Business - Analyzing your Costs

Cost control or cost reduction in a down economy is essential for business survival. The following is a series of questions to ask as you look at direct costs in your horticultural business enterprises.

The first step is to list your enterprises. For each enterprise list all your direct expense categories and the actual dollars expended for each category in the past year. Try to assign additional costs to that enterprise that would otherwise end up in indirect costs or overhead. For example, vehicle or equipment maintenance costs can be assigned to an enterprise if they are only used in that enterprise or if you know what percent of the time that they are used in the enterprise (cost of maintenance* percent of time used in that enterprise during the year)

For the expense categories that you listed for your enterprise, note whether they increased or decreased last year. Ask why they increased or decreased. Ask is the reason for an increased cost justified or do you need to focus more time on controlling the cost?

Look closely at each enterprise expense category in relation to the coming year and ask the following questions:
1) Is there a potential to reduce costs?
2) If so, how will it be achieved? and
3) What will the potential savings be in dollars.

The next step is to take a closer look at each of your expense categories for the enterprises. This is a drill-down analysis. Take that enterprise and list all actions associated with it where expenses are incurred (labor is used, materials are used). List all specific costs related to each job action.

For each job cost ask the following questions:
1) Is it possible to buy/obtain/hire at a lower cost? How? What will be the savings?
2) Is it possible to reduce use or be more efficient? How? What will be the savings?
3) Is it possible to eliminate the cost entirely? Why? Will it affect the quality of the product or service? What will be the savings?

Gordon Johnson, Extension Horticulture Agent, UD, Kent County

Business - Reminder: Surviving and Thriving in Tight Times Workshop Series Coming Up

The following is information on a series of workshops to be held in Dover on horticultural business survival in tight times. This is a part of the Ornamental Short Course series from Delaware Cooperative Extension.

Business Survival in Tight Times

Dates: February, 5, 12, 19, 26
Time: 12 noon—3 p.m.
Location: Kent County Extension Office, Dover, DE (Paradee Center next to DelDOT)
Cost: $35 (Fee will be remitted for new businesses or businesses under economic hardship)
Lunch: Light lunch included.
Registration: Register by calling (302) 730-4000

Horticultural business owners and managers should mark your calendars for a series on surviving and thriving in these tough economic times. Landscapers, landscape maintenance firms, lawn care companies, nurseries, greenhouses, garden centers and other horticultural businesses will benefit from these workshops.

Come join us for lunch, learn about approaches to help your businesses in tough economic conditions, and participate in discussions on topics that are important to your business.

This series is designed to help small businesses evaluate their bottom line, determine portions of their enterprise that are profitable, implement cost cutting procedures, manage employees under difficult conditions and prioritize how to deliver products and services successfully to your customers.

Topics:

February 5 = Business analysis
February 12 = Cost control
February 19 = Labor management and customer service
February 26 = Business opportunities and entrepreneurship

Instructors: Gordon Johnson and Susan Barton

Gordon Johnson, Extension Horticulture Agent, UD, Kent County

Business - Surviving and Thriving in Tight Times Workshop Series Coming Up

The following is information on a series of workshops to be held in Dover on horticultural business survival in tight times. This is a part of the Ornamental Short Course series from Delaware Cooperative Extension.

Business Survival in Tight Times

Dates: February, 5, 12, 19, 26
Time: 12 noon—3 p.m.
Location: Kent County Extension Office, Dover, DE (Paradee Center next to DelDOT)
Cost: $35
Lunch: Light lunch included.
Registration: Register by calling (302) 730-4000

Horticultural business owners and managers should mark your calendars for a series on surviving and thriving in these tough economic times. Landscapers, landscape maintenance firms, lawn care companies, nurseries, greenhouses, garden centers and other horticultural businesses will benefit from these workshops.

Come join us for lunch, learn about approaches to help your businesses in tough economic conditions, and participate in discussions on topics that are important to your business.

This series is designed to help small businesses evaluate their bottom line, determine portions of their enterprise that are profitable, implement cost cutting procedures, manage employees under difficult conditions and prioritize how to deliver products and services successfully to your customers.

Topics:

February 5 = Business analysis
February 12 = Cost control
February 19 = Labor management and customer service
February 26 = Business opportunities and entrepreneurship

Instructors: Gordon Johnson and Susan Barton

Gordon Johnson, Extension Horticulture Agent, UD, Kent County

Business - Contingency Plans for Horticultural Businesses II - Labor Contingency Planning

In a down economy, horticultural businesses may have to reduce or eliminate labor, reduce employee hours, reduce salaries, or lay off employees. You need to have a contingency plan in place for these situations. The following are some points to consider.

• Determine what people assets are critical for you to keep? List why they are critical.
• Determine who could “afford” a salary cut including you and family members in the business.
• Determine who could undertake more responsibility.
• Identify who are your definite keepers.
• Make a plan so that you know if you had to cut 10 percent of your workforce, what your severance policy would be.
• Plan how you would you treat departing people so as to engender trust, respect, and loyalty of those remaining.
• Plan how would you implement a people “cut”.

Information from Ed Hess, Professor of Business Administration, Darden School of Business, University of Virginia.

Business - Contingency Plans for Horticultural Businesses I - Customer Contingency Planning

With the bad economy, all horticultural businesses should develop contingency plans for their business. The following is the first post in a series on the subject. It is on customer contingency planning.

• Identify who are your most profitable customers
• Identify who are the most loyal.
• Identify who must you keep long-term at all costs.
• Find out how the downturn is affecting each of your customers
• Find out how can you get closer to your key customers
• Find out which customers have pressures of their own that will force them to ask you to cut prices, reduce purchases, or limit services. Have a plan for how should you respond. You may have to consider extending credit, putting them on an agreed-upon payment plant, renegotiating contracts, or reducing services temporarily until the economy picks up.

Information from Ed Hess, Professor of Business Administration, Darden School of Business, University of Virginia.

Business - Five Essential Steps for Marketing Your Business

All green industry businesses should place more emphasis on marketing during a down economy. The following some information on marketing essentials from Penn State University.

Five Essential Steps For Marketing Your Business

"I know this business inside out," Laura told me the week she started her new business. "I just don't have the foggiest idea of how to market it!" It's a problem that many business managers face. If you don't know how to get the word out - how to market your product or service - it can be a struggle to get the customers needed to grow a business. Here are five considerations some believe support great marketing.

1) What is your market?

Decide who your main customers are or will be. As a group, how old are they? Where do they live? How much money do they make? What kinds of jobs do they have and what are their interests? The better you can sketch a detailed profile of the kinds of people, who will be your main customers, the better you'll fare in the next four steps.

2) What kinds of media do your main customers use?

Each type of media has its own target audience. Each radio station, newspaper, magazine, or TV program tries to interest a specific segment of the population. The trick is to match your main customers with the kinds of media they use. Effective media can be anything that conveys your message. Media choices range from million dollar commercials in the Super Bowl to a few free pens with your name on them. From a simple flyer posted at a local store to good signs on the side of your vehicles.

3) Limit the media you use to what you can afford to use consistently. The key to effective marketing is consistency. You have to hit the audience with your message again, and again, and again. Marketers use the Rule of Seven. Prospects must see or hear your message seven times before they consider buying.

4) Sell the main benefit of your product or service. Make your marketing client centered. How does your product or service improve your customer's life? Talk to your customer from their own perspective. Does your product or service save them time? Make them happier? Make their properties more attractive?

5) And finally, don't miss out on FREE publicity.
Radio, TV, newspapers, newsletters, and magazines regularly lookout for good stories. Is there something about you or your business that would interest other people? Is there something about your business that is newsworthy? Maybe you have useful information to share with others. Last, but certainly not least, remember to promote your business on-line. The internet is open to everyone. It's the only "big" media that allows the small business person to get their message out at very low cost.

These are the five essential steps to effective marketing. Keep them in mind as you decide how to spend your marketing budget. These steps represent the most significant reasons why some marketing efforts fails while others bring in loads of sales.

Reprinted with modifications from "Five Essential Steps For Marketing Your Business" in the January, 2009 edition of the Vegetable and Small Fruit Gazetter, by John Berry, Agricultural Marketing Educator, Penn State Cooperative Extension - Lehigh County

Business - Action Points in a Down Economy: Value and Pricing

In a down economy, horticultural businesses should spend more time looking at the value of their goods or services and pricing policies. The following are some points to consider:

• Price appropriately. Do not think that lowering your prices will make your business more profitable. Often the opposite occurs as you will require even more customers to bring in the same income. Know your costs and price for the profit margin you need.
• Test your market. Often raising prices is the key to remaining profitable. You may sell fewer plants or services but you make more from each. Many businesses have found that they are doing better once they have their prices in line with what the market will bear.
• Do not discount across the board. Offering sales and special incentives are better practices. These have limits and bring in customers. Cutting prices across the board often does not stimulate demand and results in lower overall profits.
• Examine your value proposition. That is, what are you offering of value to the customer in your product and services. Strive to offer better value by improving quality, improving service, and paying more attention to customers needs. Strive to differentiate your business and its products or services so that it is recognized and preferred by customers.

Information in part from a talk by Dr. Charlie Hall, Texas A&M University.

Business - Action Points in a Down Economy: Stimulate Demand

In a down economy, horticultural businesses must spend more effort in stimulating demand for products and services. The following are some points to consider on this topic.

• Focus on your marketing efforts and increase marketing expenditures. To get consumers to buy plants or use your landscape or lawn care services, it is critical to spend more on reaching your customers.
• Cull out those customers that are not profitable. The bottom 10 % of your customers usually do not produce much returns. Examples would be those customers only seeking discount or bargain prices, smaller properties that cost more to provide services to than you get in return, customers that do not pay on time, or customers that require excessive attention that is not balanced by sales.
• Focus on the top 10% of your customers. These customers are the ones that make your business profitable. Increase service to them, pay more attention to their needs, and contact them on a regular basis.
• Look at what competitors are going out of business and aim to attract their best customers.
• Analyze your products or services and eliminate those that are not profitable or that have low profit margins. For example, if a certain plant category does not make you money, stop growing it, increase your price to make it profitable, or reduce it to the minimum necessary to compliment other offerings.

Information in part from a talk by Dr. Charlie Hall, Texas A&M University.

Business - Action Points in a Down Economy: Controlling Costs

It is always necessary to track costs in any business but is even more critical during tough economic times. The following are some cost control considerations for horticultural businesses.

• Know your costs. Your business profits depend on having good information on the costs of doing business. Know what it costs to produce a nursery or greenhouse plant; know what it costs to provide a landscape or lawn care service. Costs involve both variable inputs and overhead. Make sure that both are accurately accounted for.
• Once you know your costs, try to lower your break-even cost, that cost at which you pay for all your variable and overhead expenses. Reduce waste, reduce overhead, make only absolutely necessary expenditures, manage with less labor, etc. Be careful though - do not sacrifice quality or service with your cost cutting measures.
• Lock in energy prices at lower rates. If you can buy fuel and store it, now it the time to do it. If you can lock in some low prices with your energy supplier (they do the storage) do that now.
• If you ship products, look at long-term distribution options to reduce freight charges. If you receive products, look at the lowest cost freight options.
• Greenhouses, nurseries, and garden centers should consider buying in pre-finished materials now and "turn the margin". Many plants are in oversupply currently and can be bought for a low price. It is therefore often cheaper to buy in finished material rather than producing your own.
• Apply other cost cutting measures that are practical. Avoid unnecessary inventory, use labor more efficiently, look for the best prices on inputs, take advantage of low interest rates, etc.
• One area you should not reduce expenditures on is marketing. Marketing is even more important in a down economy.

Information taken from a presentation by Dr. Charlie Hall, Texas A&M University.

Business - Action Points in a Down Economy: Conserve Your Cash

Cash is king in a down economy. Horticultural businesses should do everything they can to conserve cash. Cash on hand is critical for borrowing, to pay for operating expenses, and as an insurance against further declines in business. The following are some cash conservation strategies:

• Delay non-strategic investments, that is only those investments that are essential to your business plan should go forward. However, this does not mean you should miss out on opportunities to make your business grow. For example, if a competitor is going out of business, you should consider if it is in your best interest to buy their business.
• Refinance what you can. Interest rates will not be this low in the future. Take the opportunity to reduce loan payments at a more favorable interest rate.
• Take full advantage of credit terms. If it is net 60 days from your supplier, pay on day 57, not day 15.
• Sell unused assets if possible. That spare piece of equipment can bring in needed cash to operate.
• Apply for credit long before you need it. Get your line of credit established and use it to your advantage rather than spending your reserve cash. Remember that interest rates are very low now.
• Reduce estimated tax payments. If you feel your profits will be down, don't send the government as much money in estimated taxes.
• Review all overhead expenditures and reduce where possible. For example, see if you can reduce insurance premiums.

Information from a talk by Dr. Charlie Hall from Texas A&M University.

Business - Great Blog to Visit on Green Industry Business and Economics: Dr. Charlie Hall

I just heard a talk by Dr. Charlie Hall from Texas A&M University. He has a wealth of information on the business and economics of the green industry. He writes a blog that definitely is worth visiting on a regular basis. The following is more information:

Dr. Charlie Hall's Blog

Making Cents of Green Industry Economics

About the Blog:

Why "Making Cents"? Because as margins get tighter and tighter in the Green Industry due to market conditions becoming increasingly competitive, a few cents per pot/plant can make a world of difference! Stay tuned to this site for up-to-the-minute information regarding economic factors affecting your business and strategic responses to enhance profitability!

Information on Dr. Hall

Dr. Charlie Hall, Ellison Chair in International Floriculture, Texas A&M University
charliehall@tamu.edu

Dr. Hall’s expertise in marketing is nationally recognized in academia and among the Green Industry clientele he serves. His major areas of specialization include strategic management, market situation & outlook, and managerial economics. He is an invited speaker at numerous regional, national, and international meetings and is particularly known for the enthusiasm, passion, and intensity he exhibits when speaking.

A sample excerpt from his blog post on "from Conspicuous to Conscious Consumption" an interview with Dan Stanek, Executive Vice President, TNS Retail Forward.

"What advice do you have for retailers who are (re)developing their marketing strategies?

The most important thing for retailers is to tie value and values together. When you can make a statement to offer lower price or great value and also that you are doing things “right” (such as making a donation with each purchase or using environmentally friendly materials), it will help justify the purchase for shoppers. You need to provide a reason for consumers to prioritize your purchase in their life above other things they need to spend money on."

You can view Dr. Charlie Hall's blog at http://ellisonchair.blogspot.com/

Business - Green Industry Risk Management (Business Management) Guide

When you hear the term risk management, most business persons think about insurance. However, the term risk management has been broadened over the years from an educational perspective to encompass most of the areas we used to call just plain business management. It includes aspects of production, marketing, financial management, human resources management (labor, management), legal issues, and environmental concerns along with traditional risk management with insurance. There is a great guide on business/risk management for the green industry aimed at greenhouse and nursery businesses but with sections that could easily apply to other green industry professionals. It is available for download from the National Crop Insurance Services. The following is more information.

Green Industry Risk Management Guide
PUBLICATION OF NATIONAL CROP INSURANCE SERVICES

Contents:

Size and Structure of the Green Industry

2 U.S. Green Industry’s Economic Contributions
7 Mega Trends in the Green Industry

Overview of Risk Management Principles

10 Risk Overview
14 Risk Attitudes of Nursery Growers and Allied Professionals
17 Risk Management for Greenhouse and Nursery Growers
20 Record-Keeping: Essential to Risk Management
22 Business Planning for Nursery Managers: Charting a Course Toward Profitability

Production Risks and Responses

28 Production Risk
31 The Pros and Cons of Diversifying the Nursery Business
34 Pot-in-Pot Nursery Production: In-Ground and Above-Ground Systems

Risk Management Through Crop Insurance

36 Why Should I Buy Crop Insurance?
38 Nursery Insurance
41 Adjusted Gross Revenue Lite Insurance (AGR-Lite)
44 Selecting the Right Crop Insurance Agent

Marketing Risks and Responses

46 Marketing Risk
49 New Conditions of Sale Add to Nursery Growers’ Risk Profile
51 Eco-Friendly Diversification Strategies
54 The Basics of Pricing for Nursery and Greenhouse Firms
58 So What is the Best Retail Price?
61 Retaining Customers for Greater Sales and Profits

Financial Risks and Responses

63 Financial Risk
66 Analyzing Financial Statements for Better Management in Horticultural Businesses
69 Benchmarking Your Way to Success!
71 Handling Risk with Enterprise Budgets for Ornamental Plants

Human Resource Risks and Responses

74 Human Resource Risk
77 Labor Risk Management: How to Find and Retain Farm Labor?
78 Complying with Equal Employment Legislation
82 Selecting and Managing Agricultural Labor

Legal and Environmental Risks and Responses

85 Legal Risk
87 Legal Issues for Greenhouse Growers
90 Managing Legal Risks in Agriculture Production: Immigration and Migrant Labor Issues
93 Optimizing Pesticide Performance in Nursery Production

Authors include noted University experts who work with the green industry.

This guide can be downloaded at: http://www.ag-risk.org/NCISPUBS/Training/NCIS08GreenGuide.pdf

The guide can also be downloaded at: http://ellisonchair.tamu.edu/media/risk_guide.pdf
Be forewarned that it takes a long time to download, even with high speed Internet access.

Business - Program on Preserving Your Company's Future During Tough Economic Times

The following is additional information on a program for the Green Industry on survival during tough economic times coming up in Maryland.

Beating the Odds...Preserving Your Company’s Future During Tough Economic Times

Date: Tuesday, December 16, 2008
Time: 9:00 am - 3:30 pm
Location: Davidsonville Ruritan Club3358 Davidsonville RoadDavidsonville, Maryland 21035 Map and Directions
Registration: Registration form can be downloaded at http://mnlaonline.org/files/FinalChesGrn_EconomicConfBroch.pdf or you can register on-line at: http://www.regonline.com/builder/site/Default.aspx?eventid=679249

This could be the most important conference you attend this year, at Beating the Odds…
You’ll gain insight on why customers really do know best, getting your business moving in the right direction, what you need to do and how to prepare for a visit to your lender, tools for creating best practice skills, and learning how to set benchmarks

Schedule:

8:30 a.m. Registration
9:00 – 9:15 a.m. Opening-Meeting Agenda and Pulse of the Industry

9:15 – 10:15 a.m. Chicken Little Doesn’t Work Here - Robert Hendrickson, The Garden Center Group.

In spite of what you’ve read or heard or even be experiencing, there’s a group of customers out there that view our products and services as essential components in their lives. The reasons why remain constant and cross all generations, income levels and lifestyles. From a customer’s perspective, the secret to business success is pretty clear… this isn’t about us… it’s all about them. Learn why customers really do know best; Discover why most marketing efforts never seem to reach their intended goals; Uncover the reasons why horticulture products and services are more important to people than ever before

10:15 – 10:30 a.m. Break

10:30 – 11:30 Economic Forecast… Practical Actions For Surviving Through a Down Economy. Dr. Charles Hall, Texas A & M University

As business owners, we are all questioning what actions to take, what plans to invoke NOW to ensure the sustainability of our businesses through tomorrow. Dr. Hall will give his projection for the 2009 economic outlook and then offer practical, real-time solutions including strategic business forecasting (realistically restating your former plan) and other techniques and tactics you can put into place TODAY that are sure to help you tighten your belt and generate sales, feel better about the future, and get your business moving in the right direction.

11:30 a.m.– 12:00 p.m. Approaching your Lender, Bill Borsa, MidAtlantic Farm Credit

A close working relationship with your lender is critical during times of economic strife. Bill Borsa, loan officer with MidAtlantic Farm Credit, will present the nuts and bolts of what you need to do, and how to prepare and present yourself for a visit to your lender.

12:00 – 1:00 p.m. Working lunch with table topic discussions

Lunch Topics:
What cost-reducing business practices have you implemented successfully this year?
Which marketing strategies have worked best in keeping connected with your best customers?
What has been the biggest mistake you made but learned from this year?
What have your customers responded to best this year?
What have you done to keep employees motivated and focused?

1:10 – 2:30 p.m. Breakout Session - Garden Centers and Suppliers

Thrive or Survive… Retail Skills for the New Economy. Robert Hendrickson, The Garden Center Group

It should be obvious to anyone in retail that business is no longer being conducted “as usual”. Economic issues, competition and the increasing cost of doing business have created the necessity for garden centers to be in a perpetual state of re-invention. This is the perfect time for reviewing the challenges and successes of 2008 while considering changes taking place in every market… at every consumer level… that are having serious implications on how business gets done. This session will cover 1) Tools for creating best practice skills 2) Real-life examples of garden centers of all sizes still thriving regardless of the economy, and 3)Connecting the links between supplier, retailer and consumer

Breakout Session – Landscapers, Growers, Arborists and Others

Different Isn’t Always Better But Better Is Always Different… Measuring What You Manage. Dr. Charles Hall, Texas A & M University

How many growers, landscape service providers, and arborists really know the financial status of their business? The prolonged economic downturn (and resulting bankruptcies) is bringing the reality home that green industry firms must be financially prepared for times when cash flows slow down or even stops flowing. Which financial benchmarks are worth your time tracking and how much deviation from these benchmarks is acceptable before corrective actions should be taken? In this session, growers and service providers will learn how to set their own benchmarks and gauge whether or not they really are doing as well as they think they are!

2:30 – 2:40 p.m. Break

2:40 – 3:30 p.m. Wrap Up and Q&A. Sharing of Lunchtime Roundtables. Action List Development

See the brochure here
Register Now

Contact Information
Phone: 410-823-8684, Email: mnacma@aol.com
Send Email

Event sponsors:
Maryland Arborist Association
Maryland Greenhouse Growers’ Association
Maryland Nursery and Landscape Association
Maryland Department of Agriculture
University of Maryland Cooperative Extension

Business - Being an Entrepreneur V

This is the fifth in a series of being an entrepreneur. It is more important than ever for green industry businesses to think and act entrepreneurially. Idea generation for new business opportunities or improving current business enterprises is something that should be done on a regular basis. The following are some additional slides on the subject from materials I use when teaching entrepreneurship.









Gordon Johnson, Extension Horticulture Agent, UD, Kent County

Business - Being an Entrepreneur IV

This is the fourth in a series of being an entrepreneur. It is more important than ever for green industry businesses to think and act entrepreneurially. Idea generation for new business opportunities or improving current business enterprises is something that should be done on a regular basis. The following are some slides on the subject from materials I use when teaching entrepreneurship.






Gordon Johnson, Extension Horticulture Agent, UD, Kent County

Business - Being an Entrepreneur III

Now more than ever it is important for green industry businesses to think and act like entrepreneurs. Entrepreneurship is recoginizing business opportunities and acting on those opportnities to create successful enterprises. The following is the third in a series on being an entrepreneur from a presentation I have given.

How well do you understand your customers, their needs, wants, and desires?

The gardening public has many wants and desires. How well do you understand them? If you are a wholesaler, what are the values of your wholesale customers?

There is more and more emphasis on going green and on being sustainable. Are you incorporating these values into your products and services?

What are your customers yearning for?

What are your customers nostalgic about?

Plant collectors are the green industry version of the connoisseur.

Greenhouses, nurseries and gardens are great places to attract customers. Plan activities for your customers to keep them longer - and buy more.

Gordon Johnson, Extension Horticulture Agent, UD, Kent County

Business - Being an Entrepreneur II

Now more than ever it is important for green industry businesses to think and act like entrepreneurs. Entrepreneurship is recoginizing business opportunities and acting on those opportnities to create successful enterprises. The following is the second in a series on being an entrepreneur from a presentation I have given.









Gordon Johnson, Extension Horticulture Agent, UD, Kent County

Business - Being an Entrepreneur I

Now more than ever it is important for green industry businesses to think and act like entrepreneurs. Entrepreneurship is recoginizing business opportunities and acting on those opportnities to create successful enterprises. The following is the first in a series on being an entrepreneur from a presentation I have given.






Gordon Johnson, Extension Horticulture Agent, UD, Kent County

Nursery and Greenhouse - Challenges and Opportunities V

This is a continuation of the series on challenges and opportunities for greenhouse and nursery businesses during the current economic downturn and in the near future.

• Opportunities will continue to expand for native, locally grown plants. Opportunities exist for the selection and promotion of superior native plant cultivars. Team up with propagators that are working with native plants and promote superior selections.
• Look to opportunities with sustainable urban landscape movements and other sustainable landscape movements. Remember, you are in the green industry and as such you are part of the environmental movement. Understand where green initiatives are occurring and where they will be expanding.
• Use resource efficient practices - water, fertilization, energy, labor, and other inputs need to be used as efficiently as possible.
• Work hand in hand with landscape architects and their plant choices. Educate each other on the plants available and what plants to grow and use in the future.
• Look at plant lists for those projects that are forward thinking and use this as a guide for what to grow.
• Consider pot in pot production in nurseries to reduce blow over and give better root conditions. Container plants give more flexibility in planting programs but more management and marketing skill is needed with container production.
• Take advantage of networking opportunities – learn who is making decisions on what plants are being used in projects and develop one on one relationships with them

Gordon Johnson, Extension Horticulture Agent, UD, Kent County

Nursery and Greenhouse - Challenges and Opportunities IV

This is a continuation of the series on challenges and opportunities for greenhouse and nursery businesses during the current economic downturn and in the near future.

• Customers desire choice, quality, and a reasonable price. Focus your business on these areas.
• Energy conservation will continue to be critical as energy prices will rise again in the future. Natural gas more is more stable but expect increases from current levels. Look into green energy sources as government incentives are enhanced.
• Consider how communication has changed with the expansion of the internet. Social networks are a good example. Take advantage of these new ways to interact with customers in your marketing. Targeted advertising and marketing efforts will be needed. Understand how to use the new media (much of it is free) to your advantage.
• One continuing challenge is water. Irrigation in containers not well understood and you need to stay abreast of the latest technologies to manage water efficiently.
• Population issues will continue in this region. This is both an opportunity and a challenge. The challenge is cost of land. The opportunity is an increased customer base with lower transportation cost to reach those customers due to proximity to markets. Expect local advantages to increase in the future. Take advantage of buy local movements and support those movements.
• Mechanization opportunities exist but still are not cost effective, especially for smaller operations. Where possible, replace labor with mechanization.
• Immigration reform is critical for the industry to have sufficient labor. Stay politically involved and support nursery and greenhouse groups working for immigration reform.
  

Gordon Johnson, Extension Horticulture Agent, UD, Kent County