Why Your Efforts to Sell Plants Fall Short and What You Can Do About It

BirchboxIt has been a decade since the peak of the recession we saw in the late 2000s. Most industries have recovered nicely. They’ve reached their pre-recession levels, and in several cases, they’ve actually gone well beyond that. U.S. consumer spending is up. People are willing to spend $1,000 on a phone that will be outdated in a year and a half. It’s fair to say that people aren’t exactly pinching every penny that they have.

But what about us in the horticulture industry? Depending on who you ask, things have been good, or things have been just OK. Some never really recovered from the recession at all and were forced to part ways with their businesses. In many ways, our industry didn’t make that leap forward. We’re close to where we were before, but we aren’t gaining the ground where others have.

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How Do We Change That?

It’s time to look outside of the industry. No, not for a career change. It’s time to look at outside industries for ideas and inspiration on what we can do to operate more efficiently in today’s economy, and how to adapt to a rapidly changing consumer landscape.

Make a disruption. Let the following outside-of-the-industry ideas be the start.

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The Subscription Economy

These days you can get a subscription to just about anything — razors, clothes, makeup, meat. Harry’s Razors, Stitch Fix, and Birchbox are all built off this model. There are a few different companies toying with the idea for plant subscriptions, but it’s something that every greenhouse and garden center should be looking at. How can you turn your mixed container program into a seasonal décor program? Charging $39.99 per month for four containers to be swapped out throughout the season is a great start. It could be applied all over. Seasonal vegetables, herbs, you name it. Consumers are used to purchasing this way, and the reason they don’t switch their containers more often is because they don’t know they should. Recurring revenue and loyal customers is what it’s all about.

E-Commerce, SEO, Social Media, and the App Economy

If you or your customers haven’t lined up some sort of e-commerce option yet, the time is now! We used to operate in an era where plants couldn’t easily be shipped from door to door. Those days are gone. Improvements in packaging and decreases in shipping costs have made it all possible. Even if you don’t feel comfortable shipping, someone should be able to purchase a product online and pick it up in your store. Consumers begin their product search online. If they can’t find it on your website (or can’t find your website), what’s going to make them want to come into your store? Do consumers know your store exists? More than 50% of searches start on a phone. Is your business using the right apps, and using the right search engine optimization (SEO) tactics to be found where and when they are looking?

IOT and Automation

Labor is one of, if not the biggest, challenge facing our industry. Other industries have solved this problem by outsourcing production. When it comes to one-gallon echinacea, outsourcing is not exactly an option. Luckily, technology is advancing rapidly. We have a history of being notoriously hesitant about emerging technologies. We have to reverse that trend.

In the last few years, we’ve seen an explosion in the development of IOT (Internet of Things) products. Think Amazon’s Echo, Google Home, and Nest. Business technology is seeing the same improvements. Our machines are gaining the ability to communicate directly with each other. Creepiness aside, this communication is only increasing our ability to automate. Automation is the labor answer that we’ve been looking for, and as these technologies become cheaper, we need to jump on the bandwagon before it passes us by. The machines are going to take over with or without us, so we might as well use them to our advantage while we can.

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Avatar for Steve Mercer Steve Mercer says:

We are currently evaluating subscription programs for our containers.

I will say that ecommerce is, I believe, THE most important thing an Independent garden center can implement to effectively compete against the Box stores. Ecommerce in most people’s mind conjures up ideas of mail order. And while this may be an option for some, the most effective ecommerce implementation is Local Ecommerce. This is what Walmart is trying to implement. Allow their customers to shop online and ship those items from the nearest local store. If you evaluate why customers today favor shopping at the box store over the independent garden center it is because they can purchase items from many other categories besides garden items with the same trip to the store. If you look at who is giving the box stores the most competition it is Amazon. Why? Because now the same customer does not need to GO to a store they can shop online in their PJ’s and 12:00 am if they want to and the stuff just shows up at their door. Of all the box stores, Walmart is the furthest along with their implementation of Local Ecommerce… just very recently they just started offering to ship directly to the customer’s house just like Amazon. Lowes and Home Depot still have not figured out why a customer shops by ecommerce. If the customer has to come to the store to pick up their order then these companies have missed the fundamental reason why a customer would shop online to begin with! So if you evaluate the items typically sold by an IGC, Most of the items at the store do not ship well. A consumer may have to make multiple trips (because they need more items than what their vehicle will hold on that shopping trip.) They may have to borrow a neighbor’s or relatives pickup truck. The logistics matter! If a consumer can only pick up 10 bags of mulch and they need 35 there is no guarantee they will pick up the next 25 bags from you. Furthermore, since we have been in business for 42 years, we have many customers that have moved out of our area to another area of town and they like our products but do not have the time to shop with us as they once did. We can increase our average purchase and compete effectively with the box stores, retain customers that have moved from our immediate area by implementing ecommerce. So the big question is, How do you finance free delivery? So we are in the process of implementing ecommerce Any purchase of $40.00 or more is free within our delivery area. We will deliver smaller purchases for a flat fee depending on the delivery zone. (does not cover the entire cost just helps offset some of the cost) We have a horticulturally trained profession do the deliveries. That sounds costly doesn’t it? However, during delivery that driver will also look at the customer’s landscape for sales opportunities, scouting for insect problems, pruning issues, new landscaping and hardscaping opportunities. The customer will be notified within 24 hours of the results of that delivery. “while we were delivering your order yesterday we discovered you have this infestation on your “xyz”. Here is a picture of the insect, here is how you scout for them. Here is a link to our ecommerce site for the insecticide you need to apply, and if you would prefer us to come out and take care of that for you here is a link to our landscape maintenance division.” This raises the customer’s awareness of an issue they may not even be aware of, it ties our customer’s closer to us because no one else is helping them in this way and encourages more frequent purchases, and it puts us first in line to perform the work. It allows us to service our customers that may have moved without opening a new location. It also finances our delivery service. It is far cheaper to service our customers from one location than 3 and if we can finance that by turning delivery into a strong lead generation machine than all the better!

One thing that you left off of your list is the adoption of Customer Relationship Management (CRM) software. This becomes in integral tool in the adoption of Local Ecommerce. So what is CRM? CRM is a software application that stores all pertinent information about a lead or a customer in one place. All phone calls (all calls are recorded for quality service… remember that line? Hosted VOIP phone systems are key to implement this), All voice mails, emails, signed contracts (our CRM includes document management that allows you to scan and store signed contracts under that customer file), invoices, quotes, scheduled appointments and past appointments are stored all in one place in that customer’s file. It is stored by account (company if applicable) and by customer contact ( remember people buy from people not companies) Another key feature of CRM that most IGC’s have not implemented is using “triggers” within CRM. What are triggers? Well let me give you an example, every year here in Louisville, bag worms hatch out on or about May 10 and start feeding on evergreens. Most consumers don’t even know they have a problem until the damage has been done. With triggers, we draft an email to be sent on May 3 that says Next week Bagworms will be hatching and will start feeding on your evergreens Here is what they look like when feeding (include pictures) Here is how to scout for them … If you find them, here is what you spray with. And here is a link to our ecommerce site to purchase the insecticide. If you would prefer our landscape maintenance division to come out and spray for you, here is a link (a form to fill out -and that form is saved as a new maintenance lead under that customer’s account in CRM) to our landscape maintenance division and they will be happy to come out and help you with this problem for a small fee. Now. CRM through the trigger will go out and look at all purchases made by all customers (through POS history) and if it finds a purchase of a plant susceptible, that customer will receive one of these emails (even if they purchased twenty plants susceptible they will only receive one email. As you know the key to landscaping success is performing maintenance in a timely fashion this system teaches your customer what timely maintenance is all about. And it provides a vital service that ties your customers to you instead of your competition.