Who would think a company that reuses cardboard boxes could be profitable? Los Angeles-based UsedCardboardBoxes.com is proving that reuse has better economics and environmental advantages than does recycling.
Founder Marty Metro, a former .com executive, was forced to look for work after the industry went bust. Now he’s becoming the leader in the used cardboard box business! What started as a neighborhood-scale pilot is now being rolled out across the
Quality control and customer service are keys to the business, which rescues quality used, new overrun and misprinted boxes from manufacturers, distributors and retailers. The combination of better prices for comparable quality and environmental consciousness are allowing Metro to expand in both retail and wholesale markets.
The company provides a Web-based service for households and businesses to search inventory and order the boxes they need. By matching supply with demand using specific kits designed for small and large users, the company is growing rapidly and will soon have distribution centers in
Moving kits include tape, markers and packing material as well as used boxes. A moving kit for a studio apartment costs $39; one for a 5-bedroom house cost $284. Shipping is free. It also supplies companies that need 3000 boxes – companies like Guess Jeans, American Apparel and FAO Schwartz are using the service.
“By modularizing our produce and service, we’re an environmentally responsible company that costs less than traditional box suppliers. Plus, our customers know they’re helping the environment,” says Metro. “Reuse is environmentally superior to massive disposal of cardboard, or recycling it to Asian economies.”
Getting it Funded
Frustrated by the lack of public investment in reuse enterprises which traditionally fund recycling operations, Metro personally financed four years of pilot efforts, first in Silver Spring, Maryland and then in Los Angeles. Quality boxes were collected, sorted and sold to new customers. During the pilot, he used rented U-Haul trucks for delivery and to pick up boxes after they were no longer needed. Through word of mouth and limited advertising people immediately took to the opportunity. Metro had created a closed loop system for cardboard boxes.
UsedCardboardBoxes.com emerged from these early efforts with another round of financing provided by Funk Ventures, a venture capital company that focuses on “companies with a purpose.”
The company now has its sights on a national scale with warehouses in strategically located cities. Customers simply search the inventory online and order the boxes they need. The company is targeting manufacturers, distributors, and retailers, as well as realtors, apartment managers, and households. It can currently serve 42 million households in the West with its facilities. With an additional round of financing planned for 2007, the company will be positioned to provide service nation-wide.
UsedCardboardBoxes.com is a great example of how it’s getting easier and easier to succeed in business by promoting environmental responsibility.
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Neil Seldman is co-founder and President of the Institute for Local Self-Reliance.
Adapted from an article in In Business, a SustainableBusiness.com Content Partner.
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