I know what you're thinking... What does this have to do with Garden Retailing?
This is a visual illustration of a concept I learned a long time ago. It relates to both balance of sale as well as ways to raise your overall margin percentages.
We are in a world of Growing Numbers. This beautiful spring photo from Longwood Gardens exemplifies where we are in Garden Retailing today. Each beautiful flower in this photo could easily represent your guests (customers). If we take a minute to think back over the last two years it will reveal this title.
In 2020 Group Centers recorded their largest single-year gains in Total Sales with over +20%, created by a 60/40 split of Transaction Counts and Average Sale. Centers reported seeing upwards of +25% new guests with many or most being young, first-timers to gardening. Overall, the 2020 Annual P&L Study results posted new levels of performance in almost all areas of benchmarking since the P&L Study began in 2004.
We all remember historic events that occurred in our lifetimes. Whether it is 1945 when V-Day celebrated the end of WWII, 1963 when John F. Kennedy was assassinated, 1969 when man landed on the moon, or 09/11/2001 when the twin towers were bombed. I don’t think I will forget where I was and what I was doing during the pandemic of 2020. A key part of my memory will be the WDR. I was anxiously awaiting report after report every week to see what was happening. It was my weekly peak into what was going on across the country at Garden Centers, and the Mid-Year Report summed up what we all were seeing.
To zero in on increasing sales, average transaction, and average items per transaction look closely at the individual building blocks that make up each sale. There are three basic building blocks to this empire.
It has been almost a year since I started work with Steve Bailey. During that time, I have done onsite visits, attended Fall Event as a service provider, compiled the WDR weekly, and helped complete the P&L Study. I have gained a great appreciation for accountability in numbers and in the resolve of Garden Center owners to succeed. From those early Garden Center days to today, I recognize valuable information that I could have used 20 years ago, when I started managing Garden Centers.
A few years ago, when I was introduced to the Weekly Department Review as a Garden Center General. Manager, I was in awe. There was so much data that I could use to analyze and improve how we were operating the Centers that I managed.
You might remember my session on Blowing it Up! At Fall Event 17 in Houston. That was all about taking something you’re doing and making a bigger big deal of it so you maximize the benefit from your opportunity. The principle of Blow It Up! is to make whatever is working work better.
Twelve Weeks
The majority of a garden center's income happens in a 12-week period in spring. Exactly when the 12 weeks begin fluctuates of course, dependent upon location (climate zone) and seasonal weather breaks. The balance of the year the center is trying to hang onto the profit dollars by working on building income and keeping costs as low as possible.
An Italian proverb reads, “He that deceives me once, it's his fault, but if twice, it’s my fault.” The question from this is, are you dangerously close to death by marketing?
Do you have a plan to break through your Invisible Ceiling this Spring?
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.