B. C.
L A N D S CAPE & N U R S E RY AS S O C I AT I O N
Hot New Plants for 2011
PU BL I CAT I O N • FE BRUARY 2011
What’s the Cost? Price Yourself Into the Market Perilous Discounting Why Some Struggle and Some Sail
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FEBRUARY 2011
MANAGING EDITOR Renata Triveri ADVERTISING Cheryl Lee Tel: (604) 574-7772 ext 110 Fax: (604) 574-7773 HortWest is the newsletter of the BC Landscape & Nursery Association. For further information, contact us at: Suite 102, 5783-176A Street Surrey, BC, Canada V3S 6S6 Tel: (604) 574-7772 Fax: (604) 574-7773 HortWest is owned by the BC Landscape & Nursery Association, and is published 10 times a year. Views expressed inside do not necessarily reflect the attitudes of the Association, but are those of the writer concerned. Material may not be reprinted from this magazine without consent of the publisher. All advertising and editorial material are to be received one month in advance of mail out date. HortWest is mailed under Canadian Publications Mail Product Sales Agreement N. 0288608. This magazine is printed in Canada by Globe Printers.
BCLNA DIRECTORY EXECUTIVE DIRECTOR Lesley Tannen ext 106 CANWEST / MARKETING MANAGER Karen De Jong ext 112 EXHIBITOR RELATIONS / SPECIAL EVENTS Barb Nelson ext 115 GROWER & RETAIL ISSUES Hedy Dyck ext 105 CLEAN PLANTS Christine Rainer ext 102 LANDSCAPE ISSUES Position Vacant HORT BASICS TRAINING Ann Marie Walsh ext 108 HORT BASICS ASSISTANT Joy DeMelo ext 101 SALES MANAGER Cheryl Lee ext 110 PROJECTS ASSISTANT Ina Chang ext 103 FINANCE MANAGER Marvyn Brown ext 107 ACCOUNTING / ADMIN Heidi Henderson ext 109
On the he co cover: er K Knautia ti macedonica d i ‘Th ‘Thunder d
and Lightning’ USPPP has dark magenta blossoms above variegated foliage. Available to growers in summer 2011, and to retailers this spring. Discovered by Sunny Border Nurseries. For more great new plants, turn to page 8. Photo: Skagit Gardens Inc.
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Message from the President
Getting ready for spring February is the most exciting month for many of us in the green industry. Retailers’ stock begins to arrive and growers’ stock begins to move out. The promise of spring is in the air, and the potential for good spring weather is on everyone’s mind. Well, we can’t do anything about the weather, but we can do everything about how we make money when the weather arrives. Plan on quality and flexibility for profits this spring. Whoever can deliver the best quality at the right time will see the biggest gains in sales.
Due to the poor spring we had in 2010, retailers’ bookings are at their lowest in years, as we wait to see what will happen in the coming months. If we get a stretch of good weather, all those backyard projects that didn’t get done last year will now be a priority. After gambling with our inventory levels, will retailers be appropriately stocked? And will suppliers be prepared to fill last-minute needs? To help drive demand, the BCLNA is releasing the Healthy Garden Guide under the new name ‘Green for Life!’. The change offers continuity with the new public brand that BCLNA has adopted (thanks to Landscape Ontario’s generous sharing of their $250,000 marketing program). The magazine reminds consumers why
gardening is good investment and how to hire the right landscape professionals, and it shows off this season’s new and enticing garden plants. Be sure to pick up copies to distribute free of charge to all your customers. And be ready to deliver. It could be quite a wild ride this spring.
Sandy Mathies, President BC Landscape & Nursery Association
Board Synopsis
January 17, 2011 The Retail Commodity has established an advisory group to address issues, and share ideas to strengthen that sector. Given new pricing structures at the Vancouver Convention Centre, and a relatively “easy” move-in of the CanWest Hort Show within the new west venue, the 2011 show move-in schedule will be shortened to one day. Several Education initiatives are under way during this year’s first quarter. Members are encouraged to participate in these sessions and send their staff. Some employees can qualify for free tuitions, and reasonable fees have been arranged for those who do not. Seminars include: • BC Landscape Standard: What is it and why the heck should I care? February 23, Lower Mainland
• Occupational First Aid February 24, Lower Mainland • Organic Supplies & Design March 1, Lower Mainland • Pruning Date TBA , Vancouver Island • Irrigation - CIT Level 1 March 3, Lower Mainland For more information or to register, contact Joy Demelo: jdemelo@bclna.com.
Caught doing it right! Employees of Blue Pine Enterprises Ltd. install new plantings at Mackin Park in Coquitlam. Both are outfitted in personal protective equipment required for the tasks they are performing. Does your team measure up?
The Investment Agriculture Foundation has approved a project entitled ‘Restart for Women in Agriculture,’ scheduled to begin early this year.
reported situations. Employers, against whom complaints have basis, may be refused access to the program.
Several developments within the Labour portfolio were discussed. The BC Agriculture Council is establishing a toll-free hotline to deal with complaints about mistreatment of SAWP workers; peer inspectors from BCAC and a Consulate representative will visit and assess any
BCAC representatives met with WorkSafeBC to discuss cooperation on safety issues; WorkSafeBC has agreed to help with the audit process for worker housing. A meeting with the Ministry of Labour to discuss negotiations on the employment standard has also been scheduled. HortWest February 2011
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BCLNA News Bulletins
Staffing changes at BCLNA BCLNA bids farewell to Krista Manton who left the organization late last month to enable her partner Tom to accept a promotion; the couple have relocated to Campbell River. Manton has served as the Landscape Commodity Coordinator since 2005; members, colleagues, and Certification candidates alike, will miss her dedication.
Said Manton, “My time spent at the BCLNA has been rewarding, skill-building, and full of fond memories. I feel very fortunate for
the privilege of getting to know, serve and work alongside each and every one of you—such an amazing group of individuals.”
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Exhibitor Liz Yuen of Pacific West Perennials said, “We almost reached our ‘show ck und e a b e ’r goal’ for new potential e W of at th green ro Convention customers after only one er Vancouv entre! d day.” Liz attended the ‘One C Renata Triveri, the editor of Da Day Booth Camp’ offered last HortWest Magazine since 2005, 5 summer by the BCLNA, where will also be moving on to new projects; trade show guru Barry Siskind provided a any content for future issues of HortWest full day of how-to tips to plan, track, and should be directed to Karen DeJong-Ellery achieve trade show leads and sales. at kdejong@bclna.com for the time being. Exhibitors: the sooner you send in a completed contract, the better choice you will have when selecting your booth space. Contact Cheryl Lee at (604) 574-7772 ext 110 or clee@bclna.com. With an increase in booth sales and delegate attendance, the 2010 CanWest For general show questions, please contact show proved that the show remains a key Karen De Jong (kdejong@bclna.com; (604) sales and marketing tool for companies 574-7772 ext 112) or Barb Nelson (bnelson@ serving BC’s horticulture market. bclna.com; (604) 574-7772 ext 115).
& 29 ber 28 m e t p e S er the
CanWest a key sales tool
HortWest February 2011
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Growers decline further barberry action For many years, the Canadian Food Inspection Agency has regulated the importation and domestic movement of Berberis thunbergii (Japanese barberry), an alternate host of black stem rust, a disease capable of causing major crop losses in grain crops such as wheat, oat, barley and rye. Members of the CNLA and the CFIA discussed the potential for allowing some new varieties to enter Canada in 2008; however P. ramorum became a more pressing issue to address. In late December 2010, the issue was revisited. CNLA was once again made aware by CFIA of the threat posed by a new and virulent strain of wheat rust known as Ug-99 (the name relates to Uganda as the country of origin, and its first discovery in 1999.) Although Ug-99 was previously considered to be a factor in the decision to not pursue the registration of additional barberry cultivars, more recent scientific studies continue to reinforce the threat of Ug-99 to the billion-dollar Canadian wheat industry. In view of the threat to Canada’s wheat industry, the CNLA has once again agreed they will not pursue the addition of new barberry cultivars to the Plant Protection Regulations. This matter will be reviewed in consultation with CFIA on a regular two-year basis. For further information on Ug-99 and its potential impacts to the wheat industry, please refer to the North American Plant Protection Organization (NAPPO); for a more complete explanation of this case, contact Hedy Dyck to obtain CNLA’s information brief: hdyck@bclna.com. HortWest February 2011
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New
BCLNA Members
Final Approval The BCLNA welcomes the following new members as of January 17, 2011:
Tentative Approval
BCLNA members at the
Siji Gardening, Yingmou (Peter) Yao, Surrey, Active Landscaper Victoria Landscaping Ltd., Libral Furtado, Victoria, Active Landscaper
David Leith Garden Design, David Leith, Vancouver, Active Landscaper Ecoscape Groundworks Ltd., Ken Cox, Burnaby, Active Landscaper
The following will become
next board meeting unless a member provides a valid reason Landscape 2000 Ltd., Roman Schweizer, Vancouver, for not accepting the application: Active Landscaper
Forster Landscaping, Ryan Forster, Surrey, Active Landscaper (Interim) Prestige Lawn & Landscape Service Ltd., Steve & Jill Lemke, Kelowna, Active Landscaper Solid Ground Landscapes, Mike Wood, Vancouver, Active Landscaper Dawn King, City of Abbotsford, Abbotsford, Horticulturist Cynthia Colligan, Langley, Student
BCLNA OFFICE: 604-574-7772; 800-421-7963
events
Industry
and programs
February 16-17 Landscapers & Contractors Expo *Event Cancelled*
23 BC Landscape Standard Seminar
BCLNA Office, Surrey www.bclna.com
23-27 Northwest Flower & Garden Show
Washington State Convention Centre, Seattle www.gardenshow.com
24 Occupational First Aid (Level 1) BCLNA Office, Surrey www.bclna.com
March 1 Organic Supplies & Designs Seminar BCLNA Office, Surrey www.bclna.com
2-6 BC Home & Garden Show
Vancouver Convention Centre, West Building www.bchomeandgardenshow.com
3 Irrigation CIT Level 1 Course BCLNA Office, Surrey www.bclna.com
4-8 Canadian International Turfgrass Conference & Trade Show Vancouver Convention Centre, East Building www.wctaturf.com
9 BCLNA Landscape Commodity Meeting
Bedrock Granite Sales, Coquitlam www.bclna.com
15-20 Canada Blooms Direct Energy Centre, Toronto www.canadablooms.com
June
8 BCLNA Landscape Commodity Meeting
Candy Cane Nursery, Abbotsford www.bclna.com
21 BCLNA Golf Tournament
Sandpiper Golf Resort, Harrison Mills www.bclna.com HortWest February 2011
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Honouring Achievements
Green Practice Awards There are two awards offered each year—one each to a BCLNA member and a non-member—that support green practices. The Environmental Stewardship Awards goes to a member who has shown outstanding achievement in maintaining or promoting a sustainable, healthy environment. The Corporate Award celebrates major corporations, developers, or municipalities that BCLNA believes are consistently committed to contracted services for quality landscape development and have helped to consistently create landscape awareness. To learn how to nominate your company, a partner, or a client, please visit www.bclna.com.
Environmental Stewardship Award: City of Coquitlam Sponsors: Koppert Biological Systems, Linnaea Nurseries Ltd., N.A.T.S. Nursery Inc., Peel’s Nurseries, Pickett’s Nurseries Ltd., Westcoast Plastic Recycling Inc. The Environmental Stewardship Award was presented to the City of Coquitlam’s Bad Seed program for the municipality’s
McConachie Way corridor has been transformed into a thematic visual experience. Drawing on the central airport themes of land, sea, and sky, the landscaping makes bold use of green space and bright colours to provide a sense of place for visitors to the area. The more than 1,000 plants, including flowering trees, excellence and effort in maintaining an Invasive Plant Management Strategy. Together with 800 volunteers who contributed 2700 hours of work, more than four acres of invasive plants have been removed, 9,000 native shrubs and 2,300 trees have been planted, and 1,100 residents and businesses have been contacted through the Bad Seed awareness campaign.
Corporate Award: Vancouver International Airport Sponsor this award! Contact Cheryl: clee@ bclna.com During the last several years, the Grant
evergreens, and ground cover help frame stunning views of the North Shore Mountains and integrate the Canada Line more naturally with Sea Island’s estuary landscape. Sharp & Diamond Landscape Architecture is credited with designing the notable features at YVR including the 17-metre green wall on the Canada Line station.
Training Pays
Becoming skilled is as simple as A, B, C A) Take a seminar
Workshops, training and professional development opportunities are designed for people at all levels, whether managers, owner/operators, supervisors or entry level employees. In fact, BCLNA can create and customize training to meet the needs of your operation. Contact Ann Marie Walsh at (604) 574-7772 ext 108 to learn more about customized training options.
B) Get Certified
A Landscape Industry Certified designation proves your competence and advances your green industry. Certified individuals, and the companies that employ them,
also receive additional recognition on BCLNA websites and publications, helping to underscore those businesses’ qualifications to prospective clients. The BCLNA coordinates two Certification exams every year; more information can be found at www.bclna.com.
C) Help your team grow
Are you interested in FREE horticulture training for your entry-level employees? BCLNA secured funding through the Canada-British Columbia Labour Market Agreement to help you train novices in the industry. As a result of the funding, the Horticulture Basics® Training
Program was developed. The program targets entry-level employees with little or no training, who are currently working in the industry. Training creates a foundation, and basic horticulture modules introduce individuals to theoretical and practical learning experiences to gain skill to work in the nursery, retail or landscape sectors. The purpose behind this project is based on the philosophy and principles of professionalism, and adherence to ‘best practices’. The training sessions have flexibility in location, including onsite ‘Tail Gate’ events conducted at your place of business. To learn more and determine whether or not you qualify for free Horticulture Basics® training contact Joy Demelo at (604) 574-7772 ext. 111. HortWest February 2011
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New Plants
Parade of New Plants
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BCLNA is about to release its 2011 consumer publication,
rebranded this year with the Green for Life! program in mind. Among its many valuable tidbits for home gardeners g is a spectacular array of new plants that BCLNA LNA members will want to have on hand. Special ecial thanks go to Gary Lewis of Phoenix Perennials & Specialty Plants Ltd. for drawing attention to these varieties and many more for Green for Life! Magazine.. All BCLNA members are welcome to cases of this publication to give to customers and clients—stop by the office to pick up yours today!
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1 Cypripedium ‘Ulla Silkens’ Source: Frosch®
This hardy orchid’s colouration varies markedly from plant to plant. The lip colour changes according to the temperature during the opening of the flower bud, and becomes more intense at low temperatures and paler at high temperatures. You would never think that this is the same plant! One of several new varieties from Frosch®.
2 Centaurea ‘Black Sprite’ Source: Skagit Gardens
Silky black flower petals form spidery starbursts silhouetted against sturdy foliage. Gray green leaves have an attractive silvery cast. Low and bushy, this perennial’s magical colour stands out in any garden.
3 Echinacea Secret ® Series Source: Terra Nova Nurseries Inc.
The plants of the Secret™ series all produce large double blooms on strong plants with a
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sturdy, medium habit. The colour doesn’t fade, and the flower show can last till frost. Pictured here is ‘Secret Desire’.
4 Echinacea Dream™ Series Source: Terra Nova Nurseries Inc.
Terra Nova bills this series as having superior landscape habits. All are single-flowering; hot pink, white, yellow, and tangerine versions are available this year. Pictured is ‘Tangerine Dream’.
5 Echinacea Conefection Series Source: AB-Cultivars
These beauties are bred for truly unique cones, and compact stature by Arie Blom of the Netherlands. ‘Pink Double Delight’ is pictured here.
6 Erysimum ‘Fragrant Star’ Source: Skagit Gardens
Variegated, evergreen foliage, chocolate-purple buds, and sweetly fragrant yellow flowers. Compact and bushy form; flowers are sterile, producing a long bloom season.
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7 Gardenia Summer Snow® Source: Buds & Blooms Nursery
It’s been 10 years in the making, but Buds & Blooms Nursery claims that Summer Snow ® is hardy to USDA Zone 6. Like familiar varieties we use as “tropicals,” Summer Snow ® bears beautiful, pure white, waxy, double flowers that have a heady, sweet fragrance, which permeates the air.
Helleborus niger and hybrids, which are all propagated vegetatively. The Helleborus Gold Collection® is special because the majority of the Hellebores on the market are seedlings and not genetically equal plants; HGC guarantees variety identity and uniformity because of the propagation method. Introduced to BC by Brian Minter in 2010; more widely available this year. Pictured is ‘HGC Pink Frost’.
8 Hakonechloa macra Fubuki® Source: Briggs Plant Propagators, LLC.
10 Rosa ‘Prairie Snowdrift’ Source: Adamson’s Heritage Nursery
Discovered in Briggs’ lab as a sport of ‘Aureola,’ Hakonechloa is named ‘Fubuki’, which is Japanese for “snowstorm”. This white and green striped grass is strikingly different from all the other Hakonechloa on the market. When autumn arrives the leaves are striped pink. A clumping grass, it appears to be more compact than ‘Aureola’.
9 Helleborus Gold Collection® Source: Skagit Gardens
This series contains different varieties of
The second in a series of disease-resistant roses selected for their ability to endure harsh winter climates. This creamy-white blossomed rose, enters the market on the heels of the Michel Trudeau Memorial Rose™, which was introduced to home gardeners last spring as a fund-raising effort for the Canadian Avalanche Foundation. Selected by rose hybridizer and historian Paul Olsen of Edmonton, Alberta, it is a sport of ‘Modern Blush’ and shares that rose’s cup-shaped flowers, dark green foliage, compact
form and flushes of blooms through the summer. Hardy to USDA Zones 3 to 9.
11 Vaccinium ‘Pink Lemonade’ Source: Briggs Plant Propagators, LLC.
This pink blueberry, also first brought to BC by Brian Minter, offers four seasons of colour and will be more widely available this year. The pinkish-white showy flowers are bell-shaped in spring. Fruit is deep pink on ripening. Leaves turn golden yellow then bright orange in fall, and wintertime twigs are dusky reddish-brown.
12 Petunia ‘Phantom’ Source: Ball FloraPlant
Available in limited numbers from just a few growers last year, expect to see more of ‘Phantom,’ in 2011. It was touted as Best New Variety during Flower Trial Japan last year, and it received the 2010 Fleuroselect Industry Award. Also watch for ‘Black Velvet’ (pure black) and ‘Pinstripe’ (black with cream to pink centre star). HortWest February 2011
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What’s the cost?
Price yourself back into the market John Stanley, John Stanley Associates The downturn in retail sales has resulted in many retailers around the world introducing a discount strategy to try and survive. This strategy is a relatively a short term measure and many retailers were hoping the downturn would likewise be a short-lived phenomenon. The downturn, in many countries, has been longer than most experts predicted, and the discount strategy has now completed its lifecycle. Purchasing at a discounted price has become a norm for many consumers, and it is time to break the cycle. To continue a discount retail strategy will result in more retail businesses closing their doors for good and, as a result, reducing the choice available to the consumer. So where does the retailer go from here in the pricing game?
% Sales
A number of ideas have come to light over the last few months that could help us rethink how we price products and get consumers to start buying again. The January sales seem to be starting earlier and earlier. I was in Germany in mid-December and they had already started in the clothing sector, even before the Christmas shopping rush. What intrigued me was that it was obvious that a sale was taking place, but it was not obvious how big the sale offer was. Gone were the 50% off, 70% off signs that I had been discussing on my internet TV program, Retail Globe Report, during the past twelve months. These were replaced with a “%” sign over products and on promotions. The consumer actually had to look at the individual price signs to gauge the discount. This meant that retailers could alter the discount level as they felt appropriate.
This was a common retail technique found across the whole of retailing, and was not unique to just the odd store. What I liked about the system was that it caught the consumers’ eyes, encouraged them into the store, and forced them to be more focused on their shopping. One store I went into cleverly placed the products. The new full-priced products were displayed at the front of the store and the biggest discounted sale items were located to the rear of the store.
Decoy Pricing
This is a technique that has proved to work in the restaurant industry, and I am sure will work for some other retailers. I came across it in a blog by Roger Dooley entitled “Neuro-Menus and Restaurant Psychology”. The principle is that you price an inferior product at a close price point to a genuine, great quality product, with the aim of boosting sales of the higher priced product. The two products need to be located near to each other to enable the consumer to price compare and they both need to be heavily signed. This system could work where you are offering a small and large version of the same product. Put the price up of the smaller product to make the larger product look more attractive to the consumer.
Romance the Sale
This is a technique used by the perfume industry, food retailers, and plant sellers. It is a simple technique where you literally romance the product with the words you use to promote it. If you are not sure how the system works, pick up a women’s magazine and look at the words used to promote products in the adverts. As I write this article, I have a magazine next to me and the words include:
“This season the rules are being rewritten with a trend...” What a great way to sell a new product; in this case it was lipstick.
“Feel, Imagine, Enjoy” to sell a perfume.
How can you develop in-store romance promotions using emotional selling?
Priceless Pricing
Priceless Pricing is another example from the restaurant industry that I have seen used many times. The research indicates that if you remove the “$” sign when pricing, the average sale goes up. If restaurants price a meal at $14.55 it will sell less that if it was priced at 14.55. The removal of the dollar sign can make a big different to the bottom line. Take a fresh look at your pricing strategy and consider how you can manipulate it to increase sales. Often the consumer will not notice. I worked with one client in the garden industry where we changed the price based on whether a plant was in flower or not. The consumer expects to pay more when the plant is in flower. Your job is not to disappoint them. John Stanley is a retail business coach, speaker and author. He has authored several successful marketing and retail books, and produces a monthly internet TV program called “Retail Globe Report” on retail trends. Visit www.johnstanley.com.au to join his Members Club or for information on how he can help you grow your business or email linda@johnstanley.com.au.
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Only losers cut their prices Amanda Webb, Arizona Nursery Association
Cutting prices actually reveals the lack of selling skills by the salespeople who are using it. It also indicates a management team failing to provide necessary strategic planning and direction for the company. In today’s marketplace, offering discounts seems to be the number one technique people are using to try and get business. Management has bought into the age-old argument that the only reason their salespeople can’t sell more is because their price is too high. It’s time to put this to rest. Rarely does a salesperson say that the reason for a lost sale was their inability to uncover the customer’s true needs, or to create a sound price/value relationship. Salespeople are, by nature, confident people, so they automatically assume the loss of a sale couldn’t have anything to do with their own skills. The natural progression in their logic is that “it is management’s fault” or “the price is too high.” Let’s focus on the steps a salesperson must take in the sales equation. It starts with the salesperson no longer going into a selling situation believing they are all-knowing. Too often, they walk into a situation and within 30 seconds believe they’ve summarized how the sales call will go, and that their incredible selling expertise will allow them to close the sale. The solution the salesperson always comes up with is the exact same process they used yesterday. In fact, it’s the same sales strategy they use on nearly every sales call. Then, as if on cue, as soon as the customer starts to show any signs of resistance, the salesperson immediately starts to think the only way to save the sale is by cutting the price. Behaviour modification on the part of the salesperson is the only way to get around this problem. Many people believe if they just give the salesperson some new marketing materials, some really great testimonials, or a proven list of questions
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they can ask, they will be able to overcome the urge to offer a discount. The problem is they tend to be short-term solutions. When a salesperson is given new tools like these, many times they will go out and find some success in closing more sales without offering a discount. Eventually, however, the newness of the sales tool wears off. The salesperson, before long, is facing a hesitant customer, and they fall back into their old habit of offering a discount. Long-term behaviour modification comes only when the salesperson truly believes in their pricing strategy. This seems obvious, but often salespeople don’t believe in their company’s pricing strategy. This perception is then reinforced (sometimes subconsciously) by emails from management about the state of the business and the pressure to make a number. A key behaviour-killer is when management puts out a report detailing sales results. Many companies release reports stating why certain sales did not occur. When companies do this, they encourage (or expect) the salesperson to provide reasons. The salesperson is often going to point to price. Do you see the vicious cycle that occurs? Price cutting becomes the “go to” method to keep bringing in sales (but quantitatively, profit is going down). There is a stigma that prevents the salesperson from admitting that the reason they didn’t get the sale was because of their own doing, not because of price. To eliminate the effect of this stigma and the “price is too high” excuse, management needs to stop compiling reports that require a salesperson to say why they didn’t get a particular sale. There are other far more effective ways to measure the value of a salesperson than by creating a report that encourages a salesperson to not state the truth. A second matter that requires management’s attention is to stop cramming every cost reduction technique into the
laps of the sales team. When the majority of correspondence a salesperson sees from management has to do with how and why they need to cut expenses, it only winds up reinforcing in the minds of the salesperson that they too need to cut the price they’re charging customers. Yes, this is a challenge—finding ways to hold down expenses without deflating the pricing perception of the sales team—but management gets paid to make the tough
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What’s the cost? decisions without impeding the end goal of making quarterly sales and profit numbers. We would all agree that management doesn’t want their sales team “scared”. Fear is not the greatest motivator for long-term positive results. A third behaviour change is one the salesperson must do by himself. It starts
with removing from their thought process that offering a discount is even an option. If a salesperson knows a discount is an option, they’ll take it. This is often referred to as the “last-dollar principal”; it’s amazing how fast your money will go until you suddenly find yourself down to your last dollar. When you have only one dollar left, it’s amazing how far you can stretch it. You
could have handled your money more frugally when you had more, but because you had more money at the time, you didn’t feel the same pressure to save and protect it. When you get down to your last dollar, you sense that pressure more acutely. Management can help their salespeople steer clear of discounting price by not
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HortWest February 2011
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BCMAL Report
s
allowing salespeople to have control over price discounting. Many companies have taken away from the field all pricing flexibility. After the sales force gets over their whining about the loss of control and their proclamations that the world will end, it’s amazing what happens to the bottomline. In each case, the bottom-line profit has gone up. Many times profit has increased not because of more sales, but because the sales that are made are more profitable (no price discounting has occurred). Finally, a salesperson needs to believe in their pricing as much as they believe in their selling skills. Management and a sales team need to work together to continually reinforce why their pricing is correct. It’s no different than a coach and team working together to achieve the highest potential possible. Discounting is for losers, and there’s not one person out there in sales or management who wants to be a loser. We all want to be winners, and that means we are proud of what we provide our customers. In the end, it’s not the price that matters. The quality of the salesperson will determine the outcome. Amanda Webb is the Communication, Event & Education Coordinator at the Arizona Nursery Association. Amanda graduated from the University of Arizona with a Bachelors degree in Agricultural Communications, has been an Future Farmers of America member, and served as the 2006-2007 state FFA President.
Research Snippets
Dave Woodske, Industry Specialist, BCMAL
Strategies Producers in the Northeastern U.S. Are Using to Reduce Costs and Increase Profits in Tough Economic Times (HortTechnology 20(5):836-843) The best producers are developing strategic plans to identify opportunities for the company, based on their core competencies and competitive advantages. Due to market shifts (i.e. reduction in housing starts and demand for larger trees and shrubs) nurseries are increasing their focus on the perennial and bedding plant markets, while others are looking for unique crops to differentiate themselves in the marketplace. To be more competitive in the Northeastern U.S. market, operations are taking advantage of their close proximity to provide improved communication and more flexible shipping schedules to local clients. Maintaining effective communication with customers is critical in today’s consumer-driven market. Producers are doing more to understand their customers, and social media is playing a more important role in the relationship. Controlling costs is a big challenge and there is more interest in cost accounting and benchmarking data. Operations are reducing costs by partnering with other producers and suppliers, and by implementing strategies to reduce greenhouse
energy use (e.g. energy curtains, lower set point temperatures, close down the operation for a portion of the year). Growers are also looking at alternative energy sources. Operations are investing more in staff to make them feel valued and, thereby, to reduce staff turnover. The production of ornamental crops can be very seasonal. Operations are looking at ways to stay in production all year in order to keep staff employed year-round and to spread out fixed costs over more output. Florida Nurseries: Why Some Struggle and Some Sail Through Economic Hard Times (HortTechnology 20(5):844-846) – The economy in Florida has been especially hard hit with rising unemployment and sharp declines in housing starts. The ornamental sector is further being challenged by county bans on the application of nitrogen and phosphorus fertilizers in the summer. The authors state that these factors have put many nurseries out of business, especially wholesale operations that sell to the landscape sector. The report summarizes the findings of an informal survey that investigated the strategies wholesale nurseries in Florida are implementing to survive the difficult economic period. Strategies being used include diversifying into retail selling, and the supply and installation of lighting and
• Raw materials purchased in advance helps to ensure product consistency and availability.
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• Multiple computers control the dosing equipment, increasing accuracy and speed. This makes it easier to offer competitively priced products. • Non-invasive mixing equipment protects the structure and consistency of the media. HortWest February 2011
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BCMAL Report hardscapes. Some nurseries are pursuing opportunities in international markets and in hosting special events like weddings. The report states that quality plant material has “tended to sell” and producers of niche products (e.g. native and edible plants) are still doing well. Producers are also interested in increasing their efficiency by the implementation of lean principles. Other cost cutting strategies include the use of automation (e.g. pot-fillers, irrigation and climate control systems, etc.), recycling of potting media and greenhouse poly, reusing containers, substituting compost for peat in potting media, and tight control of water, fertilizer, and pesticide use. The successful nurseries are focusing on costs and their customer’s needs, and are placing a greater emphasis on marketing and value-added production.
enrolled in AgriStability for the 2010 year and have experienced a decline in your 2010 farm income, you may qualify for an Interim Payment. The AgriStability program provides assistance if the decline in your 2010 margin is more than 15 per cent below your reference margin. The 2010 interim payment advances 50% of your estimated final AgriStability benefit. The deadline to apply for the 2010 program year is March 31, 2011. The 2011 enrolment deadline is April 30, 2011. This deadline is:
Important AgriStability deadlines
Mohini Singh O.B.C., Communications Officer, AgriStability
• For new participants to request a New Participant Package for 2011, • To indicate you do not want to participate for the program year (or 30 days from the date on your 2011 Enrolment Notice). • To pay your 2010 fee without a penalty (or 30 days from the date on your 2011 Enrolment Notice).
The 2010 AgriStability program year interim application deadline is March 31, 2011. If you are a producer who was
Fees paid after the deadline will have a 20% penalty added. You must pay your fee by December 31, 2011 at the latest or you will
be ineligible to participate in AgriStability for the 2011 program year. If you have any questions please call the British Columbia AgriStability Administration office toll free: 1-877-343-2767 or visit http://www.agf.gov.bc.ca/ agristability/. Growing Forward, is a federal-provincial-territorial initiative.
HortWest February 2011
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