Finding Success With Pay-by-Scan

Big box stores have embraced the pay-by-scan concept for years now. In the minds of many growers and independent garden centers, this was strictly a “big box thing.” It was not something for anyone but volume retailers to contemplate.

The English Gardens chain of six upscale garden centers, all in suburban Detroit, was curious about the possibilities. After an exhaustive study by management, it was decided to test their approach during the spring and summer of 2006.

In collaboration with two growers including Four Star Greenhouses, a system was developed and implemented under the direction of Frank Janosz, head of nursery products. A 25-year industry veteran, Janosz is one of the 10 family members who own and operate the 53-year-old firm. Based in Dearborn Heights, Mich., retail sales volume in 2006 was $30 million.

The agreement between the participants can stand as a model for those contemplating a pay-by-scan relationship. The same can be said for the operational guidelines that were developed by this team.

Not surprisingly, both the grower participants and the retailer were very specific about the desired performance measurements. In that first season, all the targeted figures were met or exceeded, “some of them spectacularly,” in the words of John Darin, president of English Gardens. Participating growers concurred. Then, other growers came knocking, wanting to be considered as a partner in 2007.

“A key element in the selection of last year’s players was mutual trust,” Janosz says. “Obviously that meant that each vendor had enough of a past relationship with English Gardens to have produced respect and confidence in each other.

“During the formative stages of developing the system that was fair and equitable to all parties, there were countless opportunities to demonstrate traits like fair-mindedness, resourcefulness and adaptability.” 

As the 2006 test was drawing to a close, it was becoming obvious that, in 2007, an ongoing program should be rolled out, with additional challenging elements:

• Continue with the existing two vendors.

• Add to the mix of plant categories.

• Add one or more vendors.

• Increase the roles and responsibilities of all parties.

• Aim for even greater performance levels.

Two new growers were brought to the table, broadening the coverage of live goods.

“Thinking back to our original research efforts in 2005, we found it was imperative that the growers we talked to were of a similar mindset and had goals not unlike ours. We talked to quite a few of them before narrowing the list down to those that were most likely to fit well,” Janosz says. “Let me give you a quick overview of why we made the decision to get into pay-by-scan. First of all, the management here believes that the market is moving in the direction of vendor-owned inventory.”

Janosz expands on the nature of that relationship: “Vendors are given the needed square footage to showcase their brand. They set up their merchandising tools. They have the space to fill in on an on-going basis, and consequently, customers know when they walk into our annual bedding plant areas there is something going on here, because it is well signed and well branded. They definitely know that this is the Proven Winners section. We purposely created this destination in the store.”

Janosz says this approach throws the old style of merchandising out the door. “We’re offering the customers a solution, right there, and what’s appealing to the vendor about that, of course, is they’ve got a lot of upside potential to sell more product,” he says. “Simply because all the solutions are right there for the shopper. And that has been one of the major changes in our merchandising that pay-by-scan has brought.

One Grower’s First Year

One Northeast grower, a substantial supplier to English Gardens in recent years, has joined the pay-by-scan program. They choose at this time to remain unidentified.

On the other hand, topmost management was completely open about why they wanted to participate. Typical of their reasons are these:

• “Our numbers would be up dramatically” (and they are as of late April).
• “English Gardens was very forthright with their figures for waste and shrinkage. We took those into consideration when we quoted them.”
• With payment coming 10 days after invoicing, the cash flow is a big benefit.
• As a developer of new products, they like that they are able to do product testing in the stores.
• They pretty much control what goes into the stores — whether it’s roses, nursery stock or any of the other 140 items listed.
• They are able to place material at retail when it is prime.
• Those are the kinds of things that make them project a two-fold, maybe even three-fold, increase in sales to this account.

“We are kind of breaking the mold. I’ve always wanted to try and do merchandising like this, but when you get, from so many vendors, so many different products – it was always hard to maintain it. With a destination now, and one vendor filling it, there is the confidence issue. You have to have confidence in your vendor that they are going to seize the opportunity and make sure the display space is being filled properly and with the right product.

“So there is a lot of trust here on both sides. There’s a lot of discussions about what kinds of products go into the store. Even at this juncture there still is a lot, we still control the flow, we still control what comes in, but to a large degree it’s a mutual decision as we move forward. The bottom line is that the customers are seeing some rather unique merchandising methodology used here, something that they are now quite used to, but appreciate because you can offer a complete color path for them instead of finding the pink flowers in 10 different aisles,” Janosz concludes.

Leave a Reply

More From Marketing...

October 12, 2015

Dahlia Production Tips For High Quality Greenhouse Plants

We are beginning to see a new generation of dahlia breeding where emphasis is moving back to staggered blooming and improved disease tolerance. Here are some tips for greenhouse production that will get your dahlias off to a strong start.

Read More

October 12, 2015

The Recipe For Growing Beautiful Perovskia

Growing impressive finished Perovskia plants in the greenhouse takes careful attention to lighting and finishing.

Read More

October 9, 2015

New Biochemical Miticide Is Designed To Combat Varroa Mites In Beehives

EPA recently registered Potassium Salts of Hops Beta Acids (K-HBAs), which is intended to fit into a rotation program to battle resistance.

Read More
Latest Stories

October 4, 2015

ePlantSource Adds 5 New Partner Companies

ePlantSource has announced an additional five companies that have been added to its partner distribution list. Not only do the additional partners offer more supplier options to ePlantSource customers, but the website now also provides a more diverse product list with the addition of bulbs, clematis and many new varieties. New partners added for the 2015 – 2016 season: A.D.R. Bulbs Lennon Farm Greenhouses Micandy Gardens Pacific Growers Roseville Farms “We make it a priority to respond to our customers, and we have had many requests for additional options and a more diverse product line, so we are continually evaluating suppliers that work well with our non-traditional approach to the sale of live goods,” says Gary Falkenstein, President and CEO of ePlantSource. “We feel that it is good for our company, our customers and the industry as a whole to keep looking forward and seeing how we can improve and expand how […]

Read More

October 2, 2015

How To Make Your Website More Google-Friendly

During a presentation at Cultivate’15 this past July, Katie Dubow of the Garden Media Group offered several tips on how you can use search engine optimization (SEO) tactics and Google’s search features and updates to your advantage.

Read More

September 28, 2015

Filmmakers Release “Field To Vase, The Documentar…

“The Field to Vase Dinner Tour is a series of meals set on flower farms across the country. Each dinner is curated by a local chef and floral designer, highlighting the region’s produce and flowers. This is the story of Santa Cruz, California.” These opening lines introduce “Field to Vase: Santa Cruz,” a new documentary filmed, written and produced by the Los Angeles-based husband-and-wife team, Hyunsoo Moon and Haejung Kim. This past June, Haejung and Moon traveled to Santa Cruz in pursuit of a visual narrative that had captured their creative imaginations. They were enamored with the storytelling potential of the Field to Vase Dinner Tour and wanted to document their observations on film. The result of their efforts is “Field to Vase: Santa Cruz,” a documentary about the American grown flower movement and the people involved in the floral renaissance that is taking place on farms and in flower […]

Read More
Gerbera Revolution Series (Kieft Seed)

September 23, 2015

Join SAF And Other Growers To #PetalItForward And Sprea…

Next month, the Society of American Florists (SAF) will tap into the popularity of random acts of kindness with its latest public relations campaign, "Petal It Forward." Find out how you can join SAF and other growers to take part in this campaign and spread happiness with the power of flowers.

Read More
Retailers declined a coupon deal for hanging baskets because of timing

September 19, 2015

Retailer To Grower: Why Aren’t Garden Stores Letting Gr…

Have you ever sat around at a family gathering and heard someone recount a story from your childhood, except knowing your own version of the story, it’s something that casts an entirely new light on everything you think you experienced? It seems like that dynamic happens a lot between growers and retailers. Both sides know the same story, but each version is so different, it’s like two unconnected stories. This came to mind when I was talking with a regional grower, Elmer Grosser, who owns Cincinnati-based Diefenbacher Greenhouses. The operation serves about 50 customers — an even mix of local garden stores and landscapers. Grosser first came to my attention last fall, when one of his customers, Chris McKeown of Bloomin’ Garden Centre, told me I needed to call Grosser, because he was a great example of a grower who cares about retail. When Grosser and I connected, he was […]

Read More
eMailMarketing feature image

July 23, 2015

Is eMail Dead?

Email as a marketing technique may seem outdated, but when done well, it is still an effective way to share content and market your brand.

Read More

July 22, 2015

Cultivate’15: Keynote Nancy Fire Says Use Passion…

In the second keynote presentation at Cultivate’15, Nancy Fire, founder and creative director of Design Works International, discussed how the horticulture industry can capitalize on the latest design and lifestyle trends. Fire works with companies to help bring their designs to the next level, and she has expertise with textiles and surface design, market analysis and corporate rebranding. She was appointed as design director for HGTV HOME in 2011. Fire says customers today are interested in companies that show passion for what they do. That, combined with following the general direction of trends and maintaining a brand, are what will keep horticulture businesses relevant to their customers. A trend isn’t just a passing fad, Fire says, but rather, it indicates that something is developing or changing in a certain direction. Plants are important to consumers today, and fit into current trends, both inside and outside the home, Fire says. “I don’t […]

Read More
LuxFlora logo feature image

July 21, 2015

Luxflora Launches With Cultivate Speaker Event, New Web…

A new organization for women in horticulture that aims to change the way consumers think about flowers, launched at Cultivate’15 by sponsoring Ketty Maisonrouge, a marketing expert, who presented “How To Create A Luxury Brand.” Luxflora recently launched its website, as well as a page on LinkedIn, to facilitate networking among women in horticulture. The organization is working on next steps, including setting up a board of directors and officers. Updates and information on future events will be available at the Luxflora website as they are scheduled. Read about Luxflora’s mission and what it hopes to accomplish in “Luxflora Wants To Create A Lifestyle Movement.” In the session during Cultivate, Ketty Maisonrouge, owner of KM & Company, adjunct professor of luxury strategy at the Columbia University Business School and the author of “The Luxury Alchemist,” presented her ideas and expertise on luxury strategy marketing, and how it applies to horticulture. […]

Read More

July 15, 2015

New Products Featured At Cultivate’15

A multitude of new products were on display at Cultivate’15, held in Columbus, Ohio. Attendees were given a first-hand look at new plant introductions coming to market, as well as innovative hardgoods, technology and equipment. One of the new options for varieties featured at Cultivate’15 was Sporticulture, winner of the 2015 Fresh Ideas Award. Sporticulture offers access to major sports leagues’ licensed products and packing. Team logos can appear on containers and tags, allowing growers and retailers to benefit from the loyalty customers have for their favorite team. Some of the featured plant varieties included Jolt interspecific Dianthus, from PanAmerican Seed, plus six new varieties from Sakata, including ColorWorks petunias, ‘Dragon’s Breath’ Celosia, PartyTime Coleus, ‘Proud Mari’ Marigold, SunPatiens Impatiens and Vitalia Vinca. Emerald Coast Growers featured its Marsala-toned plants, as a nod to Pantone’s Color of the Year. The collection included Pennisetum messiacum ‘Red Buttons,’ Pennisetum ‘Rubrum and ‘Eaton […]

Read More

July 8, 2015

Behind The Sale: Why Dümmen Orange Bought Florexpo, And…

Dümmen Orange recently announced it has acquired the product portfolio of Florexpo Costa Rica, a leading specialist in the production of perennials, herbs and annuals. During the fall of 2015, Dümmen Orange will start up production of perennials at its upgraded Antigua Flowers Guatemala farm, formerly the Ecke II facility in Antigua, Guatemala. The Altmanns, who founded Florexpo, as well as some of the key managers in the Florexpo team, will be assuming roles in this new endeavor. “In its long history Florexpo has built a good assortment, an outstanding sales network and a professional team of employees,” Perry Wismans, managing partner at Dümmen Orange, said in a press release. “With this move, Dümmen Orange takes the next step in realizing its growth strategy – aimed at creating synergies in technology, production and sales. We realize these synergies by distributing a variety of breeding programs and cross selling these products […]

Read More
Feature image The 2015 Perennial Plant Of The Year, Geranium x cantabrigiense ‘Biokovo.’

June 27, 2015

Perennial Plant Association Wins The 2015 Excellence In…

With its emphasis on education and its Perennial Plant Of The Year program, the Perennial Plant Association boosted the popularity of perennials and helped make it the vital category it is.

Read More
baker creative

June 23, 2015

Baker Creative Wins International Award For Work With J…

Baker Creative, a local branding agency, was recently selected as a Gold Award winner for the Association of Marketing and Communication Professionals’ 2015 Hermes Creative Awards. Baker Creative won in the Advertising/Direct Mail Piece category for creating a factory opening invitation mailer for Jiffy Group . Hermes Creative Awards is an international competition for creative professionals involved in the concept, writing and design of traditional and emerging media. The Hermes Gold Award is presented to those entries judged to exceed the high standards of the industry norm. Only 22 percent of the entrants received the award. “When Jiffy needed to make a splash to draw attention to the opening of its new substrate facility in West Bridgewater, Mass., we turned to Baker Creative. The video card created by Baker Creative assisted us greatly with getting the much needed attention when inviting professional growers to the official opening,” a Jiffy Group […]

Read More

June 17, 2015

Marketing Ideas You Want To See From 2015 California Sp…

Back when California Spring Trials (CAST) were still called Pack Trials, new plants were placed on growing benches in packs so attendees could see for themselves how uniformly the plants grow. It was practical and useful. Today, CAST is primarily about introducing new plants in a way that catches your imagination and convinces you that these plants are not only disease resistant, need almost no inputs, including plant growth regulators (PGRs) and have excellent timing, but also that they are plants consumers will fall in love with. In other words, marketing. Some of the breeders go a few steps further and pull together ideas and information that growers can use for their own businesses. It can be methods to connect better with their retail customers or even to help promote our industry and its great plants directly to the public. Here are some of the standouts from CAST 2015. Pacific […]

Read More
Medal of Excellence Award

June 10, 2015

Greenhouse Grower Announces 2015 Medal Of Excellence No…

On this page, everybody’s a winner, because we’re announcing Greenhouse Grower‘s 2015 Medal Of Excellence nominees for two of our three awards in breeding, the winners of our Medal Of Excellence for Industry Achievement and Excellence In Marketing awards and the winners of our Grower Of The Year program, who are finalists for Operation Of The Year and Head Grower Of The Year. All honors will be presented during Greenhouse Grower’s prestigious Evening Of Excellence on Monday, July 13, during Cultivate’15. We hope we will see you there! Correction: Lobelia ‘Starship Deep Rose’ was bred by Kieft Seed, not Darwin Perennials, as we mistakenly printed in the June 2015 issue. Medal Of Excellence Watch Benchrunner in the coming weeks to read profiles of our Industry Achievement and Excellence In Marketing award winners, and look for these articles in our July 2015 issue. Industry Achievement Award The Kientzler Group Excellence In Marketing Perennial […]

Read More
Double Whammy Merchandise Display At CAST2015

May 28, 2015

Grow Inspiration To Grow The Horticulture Industry

We need to work together as the horticulture industry to inspire and instruct consumers with our plant knowledge and marketing expertise.

Read More

May 28, 2015 And Assist Consumers Wit…

The recently launched and websites offer growing and maintenance tips, where-to-buy information and design ideas to help consumers have success with growing and finding plants.

Read More
Four Star Greenhouse Proven Winner Plants At English Garden

May 26, 2015

Retailer To Grower: It’s Time To Offer Services To Loc…

Retailers wonder why mass merchants are the only ones to receive stocking, merchandising and plant care from growers.

Read More
New Guinea Impatiens

May 14, 2015

10 Tips To Improve Retail Shelf Life Of Bedding Plants

Good-looking plants at retail lead to stronger sales and less postharvest shrink. Try these 10 ideas for maintaining quality and keeping plants looking beautiful.

Read More