Uncommon Goods

The Common Good of Uncommon Goods

Dave Bolotsky highres 2022 11 01 204818 hepn

Author

Kyle White

Kyle White

School

Case Western Reserve University - Weatherhead School of Management

Case Western Reserve University - Weatherhead School of Management

Professor

Ron Fry

Ron Fry

Global Goals

1. No Poverty 8. Decent Work and Economic Growth 10. Reduced Inequalities 12. Responsible Consumption and Production 15. Life on Land

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Summary

The business, as an online retailer, provides a distribution channel for artists to sell their creations. A criterion for being a vendor for Uncommon Goods is no fur, feathers or leather. They give back partnering with non-profit organizations through their Better to Give program and donate $1 to a partner chosen by the customer, a total of $2 Million dollars since 2001. They believe in paying a living wage and paid family leave. They have been advocates for paid family leave and a higher minimum wage in their home state of New York and other states. They also aggressively work to reduce use of plastics in their packaging. UN SDG’s would be: # 8: Decent Work and Economic Growth; #10: Reduced inequalities #12: Responsible consumption and production #15: Life on Land.

Innovation

Initially the innovation was to connect shoppers to creators and makers who didn’t have a market by putting the craft online. He selected vendors who protected wildlife through selling feather free, leather free and fur free products, a reflection of his values.

David wanted to “give back” by donating a portion of sales to selected not for profits and demonstrate his respect for workforce through a higher than minimum starting wage and paid family leave. Uncommon Goods lowest paid workers in his distribution facility earned a starting wage of $15/ hour. Dave made a leadership decision to continue to own the Uncommon Goods distribution facility as a means to assure that workers would earn a fair wage. He established a paid leave rather than a “hold your job” leave. As his tenure and business success grew, he advocated for both an increase in minimum wage and paid family leave at the government level resulting in an increase in minimum wage in the state of New York that was tied to cost of living by state regions which he felt was more fair than a universal minimum wage. The cost of living is not universal, so why should minimum wage be? He has extended his advocacy into other states.

By making wages and family leave a priority, by focusing on the workforce and workers ability to provide for their family financially and during times requiring family leave, Uncommon Goods focuses on No poverty (1) and Decent Work and economic growth (8).

The Common Good of Uncommon Goods

A day in the life at Uncommon Goods!

Inspiration

David’s parents taught him to be an independent critical thinker. He had a father who “pushed me to question authority, which wasn’t always good for him”. He was inspired by his grandfather who owned a candy store on the lower east side of New York. While in college he ran he University record store and ran his own lawn mowing business. Both businesses gave him a foundation in business and entrepreneurship which became a challenge he wanted to tackle.

His independence led him to the State University of New York because he wanted to pay his way through college. Initially he scoffed at a friend who worked on Wall Street but eventually sought employment there to pay off his student loans and begin saving for his entrepreneurship dream. Here he continually advanced in his research analyst role where covered Walmart and Home Depot (among others). Here he gained knowledge on what makes a successful retailer.

He worked and saved for 14 years before the idea for his business struck while touring a trade show at the Smithsonian. He had analyzed online retail and was ready to start his own company. He chose the name Uncommon Goods because it was a good name and the URL was available. He launched with a heavy dose of confidence, hit some obstacles and pushed through. As for starting a business, David says “the only thing easy in business is failure”.

Overall impact

The guiding principal driven business innovation model impacts the world through individuals in a multitude of ways. The not for profits who receive funding when selected as the charity of choice by a customer, the employees who receive a higher than average wage and those not employed by him who benefit from his wage advocacy. The impact also reaches to employees taking advantage of family leave which is now paid when previously it was not

The values of the organization include demonstrating an appreciation of the workforce and individual through providing financially allowing them to be self supporting and take care of their families is significant. Working does not trump family – family leave is paid so family is not sacrificed to earn a living.

Long term the advocacy has grown and extends beyond the border of the state of New York. Vendors are recruited from around the world expanding their market and customer base.

David’s next long term vision is extending the legacy and sustainability of Uncommon Goods. He wants to ensure that the legacy of connecting vendors with customers, giving back through their philanthropy, and respecting workforce through fair wages and paid family leave continue with the opportunity to meet future societal needs when possible.

Business benefit

Employees are the lifeblood of any company, they are the foundational asset despite not always being recognized as such by leadership. It is easier to attract and retain talent when paying a fair, living wage. Recruiting and retaining talent improves business efficiency and lowers costs.

The business model was new when launched. At the time that Uncommon Goods was launched Amazon was selling books and music. Amazon was not yet a competitor in this sector. Since 1999 Amazon has joined the sector along with Etsy, but Uncommon Goods is a player in this market.

David recognized a previously untapped model of “bringing the craft show to the buyer”. A market for individuals artisan products exists simply by focusing on boutique suppliers who offer “cool” products. Also a built in market exists for online sales of socially responsible products.

Social and environmental benefit

Healthy wages improve the economy and overall health (mental and physical) and wellbeing of the workforce. Health and wellbeing improve society and allow for individuals to “give back” because they are thriving not merely surviving.

Employee wellbeing and mental health improve with respectful and thoughtful treatment. Employees also benefit through a work life balance where family is considered important enough to warrant paid family leave when circumstances call for it.

Because Uncommon Goods put the craft show online, it connects smaller vendors with a broader market. Artisans are rewarded financially through online retail sales. They can focus on creating rather than distribution.

Customers are attracted to Uncommon Goods also because they select only supplies who are socially responsible when it comes to protecting wildlife. An obvious benefit is to health of the environment through less poaching of wildlife.

The Better to Give program supports causes such as the American Forests and the International Rescue Committee. This program started in 2001 and since then has donated over $2.8 Million dollars through their Better to Give program.

Interview

David Bolotsky, Founder and Owner

Business information

Uncommon Goods

Uncommon Goods

New York, US
Business Website: https://www.uncommongoods.com/
Year Founded: 1999
Number of Employees: 201 to 500
Dave Bolotsky was strolling a craft show at the Smithsonian Institute when the idea struck. He saw unique mostly handmade creations that would be attractive to a broad customer base. He was an analyst on Wall Street and he knew that on line retail was building. Why not pair unique gifts/products with on line retail? The "marriage" provided an outlet for artists to sell their creations to an audience that otherwise would not have access. The business seeks products that are artistic and do not rely on animals for fur, feathers or leather.