exchanges as a strategy for diverting reusable materials from entering the waste stream. Materials Exchanges broker information and help those that have unwanted materials connect with other businesses, governments, or non-profit organizations looking for the same type of material. Exchanges maintain listings of "materials available" and "materials wanted" that they publicize on the Internet, or by means of catalogues or newsletters. Material Exchanges focus on materials as viable commodities, and exist in cooperation with other facets of materials management in the public and private sectors.

Recycling and reuse programs are broadly accepted in the United States, and are credited with reducing reliance on landfills, incinerators, and waste-to-energy facilities. Additionally, by reducing the need for consuming virgin materials, these programs result in conservation of energy and material resources, which in turn help to reduce use of fossil fuels for manufacturing and transportation, global warming, acid deposition, and toxic wastes associated with manufacturing. By diverting materials from waste processing facilities, recycling and reuse programs also help to prevent water and air pollution associated with landfills and incinerators. For a more detailed discussion of these issues, refer to the NERC website for Vermont ( http://www.nerc.org/fsheets/vt-factsht.html) or the Citizen's Plan for Zero Waste in New York City (http://www.consumersunion.org/other/zero-waste/reuse.html ).

Although the economics of recycling and reuse are somewhat complex, and cost/benefit analyses of waste diversion somewhat difficult to assess, attempts are being made to untangle some of these complexities. Simply comparing costs of collection and processing for recyclables against collection and disposal for waste does not give a complete picture (Hadley, 1997), since long-term costs for managing the waste management infrastructure are usually not included. In 2004, NERC developed a tool for assessing the specific environmental benefits attributable to source reduction, reuse, and recycling, and a downloadable version of this tool is available at http://www.nerc.org/documents/Blank_NERC_EB_Calculator.xls and instructions for use can be found at http://www.nerc.org.documents/aboutcalc.html .

According to the 2001 National Recycling Coalition Report, "U.S. Recycling Economic Information Study, "The reuse industry is widespread and ranges from more traditional establishments such as local thrift stores and antique shops to more recent, dynamic operations such as computer demanufacturers, pallet rebuilders, and materials exchanges. As a whole, the U.S. reuse industry employs nearly 170,000 workers in more than 26,000 establishments nationwide. This reuse industry also supports an annual payroll of $2.7 billion and generates revenues of approximately $14.1 billion." (Beck, 2001). Table I summarizes these numbers.

Table I. Analysis of Economic Activity for the Reuse Industry

Economic Activity for the Reuse Industry  
Establishments 26,716
Employment 169,183
Annual Payroll $2,747,498,000
Estimated Revenue $14,182,531,000

Source: National Recycling Coalition Report, Executive Summary, p. ES-2 (Beck, 2001)

Source reduction (avoiding the production of waste) has been widely embraced in many industrial and commercial sectors, as a result of redesigning industrial processes and products, to increase energy efficiency, and significantly reduce water consumption and toxics generation, and to provide for cost savings. However, a continuing problem exists in that materials and products viewed as no longer being useful may be discarded because the present owner does not know how to find the next user in the value chain. Hence, the development of "Materials Exchanges" has evolved, as a means of transferring "usable" materials and products to the next user. Most of the Exchanges in New England and New York have an online component, designed to link manufacturers, offices, commercial enterprises, non-profit organizations, schools and other public agencies, and government procurement programs. Thus, the holder of discontinued or outdated products, office furniture, or used electronics, now has a mechanism for finding potential users of these items. Goals of Materials Exchanges may include the following:
  • Goal: To link owners of usable items with potential users of these items
  • Goal: To divert usable materials from landfills and other waste processing facilities
  • Goal: To change mindsets about "materials management" and "wastes"
  • Goal: To raise the waste prevention and reuse awareness of the general public
  • Goal: To track the volume of diverted materials, and thus assess the efficacy of the Materials Exchanges
  • Goal: To position the Materials Exchanges to move toward self-sufficiency in the longer term
  • Goal: To develop more "sustainable" waste management systems

OVERVIEW OF NEW ENGLAND AND NEW YORK MATERIALS EXCHANGES

In the Northeast, Materials Exchanges began to appear in 1993, and are characterized by strong cooperation and mutual support. The U.S. Environmental Protection Agency New England Regional Office has actively sponsored networking opportunities for the Exchange managers to meet and share information, ideas, and opportunities. This spirit of collaboration, instead of competition, has enabled these programs to grow quickly by learning from the successes and mistakes of their counterparts. Countrywide, a 1999 survey of 165 Materials Exchanges (16% response rate) indicated that the average Exchange services 11,167 individuals and organizations each year, with an average of 230 transactions per month, and accounts for the recycling of nearly 82,500 tons of materials and products a year. About half of the respondents report a free service, some require memberships, and some charge transaction fees or registration/listing fees. Post-consumer products most often exchanged for reuse include office equipment, building materials, appliances, electronics and art supplies, along with paint, domestic furnishings, antiques, and house wares. (Study conducted by the National Recycling Coalition, the Reuse Development Organization, and Princeton University's Center for Energy and Environment Studies, in June 1999; summarized by Christine Beling, an environmental engineer in the USEPA Region I, in an article in Resource Recycling Magazine, November 2000).

The New England and New York Materials Exchanges differ in many ways, including size, scope, focus, funding, management, location, and history. Fact sheets on each of the New England and New York Exchanges and a detailed comparison of the Exchanges is located in Appendix I and II of this report. However, many common features also characterize the Exchanges. Most of them have an online component, and the Web addresses are listed in Appendix II. Most of the state-sponsored Exchanges are broad-based, including a variety of material categories. Many of the non-governmental organization (NGO) sponsored Exchanges feature a limited variety of products, and are aimed at a targeted audience (e.g. school supplies, arts materials, electronics, etc.). The level of management and oversight varies widely, from self-sufficient, somewhat passive Exchanges where users exchange email contacts, to staffed programs that actively attempt to match users with products to users needing the products.

Procedures utilized by the Exchanges also vary widely, for example, some Exchanges require that all materials offered on the site must be available at no cost to the next user, at least for the initial interaction. Others allow for agreed upon payments to be arranged. Some Exchanges warehouse an inventory, and act as a "middle-man" for the products, but most of them simply try to match the product to the users. Some of the Exchanges maintain a separate website for homeowners and individual users to exchange, and in other cases the Exchanges commingle all users. Exchanges can be categorized as "passive" (publicize listings but are not usually actively involved with exchange details), "active" (act as brokers between the exchanging parties, often charging a fee for services), or "warehouse" (actually taking possession of materials at some point of the transaction). Passive Exchanges are easier to manage, but have little tracking capabilities; active Exchanges necessitate more staff and funding, but can act as catalysts in the exchange process; and warehousing Exchanges have the capability to enhance the effectiveness of Exchange networks, but add considerably to operational costs. As noted in a Rutgers University report on Materials Exchanges, transaction costs (expenditures of resources, time, and effort to complete transactions) often hinder the development of viable markets in recycling and reuse (Andrews, 2000).

Funding for staffing, web-hosting, site-design, and other costs also varies from one Exchange to another; some have almost no funding, beyond the initial startup costs; others have an ongoing source of support (i.e., state agencies, a fee-based system, or in some cases time-limited grant support).

Still, a common challenge facing almost all the Exchanges is how to attract more users, how to make businesses and nonprofits aware of their existence, and how to make their services better known. Thus, in this report, we have attempted to proffer some cost-effective ideas for better marketing the Exchanges. It is understood that given the diversity of the Exchanges, different techniques may be differentially applicable in one case or another.

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DEVELOPING A MARKETING STRATEGY

MARKETING RESEARCH APPROACH

In business settings, it is customary in marketing research to assess the strengths and weaknesses of the business, then to identify the potential opportunities in the marketplace, and finally to note any threats facing the expansion of the business (the SWOT analysis). In the context of this report, the analysis sequence has been modified. We have already described the inherent benefits associated with the Materials Exchanges. The report will go on to explore some of the liabilities associated with the Materials Exchanges, and identify some of the competitors. Then the barriers to expansion will be examined, and the bulk of the report will address the opportunities. Another clarification should be made between Market Research and Marketing Research (i.e., both terms widely used in the business literature). Market Research usually focuses on "looking at a particular market" (its size, structure, product substitutes, barriers to entry, and the allocation of market segments among competitors). Conversely, Marketing Research, "covers broader concepts and refers to an ongoing and systematic collection, interpretation, and reporting of data-data that is used by marketers to deal with specific problems, evaluate the success or failure of a project, or to discover and take advantage of new opportunities" (Nonprofits.org, 2005). This Marketing Plan Report falls into the second category of "Marketing Research" and is intended to provide options, ideas and viewpoints, and to prompt further discussion and action by NERC and the Material Exchanges.

LIMITATIONS AND PROBLEMS

As described earlier in the Overview section, Materials Exchanges are often thwarted by limited budgets and staffing, unclear directives about their mission and responsibilities, overlapping territories between Exchanges, and competing goals within the same State system for waste management (e.g., oversized waste-to-energy facilities that need fuel might prefer to burn wood products as opposed to redistributing furniture items). Another challenge facing Exchanges that maintain an inventory is to find reasonably priced warehouse space. Furthermore, inadequate budgets and staffing may preclude the expansion of a Materials Exchange's reach because there is no mechanism for marketing the advantages and potentialities of the Exchange. It is possible that an Exchange needs to reach a "critical size" in order to stimulate the kind of trading activity that will assure viability and sustainability. There is probably also an upper limit or optimal size that remains manageable within each given Exchange model. More research is needed to assess the economic and organizational implications of the various models exhibited by existing Exchanges. Lastly, other competing pathways for reusable materials may inhibit operation and growth potential for the Exchanges.

Some of the possible competitors with Materials Exchanges might include the following: online trading systems (e.g., E-Bay or Craig's List, Yahoo Auctions, FreeCycle, or Amazon.com), thrift shops, flea markets, pawn shops, and professional recycling companies. These retail operations are more likely to be utilized by individuals, as most companies are not likely to allocate the time needed to list and track the available items.

Professional recycling companies are probably the most significant competitor for items of value, such as computers and other electronics. The ease of dealing with these companies (appraisals, pickup, transport, paperwork, etc.) makes them a very attractive option for a business manager or facility director. Possibly the Materials Exchanges could partner with some of these professional recyclers as a "last step" in the sequence of distribution by the recycling companies, so that they can avoid accumulating massive inventories of low-value items that could possibly be donated to potential users. The compelling question is one of the "value" of a used electronics item; if the item or its parts can be sold (having resale value), then the recycling company would want to resell it; whereas, if the item has low resale value, then the recycling company will probably go for the value of crucial components, such as precious metals. The disassembly process may result in the bulk of the item being discarded as "waste". Common practice in using a recycling firm is for the company owning the items, e.g., computers, to pay for a pickup service. Thus, if the intact computer or other electronic item is seen as "usable" by a different user, then these companies might well be willing to list such items on a Materials Exchange, rather than pay for the pickup and disassembly. Other partners with Materials Exchanges might include the computer manufacturers, who would be willing to contract with or to advertise the Exchanges as a means of enabling a "greener" system for discarded items.

In addition, private sector reuse and surplus businesses might be seen as a competing interest with Materials Exchanges. However, the existence of these firms might obviate the requirement for an Exchange to maintain warehouse space. By having these companies as members of an Exchange, and/or having these firms provide access to new customers, the Exchanges can improve their success and expand their sphere of influence. For example, a set of old wooden tables and chairs in a deteriorated condition may not be attractive enough to sell at a second hand shop. However, if refinished, the set may have greater retail potential and command a much better price. If such items were listed on a Materials Exchange, buyers might include a furniture refinishing business. This approach could foster the development of additional small business operations in a regional economic system, and might be aligned well with city or state economic development plans.

BARRIERS TO EXPANSION OF MATERIALS EXCHANGES

Some of the challenges to effective marketing of the Exchanges would include the following: lack of funding for traditional advertising approaches, identifying and prioritizing appropriate target audiences, coping with the irregular availability of the materials to be exchanged when designing an effective marketing approach, and being able to effectively track the success of different marketing techniques.

To begin with, the throw-away mindset so prevalent in the United States is very hard to change. A business manager, overwhelmed with day-to-day operations, is not likely to spend much time trying to find a user for their discarded equipment or furniture. Often such decisions are made by facilities staff charged with removing the items from their present location. Many companies do not even have a policy for the disposal of such items; rather they are simply considered to be "waste" and will be discarded with the normal waste stream, as long as they are not considered to be toxic or to require any special treatment. Who holds the responsibility to retrain these decision makers to think in terms of managing all "materials" that pass through the business as having value as usable objects, until they no longer function, cannot be repaired, or another user cannot be found? So part of the challenge to Materials Exchanges is to develop an education process that would change these mindsets.

Secondly, the lack of information about the existence of the Materials Exchanges also precludes business managers from utilizing them more extensively. Thus, even if the manager may desire to practice good waste management practices, the level of awareness about the existence and value of Materials Exchanges may be nonexistent. This is probably the biggest, but most important, challenge to be met by the Materials Exchanges if the programs are to grow and prosper.

Lastly, in many cases, tipping fees at landfills are held artificially low by state or municipal authorities. Thus, there may be little incentive to think twice about discarding materials, especially if it will take staff time to track down a potential user of a recyclable or reusable item. Even though the long-term consequences of filling up landfills, increasing pollution, and overusing raw materials may be compelling, the typical business manager is usually focused on short-term decisions and objectives. Since there is almost no likelihood of challenging subsidies created by political leaders, the challenge to the Materials Exchanges is to inform business leaders about the long-term implications and the available resource for better meeting their corporate responsibilities to foster a sustainable society.

On the non-profit side, even though no-cost or low-cost, reusable products may be desirable, the challenges of trying to track down these items using very limited staff resources may be formidable. Hence, if there is no knowledge about the existence of online Materials Exchanges, the chances are great that the agency or organization will "get along without" the needed item. However, it will probably be easier to market the Exchanges to the nonprofits than to the business sector, because users in need of free or low-cost products are likely to have greater motivation. Also, non-profits tend to communicate frequently with one another and to depend heavily on the "word of mouth" method of sharing information.

Municipal policies that might affect the Materials Exchanges could include any of the following: procurement protocols for schools and community centers (e.g., whether used equipment can be purchased); setting of tipping fees at landfills; and recycling programs within the municipality (e.g., pickup programs, what materials are actually required or allowed to be recycled). Municipalities may need to change their "recycling" policies so as to encourage more "reuse." For example, wood furniture and functioning appliances should perhaps have a priority as a "reuse" item, rather than as a "recyclable" item. This shift in emphasis could take place either at the source end of the spectrum (i.e., the generator), or at the receiving end (i.e., the Materials Recycling Facility, where reusable items can be diverted.

TARGET AUDIENCES FOR MATERIALS EXCHANGES

Clearly, any marketing plan for the Materials Exchanges will need to feature targeted entities, with adjustments made for each of these targeted audiences. The targets might include some or all of the following: non-profit organizations (NGO's), community agencies, educational institutions, municipalities, state government offices, and businesses by sector. Residential customers may also be targeted, depending on the design and scope of the Materials Exchange.

Non-profit organizations vary widely (serving almost every segment of the population, providing almost every conceivable type of service to people of all ages, and ranging from very small to very large). Hence, there is no simple design to reach all of them in a consistent manner. Rather, the best way to capture this audience probably lies in raising awareness about the Materials Exchanges through umbrella organizations (for example, the Environment Council in Rhode Island is an overarching group whose members comprise dozens of small to large environmental organizations). Other examples of environmental coalitions are noted in Table II.

Table II: Environmental Coalitions in the Northeast States

Environment Council in Rhode Island

http://www.environmentcouncilri.org/ecri.html
Massachusetts Environmental Collaborative

http://www.environmentalleague.org/about.html
Environmental League of Massachusetts

http://www.environmentalleague.org/index.html
Connecticut Fund for the Environment

http://www.cfenv.org/candp.htm
CFE E-Links

http://www.cfenv.org/links/
Scorecard (for Connecticut) Environmental Defense Fund

http://www.scorecard.org/env-releases/state.tcl?usps_abbrev=CT
New Jersey Environmental Federation

http://www.cleanwateraction.org/njef/
Environmental Advocates of New York

http://www.eany.org/
New York Eco-Groups
(ECO-USA Website)

http://www.eco-usa.net/orgs/ny.shtml
Vermont Public Interest Group (VPIRG)

http://www.vpirg.org/
Vermont Environmental Organizations (EnviroSouce.com)

http://www.enviro-source.com/vt/vt10.html
New England Environmental Organizations

http://www.biodiversity911.org/
LocalLinks/NorwichVT_ECG.html

There are many such coordinating coalitions serving other realms, such as the human services, the arts, education, historic preservation activities, civic responsibility, and health support groups. One such example might be the League of Women Voters, with both national and local presence. The League regularly takes on special projects focused on improving public infrastructure and environmental quality. By linking up with these coordinating groups, the Materials Exchanges can more quickly connect with a huge variety of NGO's.

Community agencies are often designed as partnerships between federal, state and local agencies, providing programs tailored to meet a local community need. Such agencies are usually woefully under-funded and would be ideal targets for reusable construction and building materials, since they are often charged with maintaining public housing, or coordinating with low-income homeowners. In general, these agencies represent good customers for receiving a variety of reusable materials. Fortunately, since many of these programs are funded with federal monies, they are reasonably easy to track down through public databases (see Table III for examples).

Table III: Examples of Community Service Agency Information

Community Resource Database for Long Island

http://www.crdli.org/about_crd.html
United Way of Connecticut - 2-1-1 Infoline

http://www.referweb.net/uwct211/
Connecticut Community Services - AARP

http://www.aarp.org/states/ct/
ct-communityservice/
Connecticut Department of Social Services

http://www.dss.state.ct.us/svcs/adults.htm
Community Services Network - New Haven Area

http://www.communityservicesnetwork.org/
United Way 2-1-1 Infoline - Connecticut

http://www.infoline.org/
Focus Adolescent Services - Maine

http://www.focusas.com/Maine.html
AccessMaine - Community Providers

http://www.accessmaine.org/living_provider.htm
Bureau of Elder and Adult Services - Maine

http://www.maine.gov/dhhs/beas/
resource/employ.htm
Maine Community Services- AARP

http://www.aarp.org/states/me/me-
communityservice/
Massachusetts Community Services - AARP

http://www.aarp.org/states/ma/ma-communityservice/
Massachusetts Association for Community Action

http://www.masscap.org/agencies.html
Feinstein Center for Service Learning - URI - RI Agencies

http://mm.uc.uri.edu/clearinghouse
/alpha_agency.asp
Rhode Island Community Services - AARP

http://www.aarp.org/states/ri/ri-communityservice/

Rhode Island Service Alliance

http://www.riservicealliance.org/
Community Service Society of New York

http://www.cssny.org/index.html
Council of Community Services of New York State

http://www.ccsnys.org/
New York Public Library Community Services Listings

http://www.nypl.org/branch/services/cis.html
Vermont Commission on National and Community Service

http://www.state.vt.us/cncs/
Vermont Community Stewardship Program

http://www.vhcb.org/vcsp.html
Central Vermont Community Action Council

http://www.cvcac.org/default.aspx
Dept. of Health & Human Services - New Hampshire - Programs & Services

http://www.dhhs.state.nh.us/DHHS/
Programs+Services/default.htm
Community Services Council of New Hampshire

http://www.dhhs.state.nh.us/DHHS/
Programs+Services/default.htm
Seacoast OnLine - NH Community Service #s
http://www.psnh.com/Community/
NHMatter/default.asp

Educational institutions represent a significant potential for utilization of the Materials Exchanges. This category is comprised of colleges, universities, trade schools, professional training programs, public and private schools, and education departments at every level. These institutions and agencies represent sources of reusable items, and are potential customers for reusable items. Some of the region's Exchanges focus exclusively on educators, but most of the Exchanges have not yet fully explored the many potential partnerships with educational institutions. For example, most universities have very rapid turnover of computers and accessories, with some in-house recycling protocols, but commonly end up disposing of unwanted computers via professional recyclers. Educational institutions should be one of the prime targets for the Exchanges. In many of Northeast states, there are statewide databases listing personnel in the public sector. For example, it may be possible to access the names and contact information for municipal-level school purchasing agents through the State Department of Education, or via a Website for the municipality. For this sector, purchases of used science equipment and furniture are more likely to be a policy option (as indicated by an assortment of online sources for science equipment-see Table IV), than would purchases of used computers, because computers are turned over so much more rapidly. However, there may be an undeveloped market for computers that are 3-5 years old, since many universities turn over their computer stock every 2-3 years. Some of the Exchanges have extensive experience in working with school systems, and could take the lead in enabling other Exchanges in their efforts to expand their reach into their local educational community.

Table IV: Examples of Online Sources for Used Science Equipment

Equipment for Technology & Sciences, Inc. http://www.equiptechonline.com/
The Sourcebook for Teaching Science

http://www.csun.edu/~vceed002/
ref/equipment/
Microscopy Database - List of Secondhand Equipment
http://www.kaker.com/mvd/used_equip.html

Municipalities represent a potential market, both as sources of reusable items and/or as new customers for the Exchanges. For example, almost all municipal departments utilize computer equipment in their day-to-day operations, thus would have some kind of policy for discarding of old machines. Likewise, with lean municipal budgets, department managers might look favorably on a source for slightly used computers being generated by a business entity. Meanwhile, many cities use a centralized purchasing procedure for their component schools. By designing an information packet for municipalities, the Materials Exchanges could forge workable partnerships with local government, and in so doing produce a significant increase in the amount of waste diverted from landfills (and increase their savings through avoided disposal costs).

Similar potentialities may exist for targeting state and federal agencies, both in terms of operations (e.g., office equipment, computers and accessories, maintenance and facilities management, and possibly in certain aspects of transportation). For example, because government agencies set up contracts for large fleets of vehicles, policies that favored the reuse of vehicles in situations where accumulated mileage would not be a significant drawback might enable small, low-mileage vehicles of 3-4 years old to be used, rather than purchasing new vehicles. As a case in point, recently General Motors, Ford, and Toyota revealed that they are destroying electric vehicles because the lines of production are being discontinued (see Websites below for details):

http://www.dontcrush.com/press.shtml

http://www.jumpstartford.com/news/newsitem.php?id
=1327&area=ford

http://www.megawattmotorworks.com/display.asp?
dismode=article&artid=155

Why weren't these vehicles transferred to non-profits, government agencies, or low income buyers, rather than being discarded? In addition, by working with appropriate state agencies (e.g. environmental agencies), better policies at the federal, state, and local levels of government could be worked out for encouraging reuse and source reduction.

A major target market is the business sector, at least for most of the Exchanges. While in some cases, businesses primarily represent the generator side of the exchange formula, business to business transfers are also important. Most manufacturing businesses generate products or byproducts that for a variety of reasons may not be able to be sold through their distribution networks (e.g., slightly damaged items, a discontinued design, overproduction, etc.). These items might not be discarded as wastes if the Materials Exchanges were available as an option (for examples, see the Success Stories in Appendix V). Furthermore, all businesses have furniture and equipment that is periodically changed. Contacts with facility managers, maintenance staff, and inventory supervisors might be fruitful in developing a wider customer base for the Exchanges. In addition to manufacturers, firms in the construction, junk removal, home repair, and retail industries should be targeted. Other businesses of interest might include second-hand shops, computer installers, and used auto dealers. A more detailed discussion of strategies for targeting businesses will follow in a later section of this report.

Although this report is not directly focused on residential and individual customers, since most of the Exchanges are targeting businesses and non-profits, these users do represent a huge potential market in terms of appliance and furniture reuse. For the Exchanges that reach out to the individual customer, the marketing challenges lie more in the realm of "branding" the service in a way that the customer remembers the name when they are looking for the service. For example, the name "FreeMarket" utilized by the Rhode Island Resource Recovery Corporation is quite memorable, but probably needs to be more widely known. In this case, the Exchange could possibly partner with RI municipal waste service providers to distribute a brochure or some other marketing materials to their residential customers.

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LOW/NO COST MARKETING STRATEGIES F
OR MATERIALS EXCHANGES

Several principles underlie low cost, but effective marketing strategies: (a) the strategy should match the intended target market(s); (b) there should be a focus on partnership opportunities; (c) electronic techniques should be utilized; and (d) information packets should be designed for distribution to businesses and nonprofits. The concept of "sustainable marketing" aligns well with the goals of most online Materials Exchanges. Marketing costs for using traditional marketing techniques to launch a new online Materials Exchange can be very expensive. Although grants or gifts may be available to fund specific projects, for the most part, funding is scarce and guerilla marketing techniques are much more likely to be selected.

The concept of "guerilla marketing" represents the idea of using out of the ordinary methods of marketing to get maximum results with the minimum investment of resources (see the following for more information): http://www.gmarketing.com or http://www.clickz.com/experts/archives/mkt/start_
up_mkt/article.php/825181

Some of those methods involve direct contact, distribution of brochures in a variety of ways, newsletters set up by the Exchanges, links from other websites, news releases to radio, newspapers, or trade journals, partnering with academic communities, professional organizations or allied industries, working with government agencies, schools and libraries, and seeking sponsors for special events. By taking a joint (regional) approach toward marketing, through the auspices of NERC, the Exchanges will benefit greatly. Templates and models that are developed can be tailored to meet the specific needs of each Exchange.

For example, direct contact would probably work best for educational institutions, municipalities, community agencies, and school systems, as well as for federal and state agencies targeted as potential partners. Yet, given that this type of activity is labor-intensive and time-consuming, this approach might be best linked with college student internships or community volunteers. Essentially, every university and college in New England and New York has an array of internship programs, and usually there is enthusiastic support for any agency or organizations that requests these interns. Internships may necessitate a modest stipend for the work done, or may be available free of charge because the student is conducting the work as part of an academic program or specific course. For more details on setting up internship arrangements, see Appendix VII of this report.

By developing an information packet that explains the workings of each Exchange, provides a summary of the benefits and avoided costs associated with using the Materials Exchanges, and includes some statistics on the effectiveness of the waste diversion activities, the Exchange representative can quickly contact key officials in these sectors to initiate a partnering activity. However, direct contact would not be as efficient or effective for contacting individual consumers/users. In that case, it would be better to request distribution of a simple brochure via the existing waste pickup service (either municipal or private), as an inclusion in utility bills, or as a handout accompanying waste disposal stickers at a municipal office.

The Exchanges could jointly develop templates for different types of brochures that would capture the essence of their activities, and then seek sponsors for the printing and distribution costs as a specific project. Using computer publishing tools, brochures can be inexpensively designed and produced. Samples of possible brochures will be included in Appendix III of this report.

Intrinsic to all marketing approaches is the need for memorable "branding" of the product or service in question. As discussed earlier in this document, at this time the term "materials exchange" is not fully embedded in the consciousness of the public, nor in the targeted sectors that have been discussed. Some of the Exchanges have deliberately designed names to be memorable to users (e.g., Rhode Island's "FreeMarket" and "ResourceXchange", PENCIL, Recycle-A-Bicycle, or Build It Green NYC, just to name a few). Whatever name is chosen, the marketing program must link the name with the service, (i.e., branding the service). One approach to feature a brand name for consumers is to distribute widely some item with the name to be emphasized. For example, consider a bright button or bumper sticker with the name "FreeMarketRI.com" that would be widely distributed in Rhode Island. Soon, everyone would be asking, "what is it?" Simultaneously, many of these queries would result in people visiting the Website.

STRATEGIES FOR TARGETING BUSINESS MARKETS

As for the business market, effective techniques would vary depending on the business sector in question. Some initial contacts might include trade associations, trade journals or newsletters, where a brief news release could be used to create awareness of the services and to establish a branding of the logo and/or website (Examples of news releases are included in Appendix IV). Some examples of potential trade organizations are listed in Table V:

Another possible approach is to prepare an information packet aimed at the business user. These packets could be distributed by summer college interns (as described above) to businesses within a specific geographic area, or within a certain business category. Particular targets for the distribution of information packets might be the waste management businesses, particularly recyclers who get most of their profit from picking up discarded equipment, etc., but maybe only have markets for a small portion of the materials they collect, and the construction sector (which accumulates large quantities of wood, paint, and other building materials from construction and deconstruction activities). Owners of second hand shops and junk removal services often have only a small storage capacity, and might welcome information about the Materials Exchanges as a means of keeping their unsold inventory moving rapidly. Probably the manufacturing trades generate the most quantity of potentially reusable materials, and their very diversity and dispersed distribution constitutes a challenge in terms of letting them know about the services provided by a materials exchange. However, residential and corporate apartment communities represent good potential for collaboration (maintenance departments often have leftover material from installation and rehabilitation operations).

Table V: Recycling Non-Profit and Trade Organizations for Possible Collaborations

Partnering possibilities could be explored with the U.S. Small Business Administration (http://www.sba.gov/), and direct arrangements could be set up with Small Business Development Centers (SBDCs), located throughout the United States, often on university campuses (http://www.sba.gov/sbdc/). One benefit of linking with the SBDCs is the possible access to their extensive mailing and electronic contact lists. This might be quite an effective way to communicate information about the Exchanges to the business sector. Also, state agencies that are charged with economic development may have mailing lists, or may hold conferences where brochures could be made available to business owners.

Distribution of press releases describing successful materials exchanges, or detailing new website features should include weekly newspapers with a dedicated business focus, such as the Providence Business News in Rhode Island, or the Women's Business News in Boston, thus specifically targeting a diversity of business readers.

The motivation for companies to participate in Materials Exchanges include the following: reduced waste handling costs, savings in purchasing costs, increased storage space that can be used for other purposes, tax deductions and community support for donations to non-profit organizations, saving time and effort by staff in finding new users or arranging for waste disposal, creating new business connections, meeting ISO certification 14001 requirements, aligning with corporate environmental objectives, utilizing an environmentally responsible option, or just "doing the right thing." However, many businesses focus primarily on maximizing their revenue stream, with less emphasis on cost containment strategies. Perhaps the greatest obstacle is a lack of awareness of the opportunities provided by Materials Exchanges, either as a market for discontinued or unwanted equipment or supplies, or as a source of raw materials for manufacturing or assembly. The greatest challenge may be to change mindsets of business managers from "Where do I get virgin materials?" to "Where can I get cost-effective, used materials?" It is difficult to move from the concept of "once-through use" of a given product that automatically becomes a "waste material" at the end of its single use, to the more encompassing view of "materials management" that accounts for the entire life cycle of the raw materials fashioned into manufactured products, including embodied energy consumed in their initial production. Converting these subtleties into practical strategies for operating businesses is equally challenging for Materials Exchanges.

STRATEGIES FOR TARGETING NON-PROFIT MARKETS AND COMMUNITY GROUPS

In the nonprofit sector, as described earlier, coordinating councils or umbrella organizations could be targeted first, with distribution of an appropriate brochure, this time focused more on the NGO's as recipients of needed materials. In particular, environmental organizations would be good partners because many of these organizations have their own newsletters and websites. Most of them would probably be more than willing to feature a link to the website of a Materials Exchange, and to publish descriptive information about the Exchanges, the need for recycling, and statistics about the success of the Exchanges. Additionally, brief news releases provided to these environmental NGOs could be used in their newsletters. This would be particularly valuable for attracting individual consumers who might use the Materials Exchanges.

Additionally, staff from the Materials Exchanges (or their coordinating agencies) could sponsor or conduct workshops for NGOs, teachers, or municipal employees, describing the Exchanges and their benefits. These workshops could be focused on environmentally sound waste management approaches, along with the availability of free or low-cost materials for cash-strapped organizations. For example, in Rhode Island, ResourceXchange officials were recently able to assist a local Fire Department facility to totally outfit their office space with free furniture and equipment donated by business members of the Exchange. By sharing information about such success stories for non-profits, Exchange managers could easily capture the attention of other potential users. These workshops would have the added result of enlisting the participants as new supporters, particularly teachers. Coupled with the workshops could be some kind of activity for children to compete in designing posters or other informational tools. Thus, the training process would be far-reaching. For example, in Rhode Island, successful tools for fostering the goals of recycling have included the "School Recycling Report Card," and the "Rhode Island Recycling Club." Similar programs could be developed to focus on reuse possibilities and online Exchanges.

STRATEGIES FOR TARGETING RESIDENTIAL OR INDIVIDUAL CONSUMER MARKETS

In terms of informing the general public about the existence of the Exchanges, their importance to the community, and the effectiveness of their efforts, press releases could be provided to radio stations (required to provide a minimum of public information announcements), specialized newspapers (e.g., "Business News"), and local newspapers who usually harbor a strong sense of community responsibility. The press releases should be sent out regularly (i.e., monthly), and should be forwarded electronically if possible, saving time, paper, and postage. The game plan is to make it easy for the communication media to help (see Appendix IV for sample Press Releases).

Possible advertising tools might include placing a link onto appropriate commercial websites (depending upon the cost involved). For example, "Craigslist" allows businesses to post an ad or a link under a particular category. Also, key words can be registered into the major search engines (e.g., Google, Yahoo, Altavista, Lycos, Ask Jeeves, etc.), so that if someone typed in the words, "free stuff" the website for an exchange would come up, even if those exact words were not on the website. These key words are called "meta tags" and are incorporated into the coding for the Website. More information about the use of Meta tags for web searching is available at the following web sites:

http://www.monash.com/spidap4.html

http://www.apromotionguide.com/metatag.html

http://vancouver-webpages.com/META/mk-metas.html

The Materials Exchanges could benefit from collaboratively developing a metasearch capability, and this option is currently under discussion among the Exchanges.

Another approach is to take advantage of broad spectrum Websites that include links to allied organizations. For example, active Websites such as Idealist, described as "the online meeting place for non-profit organizations, resources, consultants, job seekers, and volunteers." ( http://www.idealist.org ) and Guidestar, providing provides a free service with information on the programs and finances of more than 650,000 American charities and non-profit organizations ( http://www.guidestar.org ) allow for entries describing your organization or program.

Within every northeastern state, there are many "Earth Day" celebrations, along with other outdoor get-togethers in the spring, summer and fall. These are very good venues for distributing brochures and other educational materials about the Exchanges. An excellent handout would be the pencils made from money and blue jeans (part of the materials distributed by the Rhode Island Resource Recovery Corporation). These could be imprinted with the logos of the appropriate Exchange. Business conferences, workshops, and seminars would also be good sites for distributing brochures and fact sheets touting the benefits of the Exchanges, for example, as mentioned earlier, the Small Business Administration Centers regularly sponsor such activities.

Making speeches to civic clubs and professional organizations, and having brochures available, is an excellent way to expand networking capability. Teachers are often looking for special speakers in their classes to describe civic affairs or public service activities, and libraries often sponsor "speaker series" for the general public. In the process of setting up the appointment, there may be an opportunity to meet with administrators to establish other informational links.

MATCHING USERS AND GENERATORS

Exchanges may involve buyers and sellers, or may involve Exchanges without money transactions. However, efforts by Materials Exchanges to link generators with possible users may be labor intensive and time consuming. Challenges include the following issues:
  1. How to reach large numbers of small manufacturers who may or may not be Internet connected, primarily to acquaint them with the possibility of utilizing the Materials Exchanges
  2. How to reach potential users (i.e., non-profits or other businesses) to alert them to reach out to the Materials Exchanges as a source of needed items
  3. How to fund these outreach activities, which tend to be labor-intensive and to be based on a sense of trust developed through direct personal interactions
  4. How to design the ongoing expansion of the online Exchanges in a cost-effective, sustainable manner
  5. How to select the best method for organizing listings and enhancing matchmaking

Tackling these challenges will require partnerships with business, government agencies, non-profit organizations and the academic community. Sharing of resources is essential, along with developing communities of interest. For example, professors and graduate students are always on the lookout for worthwhile research projects (environmental management, economics, policymaking, accounting, etc.). For undergraduates, situational internships are sought after to provide real-world experience. Non-profit organizations have equipment and supply needs, with little monetary resources available, yet may be willing to host a workshop, use their newsletter or website to inform the public about the existence of online Materials Exchanges. Likewise, small businesses can thrive more readily with access to free or inexpensive materials available through online Materials Exchanges, in fact, new businesses may be created to specifically utilize an abundant recycled material for new uses.

The choice of which medium to utilize for sharing the listings is rooted in the type of user base, the funds available, the type of materials being exchanged, and the history and development of the Exchange. Printed materials (e.g., a catalogue of listings) is helpful to businesses who are not accustomed to routine Web searches, or who prefer not to get email or FAX updates on listings. Catalogues are also good marketing tools because they have a lasting impact beyond first glance. However, they are costly and time-consuming to assemble and publish, and need to be updated frequently. A possible alternative for visual advertising might be the production of an insert suitable for newsletters or trade journals. Downloadable electronic brochures might provide some of the advantages of the printed catalog, at lower cost, and with better tools for easily updating the content. An example of such a brochure is available from the Long Island Power Authority Website, and can be found at http://www.lipower.org . The advantage of this approach is a significant savings in mailing costs, while allowing the brochure to be printed on demand by an interested customer. The LIPA brochure also contains a mail-in enrollment form to select a particular type of green energy program (see Appendix III).

Also, some Exchanges use a Fax service for users, providing quick updates on listings and partnership possibilities. This might be a good technique for repeat customers who are constantly looking for either supplies or outlets, but might be seen as an intrusion by new potential customers. Both E-mail lists and Fax updates are best set up by request of the recipient (i.e., by signing up for this "service").

Web listings are included for most of the Exchanges, and after initial setup provide an interactive, accessible mechanism for users at a reasonable cost. However, some users (e.g., understaffed non-profit organizations or new business entities) may not have adequate staff or time for regularly searching the Web for posted information, (i.e., users much "seek out" the information rather than having it packaged in usable form). So, it seems that the marketing challenge is twofold, first, how to make businesses and non-profits aware that the Materials Exchanges exist and provide good opportunities for working together, and secondly, how to actually exchange the information most effectively.

Some additional ideas that Materials Exchanges could use for identifying users and/or generators might include:
  (a) Use SIC (Standard Industrial Classification) Codes to target similar businesses who may have similar needs/materials, or to identify materials used by those businesses
  (b) Use Thomas' Register of Business & Industry, Harris Directory, and Yellow Pages to identify area businesses and provide a focus on local commodities
  (c) Use Internet listings of businesses who specialize in "green materials"
  (d) Work with recycling coordinators and economic development experts (they are often aware of what is being disposed of and what materials have other uses)
  (e) Work with local economic development, business and trade organizations, including Chambers of Commerce and Manufacturing Extension Partnerships
  (f) Use referrals from successful Exchanges, helping participants to network with peers
  (g) Promote success stories through trade association newsletters
  (h) Target specific individuals within companies (department or position may vary from one company to another, i.e., purchasing, inventory manager, facilities staff, etc.)
  (i) Use vendors who travel between companies (e.g., computer service providers) and repeat customers to promote the concept of Materials Exchanges
  (j) Develop promotional materials for new startup companies (design for minimum waste production and procurement of used materials - more subtle management of the value chain)
  (k) Work with manufacturers in related industries, to discuss targeting of materials for exchange
  (l) Provide information at trade shows and similar events (either create a display booth, or simply distribute brochures or listings catalogs)
  (m) Provide samples of materials at trade shows, environmental fairs
  (n) Sponsor school contests or competitions on "how to reuse these materials"
  (o) Work with waste management companies and municipal waste management agencies to target specific materials to be exchanged
  (p) Use GIS mapping techniques to target the best and most cost-efficient transactions (although transport distances vary with the value of the material and the cost of disposal, usually a limit of about 250 miles radius is standard practice); use this information to target materials for exchange
  (q) Work with environmental oversight agencies to explore the legality and feasibility of using permit databases to identify potential users of Materials Exchanges (e.g., questions of privacy of information, protected trade secrets, etc.)
  (r) Work with municipal, state, and federal government agencies to create disposal policies and protocols that promote reuse and Materials Exchanges (e.g., computer disposal by state universities or government agencies, or improved distribution systems for government surplus inventory)
  (s) Actively search for websites where links to a particular Materials Exchange Website would be mutually beneficial (e.g., B2Bfree.com, EPA's "trash to cash" web page, Earth 911, Recycling Today, and Zero Waste America)
  (t) Procure listings on appropriate electronic academic library systems

Many of the ideas listed above were derived from the New York City Materials Exchange Roundtable Final Report (February 1998), with updates derived from a variety of sources.

COMPUTER DATABASES FOR STORING, ORGANIZING,
AND TRACKING LISTINGS

Computer databases are essential for managing the listings, organizing the membership information, tracking the usage patterns, and evaluating the effectiveness of the programs. In addition, recordkeeping, monthly summaries, and in some cases, invoicing, must be integrated into the databases. Since funding of some Exchanges is based on the statistics of waste diversion, the tracking function becomes even more important. Given that staff resources are usually limited, it is necessary to design good database management techniques in order to meet all these objectives. It is important to make sure that all the databases are compatible, but often as the Exchanges grow, the databases are set up with different software or hardware, or at the very least, with different versions of software or operating systems. Thus, periodic update and improvements are necessary to assure effective operation of the database management.

Entering information is time-consuming and labor-intensive. Thus, databases that allow the user or lister to enter as much information as possible are more efficient. This is probably best accomplished using "pull down lists" that achieve some measure of consistency with entries. It is especially useful to have an automatic tracking system for capturing statistics on the Exchanges made (e.g., at the time an item is exchanged, that the zip code of the user and/or generator be entered, along with the quantity transferred, this information can be easily recaptured and mapped to track the amount of waste diverted, along with the locational data (e.g., zipcode designation). One of the most challenging problems is how to get the old listings removed from the database in a timely manner. Although this could probably be set up to be an automatic function at the time that an exchange is executed, most of the older Exchanges do not function in this manner, and it therefore becomes incumbent upon either the lister or the exchange staff to periodically update the listings.

Other information that can be used for tracking and evaluation of the exchanges made include the value of the materials exchanged, the quantity, volume or weight of materials exchanged, or the number of Exchanges made. The most desirable methodology would enable Materials Exchanges to collect and track desired measures of success in an automatic way, using computer tools to do so. However, Exchanges also could use follow-up letters or telephone calls to listers and/or users, but this is an expensive, time-consuming activity. Diverted tonnage may be easier to measure than dollars saved so most Exchanges focus on the volume of materials exchanged. In order to accurately assess the actual dollars saved, researchers need to carry out complex calculations based on material value, potential for resale, depreciation, transport costs, landfill tipping fees, and long term landfill capacity. This situation was summarized by Suzanne LaLong, Executive Director of the Onondaga County Resource Recovery Agency (OCCRA), who notes that "the cost/benefit equation is really much more complex than simply comparing costs of collection and processing..." and who then goes on to explain some of the variables, which include the varied public/private collection system in the county, the types of disposal utilized, the outsourced recycling activities, and the inability to get full disclosure of information by private firms (Hadley, 1997). Possibly the use of life cycle estimates for a given type of equipment or product might provide usable estimates of cost savings to industry or cost avoidance for waste management agencies. Also, computerized data-mining techniques applied to past data could be utilized for assembling additional statistical techniques to track effectiveness of the Materials Exchanges.

Assessing the results of an exchange service is required by funding sources of many of the Exchanges, but in the absence of such a requirement, should be carried out as a part of good management practices. Tracking performance allows for goal setting and serves as an early warning system for areas needing attention. Standardization of measurement instruments would permit better comparison among Exchanges. By setting up a consistent reporting period (e.g., monthly) and developing a standard form for recording performance, the Exchanges could possibly better coordinate their efforts at expanding their influence in the Northeast region. Standardizing data formats, categories of reused materials, populations served, and volume of wastes diverted would make the databases more compatible; this topic is currently under discussion among the Exchanges. Suggestions for the components of a reporting form have been summarized for the Minnesota Materials Exchange Alliance by Barb Nesheim, as reported in Resource Recycling Magazine, November 2000.

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POSSIBLE PARTNERSHIPS FOR MATERIALS EXCHANGES

In addition to the partnering described already (e.g., federal, state, and municipal agencies, environmental NGO's), direct partnerships could be developed. One of the most obvious possibilities is to establish working relationships with universities, where academic professionals from many fields may be interested in working with Materials Exchanges in the fields of marketing, risk assessment, accounting practices, environmental policymaking, etc. Professors have the ability to seek grants to explore new ideas for management, funding, and planning for public services; they often have graduate students who are seeking cooperative arrangements for gaining experience, and undergraduates looking for internship opportunities. In turn, most universities today have ample computer facilities and staffing, and are often willing to host websites or provide programming expertise for public services, for only a modest fee.

Other approaches would include direct arrangements whereby a company producing a reusable product in an ongoing fashion might welcome the development of markets for that product. For example, the Sherwin Williams Paint Company was targeted by the Rhode Island Resource-X-change in a partnering arrangement whereby outdated paints (still usable) are made available to nonprofits for refurbishing or renovation purposes. By identifying classes of products that have expiration dates (and would thereby be removed from sellable inventory), and targeting the companies that produce those products, many possible partnerships might emerge. Another example might be residential and corporate apartment communities (maintenance departments often have leftover material from installation and rehabilitation operations).

Possibly auto junkyards would benefit greatly from being able to keep down their inventory by utilizing the Materials Exchanges when needed. This would also have the benefit of keeping the junkyard operations at a manageable size.

Another set of possible partners might be utility companies, who often include public service announcements with the invoices mailed to customers. Again, an appropriate brochure could be developed for this purpose. This would be particularly helpful for business customers. An example of a utility company (Public Service of New Hampshire, part of Northeast Utilities) program to support community service can be viewed at the following website: http://www.psnh.com/Community/NHMatter/default.asp.

One type of partnership that might be quite fruitful for Materials Exchanges might be to seek out liaisons with art and design programs at universities and in public schools, looking for creative materials to advertise the Exchanges (i.e., buttons, magnets, calendars, pens, pencils, preferably made of recycled materials). These items have a lasting impact because they are placed on desks or walls and act as an ongoing reminder. Poster contests would also add visual impact and winning entries could possibly be posted in public places for ongoing impact.

Partnerships with educators could result in the development of curriculum modules designed for different age groups that would focus on the concept of materials management and provide information about the variety of online Materials Exchanges. This would have several beneficial results, educating the next generation of decision makers, stimulating more educators to become involved directly with Materials Exchanges, thereby raising awareness of the waste management problems confronting us at this time, and stimulating creative solutions to these complex problems.

Schools, along with other municipal departments, need to know about the Exchanges in order to obtain needed furniture and equipment at an affordable cost. Recent surveys seem to indicate that most schools and municipalities in the Northeast region have little familiarity with Materials Exchanges, and have not utilized the Exchanges to a large extent, most commonly because they don't know about the opportunity. However, for most schools, purchases of supplies and equipment are made through a centralized office. Timing is important in this matter, since schools usually plan their budgets in November-December, finalize the budgets in February-March, and purchase items from April-July. They are further limited in their purchasing by the need for competitive bids, and in some cases may be bound by state contracts. This reality calls for well structured liaisons with the Materials Exchanges that are in place before the budgeting and bidding process takes place.

In order for schools and municipalities to partner well with the Materials Exchanges, a clear description of the benefits and procedures to be derived should be developed. As described elsewhere in this report, a template for such an information packet could be co-developed by the Exchanges and NERC, and adapted as needed by each Exchange. Procedures for finding needed items and bringing them onsite should be flexible and convenient. Clear descriptions are essential, and digital photos are desirable, where technically possible. This is easier if the materials are warehoused, but today's digital tools would make it more manageable (e.g., thumbnail photos are relatively easy and cost-effective to send electronically and be incorporated into a database). A rating system for describing the condition of the items for exchange should be agreed upon by users and Exchange managers, and should be consistent for all Exchanges. Models for rating systems could be collaboratively developed by the Exchanges. It is probably desirable for Exchange managers to initially work with liaison groups (e.g., State Educational Collaboratives, Superintendent's Councils, or umbrella groups like the ReStore and Residuum in Vermont, Recycling for Rhode Island Education, and Reduce, Reuse, Recycle Network Alliance in Massachusetts), when trying to track down purchasing agents at municipal school systems or individual schools. For school districts, the most interested parties are superintendents, business managers, and grounds and maintenance staff, whereas, for municipalities, purchasing officers and finance directors seem to be influential in these decisions.

Partnerships with libraries (public and university) could result in better information being disseminated about the importance of Materials Exchanges, and opportunities for public discussion and presentations could be developed.

Partnering with organizations such as Salvation Army or Goodwill Industries, as recipients of listed materials might enable the Exchanges to align with the public access available to these large entities. Likewise, pairing with Habitat for Humanity would also generate good publicity and would provide the added benefit of moving that organization in the direction of choosing reusable materials for their projects.

To address the problem of procuring appropriate and cost-effective warehouse space (for those Exchanges that maintain an inventory of items to be distributed), partnerships that allow for sharing of warehouses with other non-profits (e.g., Salvation Army, Goodwill Industries), or with state and local government agencies that deal with unused properties (e.g., tax departments, facility managers, government surplus programs, and economic development). For example, if a new industrial park were being developed, it would be advantageous for the Materials Exchange to be involved and even have a presence onsite (i.e., a "green service" for the businesses).

Other successful ventures and partnerships are listed in Appendix V: Success Stories for Materials Exchanges.

FUNDING MECHANISMS & SELF-SUFFICIENCY

Funding mechanisms vary widely among Materials Exchanges, and to some degree the funding is tied to the design and sponsorship of the Exchange. Government agencies and/or public corporations may provide services for no charge, whereas, private or non-profit organizations may need to obtain operating revenues by charging fees for service. Conversely, government mandates for an Exchange may require that it be self-supporting, thus necessitating a fee structure. In general, most Exchange managers seek to become self-sufficient in terms of operating costs, and at the very least to meet waste diversion goals set forth by the municipality or state in which they operate (thus providing cost avoidance for waste disposal). Some of the approaches for generating revenue, paying operating costs, and attempting to achieve self-sufficiency are listed below:

  (a) Fees to users (membership in Exchange, fee for transfers made) can provide revenue for operating expenses.
  (b) Contracts with companies listing or procuring (based on percentage of savings engendered, e.g., the Chadwick Financial Corporation model for assessing credits associated with non-performing assets such as unwanted equipment and surplus inventory) may require more up-front staff time in setting up arrangements, but may provide better long-term arrangements. (See Appendix VI, Item (5) for more information regarding this program).
  (c) Exchanges that mainly process low-value materials have a more difficult time to meet operational costs; yet, these materials may be more plentiful, and it may not be feasible to limit materials to high-value items.
  (d) Charging fees for services rendered may add a "business-like" element to the transactions, especially exchanges between businesses.
  (e) Sponsorship of special programs by businesses can provide good marketing for the businesses, and open up networks for developing new partnerships or expanding the reach of the Materials Exchange in that business sector.
  (f) Some Exchanges focus on the goal of maximizing the waste diverted, rather than generating funds to support program operation. Under this model the costs of the online Materials Exchange may be embedded in the operational budgets of the entire waste disposal system, and the assessments to be made involve the relative advantage of avoiding waste disposal costs, both short-term and long-term.
  (g) Staffing for most Exchanges is minimal, due to limited budgets, but a dependency on volunteers and interns can stretch these resources. Sources for volunteers might include Americorps VISTA, colleges and universities, and community-based organizations. (See Appendix VII for ideas about finding interns for special projects).
  (h) Fees for catalogues or fax services can supplement outreach activities.
  (i) Grants obtained from private foundations might be targeted to fund outreach activities and setting up creative partnerships (e.g., Millennium Exchange, American Plastics Council).
  (j) Partnerships with government agencies (municipal, state, and federal) might include liaisons with departments or agencies focused on economic development, education, environmental protection, or community services.
  (k) Trade and business associations (e.g., Chambers of Commerce) might be supportive of expanding the reach of the Materials Exchanges by providing mailing lists for members, including brochures in their own mailings, listing the Exchanges on their Websites, and setting up speaking engagements or short presentations.

Effective documentation of wastes diverted, cost savings to exchange users, partnerships developed among businesses, and benefits derived by non-profits who take advantage of the Materials Exchanges are the best advertising to attract new users. These reports can also be utilized when applying for grants or other donations. NERC could seek out economics professors who might want to research and characterize the complex cost/benefit dynamics of online Materials Exchanges, and by so doing be able to benchmark the objectives for moving toward self-sufficiency and achieving sustainable Exchanges.

In short, just as business users are encouraged to consider cost savings as a type of revenue stream for the business, the Materials Exchanges need to view their networking and outreach as part of their own cost savings and long-term support system.

QUESTIONS RAISED FOR MATERIALS EXCHANGES

The following questions are posed to the individual Materials Exchanges, as a tool for bringing into discussion the complexities of managing the ever-changing dynamics confronted by staff as they attempt to expand the reach and the efficacy of their respective Exchanges. It is hoped that the successes and challenges of one Exchange may enable another to move forward more quickly. To borrow from a hackneyed expression, there is no need to reinvent the wheel over and over.
  1. ReCONNstruction Center: What lessons have you learned that would enable other areas to develop a similar program? Is warehousing necessary, as opposed to listing the materials in an online exchange?

  2. Maine Materials Exchange: Do you feel that charging an administrative fee for free Exchanges precludes any users from participating? Does your fee-based model discourage other types of free Exchanges (e.g., household appliances or computer Exchanges with schools) from being developed?

  3. Massachusetts Materials Exchange: Has your cost assessment program worked well (i.e., a percentage of the cost savings derived from a given exchange of goods)?

  4. New Hampshire Materials Exchange: Would you recommend the addition of fax services and/or a printed catalog for other Materials Exchanges? Do the benefits warrant the cost of printing, for example? Did you find the link associated with Recycler's World to be useful? Has the cost/benefit ratio proved to be positive for you?

  5. RI Exchanges: What lessons can be learned from separating the two Exchanges (ResourceXchange and FreeMarketRI)? The FreeMarket name is great-would it "sell" better as the name for a combined exchange, with two links on the HomePage? What about rearranging the icons for ResourceXchange (moving the phrase, "where businesses exchange resources free online" to small caps, and moving the phrase, "A Rhode Island Resource Recovery Program" to the smaller font - in other words, exchanging these items)?

  6. Vermont Business Materials Exchange: Has your collaboration with Vermont Business Magazine (monthly featured listings) worked well in showcasing the Exchange?

  7. Build It Green NYC: Do you have any updates on your "deconstruction" program? Have your green building efforts been successful?

  8. City Harvest: How did you handle the initial contacts with restaurants and other food donors? This seems like such a changing landscape, given the turnover of restaurants. Also, could this type of program work in smaller cities and towns? Is there a minimum size population that makes the program feasible and worthwhile?

  9. Furnish a Future: How is your program funded? Will funding be a major factor in sustainability of the program?

  10. Hudson Valley Materials Exchange: To what degree has the program to list and distribute building materials been successful? Would this be a good model for other Materials Exchanges? How are you doing on your path to becoming financially self-sufficient? Do you have any "secrets" that you can share with other Exchanges?

  11. Lower East Side Ecology Center: Was the "take-back days" program in 2003, where small electronics were collected, a successful venture? Would this be a model for other Exchanges, or other cities? Would this approach lend itself to university campus activities?

  12. Materials for the Arts: Have your "professional development workshops to train people on the value and importance of reuse" been successful? What is the model? Do people self-select? Do you target certain groups? Is there a structured curriculum? Do you charge a fee?

  13. Materials Resource Center: What lessons have you learned from your efforts in "creating economic activity" that might be valuable for other Exchanges?

  14. New York Wa$te Match: To what degree has the program become self-sufficient? Have cost analyses been completed that document the reduced cost of waste disposal for the New York City Department of Sanitation that is associated with this program? Is this a model of collaboration that other Exchanges could use? Are the results of your "research studies" published? Have you developed training modules for merging environmentally sound waste management programs into the basic business model? Could these be shared with other Exchanges?

  15. PENCIL: What advice can you provide to the other Exchanges about making effective contacts with educators and school administrators? Is it better to seek out purchasing agents directly, or to work with teachers and administrators to determine the best fit for supplies and needs?

  16. Per Scholas: How extensive are your computer training programs (how many students/year, locations, etc.)? How do you pay for the instructors? Would you recommend this program to other Exchanges? Would this be a possible area for collaboration with Universities (e.g., for volunteer instructors, use of facilities, etc.)?

  17. Recycle-A-Bicycle: Do you recommend that Exchanges in other cities or states attempt to set up a program similar to yours? Do such programs exist? Have you had good feedback from the publication of your "Guide to Starting and Running Youth Bike Clubs"?

  18. ReTech: You have made great strides in changing people's mindsets about "waste" and "reuse". Would facets of your work be applicable to other Exchanges (e.g., partnerships with artists in their respective regions)?

  19. Set Recycling Hotline: Who pays for the transportation of heavier items? Do you encourage the use of "sustainable" supplies, such as paints and other wood-finishing products, or are other groups focusing on this issue? Maybe a brochure on this topic (e.g., "Green Set Building") could be given out or sent to donors and receivers.

  20. Storehouse NY: Have you considered developing similar programs for other U.S. cities? How do you find your "community partners" for setting up your distribution network?

  21. Tools for Schools: How do you make your contacts within school systems, so as to identify what materials might be needed or useful? What office(s) do you target?

RECOMMENDATIONS FOR MATERIALS EXCHANGES

(1) The Materials Exchanges need to address some basic questions affecting all members:
  (a)

The designation of "materials exchanges" as a substitute for "waste exchanges" causes a "branding problem" because the term is not intuitive or familiar to most people. Most business decision makers will be familiar with the concept of waste avoidance, source reduction, and waste exchange because these terms have been used for several years. However, the idea of "materials management" is only slowly becoming integrated into business practice and everyday vocabulary, especially for small businesses. Thus, businesses may be unlikely to use the term "materials management" when searching to find a market for discontinued, outdated, or depreciated equipment and supplies, and, instead, be more likely to use the term "recycled" or "waste exchange." Thus, although the waste management industry and regulatory agencies are committed to changing mindsets and moving away from the concept of "once-through" use of materials that are then categorized as "waste," businesses are still thinking in those old terms, hence, the branding problem. To effectively market the "Materials Exchanges" and spread the word about this valuable resource for businesses, we somehow need to resolve the mismatch of terminology.

  (b)

A second question to be addressed is that the general public still thinks of "reuse" as a form of "recycling" and the public firmly supports recycling programs. Thus, when the waste management industry and the regulatory agencies attempt to discriminate between "recycling" and "reuse" they are in fact decoupling a newly emphasized activity ("reuse") from a very broadly accepted and endorsed activity ("recycling"). Although there may be a good bureaucratic rationale for doing this, it adds to the marketing challenge (i.e., creating two brands and treating the markets as separate, or even competing, entities, when in fact there are crossovers). Might it not be better to co-advertise the programs and allow the public to remain in its "comfort zone" where "reuse" is a type of "recycling?" In other words, from this perspective, "reuse" is using the whole product for its originally intended use, while "recycling" is taking it apart and reassembling the units in another form or for another purpose.

  (c)

A third question to be resolved is the effort to separate the "marketplace" for individual generators/consumers from that of the business generators/consumers? Although tracking procedures and management techniques may benefit from this separation, the added costs of maintaining two separate entities, particularly for marketing, may not warrant the separation.

  (d)

Lastly, given that "reuse" is still lumped with "recycling" in the eyes of the general public, then the perception of "the high cost of recycling programs" is going to haunt the expansion of "reuse" programs as well. Economists and the media are quick to use short term cost measures (i.e., the relative cost of collecting, sorting, storing, and processing "waste" versus "recyclables") rather than assessing the longer term costs of the entire waste management system (thus more accurately recognizing the avoided costs of traditional waste disposal when recycling and reuse programs are introduced into the mix). This short-term thinking leads people to the conclusion that "recycling" programs, although desired by the public as a needed service that they support, are not really cost-effective. As municipal operating budgets get slimmer each year, and need to be stretched even further, it becomes highly tempting to scrap the recycling pickup and processing. Reuse programs (including online Materials Exchanges) may suffer by being painted into the same corner. How can we convince economists and public policy makers to focus on longer term, system-wide cost analyses, thus assigning accurate values to waste diversion programs?

(2) In order to move forward in marketing the Materials Exchanges, there is a need to share assessments about successful ventures and cost-effective ways of managing Exchanges, and to work collaboratively to develop templates for brochures, information packets, news releases, and branding strategies.
(3) The Materials Exchanges need to continue to refine and develop good tracking methods, and to convey this information about their successful operations to local, state, and federal government officials.

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REFERENCES CITED

Andrews, Clinton J. and Jamie Mauer. 2000.
"Materials Exchanges: An Exploratory U.S. Survey." Report prepared on July 31, 2000, Rutgers University.
Available: http://radburn.rutgers.edu/andrews/projects

Beck, R.W., Inc. 2001.
"U.S. Recycling Economic Information Study." Prepared for the National Recycling Coalition.
Available: http://www.nrc-recycle.org/resources/rei/studyresults.htm

Beling, Christine. 2000.
"The give-and-take of Materials Exchanges." Resource Recycling Magazine (November, 2000)

Blackwell, J.R. 2004. "Virginia group helps industries, businesses find viable options." Richmond Times-Dispatch,
distributed by Knight Ridder Tribute Business News, Washington, DC, September 23, 2004. Available:http://proquest.umi.com/pqdweb?RQT=309&Vinst=
PQD&VType=PQD&sid=10&index=5&SrchMode=1&Fmt=3&did
=000000697622731&clientid=5046

"A Brief Primer on Marketing for Non-Profits."
Available: http://www.nonprofits.org/npofaq/19/98.html

Dimino, Resa & Barbara Warren. 2004.
“Reaching for Zero: A Citizens Plan for Zero Waste in New York City.”
Available: http://www.consumersunion.org/other/zero-waste/reuse.html (Accessed 08/27/05)

Convio, Inc. 2005
"The Basics of Email Marketing for Nonprofits: Using Email