Myth #3: Green Products Cost Too Much
No doubt about it. Green technology costs more—but only on the front end. On the back end, it blows traditional methods away. That’s because green technology—like the kind used in our air conditioners—is designed to give you a hefty return on your investment in energy savings. In our case, the ROI is extreme.
On average, our air conditioners pay for themselves in just two years. And, after that, those savings go straight to your bottom line.
The problem is, most consumers still aren’t accustomed to looking beyond first costs. In a recent survey, only 12% of respondents were willing to invest more than $2,000 in an energy efficiency home upgrade with an ROI of two years.
So, why are first costs higher when buying green?
The answer is two-fold. First, it’s the simple law of supply and demand. Because green technology is still fairly new, most products aren’t mass-produced the way traditional products are. Mass production brings prices down, because those manufacturers receive discounts for buying in volume. Traditional manufacturers are also more likely to have automated processes that speed production and reduce costs even more.
As more consumers look beyond first costs and make the transition to newer, more energy-efficient technologies, prices will inevitably come down … but only to a certain extent. By their very nature, many green products simply cost more to develop. Wandering off the beaten path and trying new things—using different (and more expensive) materials in innovative ways—usually adds up to a more expensive product.
What’s more, because these products cost more to produce, many green companies bypass distributors because their already tight margins don’t allow for distributor markups. Without distributors selling the products, it makes it that much more challenging to bring those products to market … which, in turn, prohibits increases in supply and demand … keeping prices higher.
The fact remains that even though first costs on our energy-efficient air conditioners are higher than traditional products, our overall savings blow the competition away! As consumers become more accustomed to looking beyond first costs and factoring in their overall return on investment, they’ll realize the true benefits of green technology—game-changing savings of our planet’s resources … and to their bottom line.