You Better Shop Around
Those black 3-gallon pots all look the same, no matter who ships them to you, so it’s easy to assume that their prices will be relatively similar. And doesn’t it make sense to get your irrigation nozzles through the same supplier you used last year, to save on shipping and make the whole process easier?
Sometimes, it’s a bit too easy to get into the habit of assuming that, since last year’s prices were competitive, they will be again this year, even for the new products that you’re adding. However, prices can fluctuate year over year, and some suppliers may price some of their products at a loss, making up the difference on their other sales. Make a commitment to shop around and ensure you’re getting the best deal, even if it means working with new (or a few) suppliers. Overpaying even just a small amount on each item you purchase will quickly erode the profits on every individual sale.
Run for the Roses
No matter how beautiful your flowers are, if they’re not in demand, you won’t make enough sales to support your business. If your plan is to focus exclusively on good old bedding favorites like impatiens, marigolds and salvia in the spring and yellow mums in the fall, you may find yourself in a price war from oversupply. Even all-time favorite landscaping plants can fall out of favor for a season or more. The state of South Carolina has turned its nose up at the former landscaper’s favorite, the Bradford Pear, while towns from Bloomington to Tokyo are ripping out female Ginkgo trees or simply banning them altogether.
Just like a stock portfolio, your best bet is to diversify. Keep some “blue chips” like evergreen shrubs in stock but keep an eye out for hot new trends like orchids, succulents, or new cultivars and colors in familiar forms like Hydrangeas. Changing lifestyle trends arising from the COVID 19 pandemic have led to a sudden increase in houseplants as increasing numbers of people work from home. In 2022, in fact, sales of colorful Kalanchoes are expected to surge.
Workin’ For a Livin’
There are some amazing options for automation and other labor-saving systems in the greenhouse industry, but a certain number of qualified people will always be in demand, and they can be hard to find or to hold onto in today’s labor market, especially during peak harvest and shipping seasons. Make sure to keep your options open and cast a wide net:
- Job Boards: consider listing positions on both general and specialized job boards to find people with the skills you need and that will require less training.
- Look to your current employees to share news of job opportunities with their friends. Consider offering employees a bonus for successful referrals.
- Look to excellent past employees who may be able to refer other excellent prospects, or even choose to come back!
- Post jobs on your own website and make them attractive to search engines
- Local temp agencies can work with you to provide laborers for seasonal or short-term contracts.
- Look for colleges and trade schools in your area who will have people interested in the industry and are looking for work.
Finally, establish a reason why good team members should choose your company rather than the guys down the street. Whether it’s attractive scheduling, an outstanding work environment, or opportunities to gain extra training, make the effort to stand out!
Too Much of a Good Thing
If only we had a crystal ball that could forecast the next year’s demand for our products, we’d never have excess inventory left over at the end of the season. Unfortunately, this isn’t likely to be an option, so it’s important to approach forecasting with a practical mindset. Just like sawing wood or sculpting marble, you can always cut more but it’s impossible to reverse an overly ambitious cut. In sales, it’s smart to err a bit on the conservative side when you plan your production. After all, ordering more is always an option, but sunk costs in excess inventory can’t be recovered.
Eliminating excess plant inventory can be the one of the best cost savings options in your operation. For example, in seasons with low demand and excess space, it’s smart to consider closing some of your greenhouses altogether to save on operating costs, but this requires a certain amount of advance planning to be effective so that you don’t find yourself maintaining multiple half-empty greenhouses.
