from every transaction. We can ensure the highest
possible revenue is generated from each unit of
technotrash collected and sold by incorporating a
technotrash brokerage into the Clearinghouse.
Processors get access to incremental technotrash items
GreenDisk RFI Response not previously available. And nonprofit workshops get
new jobs for their workers with disabilities.
We at GreenDisk were delighted to receive the RFI
for the E-Waste Recycling Program. In response USPS benefits. In the GreenDisk solution several
GreenDisk is presenting a series of US Postal Service USPS agenda items are also addressed including the
centric programs that work to create a comprehensive promotion of the USPS package services, proactive
technotrash recycling solution for postal patrons. support in the area of environmental stewardship and
Our response to this RFI is meant to offer the US initiation of another effort that helps thwart identify
Postal Service universal coverage for the entire theft. Moreover, the USPS gets significant new
spectrum of technotrash. These programs include: postage business and profit sharing revenue from
Inkjet cartridge recycling otherwise under utilized existing assets.
Cell phone recycling
Computers and components 1. Background
Technotrash Can Program
GreenDisk first started working with the USPS nearly
GreenDisk is a postal VAR. To provide integrity, seven years ago. Over this time we recognized the
accountability and efficiency within each program, strong potential for mutually beneficial, strategic
GreenDisk has created a web-based clearinghouse partnerships involving technotrash. Electronic waste
consisting of a coalition of specialized processors presents a relatively new set of problems for almost all
including government agencies, nonprofit workshops of us. Recently, it has become clear that concerns over
and other involved participants. Using the Internet as the issues related to these problems have moved into
its foundation, the Technotrash Clearinghouse operates the awareness of the mainstream. Responsible
and reports on technotrash transactions as they move environmental policies and practices have quickly
through this coalition from initial collection through become the expected norm among all organizations and
final disposition. Through the adoption of these most individuals. While the technotrash category
programs, the USPS de facto becomes an integral brings to us a number of new environmental concerns,
member of this coalition. By integrating the audited at the recycling commodity level most are shared with
recycling services transaction with the purchase of other industries and therefore more easily addressed.
USPS postage and mail service, GreenDisk also
becomes, in every sense, a postal VAR (value added But technotrash has a unique attribute not shared with
reseller). other waste stream. It contains massive amounts of
private and proprietary information in electronic
While the recycling programs we are presenting vary form. Because of this the consumer’s personal
based on market dynamics, they all result in a unified involvement does not stop when they throw their
transaction and all use a common processing technotrash away. Awareness of this aspect is
infrastructure. By structuring the financial arrangement growing. The market wants and needs
as we propose in this RFI, the GreenDisk Technotrash accountability. Whether it is to demonstrate
Clearing House and its partners are incentivized to environmental compliance with organizational
generate the greatest number of USPS mail transactions policies or personal preferences regarding the
possible. Importantly, the Technotrash Clearinghouse physical materials or it is to be assured of some
provides independent third party verification of the degree of protection for their data. Consumers want
various transactions that helps clarify any obligations to know all the materials were properly recycled and
associated with profits sharing agreements. Unlike the to trust that none of their information was.
existing program, items will be identified and reported
prior to delivery to the end processor. Employing solid Underserved Markets. According to recent
marketing principles with an innovative creative research more than a third of the US market is
campaign, we can deliver well-branded messages that “environmentally active.” That is, all things being
drive business into the individual programs. equal they will give preference to the environmental
option. This segment involves a group ranging from
Benefits to all. Postal patrons will get a convenient new the person strapped to a spiked tree to the guy that
set of services that address each of their technotrash throws his Coke can into the right receptacle (at least,
concerns better than any other alternative presently when his kids are watching). Not surprisingly it
available. Because a comprehensive solution is offered, skews heavily toward the Coke can. Solutions that
the USPS can be assured of multiple revenue streams address the market’s physical material concerns by
making it easy to recycle should capture at least a use of the PRS system as the Technotrash Can’s
third of the market. Yet currently no technotrash underlining mail infrastructure.
category enjoys better than a 10% rate of recycling.
Because of GreenDisk’s efforts and its proven
In spite, of a myriad of collection programs, industry capability, the company has been invited to submit a
estimates suggest that no more than 5% of inkjet proposal even though it is not, or perhaps because it
cartridges and less than 2% of cell phones are is not, a remanufacturer, manufacturer, or direct
recycled. According to the National Safety Council recycler.
there are 72,000 businesses in America involved in
the recycling of personal computer related items. Why a Clearinghouse. GreenDisk can best
However, even with the preponderance of leases, accommodate the varying needs of technotrash
only 10% of PCs are recovered for recycling. This recycling using a common “clearinghouse”
same report estimates that over 80% of the computers infrastructure that extends the transaction from the
that need to be recycled are sitting in garages or customer’s door to the new product made out of the
warehouses all over the country. recycling process. While most clearinghouses tend to
be organized vertically within an industry, such as
While most of this backlog can be attributed to banking or publishing, GreenDisk’s clearinghouse is
apathy or procrastination, for the backlog to be this organized horizontally along the technotrash-
large there must be some hesitation. Large recycling task with each participant cooperating to
corporations can collect their PC into truckloads and perform a different part of the task. This eliminates
dispose of them in a well-controlled process. If you the need for large capital expenditure to build a
are an individual consumer, small business, or even technotrash disposal infrastructure and adheres to the
satellite office of a major corporation you are on your fundamental environmental principle of “don’t make
own. They do not know what to do. They do not it in the first place.” Moreover, the clearinghouse
want to do much, And because of the increase in model allows for easy scalability and rapid
identity theft especially in electronic form they are deployment since all the needed resources already
threatened by whatever they do. The demand is for exist and are in place (see figure next page).
convenient solutions that make it free, easy and
secure to recycle technotrash. The more a solution The Technotrash Clearinghouse is made up of a
can deliver on each of those attributes the faster it coalition of organizations from a variety of sectors;
will succeed. GreenDisk has consistently developed public and private, government and non-government,
balanced technotrash solutions that deliver on each of for-profit and nonprofit, cooperating to provide a
those key attributes. single source solution for the postal patrons need to
conveniently and securely dispose of their
USPS and GreenDisk. For the last few years the technotrash with proper attention given to the private
USPS has conducted a pilot program for the information contain in it.
collection and recycling of inkjet cartridges. During
the pilot, a leading cartridge remanufacturer, NuKote Every program using this clearinghouse creates mail
Inc, received support from GreenDisk, AAA and that specifically uses the reverse logistics capacities of
others to put containers in post office lobbies. The the USPS and the backbone of the BMC network.
program is averaging 53,000 units per month with Every program taps into a human resource asset with
minimal promotion. Now the intent is to extend the 70% excess capacity - unemployed workers with
program to more forms of electronic waste and disabilities associated with an existing workshop or
include the entire USPS system of 38,000 post offices factory facility. A network of these facilities co-located
across the United States. near each one of the 21 BMC facilities creates
tremendous efficiencies and lots of jobs – at a much
GreenDisk has worked with the USPS on other higher ratio (10 to 1) than for average workers.
programs as well including the secure and GreenDisk currently works with a small network of
environmental disposal of truckloads of AOL and nonprofit facilities distributed around the US. Through
BMG music CDs. a contractual relationship with Newgistics, Inc (one of
the USPS authorized PRS consolidators), we are able
Eighteen months ago, GreenDisk piloted its own new take advantage of the BMC network even with
business line, the GreenDisk Technotrash Can, that relatively small amounts of traffic.
enables consumers across the country to recycle
small amounts of technotrash – everything from CDs As the volume grows, we can rapidly expand our
to PCs – in a convenient, secure, accountable, and network of facilities to cover each BMC through
environmental manner. Key to accomplishing these agreements with the National Industries for the Blind
four objectives is the partnering with the USPS and (NIB), National Industries for the Severely
Handicapped (NISH) and our existing CARF
(Rehabilitation Accreditation Commission). Partners communicate a common achievable vision for the
will go to the BMC to pick up the packages generated future, to develop solid strategic partnerships, and to
by the various technotrash programs. Each package is build distinctive, award-winning product and
identified with a unique bar coded transaction number. company branding campaigns. During the last
It is received, opened, sorted and reported by item type. thirteen years David has taken GreenDisk from
When appropriate all intellectual property is concept to profitable enterprise. He demands a
systematically destroyed, and the materials marketing orientation to his business concepts and
consolidated into economic shipping load as offers an unrelenting persistence of vision when it
determined by the participating processors (also part of comes to implementation of those concepts. Prior to
the clearinghouse concept). CDs and PCs need to be in getting his MBA from Boston University, David
truck loads while inkjets and cell phones are welcome received degrees in Psychology and
in pallet loads. In this way the transaction can be better Communications.
audited, the materials more easily distributed to the
most appropriate recyclers and the value of the items 3. Corporate Vision
identified before they are received and processed. The
result is full transparency and accountability for each GreenDisk seeks to reorganize and network a set of
transaction throughout the entire transaction. existing resources around the task of providing
convenient, low-to-no cost recycling solutions for
In this way, the customer is assured of compliance and electronic waste. By deploying the Internet across
comfortable with security. Each participant in the this network, a comprehensive, trustworthy audit
clearinghouse gets the information needed to administer reporting system can be established to form a
agreements and to affect the appropriate transfers of national clearinghouse – the GreenDisk Technotrash
funds or materials. And the unified transaction affords Clearinghouse - for technotrash items such as inkjet
all involved a degree of transparency and cartridges, cell phones, and electronic media. The
accountability. resulting infrastructure performs the secure, audited
disposal of relatively small amounts of technotrash
2. Company History without spending significant time or capital otherwise
needed to build a “trust system” of this magnitude.
Since 1993 GreenDisk has been able to deliver on the
concept of profitable social responsibility through its 4. Situation Analysis
line of products and services. The GreenDisk brand
name is well regarded within the software, music and In the next five years, U.S. businesses and consumers
movie industries for its audited recycling services and will create more than 40 billion pounds of technotrash –
is well recognized in the office supplies channel for which includes 500 million PCs, 2.5 billion printer
its unique line of recycled products. More recently, cartridges, 1 billion cell phones, an immeasurable
GreenDisk brand recognition has expanded into the amount of electronic media (videotapes, audiotapes,
consumer marketplace. CDs, DVDs, etc.) and myriad rechargeable batteries,
printers, faxes, cords, mice, and other related items.
Eight years ago, the company was restructured by Existing disposal solutions are addressing less than 10%
selling off and outsourcing all operations other than of this problem and tend to focus only on business users
marketing, product and system development and that generate very large amounts.
audit control. GreenDisk products and services
utilize a variety of strategic partners including a Regulatory issues, such as new state and local laws
national network of non-profit workshops that against “dumping” of computers and related items and
employ workers with disabilities. GreenDisk sells its HIPAA and Sarbanes-Oxley laws protecting intellectual
services direct and products through Office Depot, property and requiring secure, verified destruction,
Corporate Express, Boise Office Solutions and compound technotrash disposal problems even further.
various other resellers. The company’s services Single individuals and most organizations have no easy
clients range from the Fortune 500 with concerns solution available. Given the choice, most individuals
about environmental accountability to individuals are socially responsible and will recycle, but until
who simply want to recycle their technotrash. recently have had no easy way to do so.
GreenDisk was founded by David Beschen, its The electronics recycling industry addresses this
President and CEO. David spent nearly 20 years challenge in a variety of ways and differently by
marketing technology based products for market product category.
leaders such as Microsoft, Texas Instruments, and
AT&T. He has successfully managed budgets in Inkjet Cartridges.
excess of $60 million but he is an entrepreneur at The demand for remanufactured inkjet cartridges is
heart whose expertise lies in an ability to create and very strong today. And there are over 5,000 inkjet
cartridge remanufacturers in the U.S. vying for the those items that can not be remanufactured. Despite
business, none of which can handle all of the different the maturity of the cell phone after market,
types of cartridges available for collection. In addition, consumers are still recycling less than 2% of all cell
office supply chains (i.e. Staples, Office Depot) have phones.
entered this business in recent years using their own
brand name and several remanufacturers. Electronic media.
Billions of CDs, DVDs, videotapes, diskettes and
Collection: There are numerous ways that cartridges other forms of electronic media are no longer usable
are collected: (1) brokers have set up programs in and are sitting in drawers, closets, storage rooms, and
schools, businesses and other organizations, usually file cabinets or are being thrown away as garbage …
paying a $1 or 2 for each cartridge received, (2) drop- ending up in landfill. The amount of waste is
offs at office supply stores, with a variety of incentives enormous and the security risk (i.e. identity theft) is
including a ream of recycled paper, and (3) the USPS severe.
program in approximately 15% of the country’s Post
Offices. Despite availability of all these programs, the There are companies that will take truckloads of CDs
lack of marketing and convenience has resulted in less and DVDs, but there are very few avenues for
than 5% of all inkjet cartridges being returned. consumers to securely and conveniently dispose of
“less than truckloads”. As a result, far less than 5%
Recycling: The reuse rate of collected cartridges is of all media is recycled causing an enormous
estimated at between 50 and 80%. But no one is environmental challenge (can you spell AOL) and
recycling those inkjet cartridges that are not being putting a great deal of private and proprietary
remanufactured except at a significant cost. Most information at risk of being stolen.
cartridges are either being put in landfill or, in the
“best case”, being burned for fuel. Technology does Collection of electronic media and other small forms
exist that separates the ink residue from the cartridge, of technotrash such as cords, circuit boards, and mice
breaks down the plastics and metals, and enables is a significant problem that is not being addressed
recycling of the raw materials. GreenDisk has just primarily because there is not a big remanufacturer
initiated a program that turns the recycling of all non- market. You can’t take a CD and refurbish it. All
remanufactured cartridges from a cost center to a you can do is break down the items to their smallest
profitable process. component, put them through a chemical process, and
be left with resellable raw materials. So, the returns
Toner Cartridges. are not as evident and not as immediate. It takes
Toner cartridges are the exception in the electronics greater effort, coordination, creativity, and ingenuity
supplies recycling world. Due to the high cost of the than remanufacturing a cell phone or inkjet cartridge.
casings, the refinement of the remanufacturing But the benefits are substantial: reduction in
process and the high price of the toner cartridges, the destruction of the environment, decrease in theft of
original manufacturers have done an excellent job of proprietary and private information, and the reuse of
collecting the cartridges. There is typically an return raw materials from spent items in the manufacturing
device included with each new purchase that enable of a variety of everyday products.
the return of the cartridge to the manufacturer at no
cost to the consumer. The return success rate with Because of GreenDisk’s Technotrash Clearinghouse
toner cartridges is very high. approach, GreenDisk is the only company in America
that offers the secure and convenient disposal of all
Cell Phones and PDAs. electronic media, maximizing the recycling of all raw
The business of recycling cell phones is more materials. And unlike any other company in
elaborate, mature, and has far fewer players than the America, GreenDisk services all consumers –
inkjet cartridge recycling business. Collection residences, businesses, government, and other
programs exist by both wireless cell phone organizations, does not limit what it will take in
companies (i.e. Cingular) and remanufacturers. terms of type of media or amount, and reaches every
Wireless providers will typically take old phones consumer conveniently at their home or business by
when customers are purchasing new phones. partnering with the USPS for material collection.
Remanufacturers will take old phones and pay some Once the media is collected and delivered to
percentage of the market value to the consumer. GreenDisk Services processing facilities, all
Each remanufacturer tends to support the information on the media is destroyed (for example:
remanufacturing of most of the cell phones that have degaussing of diskettes and videotapes; shredding of
an aftermarket. The rate remanufacturers will pay for CDs and DVDs).
cell phones and PDAs fluctuates with market
conditions and the salvage rate is approximately
60%. There are also acceptable avenues to recycle
Computers and Components. on all collected items to the appropriate USPS
The rapid changes in technology and the representative. Then, on behalf of the USPS,
commoditization of computers driving prices down GreenDisk will either act as its broker for the sale of
have resulted in an enormous supply of obsolete items to the highest bidding remanufacturer or
computers and associated peripherals that grow daily. partner with a selected set of remanufacturers based
Disposal of these units are becoming more restricted on specific criteria as determined by the USPS or
by law (i.e. many states do not allow disposal in market dynamics (i.e. partnering with ReCellular,
landfill). Inc. for remanufacturing of cell phones and PDAs).
There are solutions today, both nationally and locally. GreenDisk will further ensure that all items that
Nationwide programs are primarily provided by cannot be remanufactured are sent to previously
manufacturers. For example, buy a new Dell identified and audited outlets for recycling, ensuring
machine and return your old computer for free environmental responsibility and maximizing the
(there’s a charge for businesses). Local computer potential for revenue from these outlets as well.
and services shops will take computers and monitors Achieving this level ensures the USPS receives not
for $10-15/unit charge. There are also many local only the highest amount of money but also makes
computer recyclers and now curbside pickup by trash sure that the most items possible will generate
collectors in certain locals who will take the revenue. In any case, all items will be reused or
computers as well. In California, certified recyclers recycled. GreenDisk has engaged industry experts
get reimbursed by the state (from money generated for setting up and operating non-profit facilities,
by a tax on new computer purchases) for every PC processing inkjet cartridges and fully utilizing its
they process so many are instituting programs for aftermarket potential, and assuring environmental
free pickup and disposal. responsibility to ensure the high quality program.
As a convenience to customers, GreenDisk offers The GreenDisk approach is estimated to produce $59
Computer and Component recycling today for a fee, million in annual revenues in the full implementation
once again using the USPS as a key partner in the of all programs outlined here. To accomplish this,
transportation and tracking of the computer and the GreenDisk agrees to commit over $3 million annually
transaction. We envision that, over the next five from its own revenue for marketing and program
years, the weight of the computers and the adoption management that in turn will increase the consumer
of programs by state and municipal government will demand generating higher USPS postage and revenue
drive the collection and recycling of obsolete from other sources.
computers to primarily local solutions.
6. Program Summary
5. New Model for Revenue Sharing
GreenDisk operates and is a member of the
GreenDisk has organized the Technotrash Technotrash Clearinghouse and the associated
Clearinghouse through a coalition of partners to coalition of specialty contractors, government
create a unique offering that not only assures the agencies, investors and nonprofit workshops who
USPS of the maximum revenue but also promotes have all agreed to work together on this USPS
strong corporate citizenship. opportunity. Through this coalition, GreenDisk will
optimize operational efficiency (transaction tracking,
Why is this approach the right one for this USPS guaranteeing accountability, and minimizing cost),
proposal? First and foremost, GreenDisk’s model ensure quality standards (safety, maximizing reuse,
provides full accountability backed by a secure destruction of data on media), and maximize
comprehensive set of audit procedures. Secondly, revenue return (maximizing consumer participation,
GreenDisk’s proposal gives appropriate levels of multiple revenue sources).
control of the program to the US Postal Service
without the administrative overhead required to The flexibility this model offers, along with the
manage the process. Third, this approach establishes mature status of GreenDisk’s current services in
a true vendor relationship between the GreenDisk working with USPS systems and transaction tracking,
Technotrash Clearinghouse Coalition and the USPS enables us to address the entire spectrum of
that serves to protect the USPS from potential suits or electronic waste recycling needs. For purposes of
conflicts that could arise if the USPS is perceived to this RFI, we are presenting independent programs
show favoritism towards a single vendor. for each “product” category, all based on the same
model and similar infrastructure. We are also
Operationally, GreenDisk will use its network of presenting an overall concept that encompasses all
geographically dispersed, affiliated nonprofit the independent programs taking advantage of the
workshops to sort, audit and report the information
marketing and economies of scale synergies yielded Program 4: Technotrash Can Program –.
by undertaking multiple programs simultaneously. GreenDisk will offer three sizes of boxes through
the USPS Postal Store (both retail and online)
GreenDisk proposes the following set of programs and the USPS direct sales organization for the
for the recycling of most forms of electronic waste collection of electronic media and other small
through the USPS: items of electronic waste. The boxes can be
private labeled or co-branded, and one size that
Program 1: Inkjet Cartridges. A program holds up to 70 lbs. is already in place.
where consumers mail in spent inkjet cartridges Revenue: Inbound and outbound postage and
using bags made available at Post Offices and revenue share (sales commission.
within organizations by retail and corporate Corporate Citizenship: Full recycling of all
postal reps with tracking and postage paid materials, offering a valuable service not
through the MRS system. available to consumers elsewhere, and use of
Revenue: Postage and maximum revenue share. non-profits and workers with disabilities.
Corporate Citizenship: Maximizing
remanufacturing, full recycling of all materials, 7. Detailed Program Description
use of non-profits and workers with disabilities.
GreenDisk Programs are all based on the same
Program 2: Cell phones & PDAs. For philosophy: GreenDisk drives the customer demand,
convenience and education for the consumer, we manages the audit to ensure accountability, and is the
are offering the same system as inkjet cartridges, glue that ensures great corporate citizenship and
even sharing the same bags. The integrity of the maximum revenue to the Technotrash Clearinghouse
system remains high by using an independent and its members. Strategic partners, with the USPS
nonprofit to sort and log items being processed. being the major one, contribute key elements
Revenue: Postage and maximum revenue share. operationally and reap the benefits financially and
Corporate Citizenship: Maximizing public relations-wise. Each program is optimized
remanufacturing, full recycling of all materials, with the right players making up the team.
use of non-profits and workers with disabilities.
PROGRAM 1: Inkjet Cartridges. GreenDisk is
GreenDisk is not proposing a separate program offering 2 options.
for toner cartridges. We believe the market is
too well covered by manufacturers to invest in a Option 1: Collect inkjet cartridges through Post
solution. However, we will continue to Offices and the Postal network, sell the collected
encourage consumers to recycle toner cartridges inkjet cartridges for top dollar to remanufacturers,
in the Technotrash Can offering (see Program 4). and generate additional revenue by recycling
cartridges that cannot be remanufactured.
Program 3: Computers and Components.
GreenDisk currently offers a service enabling Operational Description:
consumers to mail-in their computers and/or other 1. GreenDisk supplies all Post Offices with an
component such as faxes, printers, and monitors. attractive Point-of-Purchase Display and
Consumers put their computer in their own Dispenser with plastic bags for consumers to
packaging, download a postage paid shipping return spent inkjet cartridges. The bags can be
label, and give the box to their local carrier. The co-branded USPS, GreenDisk, and other
solution is convenient and works for many. In coalition members (i.e. NIB/NISH) or can solely
order to offer a full line of electronic waste use the USPS brand.
recycling services, we would expand the current 2. The POP displays and bags are provided by
program, for the convenience of the consumer, to GreenDisk and fulfilled through a NIB/NISH
enable the purchase of specific-sized boxes for facility. The NIB/NISH facility will utilize a
recycling at the Post Office. We do not view this serial numbering scheme on the bags to
solution as viable for more than 3-5 years, automatically know when to send (via USPS
however, as in a few and growing number of states, Priority Mail) bag refills to each Post Office. No
local solutions are being encouraged and, tracking or notification is required by the Post
therefore, are becoming the better financial choice Office.
for consumers. 3. Consumer will either bring cartridge to the Post
Revenue: Outbound postage, revenue share on Office and place in a bag or bring the bag home.
boxes, and share of advertising income. The consumer will mail the bag using the RMS
Corporate Citizenship: Full recycling of all system (first class postage).
materials. 4. USPS delivers the item to a NIB/NISH facility.
Facility sorts all items by product type, brand,
and status (able to refurbish) and prepares them cartridge manufacturers, cartridges will not be put in
for sale. landfill or burned.
5. All items identified as non-refurbishable are sold Subcontractor Roles. The Coalition is predicated on
to a recycling facility who cleans them, using multiple parties to carry out the program.
processes them, and sells the raw plastics on the Partners in the Coalition are specifically chosen to
open market. maximize revenue impact and positive public
6. The Coalition (through GreenDisk) sells the relations. Using non-profit facilities for fulfillment
remanufacturable items to a network of certified and sorting creates jobs and positive PR. Selling the
remanufacturers based on the best market price cartridges on the open market maximizes revenue.
offered. The remanufacturer will be required to Using our recycling approach eliminates any negative
send all items that cannot be remanufactured to environmental impact and makes recycling a profit
the GreenDisk designated recycling facility. center, not a cost center.
This is important for (1) integrity of the audit, (2) Assurance of Worker Safety. All members of the
maximizing revenue/minimizing cost from the Coalition and partners used abide by all laws
recycled material, and (3) ensuring regarding worker safety. Documentation to this
environmental responsibility. effect will be furnished upon request.
Requested specifics. Option 2: Deliver collected inkjet cartridges to an
Payment for Returns. Respondent-funded. alliance of manufacturers for destruction.
USPS Returns Delivery Solutions. Use of Manufacturers do not want inkjet cartridges
Merchandise Return Service. remanufactured; they view remanufactured products
as competitors to new inkjet cartridges that they
Program Financial: provide.
Returns volume. Ramp up to 684,000 cartridges per Coalition Members: USPS, GreenDisk, NIB/NISH,
month 6 months after full rollout. Alliance of Manufacturers (Hewlett Packard, Epson,
Revenue share. USPS receives postage and 100% Lexmark, and others), Inkjet Cartridge Recycler
share of all profits generated through the
Clearinghouse. Annualized estimate: $16M. The operational process would remain essentially the
same as in Option 1 to the point the sorted cartridges
Distribution Network: Cartridges are mailed to are ready to go to the next step. In Option 2, all
geographically dispersed GreenDisk non-profit would go to recycle facilities as if all were considered
sorting facilities. This ensures no single Post Office not eligible for remanufacturing.
will carry the burden of serving the program. After
initial rollout, GreenDisk will open additional Impacts:
facilities, aligned with the USPS BMC locations, 1. Revenue. The volume would increase
with the intent of picking up quantities of cartridges substantially because the Manufacturers will
from the BMC. place postage-paid bags in their new inkjet
cartridge boxes. We conservatively estimate the
Plans for Performance Tracking: The USPS tracks number of cartridges returned to be double our
the number returned by charging through the RMS estimate in option 1 or approximately 1.4 million
system. Once in the Coalition’s possession, the cartridges per month. USPS would only get
sorting facility validates by counting by product type revenue from postage as there is no revenue to
and category. Tracking continues through each step share; revenue would be approximately the same
and each member of the coalition is required to report as in Option #1 - $16 million per year.
“incoming” and “outgoing” good cartridges and bad 2. Corporate Citizenship. Although all materials
cartridges. A report is generated at the end of life of would be disposed of in a responsible manner
the cartridge for audit purposes and revenue sharing. and eventually recycled into new products, the
first rule of environmentalism is reuse. So, the
Corporate Citizenship preferred environmental solution is to maximize
Environmental Acceptable Disposal. The maximum the number being remanufactured.
number of cartridges will be remanufactured and 3. The reduction in supply of inkjet cartridges
accounted for as such. Those that cannot be could drive up the price of remanufactured
remanufactured are designated for recycling in the cartridges on the open market – good for
most environmentally responsible manner. All remanufacturers and manufacturers (reducing the
cartridges are put through a cleansing process price disparity), but bad for the consumer.
separating the ink from the raw materials. The
plastics are then broken down and sold on the open GreenDisk recommends choosing Option #1 because
market. Unlike current approaches by most inkjet it best balances revenue and corporate citizenship.
GreenDisk does, however, recommends using the
Manufacturer’s Alliance should they choose to accept Guaranteed pricing: The Coalition will pay
having the cartridges collected remanufactured (by USPS for the value of the cell phones received
them or 3rd parties) as this would be the best solution each month based on a set price list. This
for all – maximizing the amount collected and reuse. solution provides immediate cash flow to USPS.
Revenue share: ReCellular will share the net
revenue generated by the sale of the cell phones
PROGRAM 2: Cell Phones and PDAs. The collected through the program. This solution
industry dynamics with cell phones is different than requires a consistent volume of cell phones in
inkjet cartridges. The inkjet cartridge market has order to make this a viable solution. This
thousands of brokers and remanufacturers competing solution provides up to 25% higher return (based
for the spent cartridges. The cell phone market has a on similar programs), however the payments are
few major players with ReCellular, Inc. owning the distributed as the phones are sold rather than
majority of the market. ReCellular is one of the few upon receipt. The delay is estimated to be 90
companies in the world capable of handling days.
extremely large volumes of phones, guarantees
removal of all personal information prior to resale, We recommend initially starting with guaranteed
and offers excellent financial return. As a result, pricing and evaluating the migration to revenue share
GreenDisk and ReCellular have chosen to partner as every three months as the business ramps and the
part of the Coalition to deliver this solution to the business volume becomes more predictable.
From the beginning, the synergies with the inkjet PROGRAM 3: Computers and Components.
cartridge program are substantial. The same POP GreenDisk offers a program today to recycle
displays will promote collection of all these items – computers and components. Consumers put their
inkjet cartridges, cellphones, and PDAs - and use the item to be recycled in their own box that conforms to
same bags. (As in the inkjet cartridge program, the USPS shipping guidelines, order the service online,
Coalition covers the costs of the displays and bags so receive the pre-paid shipping label by email, affix it
there is no financial responsibility placed on the to the box, and give it to their local postal carrier or
USPS.) Operationally, the process is the same bring it to the Post Office. The box gets delivered to
through the sorting process at the non-profit facility. a BMC using PRS service. GreenDisk has
Newgistics, a USPS wholesaler, pick up the
Once the phones are sorted, they are sent to consolidated boxes at the BMC, scan the label for
ReCellular. ReCellular will deliver top dollar for the tracking purposes, and deliver them to the nearest of
phones, remove all personal information from the cell 6 UNICOR E-Waste processing facilities. (Longer
phones, and track all shipment information through term the plan is to continue to send certain computers
their proprietary software system. Those phones that to UNICOR for use in the HotStart Project (see
can be refurbished will be resold. Those that can’t Futures). The plan is to begin offering new boxes
will be recycled under very strict guidelines. These fitted for CPUs, laptops, and monitors. The boxes
guidelines include: will be sold as part of the Computers and Component
All end-of-life products must be sent to a Service available through the Postal Store online and
qualified recycler in a developed OECD country. at Post Offices.
Qualification means meeting stringent criteria
regarding exportation policy, subcontractors, Revenue: Outbound postage and revenue share (sales
compliance history, product flow, health & commission).
safety, and environmental policy. Corporate Citizenship: 100% recycling of all
All current recycling partners are located in the materials.
U.S. The recycling vendor is not allowed to send
materials to a NON-OECD country. Requested specifics.
Payment for Returns. Customer-funded.
Program 2 Financials: USPS Returns Delivery Solutions. Use of PRS
Returns volume. Ramp up to 228,000 phones per Service.
month 6 months after full rollout.
Revenue share. USPS receives postage and 100% This service is primarily offered to ensure all
share of all profits generated through the consumer technotrash recycling needs can be
Clearinghouse. Annualized estimate: $7M. serviced. GreenDisk often refers consumers to local
solutions, if available.
There are two financial model solutions that the
GreenDisk Coalition offers are:
PROGRAM 4: Technotrash Collection Box
Program – the Technotrash Can. Plans for Performance Tracking: All tracking is
keyed off of a unique token number for each box.
Today’s Service. Through a Coalition of Partners The box is tracked each step of the way through the
including the USPS, GreenDisk offers a service today end of life.
that enables consumers to recycle small amounts of
technotrash including all electronic media, cords, Corporate Citizenship
cables, mice, inkjet cartridges, cell phones in one Environmental Acceptable Disposal. All information
easy to use Technotrash Collection Box called the on electronic media is destroyed through the best
Technotrash Can. Consumers order online via method (degaussing for videotapes and diskettes;
GreenDisk’s proprietary eCommerce workflow shredding for CDs and DVDs). All refurbishable
system that tracks a transaction from order through to items are sold using the same channels as Programs 1
disposal through a unique token number. The order and 2. The remainder is sold to recyclers. The goal
is fulfilled by a non-profit partner. The consumer is 100% of all materials be kept out of landfill.
fills up their Technotrash Can and uses their token #
to download a pre-paid shipping label. They give the 8. Marketing Communications
box to their Postal carrier under the PRS program.
The box gets delivered to a BMC. Newgistics To launch the USPS Technotrash Collection
delivers them to the UNICOR E-Waste processing Program, we will employ traditional public relations
facilities. (Note: the plan is to migrate this activity advertising and point of purchase vehicles along with
from UNICOR to 10 (up to 21) non-profit facilities.) coordinated efforts using focused direct mail and
The box is scanned for tracking and the material is online promotional efforts. A campaign approach
sorted. All information on electronic media is will achieve efficiency by communicating a common
destroyed for security reasons. message on the generic benefits of all of our
technotrash programs together with directed efforts
We are doing this today. Program 4 proposes that support use of the individual recycling programs.
offering this program through the 38,000 Post Office The result will be a multimedia campaign that
Stores, online through the USPS Online Postal Store, communicates and coordinates content using a
and direct through the USPS direct sales common theme across all vehicles. Creating
organization. The plan is to begin with one size, a awareness for and interest in the individual USPS
collection box that holds up to 70 lbs, and then technotrash recycling programs is central to the
migrate to offering three sizes of boxes – the up to 70 successful adoption of these programs. The goals of
lb. Technotrash Can, the up to 30 lb. TechnoWaste communications are to stimulate action and word of
Basket, and the Technotrash Pouch which securely mouth that drives traffic to the web site and postal
disposes of a small amount of electronic media. The lobbies. To expedite awareness and adoption of our
boxes can be private labeled or co-branded. programs and to thematically tie all elements of the
Revenue: Inbound and outbound postage and marketing communications campaign, the USPS
revenue share (sales commission). Technotrash Program will make use of a celebrity
Corporate Citizenship: 100% recycling of all spokesperson (for example, John Ratzenberger with
materials, offering a valuable service not available to TV ties to the USPS as Cliff Claven on “Cheers”, is
consumers elsewhere, and use of non-profits and an avid environmentalist, and who has agreed to such
workers with disabilities. role should GreenDisk and the USPS agree).
Requested specifics. A Marketing Orientation
Payment for Returns. Customer-funded. GreenDisk is a well identified brand with a solid
USPS Returns Delivery Solutions. Use of PRS reputation in both environmental products and audited
Service. recycling services. The company has received national
recognition and numerous awards including the
Program Financial: American Marketing Association’s Edison Award for
Returns volume. Ramp up to 380,000 boxes per marketing innovation. Promotion of these USPS Post
month 6 months after full rollout. Office based programs will focus on two key attributes
Revenue share. USPS receives postage and a sales of the USPS brand; convenience and “sanctity of the
commissions. Estimate is $8 revenue per mail” that is the official level of protection afforded the
Technotrash Can sold. Annualized estimate: $36M. contents of any US mail.
Distribution Network: Boxes are delivered to the To communicate these attributes, our spokesperson will
BMC and picked up by Newgistics, alternative USPS alert the public that over the next year that the USPS
wholesaler, or by GreenDisk Coalition’s non-profit will be conducting over 300 (365 if carriers worked
facility. Sundays) Technotrash Recycling Events (TREs) in each
of 140 million locations (most of them just outside your Tradeshows & Conferences
door). GreenDisk will establish an umbrella campaign GreenDisk will limit its promotional efforts in this
designed to drive the prospect to either our website or category to attendance, distribution of press
to the USPS retail lobby. On the website they will be materials, and, where appropriate, the hosting of
given more detailed program information and how they booths at major events such as: Earth Day (Apr), Co-
can get them. While visiting the website for program op America (Sep), America Recycles Day (Nov),
information, we will have the opportunity to deliver a Postal Forums, USPS national sales meetings, and to
low fear appeal about the need for protection of data. If some selected major market venues as they present
they give it to the USPS it remains private. (This themselves.
message is not inconsistent with the USPS agenda to
combat identity theft and is completely consistent with Advertising
its over two hundred year tradition of protecting the PR should precede advertising or editors are less
privacy of all information sent through the mail. likely to accept it. Early in the launch advertising
will be localized in key markets using both local print
Public Relations media and drive time radio. A common measure of
On a national level, PR should introduce the success for each of these efforts will be their ability
technotrash concept with attention to the intellectual to stimulate positive word-of-mouth.
property issues which help differentiate our
offerings. Because of its independence PR can be Environmental Directories & Search Engines
particularly effective in providing a public service by Identify and register technotrash and its offerings on
warning people of the danger of failing to protect all available recycling directories, and make
their electronic information when they want to placements on all major search engines beginning with
dispose of their technotrash. Convenience will pull Google, Yahoo and MSN. There are a large number
technotrash out of the garages and security will keep of associations and private groups that provide
it out of our landfills. Messages for the value of recycling directories. At every level of government,
recycling inkjet cartridges, cell phones, and other federal, state and local - there are online and printed
technotrash will equally be highlighted. directories provided to help businesses and consumers
recycle. And the Internet has become the “directory of
GreenDisk will coordinate with the USPS and, as choice” for many regardless of subject matter
appropriate, other Clearinghouse participants on all including technotrash recycling.
press release information. In this way we ensure that
all available resources are utilized and that all Direct Mail
communications are agreed upon and consistent. GreenDisk’s use of direct mail will initially focus of
the use of “stuffers” where we place printed offers
Public relations efforts will be used to respond to all inside of waste bills and other appropriate utility bills
national opportunities especially around major directed to homes and to office or facility management
national events such as Earth Day and America in organizations. However the bulk of direct mail,
Recycles Day as well as regional conferences and especially targeting Technotrash Cans, will involve the
trade shows. Beyond traditional environmental USPS Movers Kit. Working with the Imagitas
publications websites and blogs, efforts directed at GreenDisk has identified a program that will draw
vertical markets where privacy is a regulatory issue attention to the various technotrash programs at a time
will include banking and other financial services, when even the greatest procrastinators among us are
medical service providers, insurance companies, law motivated to dispose of all that technotrash haunting
offices and virtually every form of consultancy. their closets and garages. Every year over 22 million
Through the use of company and industry association households move. Price becomes quite inelastic
newsletters, GreenDisk works jointly with customers during a move especially when convenience is offered.
of the services to promote all offerings in well targeted The USPS Movers Kit is well timed to generate sales
and an extremely credible fashion. Profiled customers for a number of USPS Technotrash Programs.
will enjoy the benefit of the positive press and
Technotrash Programs will enjoy increased awareness Radio
and implied endorsement. This effort will be fortified By scheduling flights of spot market radio ads on a
by regular placement of feature articles, case studies or rotation through the major markets the efficiencies of
targeted paid placements in the appropriate vertical the campaign can be maximized. A national rotation
market trade magazines. The objective with every through the top 20 markets three times in the first year
article is to direct traffic to the website or to the closest will enable even a limited budget to spike awareness
post office lobby. and interest and allow the campaign to be rolled
through the country. The three time frequency
properly refreshes awareness and ensures the effort
produces good marketing efficiencies.
The cost of the recycling is insignificant as part of the
Retail Technotrash Cans overall cost of any move.
Technotrash Cans can be a self-liquidating co-op
marketing program. These collection boxes with 9. COMMITTED PLAYERS in the GreenDisk
sponsor-paid messages printed on the sides can be Technotrash Clearinghouse Coalition:
placed at retail locations. Consumers can conveniently GreenDisk has negotiated agreements in principle
dispose of their used CDs, disks, tapes, printer with all players listed here for their participation in
cartridges and items like cell phone and other the program. They have committed to being part of
handheld accessories where they got them in the first the GreenDisk Technotrash Clearinghouse Coalition
place Technotrash Cans can be distributed freely to to deliver a superior solution to the USPS with fair
retail outlets or placed in other public areas of distribution of opportunity and superior governance
convenience such as schools, libraries and post offices. of the process.
As appropriate they may also be resold or given to
government agencies, businesses and certain NIB/NISH (National Industries for the
individuals via the Internet or through USPS retail Blind/National Industries for the Severely
locations. Handicapped) – Dan Kelley
Recellular, Inc. – Chuck Newman, CEO
Marketing budgets will grow as acceptance of the GreenDisk Expert Partners
programs grows. We expect it to double annually Jon Bishop – Inkjet Cartridge Operational Expert; set
allowing us to transition to national advertising up first USPS postal program
including the use of broadcast media. As demand and Mike Grubb –Expert on plastics recycling with a
reach increase, so do the efficiencies of mass media selected network of recyclers
such as broadcast television and national print Aaron Cobb Jr. – Retired IBM Environmental Expert
magazines. Merchandising can be used to leverage to ensure environmental integrity of process
new products and services off one another for cross Jeff Ditchek – Expert in setting up non-profit
promotion of the USPS Technotrash brand of operations
recycling services. Aggressive marketing
communications investments will help to effectively Key GreenDisk Personnel
establish early market acceptance and stimulate David Beschen – President and CEO
growth. John Nolan – GreenDisk Board Member and
Advisor, former Deputy Postmaster General
Inkjet and Cell Phone Programs. The primary Mickey Friedman – COO
drivers of these two programs will be proactive POP Andy Rockefeller – CMO
displays and posters at retail Post Offices locations Dick Jensen – CTO
and through direct sales to businesses and
government agencies which will enable us to extend
the USPS lobby program. Marketing messages 10. A Strategic Match
covering these two programs will be included in all GreenDisk’s proposal addresses several USPS
umbrella campaign efforts. agenda items beyond revenue. It more fully employs
the USPS infrastructure. It provides fuller
Technotrash Collection Box Program. Experience accountability of environmental practices. It avoids
has shown this program has broad attraction for potential conflicts of interest. And it creates jobs for
individuals and organizations where they live or those most in need of jobs – workers with disabilities.
work. Advertising that promotes convenience and All GreenDisk programs, both existing and proposed,
accountability will appeal to these prospect. All are designed to use the USPS only. And GreenDisk
media vehicles will be employed, and like the other can uniquely offer the USPS the “right of first
Technotrash programs, the collection boxes will be refusal” option on all products produced from USPS
promoted in all marketing communications campaign related recycling programs which enables the USPS
messages with detailed information available online to follow through on its “buy recycled”
and purchase available at USPS retail locations. As environmental policies in a manner conducive to
noted earlier the collection box program will make producing PR that will enhance the USPS image.
particular use of the USPS Movers Kit. The act of
moving an office or a household creates an event that GreenDisk’s affiliated network of nonprofit
forces people to take action with there technotrash. workshops employs workers with disabilities who
Since we are advised that 80% of these items are currently endure over 70% unemployment. For every
sitting in garages all over America reaching prospect 10,000 cartridges collected one full- time employee
just in advance of a move should give them a well (FTE) position is created under the existing program.
timed opportunity to take care of their technotrash. With GreenDisk every FTE position creates jobs for
five workers with disabilities. It should be noted that Generates revenue directly from customers with
all of these workers are otherwise fully subsidized by rave reviews (consumers will pay for a valued
the government. service!)
Ensures security of all information on electronic
Rather than overload any one USPS facility with media and reports compliance directly to
returning inkjet cartridges, GreenDisk will designate customers
multiple nonprofit workshops (up to 21) in it network
to serve as receiving centers. All GreenDisk GreenDisk offers a unique technotrash clearinghouse
consumer recycling programs, both existing and model that:
planned, have been reverse engineered to take Ensures an independent audit of all transactions
advantage of USPS systems, resources and Partners with non-profits that employ workers
operational designs. GreenDisk workshops have with disabilities
been selected based on their geographic proximity to Addresses the dual environmental and data
the 21 USPS Bulk Mail Centers. By employing this privacy challenges
approach the task can be distributed in a manner that Has the financial strength to implement all
minimizes impact on the USPS system and programs
establishes an infrastructure capable of being used for
Enables easy scalability for all programs
other programs and applications.
Maximizes the revenue yield from all E-Waste
GreenDisk believes there exists no better strategic
match for the USPS in the environmental or recycling
GreenDisk’s Program Proposal offers the USPS:
marketplace. Every program offered or planned by
Top revenue from postage and profit sharing or
GreenDisk and its coalition of partners centers on a
strategic relationship with the USPS.
100% remanufacturing or recycling – no landfill
The best recycling of inkjet cartridges – plastics
11. Financial Strength are reused and there is no cost to the
As noted throughout this document GreenDisk Clearinghouse
Services is a coalition of several participants each Little administration by the USPS including self-
with their own financial information. However the notification of low inventory of all items
coalition has secured sufficient private investment to
Aggressive and intelligent marketing that
guarantee the funds necessary to load and operate
generates demand for the proposed programs
each of the programs described. Upon USPS
approval of any or all of these programs, these funds
GreenDisk proposes that the USPS adopt the entire
will be put on deposit and an appropriate
package of programs presented here:
performance bond will be put in place. All key
Program 1 – Inkjet Cartridge Recycling
participants will agree to make their financial
Program 2 – Cell Phone and PDAs
statements available to the USPS for audit.
Program 3 – Computers and Components
Program 4 – Technotrash Can Program
Adopting this comprehensive set of programs will not
GreenDisk offers a unique and innovative approach only make it easier on consumers for “one-stop”
to working with the USPS to help solve the E-Waste shopping, but it will maximize the impact of the
recycling problem. Our whole process (and business) USPS E-Waste Recycling Initiative from a revenue,
is and has been for years predicated on working with environmental, and public relations perspective.
the USPS and using your systems for trusted delivery However, should the USPS not choose the entire set
and tracking. Working with the USPS gives of services, each of the programs outlined in this
consumers confidence in our services. proposal can be implemented as an independent
We are best suited to deliver for the USPS because: We do recommend that the Technotrash Can Program
be the top priority because (1) it has the greatest
GreenDisk has a comprehensive E-Waste recycling revenue impact for the USPS, (2) the program exists
solution in practice today that: today and could quickly be rolled out to the network
Fully integrates with the USPS using the PRS of Post Office.
system with pick up at the BMC
Tracks each customer submittal from the time
the Postal Carrier takes possession until
GreenDisk also proposes a quarterly program review
with designated USPS personnel to evaluate the
success of the programs, changes in the
industry/market environment that dictate
modifications to the program, marketing initiatives,
and future enhancements to the programs. This
commitment on behalf of GreenDisk and the USPS is
critical to maximizing the ongoing success of the
USPS E-Waste Recycling Program.
This document is submitted to the U. S. Postal
Service by GreenDisk Inc. in direct response to a
request for information. All information, ideas or
concepts expressed and any other intellectual
property contained herein is confidential and remains
the property of GreenDisk. It has been submitted for
the expressed purpose of USPS evaluation and may
be distributed internally as deemed necessary by the
USPS for that purpose.
1988 B 18th Avenue NE
Issaquah, WA 98029
Major Milestone Project Plan
All timeframes are measured from the Proposal Acceptance Date.
Program Activity Timeframe
Program 4 *Agreement on Postal Store (retail and online procedure) 1 month
Technotrash *Decisions on box look and feel, branding, advertising 1 month
Trashcan Completion of minor system modifications for performance 2 months
Program tracking. Creation of new reports for USPS and Clearinghouse.
Initial Pilot Marketing/PR rollout 2-3 months
Movers Pack to Rollout 1 geography (thru Imagitas) 2.5 months
Rollout 1 to 20% of Post Offices (3800) 3 months
Set up supplemental NIB/NISH processing facilities (3) 3 months
Full Marketing/PR rollout 5-6 months
Movers Pack to Rollout 2 geography (thru Imagitas) 5.5 months
Rollout 2 to 100% of Post Offices (38,000) 6 months
Introduction of TechnoWaste Basket (holds up to 30 lbs.) 6 months
Intro of Technotrash Pouch (small #; secure media destruction) 12 months
Programs * Approval for design of POP and dispenser 1 month
1 & 2** * Approval for Marketing Campaign 2 months
Inkjet Set up NIB/NISH Facilities for fulfillment and sorting 3 months
Cartridge & Complete process testing 4 months
Cell Phone Launch first phase of marketing campaign 3-4 months
Programs Rollout 1 to 20% of Post Offices (3800) 4 months
Launch second phase of marketing campaign 5-6 months
Rollout 2 to 100% of Post Offices (38,000) 6 months
* Activities in conjunction with the USPS
** The Inkjet Cartridge and the Cell Phone programs are highly integrated. Milestones for these
programs are the same.