What Recession? Why the Tide is Rising for Plants and Landscaping, and What to do about it!

by Sid Raisch

There’s a lot of noise about the economy with a tendency for businesses to join the gloomy predictions - that always follow good times, and often cause gloomy times. It can become a self-fulfilling prophecy. There’s also evidence that even better times are ahead. You probably want to know about it.

There are several MAJOR reasons a recession has not begun, even though economists have been predicting one for over a year now.

The Search

by Danny Summers

The search for what's new, in both plants and products is one of the most exciting experiences we have in the industry. The anticipation of what we may find as we prepare to attend industry trade shows and then actually walk onto the show floor helps kick the "excitement meter" off the scale. Admittedly, most of the time what we find may simply be a better "tweaked" version of what we already know and use. But when we do find something incredible, our reward for searching is fulfilled.

This past week many of us, in fact about 10,000 of our closest friends and peers, converged on Columbus, Ohio for Cultivate'23 with this high level of anticipation in mind. We had a large group of Retailers (many Group Centers) search the show on Sunday for incredible plants and products... and we found some. In fact, they nominated almost 70, then had to vote for their top 15 favorites that are the Retailers' Choice Awards™ for Cultivate'23!

The 2023 Mid-Year in Review

by Danny Summers

Last week we received the special Mid-Year edition of the Weekly Department Review (WDR) from our resident Numbers Guru, Tim Quebedeaux (aka, The Cajun Cash Man).

I am always excited to see this edition as well as the Year-End edition. These are pieces of the puzzle that go into the Annual P&L Study. With our new WDR Online System that launched in January of this year, quite a bit has changed and each week we are able to see more of what I grew to expect from our two special editions. But there are still several areas I'm watching and waiting for and, of course, Tim always will surprise us with some new amazing details and views. This year is no exception. The following are a few of my observations from the special Mid-Year WDR as well as a few extra details Tim provided to me. (Thank you TQ!)

How to be a Customer– Are there classes for that?

by Carl Phillips

In my first career life I was in some form of department store management.  Everything from managing particular departments, operations manager, store manager and regional manager of stores.  I’ve spent countless hours helping my associates deal with every customer type known to mankind.  At one point in my career journey, as a store manager, I asked my associates to never tell a customer no.  If a customer asked for something the sales associate knew they couldn’t grant, they were to apologize and say “I’m sorry, I can’t authorize that but I’ll call a manager”.

It's amazing how customers change their confrontational tone, most of the time, when a manager is involved.  It’s even more amazing to witness other customers becoming involved, in a non-confrontational way to bring a positive lite to a situation.

Plants That Work!

by Danny Summers

I must admit, this idea of "Plants That Work" has been building for a number of weeks now. Let's stroll back through a few weeks and experiences that helped me craft this message...

On April 13th, our GROUPtalk LIVE Session featured a number of Group Centers that shared their performances year-to-date and ideas that they felt helped them reach their level of success. There were some common threads of ideas shared such as:

The Horticulture Declaration of Poverty - Breaking the Cycle

by Sid Raisch

You may not have actually signed a Horticulture Vow of Poverty, but did you sign up for it?

When it comes to the Horticulture Vow of Poverty, some may see it as a joke. But the reality is far from humorous. Sometimes, in the face of tragedy, all we can do is laugh. However, what if there's a way to transform that laughter into a solution?

The Summer Solstice & Perennials

by Danny Summers

This message title may at first seem somewhat strange, but there is a connection.

Last Wednesday, June 21st, was the Summer Solstice, the longest day of the year. And it was also the Darwin Perennials Day at Ball Seed headquartered in West Chicago, IL. What a beautiful day to celebrate and share so much about this important category, Perennials. That Wednesday morning, I had the thought... it's the perfect day to be thinking about Perennials... the longest day of the year for the longest-running plant category (for herbaceous plants at least).

The Power of Asking

By John Kennedy

A few years ago, a grower client was trying to come up with new ideas to improve and innovate the customer experience within their business model. My suggestion set off a chain reaction of ideas and improvements by the simple (yet somewhat complex) approach—why don’t we ask the customer?

Note: Don’t ask a question if you’re not prepared to hear the answer!

The Colors of Spinach?

by Danny Summers

This message is not to introduce us to some new hybrid of our favorite leafy greens. But the idea for this came to me a week or so ago when I read a story by Stanberry Research of Dr. Harry Mitchell Sherman "The Colors of Healing."

Dr. Sherman was an accomplished surgeon in San Francisco in the early 1900s and in 1904, his observations set a new trend in operating rooms and hospitals across the country. Dr. Sherman realized how strained and tired his eyes became while doing surgery in a bright white environment. The white rooms and white cloth were popular back then and reflected the bright lights of the operating room. So he decided to swap out white surgical drapes for black ones, reducing the glare and making it easier to focus on the surgical procedure.

It Begins in Cincinnati

by Danny Summers

The year is 1837 and it was a time of economic hardships in the country. Two brothers-in-law, one a candle maker and the other a soap maker, were inspired by their father-in-law to bring their two crafts together into one business.

We take things like candles and soap for granted these days. But back in the 1800s, candles were essential for light, and the availability of hygiene products was extremely limited.

Timing Can Be Everything!

by Danny Summers

This story begins in the late 1920s with John Josiah Emery Jr., the son of a successful Cincinnati business family who made a fortune in Cincinnati’s rugged stockyards. The Emery family's success began in Cincinnati as early as 1840 when Emery's grandfather developed a successful lamp oil business which lead to candle making and continues even today as Oleo Chemicals. It is known for its best-in-class natural-based chemical solutions.

Emery dreamed of constructing the tallest building west of the Alleghenies. He hoped that his novel building would function as a “city within a city,” in which everything from boutique shops to office space could be found inside. He even planned on opening a luxurious new hotel within the structure that would rival the Waldorf Astoria.

Eureka!

by Danny Summers

At first glance, you might think of the word Eureka as referring to a city or town. There are 4 or more in the US alone. But this message is intended to challenge you to think about the word as an exclamation:

2022 P&L Study Review & Awards - Part C

by Tim Quebedeaux

Part C – “Best Practices Standards” – Inventory Turns, GMROII, and Balance Sheet

The last parts of the Study: Turns, GMROII & Balance Sheet, are only available to the participants who report through parts 4 and 5 of the P&L Study. They can compare how they performed as compared to their different sectors – Region, Mode of Operation, Sales Levels, and then Total Group and Best of the Best. They get to compare these metrics down to the category level! The level of detail here is where they have the information to win the game!

The Power of C

by Danny Summers

Vitamin C is one of the safest and most effective nutrients, experts say. Though it may not be the cure for the common cold, the benefits of vitamin C may include protection against immune system deficiencies, cardiovascular disease, and many more.

But this message is not about vitamin C or oranges... at all.

Unreasonable!

by Sid Raisch

This spring has a lot of people scratching their heads as some pretty interesting things you could also call unreasonable have been going on.

• Introduction of Artificial Intelligence via Chat GPT, for FREE. 
• Consumers paying prices that were unimaginable in 2019-2020, (and plants are included).
• An elusive recession has economists stumped.

Building Bridges

by Danny Summers

This is a message for the future with observations and inspiration from the past.

The idea for this message came to me as we began to study Cincinnati as the site for The Fall Event 2023. There are five main bridges connecting Cincinnati to Kentucky just across the Ohio River. The oldest, and most stunning, is the one pictured here... now known as the John A. Roebling Bridge. Its story is both amazing and inspirational. This is a story of ground-breaking design that led the way for other bridges around the world, including a very famous one (more on that a little later).

2022 P&L Study Review & Awards - Part B

by Tim Quebedeaux

After recognizing the Winners of the Game – in P&L Study 2022 – Part A, we begin to look at what standards they set. Besides the big KPI’s reported in the first part of the study, we now look into the next few KPI’s measured in the study.

Your Physical Facility is an important part of your business and ultimately your profitability. Besides being a leading factor in which products you prominently present to your customers, it also gives you an allowance to charge what you need to so that you are profitable. Let’s dive into some Physical Facility Standards or benchmarks. We measure 3 major ratios: Revenues per Parking Space, Revenues per Acre, and Revenues per POS Terminal. By measuring these key ratios, we compare against the benchmarks as an alarm bell. If you are generating more than the standard in any of these metrics, you should be alarmed not into action but into investigation. For example, if you are generating more than one million per POS terminal, then you want to look at your busiest weekend to determine if you need to increase the number of terminals to handle peak business. From there take action as needed.

Reaching Your Audience

by Danny Summers

Reaching Your Audience has changed... a lot! If we could turn back time about 20 years, we would see Garden Centers reaching their audience in almost completely different ways... such as through direct mail, newspaper ads, a local radio stations, and email was becoming more widely used.

Fast-forward to today and the list has changed... almost completely. There is very limited direct mail being used today, and most of those are postcards and Every Door Delivery (EDD). A few Centers are still using local radio but streaming services such as Spotify and SiriusXM is attracting larger audiences. And a number of social platforms have reached new heights of influence.

2022 P&L Study Review & Awards - Part A

by Tim Quebedeaux

Congrats to all the Garden Group Centers that reported in the 2022 P&L Study! To be able to even think about changing your business for the better, you need to be able to measure what you are going to change. Being able to report to The Garden Center Group Annual P&L Study is a great start! Once you have that accountability in the numbers, the all-important Key Performance Indicators (KPIs), you can begin to hold your business accountable for its profitability!

The P&L Study measures many different KPI0s. It starts with the big one, Revenue by category or department. Then it measures the next three as a percentage of those revenues, Cost of Goods Sold (and the reciprocal, Margin), Operating Expenses, Wage & Wage Benefits. Leaving us with the most important measurement that we all depend on, Profitability.

Save More Now, So You Can Spend More Later

by Sid Raisch

The best time to save money is to reduce spending precisely when and where we are spending the most.

There is never a time that we spend more than right now in the peak of spring in this business. Reducing spending by a small percentage now yields greater dollars of savings than saving a big percentage, but a small amount in July, August, January, or February. Let’s spend less all the time.