Static vs. Dynamic Pricing At Your Garden Center
by Steve Bailey
IMPORTANT: This is one of Steve's articles you need to read, re-read, print, and share with all your staff!
IMPORTANT: This is one of Steve's articles you need to read, re-read, print, and share with all your staff!
In last week’s GROUPTalk, you read Robert Hendrickson’s description of how we often have different views of the same subject. Mr. Gray meets Mr. Black and White. And never the two shall meet, right? Most definitely wrong.
It was the first Fall Event Wendy and I have missed. Besides all the business value that takes place, seeing clients who have become friends is like a big family reunion. Not being in Burlington was a huge disappointment but necessary given family responsibilities.
One topic I was anxious to hear discussed in Vermont was the trifecta of Average Sale/Customer Count/Revenue. Ever since Steve's June 12 WDR commentary reporting how a dip in average sale accompanied by a continuing drop in customer count was a concern, I've looked forward to The Fall Event to discuss what could be done to address the issue.
Inventory is the bane of a retailer’s existence.
I bet you’re wondering what the word bane means now that it has been connected directly to you.
(The source or cause of misfortune, unhappiness, frustration, or anxiety, usually used hyperbolically. – The Free Dictionary)
Inventory is a Necessary Evil
Gaining a clear perspective on inventory is the first step to taming the monster. Inventory is inherently evil in that without tightly defined and rigorous management and manipulation it always becomes a problem.
Last week we explored two distinctly different types of owners and managers I see across garden center management today. Do you remember... the Gatekeeper manages by receiving all or most outside information and decides who in the organization needs to know what, who to distribute the information to, and who needs to know, on a limited basis.
At the same time I hear numerous owners and managers saying these types of comments: I have to much to do. I have to much on my plate. I can't possibly do anything more. I am wore out. We work all the time. It's got to get easier.
In my position I get to observe a number of patterns in business management. And doing so, you see the real differences in how owners approach their business. There are some trends I want to highlight here and challenge you to assess where you are in your business management style. First, let's discuss two distinct types of owners or managers I see at work today.
The Gatekeeper manages by receiving all or most outside information and decide who in the organization needs to know what. Who to distribute the information to, who needs to know, on a limited basis. In my mind, the ultimate gatekeeper was this guy. When Dorothy and her unusual "team" approached the Emerald City gate at Oz, they were stopped by the Wizard. At that point, to get into the city, they had to get past The Wizard of Oz. This is a fitting comparison to what see in some businesses today.
This is the Best of Times!
And these pictures prove it. We have been collecting photos and currently have over 1,000, but I am sure you have some too. Most of what we have came from Border Concept's Stacy Eaton who we saw taking so many photos as the rest of us were involved in discussions, or seeing the best of Burlington. We have created an album in SmugMug.com so you can view and even download photos to enjoy. There are super photos here. We hope you enjoy this great album. CLICK HERE
Now, here's the summary of update directly from Jean:
I know when everyone first saw Shelburne Farms listed as part of our Tour Day at this year's Fall Event, they had to wonder "what does this have anything to do with garden centers?" Right?Karen and I had heard some details of how wonderful Shelburne is... just like "the cousins" property Biltmore Estate. But it wasn't until we went there for the first time, did we begin to understand its mission today:
"Our work focuses on education for sustainability. That’s learning that links knowledge, inquiry, and action to help students build a healthy future for their communities and the planet. There is something for learners of all ages at Shelburne Farms, with a focus on agricultural, environmental, and cultural topics."
"We had our 1st Annual Poultry Pageant today, We had 31 Hen enter the pageant, it turned out to be an awesome event. (Weren't sure how many were going to show up.) All ages from 5-6 years old to 75 or 80 year old. We also had many visitors to see the pageant. I have attached some of the pictures, check out our Facebook page for more.
We judge them in 3 categories, Miss Congeniality, Best Feathers and Talent. with best score was crown MISS HEN of Camden County, there was also a runner up. We also award 1st , 2nd, and 3rd Places in each category. All winner are on our Facebook page. All winner won prizes."
Since 1982, when KidsGardening launched the first school gardening grant, their driving mission at KidsGardening is the idea that every child deserves the opportunity to learn through the garden.
Today, many educators have shifted to place-based education - of which garden-based learning is a part. Place-based education is hands-on, real world learning that uses the local environment to help kids understand the natural world around them and their place in it. And we know there’s no better place to do that than in a garden.
As you know, there is a lot of noise in the media these days. It’s nothing new really. There’s always been a lot of noise. But it is noisier when it directly affects you. I’m talking about business noise, I mean news, in this instance.
There is a considerable amount of business news about happenings with retail chains, possibly because it is the most visible business segment, and at the top of the supply chain of other segments such as manufacturing of the things sold at retail.
One of the coolest outcomes of my career is meeting some of the smartest people on the planet. While the list continues to grow as a result of knowing someone who knows someone who introduces me to the next big brain person I meet, David Wolfe remains the one person that impresses me most with his knowledge and insight, especially when it comes to marketing. David sent me what I consider to be one of the top three business books ever written, Ageless Marketing (it so happens David’s other book Firms of Endearment is also one of my top three.) After reading his two books my approach to marketing has remained forever unwavering.
Over the last several years David and I worked together several times, at The Group’s 2007 Fall Event then at other workshop sessions where I invited him to speak. David died of cancer this past February. His perspective and straight forward approach to marketing and consumer insight will be sorely missed.
Now is the BEST TIME to make sure your customer service will be the best it can be in the coming weeks. Each year a larger percentage of Mystery Shops are performed in the spring and summer weeks. While we still have four and a half months to go, we can take a look at YTD performance compared to Group Averages. Now is also a great time to order shops at your center for preparing for the Fall Season (if you don't already have them scheduled). So, first, let's take a look at how we did so far this year.
The following chart shows us The Group Total Score YTD for each major area of shop reporting compared to the same period in 2016 and the 15 year average (2002-2016). This includes shops performed through August 11th in both 2016 and 2017.
On July 17th Steve Bailey released our Mid-Year Weekly Department Review (WDR) to those participating. While not all 102 centers participating in the 2017 program were able to report, it still provides a good view of how Spring from each region. Steve featured some of the graphs on the cover page and there were some real differences (ups and downs).
Overall, The Group is showing a modest increase in sales and average sale year to date with a slight negative on transaction counts. But there are a number of very strong positives. There's lots of great things to share around each center's successes and we hope the comments offered below by these Group members will help to give you ideas. We started this process looking at figures reported in the MidYear WDR, however many centers have continued to add to their positive numbers in July so the following figures shared are from Week 29 of the WDR.
In an ongoing saga, the journey into gardening for the intrepid millennial has hit stride. Now 8+ weeks into the season, Lee’s garden is blooming with the delight to be expected if you’ve been around the track, as all in our circle have. Not without a few stumbles in the beginning, natural and otherwise, all in all, a well-placed source reports pleasure and bounty from efforts to date!
As a reminder of scope, this first-time gardener resurrected the former house owner’s dilapidated raised bed garden consisting of 6 - 4’x7’ beds. He filled it with a host of veggies and herbs well suited for the city garden– tomatoes (6 varieties), cucumber, squash, zucchini, peppers (banana, jalapeño, bell), and a range of herbs, including parsley, sage, basil, oregano, mint, and eucalyptus.
[a continued discussion from week of 6/19 on the GroupEs Listserve]
GroupE’s, Timely topic. The issue of natives/pollinators.
She actually said this? I could hardly believe my ears, and had to ask, “would you please repeat what you just said?”
She said it again, “Yes - denial is under-rated as a coping mechanism.” Having just met her for the first time, I was both aghast, and willing to give her the benefit of doubt. Maybe she had it backward in her mind? Sadly, the further the conversation went, the clearer it was that she actually believed herself – that denial is a good coping mechanism. But of course, she’s dead wrong.