Abandonment Or Revolution?

For more than 10 years, our industry has heard that we must change. The word “change” is probably used most often related to production or marketing our product.

The fact is that change is a continual process that happens whether we want it to or not. Many changes that occur are beyond our control. We must accept and adapt to them or reject them in order to do what is best for our businesses or ourselves.

We must remember that not all changes are for the better, and, in fact, many may drastically damage or destroy our businesses or our lives.

I’m a great fan of Tom Peters. I have most of his books, including “In Search of Excellence.” And I attended one of his seminars in Chicago in 1984.

Another book he wrote was “Tom Peters’ Seminar: Crazy Times Call for Crazy Organizations.” Peters wrote, “We must move beyond change and embrace nothing less than the literal abandonment of some of our practices that brought us to this point.” I believe we may have to revolutionize our businesses instead.

Reality Check

It is obvious we are in a depression, not only in the United States but in many other countries as well. Banks are failing. Businesses are going bankrupt. More than five million people are unemployed. There will certainly be a movement toward getting the most you can for the lowest cost.

For example, in Michigan, about 13 percent of the workforce is now unemployed. In the United States, the unemployment rate is about 8 percent. It should be obvious consumers will be looking to buy plants, both vegetables and flowers, at the lowest price possible.

Many retail stores that sell food have seen decreases in sales. Walmart, because it saves shoppers 15 percent on the typical cost of food, has still made a profit.
It has been documented that food purchases at all other supermarkets cost consumers $146 billion. At Walmart, consumers spent $124 billion for groceries for the same quantity of food. These figures are from Charles Fishman’s 2006 book, “The Walmart Effect.”

As the depression continues, I believe people who’ve lost 30 to 40 percent of their retirement income and those who are unemployed will seek ways to reduce costs. Food will still be essential, but many will start to grow their own vegetables again. This should create a great market for bedding plant growers.

Now is the time to help the consumer be frugal. We may even go back to the old Victory Gardens of the World War II era when people planted a garden to feed themselves and their families.

Resorting To The Past

We can help consumers grow their gardens with the right plants, accurate cultural information and even an outline of what the garden should look like to provide the food they need. Cornell University Cooperative Extension has a fine website on vegetables and how to grow them.

To help consumers be frugal, try offering them plants at a price that will allow them to produce vegetables at a savings of between 10 and 30 percent of what it would have cost to buy them at the supermarket.

I’ve seen one local garden center grow vegetable transplants in 32-cell flats, with eight packs of four plants each, for $10 to $12 a flat. The garden center allows customers to mix and match the plants in the flats so they get the vegetables they want to grow.

With this method, consumers could get 64 plants for less than $25, or they might buy four flats with 128 plants of their choice for $50 or less. The cost would be between 30 and 40 cents per plant.

The number of fruits per plant can vary, but, as an example, I went to the supermarket myself and paid $1 for one cucumber and $1.99 for one green pepper. With our plants and the proper knowledge, the consumer can reduce the cost of vegetables by about 50 percent.

I, however, believe you will see less demand for 1- or 2-gallon containers with one tomato plant or one pepper plant where the price is more than $5 per plant.
Part of Walmart’s secret to success is that it attracts customers with low prices. None of the top 15 items sold by Walmart sell for more than $3. This proves the small stuff matters.

Connecting Past & Present

There have been at least 10 economic crises since 1837. There is an excellent article about these events in the Feb. 16 edition of Newsweek. The most famous crisis, of course, was the Great Depression, which was precipitated by the 1929 stock market crash that wiped out $30 billion in five days. It took 10 years and World War II to recover from that crash.

The 1932 election ushered in the New Deal, the Works Progress Administration, Social Security, Fannie Mae, the Federal Deposit Insurance Corporation and the Securities and Exchange Commission. The government took control of the programs to put people to work.

We see the same approach by government today. The recently passed stimulus package and the previous bailout of financial institutions combined have more than $1.5 trillion of aid. Some banks and brokerage firms have gone bankrupt or have been sold to other institutions.

For a historical perspective, when the market panic of 1837 occurred, nearly half of the 850 banks in the United States failed, and we had seven years of high unemployment. This economic crisis was triggered by rampant land speculation and the collapse of a major bank.

I’m afraid the next few years will be difficult for everyone. I know a number of greenhouse businesses that are going or have already gone bankrupt. However, tough times will eventually pass. Strong growers will survive. Remember, life without friends, fellow growers and suppliers, and loyal customers is like a desert without an oasis.

Many of the older growers will remember Fred Gloeckner. In difficult times, when it was hard to get money from the banks to run the greenhouses, Gloeckner would come on sales calls and talk with the growers. He would help them decide what to grow and provide advice to help them out. He would say, “I’ll send you all the plants and seeds you need, and you can pay me when the plants are sold.”

For years after that, when times got better, many growers still bought from the Gloeckner Company because Fred was not just their supplier, but he was their bank and, most of all, their friend.

Take time now to know your friends. You may need to help them or they may need to help you. Set up a network of people who will help you survive the tough times.
And remember, the rich person is not the one with all the money, but rather the person who knows how to lead. I hope you have planned this season well and that you will prosper and stay healthy.    

Leave a Reply

More From Finance/Operations...
crider-rd2-internal_Rough-Brothers_featured

July 1, 2015

Rough Brothers Is Acquired By Gibraltar Industries

RBI Solar Inc., Rough Brothers Manufacturing Inc. and affiliates have been acquired by Gibraltar Industries, a manufacturer and distributor of products for residential and industrial markets, for $130 million. Capitalizing on its 80 years of design-build experience and leadership as the largest greenhouse manufacturer in North America, Ohio-based RBI has established itself during the past five years as North America’s fastest-growing provider of photovoltaic (PV) solar racking solutions. The transaction will enable Gibraltar to leverage its expertise in structural metals manufacturing and materials sourcing to meet global demand for solar racking solutions. The company also announced that it anticipates its second-quarter 2015 financial results will be in line with its previous expectations. “Acquiring RBI is an important step in the transformation of Gibraltar into a company with a higher rate of growth and best-in-class financial metrics,” says Gibraltar CEO Frank Heard. “This acquisition directly aligns with key end markets and product platforms […]

Read More

June 30, 2015

Opportunities Abound For Women In Horticulture, Says Dosatron International’s Lela Kelly

My love for horticulture goes back to my grandparents who were farmers in upstate New York. My family’s involvement in agriculture left a lasting impression that has spanned decades, and still drives my passion for our industry today. I started my career in horticulture when I owned a greenhouse, nursery and garden center in Sayville, Long Island, N.Y. We specialized in ground cover production, later branching out to producing perennials and bedding plants.     I then went onto wholesale hard goods distribution. In the 1980s, I was the first woman salesperson on Long Island. What an eye opener that was! New York is a very special place, different from anywhere else in the country. You cannot imagine how difficult it was walking into greenhouses and nurseries as a woman, in a man’s world. Luckily, I grew up in New York City in an Italian family, who taught me great […]

Read More
Medal of Excellence Award

June 30, 2015

Get To Know The 9 Variety Finalists For Editor’s Choice And Industry’s Choice Awards

Greenhouse Grower‘s Evening Of Excellence reception is rapidly approaching. Here, you can learn more about the varieties that are finalists for the Medal Of Excellence Editor’s Choice and Industry’s Choice Breeding Awards. Thank you to the 2015 sponsors of Greenhouse Grower‘s Medal Of Excellence Awards, Landmark Plastic, Nufarm and Stockosorb. Editor’s Choice Asclepias ‘Monarch Promise’ (Hort Couture) Basil ‘Balsamic Blooms’ (EuroAmerican Propagators) Celosia ‘Dragon’s Breath’ (Sakata Seed) Dianthus Jolt Series (PanAmerican Seed) Salvia Grandstand Series (Green Fuse Botanicals) Scabiosa ‘Kudos Pink’ (Hishtil Nurseries) Industry’s Choice Basil ‘Balsamic Blooms’ (EuroAmerican Propagators) Bidens BeeDance Series (Suntory Flowers) Celosia ‘Dragon’s Breath’ (Sakata Seed) Dianthus Jolt Series (PanAmerican Seed) Lobelia ‘Starship Deep Rose’ (Kieft Seed) Vinca Valiant Series (PanAmerican Seed)     Join us Monday, July 13 in Ballroom 2 at the Columbus Convention Center to find out which varieties will receive the coveted awards. The reception begins at 5:15 p.m. and the ceremony […]

Read More
Latest Stories
thermoflor

June 16, 2015

Philip Schaafsma To Represent Thermoflor In The U.S.

Philip Schaafsma is a new sales representative for Thermoflor, a company with a lot of experience building garden centers worldwide. The history of the Dutch construction company Thermoflor goes all the way back to 1877. Since then, the company has been through a lot of changes, from simple conservatories to complex glass and steel turnkey projects. With a new sales representative, Thermoflor is well equipped to service the American market. Previously, Petitti Garden Center (Avon, Ohio), Chuck Hafner (Syracuse, N.Y.), Jacob’s Garden (Ottowa Lake, Mich.), Hicks Nurseries (Westbury, N.Y.) and Holes (Alberta, Ca.) were all built by Thermoflor. After a period of absence, the company is now  represented in the U.S. and Canada by Schaafsma, who has more than 40 years of experience in retail lawn and garden, greenhouse growing and the floral industry, and is a former board member of the Garden Centers of America. Schaafsma is the former owner […]

Read More

June 15, 2015

Hortica Insurance To Become Member Of Sentry Insurance …

Upon completion and approval of an affiliation agreement, Hortica Insurance (Florists' Mutual Insurance Company) will become a member of the Sentry Insurance Group, based in Stevens Point, Wis. As a member of the Sentry Insurance Group, Hortica keeps its name and brand and will continue doing business from its current headquarters in Edwardsville, Ill.

Read More
Cal-Poly fields

June 2, 2015

Cal-Poly Students Seek Continued Industry Support To Sa…

Agriculture students and faculty at California Polytechnic State University, San Luis Obispo, want industry members to continue to stand with them in their effort to preserve Class 1 agricultural land from being repurposed. The university recently released an update to its Master Plan that indicates that almost all of its orchards, horticulture facilities and field sites could be repurposed for buildings, including residential and/or recreational space. According to Joel Leonard of Students For Agriculture, an organization of Cal-Poly students in favor of saving the land, the Master Planning Committee will be meeting over the summer to form a final version of its plan and present it once more to the public in the fall, before it is submitted for final approval to the California Board of Trustees. Students For Agriculture’s goal in the meantime is to increase awareness and rally industry supporters to continue to send their input to the planning committee. Visit studentsforag.com to see more […]

Read More
Cal-Poly fields

May 27, 2015

Cal-Poly Students And Faculty Ask Industry To Help Save…

California Polytechnic State University, San Luis Obispo, has released an update to its Master Plan that indicates that almost all of its orchards, horticulture facilities and field sites could be repurposed for buildings, including residential, and/or recreational space. According to a letter from Scott Steinmaus, the horticulture and crop science department head, the proposed changes directly affect the current orchard plantings and other long term plans for the department. The department is committed to making sure that its facilities remain invaluable teaching environments that enable its students to learn about crop, fruit and horticulture production, food safety and pest protection, in addition to providing sites for externally funded research projects that benefit the industry. Industry members are invited to submit comments to the university. According to Steinmaus, a recent eMail to the Cal-Poly community from the university president indicates that all of the input gathered through the end of May will be studied by the planning […]

Read More
people-of-Battlefield

May 13, 2015

Battlefield Farms Receives MPS-A Qualification

Battlefield Farms, Inc., in Rapidan, Va., has been awarded the MPS-A qualification after becoming a participant for MPS-ABC in 2010. After four years of showing effort and improvement, the company has been awarded the qualification.

Read More
Barry_Sturdivant_columnpic

May 8, 2015

How To Survive Succession Planning And Resolve Conflic…

If you work in agriculture, you most likely work with family-owned businesses. This is especially true within the greenhouse industry. I’m fortunate to work for a company that specializes in financing and supporting such businesses. Family-owned businesses often have a level of commitment and support that helps during lean times. This is important for a company exposed to seasonality and events that are sometimes beyond management’s control. Business owners and management are constantly looking for solutions to the unique issues faced by these small but complex businesses. Specifically, how these issues affect the transition from one generation to the next. There are many family enterprise success stories, cases of harmony, health and longevity. Yet it’s no secret that family businesses can struggle with governance, leadership transitions and even survival. According to the Family Business Institute, only 30 percent of family businesses last into the second generation, 12 percent remain viable […]

Read More

April 30, 2015

North Creek Nurseries Welcomes Nikki Drake As New Finan…

Nikki Drake will fill the role of new financial administrator at North Creek Nurseries, with responsibility for the accounting department. She will also serve on the strategic planning committee.

Read More
Andy Huntington Pleasant View

April 29, 2015

Pleasant View Gardens Promotes Andy Huntington to Natio…

Pleasant View Gardens recently announced that Andy Huntington will be the company’s National Sales Manager. Huntington, who has years of horticulture industry experience, will oversee national territory and inside sales departments, while fostering strong partnerships with customers. “Our relationships with customers are central to all that we do at Pleasant View,” Huntington says. “In my new role, I am excited to work with a broader base of broker, grower and retail partners to understand their business needs. Pleasant View’s goal is to be so in tune with our customers that we are able to anticipate their problems before they arise.” Huntington has a history of growing sales and forming long-lasting relationships with a diverse customer base. For the past two years, he has been working as a territory account manager for Pleasant View Gardens, responsible for young plant liner sales in New England and New York. Prior to that, Huntington was […]

Read More
PittMoss on Shark Tank

April 22, 2015

PittMoss Wins On Shark Tank

Mont Handley, president and CEO of PittMoss, appeared on ABC’s Shark Tank on April 17 to try to get the “sharks” to invest in his peat moss alternative. Three investors from the TV show contributed $600,000 to PittMoss for a 35 percent stake in the company. Check out this clip from ABC’s website in which Mark Cuban, Kevin O’Leary and Robert Herjavec discuss getting on board with the product. PittMoss is an alternative to sphagnum peat moss, made up of a mix of proprietary additives and recycled paper rescued from landfill space. Handley founded the Pittsburgh-based company in 1994. What started as a small experiment grew into a full-fledged business with the help of funding provided by an EPA SBIR grant and Pittsburgh’s Idea Foundry. Today, PittMoss is available to commercial greenhouses and nurseries from Michigan to Maine to North Carolina, with plans to grow. To learn more, visit PittMoss’ website, or check it […]

Read More
Syngenta logo

April 15, 2015

Syngenta Names Chris Freeman Senior Key Account Manager…

Chris Freeman is the new senior key account manager for Syngenta Flowers, Home & Garden's Commercial Sales business in the Americas, effective March 2015. Freeman, who joined Syngenta in 2006, carries more than 25 years of experience in the agriculture and floriculture business.

Read More
Lake Buchanan_LCRA

April 10, 2015

USDA Designates Areas Of West And Southwest As Drought …

The ongoing drought has resulted in disaster area designations in counties across nine Western and Southwestern states, including Texas, where some reservoirs are at or near historically low levels.

Read More

April 9, 2015

Altman Plants’ Online Cactus Shop Shows Strong Sa…

Altman Plants recently opened its new Cactus Shop, an online retail store that sells a variety of cactus and succulents. The store is a take-off of Altman’s original wholesale business, as the company started as a mail order catalog.

Read More
Dummen

April 8, 2015

Dümmen Group Welcomes Jim Devereux And Andrew Konicki T…

Dümmen group recently announced the addition of Jim Devereux and Andrew Konicki to its team. They are the newest members of the Key Account and Broker Support team for Dümmen, and will be responsible for building, developing and maintaining current broker and grower customer relationships.

Read More
Gov._Jerry_Brown_California

April 8, 2015

California Institutes First Ever Statewide Mandatory Wa…

California Gov. Jerry Brown announced April 1 that, for the first time in state history, action will be taken to implement mandatory water restrictions, with the ultimate goal of reducing water usage by 25 percent. As Californians are pushed to conserve more, growers will need to think about how demand for products will be affected.

Read More
DNA-logo

March 31, 2015

DNA Green Group Will Acquire Rijnplant

DNA Green Group and Riknplant have finalized DNA Green Group's acquisition of Rijnplant, meaning that the breeding and propagation activities in pot and cut anthurium, bougainvillea and heliconia will transfer to DNA Green Group.

Read More
AFE scholarship_Ryan Dickson

March 25, 2015

AFE Educational Grant And Scholarship Application Deadl…

Apply now for American Floral Endowment (AFE) scholarships or educational grants. Applications can be found online. For educational grants for 2015-2016, applications must be submitted no later than June 1. Scholarship applications are due May 1. AFE will award $40,000 in scholarships for 2015.

Read More

March 23, 2015

UF/IFAS Appoints Joseph Albano As Director Of Mid-Flori…

The University of Florida's Institute of Food and Agricultural Sciences (UF/IFAS) has a new directors for its Mid-Florida Research and Education Center (REC) on Apopka, Fla. The role has been filled by Joseph Albano, a research horticulturist from the U.S. Department of Agriculture with more than 25 years of experience.

Read More

March 17, 2015

Pike Nurseries Implements Employee Stock Ownership Plan

Independent garden retailer Pike Nurseries has announced it will become an employee-owned company. Pike Nurseries management has combined with its sister corporation in California, Armstrong Garden Centers, to operate under an established Employee Stock Ownership Plan (ESOP).

Read More