5 Tips To Manage Costs And Increase Revenue

Years ago, a wonderfully bright minded man named Thomas Friedman (The World is Flat) stated the most profound thing I have heard in the business world for many years — “Don’t waste this recession!”  The lessons that we have learned over the last four years should not be forgotten. They should be used as a forward-thinking blueprint for the next few years to come.

How do we grow our business with the lessons the economy has taught us? Two simple ideas come to mind every time I present for clients and conferences throughout the world: cost management and revenue generation. Here are five solid ideas that you can take to your team and then take to the bank.

  1. Create a utility/fuel team that has the sole responsibility to identify the cost of utility/fuel usage during each month of the year. Set a goal of a reduction of utility cost by at least 10 percent. Strategize the methods in which the cost savings could take place (time and duration of usage, shutting down certain areas during the down time, managing route and fuel consumption on vehicles) and then look at what the savings would be. Offer a “spiff” or reward for the team if the goal is met. When one of my clients in Virginia did this, they were able to save more than $250,000 over the course of the year in 2012.
  2. Create a safety team and look at the cost of insurance based on the injury or incidences that occur. Develop a system of rewards for accident-free days; the rewards can escalate for the increased times they can boast an accident-free workplace – from popcorn to pizza to prizes to sharing in the profits: the 4 Ps plan for 30-, 60-, 90- and 120-day increments.
  3. Set a goal for a particular item in the retail store that we believe will benefit the customer if they were educated about its uses and successes. Challenge the sales team to educate and consult the customer about the particular product and track how successful you are each day, based on previous year at the same time. A client in Maryland offered Soil Moist as a “beat the summer watering costs” benefit for their clients and sold 400% more over the month prior. Don’t ever underestimate the power of a unified and motivated team to deliver on the goal…it works almost every time!
  4. Offer the scale and scope of your buying opportunities to your local clients. One garden center owner in Phoenix, who would see his landscape contractors come in with tired tools of the trade, suggested he could buy tools at a more affordable price than they were getting at the big box. By taking this simple customer need and figuring out a cost-effective solution, the owner was able to help this customer’s immediate need, but also realize a $30,000 increase in sales from this client, who began buying more plant material from him as well.
  5. The final idea is a tough one and has to do with labor hours. I am amazed at how many hours of the clock tick by before someone realizes that we should let some folks go for the day. At one client, it added up to over $80,000 of labor that was wasted by not watching the clock. Develop a system where you have a pre-determined time three times a day to review the talent and tasks at hand. As the tasks are reduced, so too should the talent. This one idea is the most successful way you could both manage costs and increase profitability. If you saved 10 hours a week with your staffing over the busy magic 90 days of the season it would amount to 160 hours of saved labor. These labor costs add up fast and will kill any profit that you are working to achieve.

Leave a Reply

One comment on “5 Tips To Manage Costs And Increase Revenue

More From Business Management...

February 3, 2016

New Plants, Products, And Trends From TPIE 2016

Tropicals, foliage, and succulents may be the way to new consumers’ hearts, based on the cool ideas, products, and trends presented at the Florida Nursery Growers and Landscape Association’s (FNGLA) 2016 Tropical Plant Industry Exhibition (TPIE), January 20-22, 2016 at the Broward County Convention Center in Ft. Lauderdale, FL. The theme this year, Elevating Expectations, was fulfilled, renewing and reinvigorating attendees to carry forth their businesses into 2016 and beyond. TPIE showcases the latest trends in foliage, floral, and tropical plants, with a tradeshow of more than 200,000 square feet of show-stopping displays. While checking out new plants and products is a great excuse to travel to South Florida in late January, the threat of Storm Jonas bringing the snowstorm of the century to the Mid-Atlantic and Southern states had some show attendees booking flights early to get home before they were stranded. Still, reports from FNGLA said this year’s TPIE […]

Read More

February 2, 2016

19 Strategies To Strengthen The Horticulture Industry

In Greenhouse Grower’s annual State Of The Industry Survey, we asked how your operation is living the GROW initiative’s five pillars: cultivate new customers, demand quality, drive consumer success, invest in the industry, and sharpen business management. Here is what you had to say.

Read More
Costa Farms

January 29, 2016

Costa Farms Named International Grower Of The Year

Costa Farms was the night’s biggest winner during an awards gala presented by the International Association of Horticultural Producers (AIPH) and held at IPM Essen in Germany. (Read more about the business culture that’s driven Costa’s success in Greenhouse Grower’s January 2016 feature story.) The Florida-based grower was named the International Grower Of The Year, and was chosen from a group that included eight other international companies. “This award is a reflection of our entire team, and we are all dedicated to being the best at what we do and making this company successful for the long term,” said Jose Costa, Executive Vice President of Costa’s foliage division. The AIPH awarded gold, silver, and bronze awards in three categories — Finished Plants And Trees, Young Plants, and Cut Flowers — prior to naming the big winner. Costa was the gold winner in the Finished Plants and Trees Category. Each of […]

Read More
Latest Stories

February 3, 2016

New Plants, Products, And Trends From TPIE 2016

Tropicals, foliage, and succulents may be the way to new consumers’ hearts, based on the cool ideas, products, and trends presented at the Florida Nursery Growers and Landscape Association’s (FNGLA) 2016 Tropical Plant Industry Exhibition (TPIE), January 20-22, 2016 at the Broward County Convention Center in Ft. Lauderdale, FL. The theme this year, Elevating Expectations, was fulfilled, renewing and reinvigorating attendees to carry forth their businesses into 2016 and beyond. TPIE showcases the latest trends in foliage, floral, and tropical plants, with a tradeshow of more than 200,000 square feet of show-stopping displays. While checking out new plants and products is a great excuse to travel to South Florida in late January, the threat of Storm Jonas bringing the snowstorm of the century to the Mid-Atlantic and Southern states had some show attendees booking flights early to get home before they were stranded. Still, reports from FNGLA said this year’s TPIE […]

Read More

February 2, 2016

19 Strategies To Strengthen The Horticulture Industry

In Greenhouse Grower’s annual State Of The Industry Survey, we asked how your operation is living the GROW initiative’s five pillars: cultivate new customers, demand quality, drive consumer success, invest in the industry, and sharpen business management. Here is what you had to say.

Read More
Costa Farms

January 29, 2016

Costa Farms Named International Grower Of The Year

Costa Farms was the night’s biggest winner during an awards gala presented by the International Association of Horticultural Producers (AIPH) and held at IPM Essen in Germany. (Read more about the business culture that’s driven Costa’s success in Greenhouse Grower’s January 2016 feature story.) The Florida-based grower was named the International Grower Of The Year, and was chosen from a group that included eight other international companies. “This award is a reflection of our entire team, and we are all dedicated to being the best at what we do and making this company successful for the long term,” said Jose Costa, Executive Vice President of Costa’s foliage division. The AIPH awarded gold, silver, and bronze awards in three categories — Finished Plants And Trees, Young Plants, and Cut Flowers — prior to naming the big winner. Costa was the gold winner in the Finished Plants and Trees Category. Each of […]

Read More

January 27, 2016

Costa Farms’ Season Premier Provides Sneak Peek A…

Costa Farms presented the 2016 Season Premier at its 2-acre Trial Gardens in Miami, FL, in the third week of January. The event showcases varieties from breeders of all sizes to growers and major retail buyers, providing a look at what genetics are coming to the market and how they’ll perform in retail settings and in the landscape, when consumers bring them home. The mild winter climate in South Florida allows Costa Farms’ Research and Development Department to simulate the spring growing conditions of various regions in the country. Because each group of visitors to Costa Farms’ Trial Gardens wants to see what the new plants look like in the environments that matter to them, Season Premier offers several areas within the Trial Gardens that highlight different ways to look at the wealth of new varieties. The New Product Showcase offers a way for retailers to see how plants will […]

Read More

January 26, 2016

Beekenkamp And Danziger Partner To Distribute Poinsetti…

Danziger is continuing to expand its portfolio of products to the U.S. market with the addition of poinsettia cuttings of Beekenkamp’s varieties.

Read More
John Daley Featured

January 25, 2016

How To Retain Motivated Young Growers At Your Greenhous…

Wholesale grower John R. Daley says engaging young growers and making them a viable part of your operation is the best way to ensure you keep young talent for the long term.

Read More
Katherine Wolper

January 24, 2016

Ludvig Svensson Hires Katherine Wolper As West Coast Sa…

Wolper says she looks forward to listening to growers and understanding the concerns, obstacles, and opportunities they face.

Read More
Israel Greenhouse

January 23, 2016

Sign Up Now For A Horticulture Tour Of Israel Taking Pl…

The tour is being organized by John and Kelly Schroeder of Valleybrook Gardens, and will include visits to greenhouses, garden centers, nurseries, and local historical sites.

Read More
Houseplant Featured Image

January 21, 2016

How To Improve Consumer Interest In Indoor Foliage Plan…

Researchers discover why there is decreasing consumer demand for indoor foliage plants and suggest ways to overcome hurdles to purchasing.

Read More
State of the industry 2016

January 21, 2016

Green Industry Is Set For Continued Growth In 2016

Economist Charlie Hall says the outlook for the green industry is promising despite the havoc wreaked on plant sales by the downturn in housing.

Read More

January 20, 2016

Tips For Overcoming Challenges In Family Business From …

Our industry is run by a collection of family businesses, and every one, no matter how big or small, has its share of management issues. But there are several differences between one that is run successfully as a business and one that allows family politics to distract from the organization’s goals. In this year’s State Of The Industry Survey, we noted that labor recruitment and succession are two areas where growers struggle. In talking with the owners of Costa Farms for this month’s cover story, I thought some of the values they have incorporated into the operation’s management structure really stood out as practices that other family businesses could use. The participatory management approach to business and team building is one that Tony Costa, the second-generation owner of Costa Farms, instilled in his children, Maria Costa-Smith and Jose Costa, and son-in-law, Joche Smith, the current owners of Costa Farms. In […]

Read More

January 20, 2016

Color Point Creates New Marketing And Communications De…

According to Color Point co-owner Ken VanWingerden, Maloney’s leadership in the new department will help the company better manage its recent growth both internally and with the entire industry.

Read More
Janeen Wright

January 18, 2016

Five Thought-Provoking Ideas From GROW Summit 2015

Here are five ideas from Greenhouse Grower’s 2015 GROW Summit ranging from big-picture ideas to smaller initiatives that can help move the industry forward.

Read More
How will growers' production in 2016 compare to 2015

January 18, 2016

2016 State Of The Greenhouse Industry Numbers At A Glan…

Greenhouse Grower‘s 2016 State Of The Industry Survey shows some promising trends for the new year. Here’s a look at the greenhouse market for 2016, in graphics.     For a more in-depth analysis of where the industry stands, read Greenhouse Grower‘s 2016 State Of The Industry article, “Growers And Suppliers Move Forward With Cautious Optimism In 2016.”

Read More
Top Concerns sidebar

January 18, 2016

Growers And Suppliers Move Forward With Cautious Optimi…

A year of growth in 2015 also had its share of challenges, and as a result, growers and suppliers are a bit more guarded going into 2016. After a few years of extreme weather and drought, a massive ongoing labor shortage, a shaky economy, and increased government regulation, Greenhouse Grower’s 2016 State Of The Industry Survey shows growers and retailers are moving forward with cautious optimism. Greenhouse Grower’s 2016 State Of The Industry Survey included separate questions for growers and for suppliers. Of our 358 respondents, 103 were suppliers, 111 were grower-retailers, 109 were wholesale growers, and 35 were young plant growers. Among growers, 57% indicated their operations were small (less than 100,000 square feet), 21% were medium-sized (100,000 to 399,999 square feet), and 22% said they were large growers (400,000 square feet or larger). Sixty-eight percent of the grower respondents said their sales grew in 2015 over 2014, down […]

Read More
SAF CAD

January 18, 2016

Sign Up Now To Attend SAF Congressional Action Days In …

Congressional Action Days is a great chance for Society of American Florists members to meet their state’s lawmakers and discuss the most critical issues they are facing.

Read More
Dr Allan Armitage

January 15, 2016

Allan Armitage: Why The Deck Has Becomes The New Hot Sp…

Armitage says decks and small spaces allow younger generations to enjoy all the benefits of a garden without the work.

Read More
State of the industry 2016

January 14, 2016

Craig Regelbrugge Says 2016 Will Be A Year Of Waiting F…

The 2016 presidential election will make for slow progress on critical regulatory issues like health care, pollinator health, and immigration reform.

Read More
[gravityform id="35" title="false" description="false"]