Come together

Maximize your profits by improving the grower-retailer relationship

Earlier this year, Nursery Management and sister publication Garden Center polled readers to find out what was effective and what was lacking in their hectic business relationships. Are retailers satisfied with their grower suppliers? What type of support would growers like to receive from retailers? Find out what each segment revealed.

Half the retailers surveyed revealed they were “satisfied” with their current growers and 33 percent said they were “very satisfied.” That’s a good start. Sounds like the grower segment is getting the job done.

Some of the retailers’ comments:

“Our vendors have quality and knowledge that helps us be a better and more efficient garden center.”

“The plant materials are retail ready.”

“We have mutual trust in our relationship.”

Just more than 8 percent of those surveyed were “somewhat dissatisfied” with their growers, while only 1 percent were totally dissatisfied.

How can growers improve? Here’s what some retailers had to say:

“Lack of selection.”

“Needs more consistent quality.”

“Needs more differentiation from products sold to mass merchants.”

This one may come as a surprise: “Not always willing to grow new introductions that we would like to sell at retail.”

“Great growers, not so great business people.”



 

Welcome mat

Poor customer service and poor communication go hand in hand. How often are you visiting retailers? Do the retailers’ employees know you or wonder who you are when you stroll in once in a blue moon?

Nicholas Staddon, director of new plant introductions at Monrovia, voiced his approval for in-person visits.

“I am a firm believer that in the nursery industry, we are absolutely at our best when we are face-to-face looking across a table from each other, or walking down the aisle of a garden center,” he said. “Customers have got to know their suppliers personally as well as they know their own. They should visit every single person they buy their product from, whether it’s a fertilizer company, a green goods companies, a company that sells hoses, etc.”

Staddon said the better an IGC knows its growers and vice versa, the stronger the relationship will be, and the easier it will be to resolve potential problems.

“If heaven forbid, there’s ever an issue or problem between the supplier and the business owner or nursery, if those relationships are good, it won’t become a problem,” he said. “All people have to do is pick up the phone, speak to the respective owner or manager, say we have a problem here, can we chat about this? If you know them, they’ll help you through it.”

Effective, open communication was No. 2 on the growers’ list of what they want in a retailer, while consistent and prompt payment ranked at the top. Growers want to hear from retailers what’s selling well and what’s selling poorly. (Growers, make sure you’re asking.)

 

What’s the (price) point?

Let’s clear the air on prices. Although almost 47 percent of retailers surveyed said they’d switch growers because of a pricing issue, it doesn’t mean you have to keep your prices low and sacrifice profit.

Mark Birmingham, CEO and president of Stein Gardens & Gifts, looks for “fair” prices. “Notice I didn’t say cheap,” he said. “Quality plant material at a fair price — anyone could grow a cheap plant. It’s really about the presentation to the customer and how it stands up on the bench. I mean it might look great in the greenhouse under ideal positions but the true test is really how it performs at retail.”

Tom Demaline, president of Willoway Nurseries in Avon, Ohio, believes the green industry sometimes sells itself short on what it’s selling, and often prices plant material lower than it should.

“You can’t sell a bad plant for a lot of money, but you can sell a good plant for a lot of money. Retailers [can create] an upscale display with nice plants, and ask a reasonable amount of money for it, but [still] get the money they need to get for it. People will buy it,” he said. “Price isn’t the issue, it’s supplying the need and creating the demand. People still spend money even in today’s economy; if they want it, they buy it.”

Take the expensive iPhone for example, Demaline said, as well as the hefty monthly cell phone bill that goes along with it.

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True Grit

May 2013
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