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fT'S taken more than l0 years. bur IEnvironmental Home Center, Seattle, Wa., finally appears to have made its "green" retail business profitable.

The company anticipates about $2.4 million in sales this year, up7lvo over revenue in 2002. That should result in its first profit since Matthew Freeman-Gleason and his wife.

How To Buy Green Products

According to Environmental Home Center's Web site, "Most building materials suppliers have a fairly straightforward way of deciding whether to stock a particular item. They ask a series of questions: How much does it cost? How well does it work? Does it suit current style trends? And will the store get good treatment from its suppliers? Price, performance, aesthetics and service together determine whether a product has value in the marketplace-and whether it deserves a spot on the store's shelves."

Environmental Home Center considers the same factors, plus others. "In addition to competing on the basis of price, performance and aesthetics, our products must offer additional tangible benefits: They protect health, use energy and other resources sparingly, and are extraordinarily well made.

"Our definition of quality requires us to look at what happens over the entire life of a product. How is it made and by whom? Will it give joy and service for years? Can it be repaired or will it need to be replaced if something breaks? What will happen to it when it is no longer needed? By asking these questions and then discussing with our customers their goals and budgets, we can find the best products for each situation."

Alison, first opened shop in l991

In the 1980s and early 1990s, he had been a construction worker and boat builder who was bothered by the limited availability of recycled and less-toxic building materials.

Freeman-Gleason said, "I started to look for alternatives and I found that there was a lot of upside to building 'green.' I pretty quickly came to the conclusion that if you wanted to do this, you needed a supplier."

So, the couple opened their own store on Bainbridge Island, Wa., as a one-stop shop to find environmentally

In 1995, the business relocated to Seattle to be closer to most of its Puget Sound-area customers and to expand into a 12,000-sq. ft. showroom and warehouse. Five years later, it added an online presence (Builte.com) and to the conclusion that if you wanted to do this, you needed a supplier." friendly construction supplies and home improvement products, such as lumber, paints, flooring, insulation and countertops. Products ranged from denim-based cotton insulation and low-toxic paint to dual-flush toilets. entered the wholesale distribution business. Lanoga veteran Tim Taylor was hired as president and c.e.o., and Freeman-Gleason became chief knowledge officer.

SEATTLE storefront is home to an 1 1-vear-old envi ronmentally-f riendly building material dealer.

It began as an 800-sq. ft. storefront that the couple opened and operated with about $500,000 of their own money for the first several years.

While Freeman-Gleason worked full-time at the store, his wife continued working as an environmental and life sciences partner for a law firm.

Environmental Home Center estimates the overall market for sustainable building materials at about $20 billion a year, with an average of over 1O7o annual growth compared to about 4Vo growth in the $200 billion market for traditional materials.

The company's goal is to be the largest retailer in the country for sustainable building products.

Taylor and former c.o.o. Michael Alfstad invested $250,000 to upgrade the company's Web site and launch the wholesale division, and raised another $2.2 million from friends, family and individual investors.

Yet after two years of trying to build its wholesale operation. Environmental Home Center discovered other retailers were uneducated about sustainable building materials and unwilling to train their employees. "The traditional retailers don't have the sophistication or the understanding of how to market to our customers," Taylor said.

This year, company officials decided to shift away from the wholesale and focus on retail and direct sales efforts. With the change in business plan, Alfstad left the company late last year and the business deemphasized its Built-e brand.

Still, Environmental Home Center ended up with a few wholesale customers and an improved Web site that remains a vital tool for customers and

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