Going green cultivates rosy future

Clo, rsts BUILDER walks into a bar, L)meets a man... and the punch line is, they decide to open a home center-a sustainably focused one, no less. But this is no joke-especially the fact that they pulled it off in this difficult economy.

TreeHouse opened late last year in Austin, Tx. Now, usually I wait well beyond a few months before portraying a success story. But success it certainly is-business has multiplied five-fold in that short span. And, more to the point, the project had been on the drawing board ever since that meeting back in 2006.

That's when Jason Ballard. the builder from Boulder, Co., who's now v.p. of sustainability (a biologist by training and environmentalist by passion) met up with an old college chum-groomsmen for each other and both originally from Texas-to collab- orate in launching a green operation. They did their market research, then came up with a business plan and seed funding. While the two were visiting D.C. on business, Jason recalled another Texas buddy now working there and connected once again. When asked to sign on, his answer was "Absolutely!" He left his Wall Street job to become v.p. of marketing.

They next approached a contact with a legal background, working for a high-priced San Francisco firm, who was looking for more satisfying employment. "He came with a fantastic reputation and dove in head-first," says Jason. "That's the way we grew, through friendships - people excited about the possibility, not just a business motive."

Why Austin? More market research revealed that it was the state's birthplace of-green building. Plus, the boys

OUT FRONT visitors to Treehouse are greeted by a massive rainwater collection system from Boulder, D.C., and San Francisco were more than eager to return to good ol' Texas turf. So, says Jason, "The decision made itself."

Okay, how about the site within the city? As you can guess by now, that, too, was not left to chance. "It was not,'If you build it...,"'Jason avers. "'Location. location. location' is not an adage for no reason. We looked for a part of the community that offered a demographic of thoughtful, educated people. We also looked for a major thoroughfare with high traffic. And a place with good neighbors, like Central Market, where we ended up taking over a former Borders bookstore site and remodeling it to LEED standards. Then, on October 22,we opened."

How did you spread the word?

"Man! We're still working on that! But mostly, through guerilla marketing: as guest speakers, at conferences, at the farmers' market. We've used print mailers, groupons [Web couponsl, radio, even billboards" to reach a customer base that caters equally to pros and weekend warriors.

"We're geared to serve both; The layout is d-i-y-friendly. But I had been a builder, so I also knew their needs as a pro. We offer delivery and installation, calling on our list of approved subs, plus a dedicated professional team" that includes everyone from certified interior designers to a solar engineer and a staff member with a master's degree in architecture, among TreeHouse's close to 30 employees.

Jason adds, "We hired folks with a high level of education. not necessarily in this field, then trained them in green building-the salesmanship, the products-with one of the most thorough front-end programs I know of."

And it's paid off: The feedback online, via Yelp and Facebook, has been oositive. with raves like

"extremely helpful, knowledgeable staff." Plus, that kind of word-of-mouth marketing not only is the most effective kind, it's also free.

Contractors, however, notoriously drag their heels when confronted with something new and different, like this emphasis on building green. Jason finds he's attracting two kinds of pros: those who are committed to green construction, and those pushed in that direction by their own, maybe more savvy, clients.

For one and all, TreeHouse provides lots of educationnot in a traditional showroom, but in a format Jason calls a hybrid, far from the endless aisles of products a la Depot. In each department there's an Education Pod, where customers can interactively learn about choices in, say, countertops or flooring and keep up with new technical innovations. "But we also give the drawbacks of any particular product, so customers can make their own informed decisions," Jason says, adding, "Kids love to use it, too."

The store also features an Idea Center, another key source of information. Here, classes are held for pros-in everything from financing to courses supplying AIA and Green Building Board professional development-and two three or four years. Spend lOVo more on something that lasts 20 to 30 years," he'll counsel.

Plus, "We do a good job of qualifying our customers," he notes. (That's just a fancy marketing term for finding their sweet spot.) A pregnant woman is concerned about her family's health. An environmental fanatic is already convinced it's the way to go. And both of them are willing to pay a premium for their choices. On the other hand, the average homeowner migh come in because his energy bill is killing him. "We'll help him save money, and live healthier as a by-product. He's moving in the green direction, whether that's his intention or not."

Best-selling single item? Windows, without a doubt. But the best-selling category is floorcoverings. "We offer amazing prices, plus full installation. We have the best flooring selection in all Austin," he can brag, adding, "Take off the blindfold... and it's green!"

TreeHouse is fast becoming known as the go-to place for anything solar, from a little-bitty product like a solar charger for your iPhone to a garden fountain, a generator, or even a whole-house system.

By the way, even the coffee is on the green list, bearing fair-trade credentials. It's there for architects and builders sitting down with clients to go over specs and blueprints and for contractors, who stop in for an early-morning jolt of java before hitting the jobsite.

Ask TreeHouse if it faces any local competition and the answer is, not really. There's a little mom-and-pop greenfriendly outfit selling everything from dinnerware to baby clothes, and another showroom taking orders, where folks cannot walk off the floor with their purchase. "We're all in thig together," in Jason's view.

And how often, we just had to ask, were Jason and his team snickered at as beyond stupid for opening in this sluggish downward turn? Yeah, he laughs, they were. "But the part of the building industry that's growing is the sustainable slice of the pie," he defends their choice. "A McGraw Hill study indicates that by 2016, green building will be five times bigger."

And today, folks are remodeling to save energy costs. "We educate them about the available rebates, too-local, state, and federal. We'll print them out, help them fill in the form, even pop them in the mail. For instance, you can get l5%o off a composter, or reduce your solar system bill by $10,000. And the staff are all very, very happy to work here. They believe in what they're doing.' or three per week for the home consumer-on gardening, kids' health, home cleaning, or energy-saving solutions.

Products carried will always be a moving target. Jason, in charge of product stewardship, notes that his choices are based on four criteria: health, sustainability, performance, and core responsibility. "Curating the products is like curating art," he says. "I've been at it for five years, and it's always evolving. I'm still adding 50 products a month. We strictly limit them to products we ourselves would use in our homes."

And what about price? You dealers out there are well aware of the fable that green costs more. "And that's just what it is: a fable, exactly!" Jason contends, and backs up his belief with a price-matching policy. "But we also teach customers the relative value of things. For instance, a linoleum floor is cheap, but you'll need to replace it in

And the feedback's terrific. "Everybody loves the store. Eventually, as a business we'll be profitable, but we're not here for all the money we'll make. We're here as a vote for sustainability. And sales are up, so people also are voting with their wallets. Putting your money where your mouth is, is the most powerful tool-and we're not yet done with putting the message out.

"We've made a unique commitment to what matters-first to ideals, and then to making money. We're not just another aesthetic," Jason declares. "We've a different soul." And that's the kind of soul food folks clearly are hungry for.

Carla Waldemar

By James Olsen