The Garden Center Group - Helping garden centers develop the business side of their business




 

02/09/09     Vol 15  No 470


 

 

Save The Date!

2009 Fall Event

 August 14 - 20  Chicago
In conjunction with the IGC Show 
IGC 2
 
 
Sure Veggies Are Good - for you but lets keep things in perspective. It's obvious that the next life-preserver being tossed out is how vegetable gardening and fruit trees will be the saving grace of the industry. Every speaker offering their prognostication about the future, more trade magazine editorials and articles than I can count along with numerous surveys and sales data all make mention of a "huge" increase   
 
tomato boy    
in the sales of vegetable plants and fruit trees. While there are a number of reasons why this could be a glimmer of good news, the real issue is the definition of "huge".
 
At most garden centers, perennials have been one of the most important product categories on the property. And unless the 2008 Group P&L Study veers into unfamiliar territory, perennial sales average just 12% of total sales. If the third largest plant department you have is generating less than 15% of your money, where does that leave veggies, herbs and fruits?
A percent or two of gross sales sure doesn't sound as exciting as the 22% increase in vegetable plants and 52% jump in herb sales the National Gardening Association and industry talking heads like to spout.
 
So where lies the true benefit of increased consumer interest in all things edible?
 
Marketing.
 
What a wonderful opportunity to tell the public that no place on Earth can provide everything needed to grow yummy, safe and tasty food for the table better than you.
 
This is one time when tapping into the pulse of the public is more about connecting and positioning than it is about money. No garden center is going to get rich or boost themselves into the 10% net profit Best Practice Group by selling more heirloom tomatoes. The benefit of letting your customers know that you pay attention when it comes to having what they want to buy is what one credit card company calls... priceless.
 
Now finish your carrots then go order more fruit trees.
 
 

Get in Touch


robert@thegardencentergroup.com

www.thegardencentergroup.com


News Views & Reviews

At This Year's Clinic - one of the best money making ideas of the entire trip didn't take place anywhere near the Galt House. Thanks to J and Linda and  one of the most amazing suppliers garden centers could ever imagine, we got to explore a seven-story warehouse (or was it a shopping museum?) filled with one of a kind, never before seen, I can't believe these prices garden accessories and merchandising props that will make Group centers the WOW! place to be this Spring.  
 
Blue Ocean
 Don't let the photo fool you... or the fool photo you! 
               
After several hours of exploring caverns of opportunities (moss covered globes people said would sell for $50.00 priced at just $7.00!)
we had to drag people away in order to go eat.
All along I kept thinking that this is what The Group is all about. Cool people who know cool people willing to share the find with a select group of like-minded individuals. I'm heading back on Monday to grab some photos and probably a few items for the garden. I'll pass along more details next week.
 
From The Talk In The Hall - one of the best sessions was presented by this Steve Bailey guy. He even grabbed my attention flashing a chart on the screen that showed the difference between the amount of inventory dollars most garden centers carry compared to their sales for the month and how much they really should have had on hand.
I asked him to do a month by month comparison as part of the 2008 Group P&L Study. Now there's one more valuable enticement to get you to participate. Reacting to this one analysis would cover your cost of being in The Group for years.
 
Make sure you've sent your '08 numbers to Steve.
If you haven't, ask him for forgiveness then get with it.
 
 
 
 
A Little Bit About A Lot


It Was One Of Those Surveys - that you have to read a couple of times just to make sure it said what you thought it said. The office supply chain Staples, surveyed several hundred small business owners and asked them a simple question...
 
 rocking chairs
 
"Do you feel there is anything you can do to make a difference in whether your business succeeds or fails in the current economy?"
 
While almost 70% of those surveyed replied: "Yes, I'm trying new things to stimulate my business"...
 
that left 31% to lean back in their rockers and admit...
"Nope. I just hope something will change to make things better." 
 
A discussion I had in the hall with Ian between classes in Luval (more than a few people came by and accused us of price fixing) dealt with a prediction that a large percentage of retailers would be going out of business before this economy thing got straightened out. Neither of us could remember the exact number, but based on this survey it just might be those 31% of companies waiting for the stimulus fairy to make everything all right.
 
As economist Dr. Phil subscribes...
"Tell me how that worked out for you."
 
In a Wharton School article, Alexandra Gillespie of the FLR Group suggests...
"This is not a time to panic. This is a time to define and redefine your brand."
 
"The key is not to make any move that will diminish the value of a brand..." added a Mr. Abouchalache from Roberts Mitani.
 
"You have to stay the course."
 
So what is your course?
 
Hopefully you'll heed the warning from another Wharton professor, Leonard Lodish...
"Companies might be tempted to emphasize price in a recession, but that only works for companies like Costco and Walmart that are built around a core strategy of providing low prices year after year."
 
Maybe the worried ones stayed home but the majority of people attending the Winter trade shows and ANLA Clinic seemed pretty set on the course they were taking. A lot of people this year are focused on the Rudyard Kipling approach to business...
 
"If you can keep your wits about you while all others are losing theirs, the world will be yours and everything in it."
 
Smart guy, that Rudy.
 
                              
bottom line
 
 





3225 Sonia Trail, Ellicott City, MD 21043  ·  www.thegardencentergroup.com  ·  410.313.8067  ·  fax: 410.313.8068