July/August 2012 • Volume 30 • Number 4
Colorado Nursery & Greenhouse Association • Serving Colorado, New Mexico, & Wyoming
Reinvest
Discover Opportunities for Improvement 8 Trends in Capital Improvements 10 Investing in Efficiency through Lean Flow 12 Investing in New Markets: Environmental Restoration 22 Member Profile: Rocky Mountain Native Plants Co.
Fresh Ideas
The Farwest Show is THE trade show for ideas. Exciting ideas fresh from nursery and retail experts delivered straight to you. With hundreds of exhibitors, thousands of plants and products, and dozens of valuable seminars, you’re sure to leave energized and ready to go. Join your fellow green industry professionals and fill your head with electrifying, practical and innovative ideas to invigorate your business. Register now!
August 23-25, 2012 www.FarwestShow.com 2
LooseLeaf July/August 2012
Our Mission Professionals growing for a better tomorrow... your growing resource. Cover Photo Courtesy of OFA–The Association of Horticulture
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In This Issue 5
Calendar, Classifieds, & Advertisers
6
Board Message: Healthy Businesses Continually Reinvest
7
CNGA – A Member Driven Organization: New CNGA Programs Increase Member Value
When to Repair vs. When to Replace Equipment
18 CSU Update: Woody Plant Evaluations 20 Safety Corner: Accident Investigation and Analysis
21 N.M. Chapter News: Always Room for More Improvement
8
Trends in Capital Improvements
Investing in Efficiency through Lean Flow
22 Member Profile: Rocky Mountain Native Plants Co., Rifle, Colo.
12
Investing in New Markets: Environmental Restoration
Board Of Directors Dan Gerace, President Welby Gardens Company, Inc. 303.288.3398 dangerace@hardyboyplant.com Bill Kluth, Vice President Tagawa Greenhouse Enterprises, LLC 303.659.1260 x205 bkluth@tagawas.com
Stan Brown Alameda Wholesale Nursery, Inc. 303.761.6131 stan@alamedawholesale.com Steve Carlson Carlton Plants 303.530.7510 scarlson@carltonplants.com Jesse Eastman Fort Collins Nursery 970.482.1984 j.eastman@fortcollinsnursery.com
Davey Rock, Secretary/Treasurer Trinitiy Farms 720.810.1232 rockandrock@mac.com
Tom Halverstadt Country Lane Wholesale Nursery 303.688.2442 countrylane@myedl.com
Kent Broome Bailey Nurseries, Inc. 303.823.5093 kent.broome@baileynursery.com
Sarada Krishnan, Ph.D. Denver Botanic Gardens 720.865.3601 krishnans@botanicgardens.org
24 Taking Care of Business: Careful Credit Card Processing
Bob Lefevre Advanced Green Solutions 303.916.0609 1950rfl@gmail.com Monica Phelan Phelan Gardens 719.574.8058 monicaphelan@phelangardens.com Les Ratekin Ratekin Enterprises 303.670.1499 lesratekin@earthlink.net Terry Shaw Harding Nursery, Inc. 719.596.5712 hardingoffice@aol.com
Publishing Info
EDITORIAL
Colorado Nursery & Greenhouse Association
Sharon R. Harris Executive Director Colorado Nursery & Greenhouse Association 303.758.6672 sharris@coloradonga.org
959 S. Kipling Pkwy., Ste 200 Lakewood, CO 80226 303.758.6672 or 888.758.6672 Fax: 303.758.6805 info@coloradonga.org www.coloradonga.org The LooseLeaf is produced by CNGA and Keystone Millbrook Printing Company 3540 West Jefferson Hwy Grand Ledge, MI 48837-9750 Fax: 517.627.4201 www.keystonemillbrook.com www.colorado nga.org
Ex-Officio Members
The LooseLeaf feature writer and editor is Tanya Ishikawa of Buffalo Trails Multimedia Communications www.coloradonga.org/editor-tanya-ishikawa Visit www.coloradonga.org for classified advertisements, plant publications, upcoming events, a member directory, and much more!
Jim Klett, Ex-Officio CSU Dept. of Horticulture & Landscape Architecture 970.491.7179 jim.klett@colostate.edu Lynn Payne, N.M. Chapter Senator Sunland Nursery Company 505.988.9626 ld@paynes.com Sharon Harris, Executive Director CNGA 303.758.6672 sharris@coloradonga.org
CONTRIBUTING WRITERS Dan Gerace
Sharon Harris
Tanya Ishikawa
Dr. Jim Klett
Lynn Payne
Scott Shick
Amy Statkevicus
ADVERTISING INFO Bill Spilman Tel: 877.878.3260 Fax: 517.627.4201 adsalesfirm@gmail.com
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LooseLeaf July/August 2012
2012
calendar
Outreach and Member BBQs Friday, July 27 at Colorado State University annual trial gardens, Fort Collins, Colo. Thursday, Aug. 9, West location not yet confirmed Thursday, Aug. 23 at Kiwanis Reservation Area, Albuquerque, N.M. Friday, Sept. 7 at the Broadmoor, Colorado Springs, Colo. Join your CNGA friends at member BBQs around the region again this year. Look for detailed information in an upcoming E-Leaf. Thank you to our sponsors: Wells Fargo Insurance Services, Pinnacol Assurance, and Richards, Seeley & Schaefer. Colorado Certified Nursery Professional (CCNP) Seminars Colorado Springs, 9 a.m. to 3 p.m. Tuesday, July 31, Perennials Seminar at Britton’s Nursery Tuesday, Aug. 7, Tree Seminar at Harding Nursery Tuesday, Aug. 14, Shrubs Seminar at Summerland Gardens
Tuesday, Aug. 21, Landscape Design at Phelan Gardens Tuesday, Sept. 11, Exam at Colorado Springs Utilities SAVE THE DATES Women in Horticulture Luncheon Thursday, Sept. 13 11:30 a.m. to 2:30 p.m., Lakewood Country Club, Lakewood, Colo. Enjoy guest speaker Tess Scanlon-Phillips of Gardening by Tess, lunch and networking. Thank you to our sponsors: Pinnacol Assurance, Wells Fargo Insurance Services, and Little Valley Wholesale Nursery! CNREF & CFF Golf Tournament Monday, Sept. 24 Noon Shot gun start, Red Hawk Ridge Golf Course, Castle Rock, Colo. Visit the CNGA website under Upcoming Events for more information and current sponsors! Sponsorships are available; sign up now to get the biggest bang for your buck.
Thanks to our event sponsors:
classified ADS Horticulturalists/Gardeners Steve Koon Landscape & Design has ower department opportunities for crew leader and gardeners. Lead position requires working knowledge of perennials and annuals.
Landscape Maintenance, Gardeners, & Crew Leader Steve Koon Landscape & Design, a non-mowing residential landscape company, is now hiring motivated maintenance, gardeners & crew leader.
Tree Farm Position Steve Koon Landscape & Design has a full-time tree farm position. Duties include growing, maintaining/selling trees, pesticide application, irrigation, etc. Valid drivers license required. Opportunities for education, advancement and benefits. For all three job openings, call 303-761-5639 or apply at 2301 W Oxford Ave., Englewood, Colo., or send resume to fax 303-781-4525 or e-mail SteveKnLandscape@aol.com
Greenhouse For Sale by Owner
Register for Calendar events with CNGA unless otherwise noted. Tel: 303.758.6672 or 888.758.6672 Fax: 303.758.6805 E-mail: info@coloradonga.org CNGA is the host of calendar events unless otherwise noted. For more information, registration forms, and directions to programs, go to the Industry Professional site on www. coloradonga.org and open the Calendar under the Events tab.
advertisers Alpha One Inc.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
American Clay Works & Supply Co . . . . . . . . . . . . . . . . . . . . 17 Baxter Wholesale Nursery, Inc. Circle D Farm Sales, Inc.
. . . . . . . . . . . . . . . . . . . . . . 15
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Clayton Tree Farm LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 DWF Growers Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Turnkey greenhouse facility located in sunny Las Cruces, N.M. 56,000 Sq. Ft. Gutter Connect Greenhouses.11,000 Sq. Ft. Warehouse and office building. 2.92 Acres of land. Established market. Trained employees. Contact Lynn Payne at 505-988-9626 or ld@paynes.com.
Fort Collins Wholesale Nursery . . . . . . . . . . . . . . . . . . . . . . . 14
CNGA offers free posts of online classified ads to members, including items for sale or lease and job openings. For more information on the postings below and to see other current postings, visit the Industry Professional side of www.coloradonga. org and click on Classifieds under the Resources tab.
Jayker Wholesale Nursery . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Gerdes Wholesale Nursery, Inc. . . . . . . . . . . . . . . . . . . . . . . . 4 Harding Nursery, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Hash Tree Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
McKay Nursery Company
. . . . . . . . . . . . . . . . . . . . . . . . . . 19
Oregon Association of Nurseries . . . . . . . . . . . . . . . . . . . . . . 2 Ratekin Enterprises/Hollandia Nursery . . . . . . . . . . . . . . . . . 17 Richards, Seeley & Schaefer, Inc.
www.colorado nga.org
. . . . . . . . . . . . . . . . . . . . 18
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MESSAGE FROM THE BOARD
Healthy Businesses Continually Reinvest Hopefully, many of you have been busy enough that you haven’t had the chance to thoroughly analyze your financials. I don’t know about you, but this time of year I look forward to some rest and relaxation before I want to think about next year. Get yourself recharged! However, don’t make the mistake so many of us have done in the past and wait to start those important projects. Before you reduce your labor, take advantage of the seasonal help you may still have to accomplish some of these projects. Typically, there is a lot of busy work that can be turned into productive work with careful planning.
By Dan Gerace CNGA Board President
Ask yourself: will capital improvements
Reinvest in your business; for most of us it has been a long haul getting back in the black. Many things have had to be pushed back and just the essentials have been taken care of. That is a dangerous cycle and it has led to the demise of many companies.
address the challenges
Look to the successes and challenges of the season, and ask yourself: will capital improvements address these challenges? It is very important to gather your managers, give them an update on the financial status, and start the process of prioritizing the business needs. They will come with their wish lists – allow them to gather data that proves their ideas for improvements will help the company, not just make their jobs
facing my company?
March/April 2012 • Volume 30 • Number 2
Colorado Nursery & Greenhouse Association • Serving Colorado, New Mexico, & Wyoming
CNGA Communications Committee Seeks Volunteers!
Sourcing Using Creativity in Finding Resources
Number 1 Jan./Feb. 2012 • Volume 30 •
8 2012 Inventory Forecast 13 Filling Trucks to Keep Freight Costs Down 16 Creativity Sourcing and Substitutions
Colorado Nursery & Greenhouse
New Mexico, Association • Serving Colorado,
22 Member Profile: Graff’s Turf Farms
& Wyoming
Have you been thinking about great articles that you would like to read in the LooseLeaf ? Do you like to brainstorm with colleagues about ways to improve our companies? Are you a social media expert who can help CNGA find the best tools for our members? If you answered yes to any of the questions above and if you have a few hours available this August and September, contact Sharon Harris at CNGA to find out more about volunteering for the Communications Committee. You can reach her at 303.758.6672 or sharris@coloradonga.org.
easier. Ultimately, the owner(s) will make the final decisions, but if all managers are a part of the process, their inclusion will empower them and will help reduce any resentment about projects not pursued. It may be time to check back with those vendors from ProGreen and make some purchases. Most of us know what we need to buy; it just has been too tight to pull the trigger. If you are an exhibitor at ProGreen, perhaps look to trade shows and buying shows where you would primarily be a customer. Look for national or international trade shows, places where all the major suppliers for your segment of the industry focus their efforts. For the greenhouse people out there, the OFA Short Course and Trade Show will be happening in a couple of weeks. There is probably still time to book a flight to Columbus. I was in utter awe the first time I stepped on the trade show floor; you can find just about anything there and it will take you at least two days of fast walking just to see it all. Don’t forget to take advantage of networking. There will be numerous CNGA BBQs this summer, and talking with others is an excellent way of finding out what they have been doing and what has been working for them. Many suppliers of equipment and technologies will give you a list of other growers that are using their products. Prior to making important purchases in our company, we like to talk to a few people to find out the pros and cons of a particular product or service we are looking into. Typically, you get a much better read than you would by only listening to the sales person’s version. Word of mouth and endorsements from our peers carry a lot of weight in our decisions. When reinvesting, don’t forget your most valuable resource: your employees! Budget money for training, wage increases, and consider hiring personnel to fill the holes that were apparent during the spring. As the economy picks up, employees that feel under-appreciated will be moving on, possibly leaving you in a bad situation. Just like maintaining your customers, it usually takes a lot less effort to maintain current employees than to get and train new ones.
ering Rememb What We Do Why We Do
8 A Family of Growers – Our Story 13 Retailers Plan for Less Variety 16 Returning to the Farm 18 Successful Company Closings 22 Member Profile: Welby Gardens
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LooseLeaf July/August 2012
New CNGA Programs Increase Member Value You’ve made it through the spring season and from all accounts as we go to press it has been a good to great one for most. We’ve heard and seen the modifications that have been made to get through the recession and some of those changes will now become a standard way of doing business. Regardless of whether that is the case for you or not, there’s no time like the present to consider ways to improve your company. When CNGA has successes I always ask myself why: What did we do well and what can be improved on to expand that success? I’m going to toss that back to you and encourage you to ask yourself the same questions. If you had a good year, why and can you duplicate or improve, maintain or exceed that success into the future? If you didn’t, what changes need to be made to get a better result? The 800-pound gorilla in the room may be whether you make money or just move inventory. Collections were a hot topic discussed at ProGreen in February. I hope you were able to make adjustments in your policies and reduce the receivable amounts carried on your books. Changing credit policies is a big leap to take, but one that the collections experts tell us is critical for business viability. We offered a collections webinar in March and if you weren’t able to participate, you can find information from the session on the CNGA website at www.coloradonga.org/ member-resources.
CNGA — A MEMBER-DRIVEN ORGANIZATION
are relevant as you sell product to contractors; encourage them to pass the word on to their clients. To remain relevant we all need to know our customers and their needs and then find ways or make adjustments to fulfill those needs. If you don’t someone else surely will. CNGA tries to ensure that we offer services, products and information so we continue to be relevant to you. The Plant Something program we launched this year was in response to the primary request at the Owners and Managers Meeting to provide increased value for our retail members. The first year plan has gone well and we are deep into completing the strategy for years two and three. The Grown’N Colorado® program, also requested by members in Vail, will be introduced to you within the next two months as well. It offers another very strong brand that we believe will be beneficial to a broad audience. We all know the old saying that you can’t keep doing what you’ve always done and expect a different outcome. Here’s to a new level of relevance, awareness and approaches resulting in increased success!
By Sharon R. Harris CNGA Executive Director
To remain relevant we all need to know our customers’ needs and find ways to fulfill them.
Also consider whether you are promoting your products and services, what is your message, and what could you modify to increase sales? Dr. Charlie Hall, horticultural economics professor and Ellison Chair at Texas A&M, tells the industry often that we must get out of the market of selling “pretty” and instead recognize and promote that we are selling value and quality of life. One of my favorite statements of Charlie’s is: we don’t sell plant material; we sell oxygen machines! He encourages the industry to recognize they are selling a quality of life and to use that in your conversations with employees and customers as well as in your marketing materials and displays. If you are a wholesaler those same messages www.colorado nga.org
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Trends in
Capital
Improvements
EfďŹ ciency, Sustainability, Quality & Changing Demands Drive Reinvestment Robots, cow manure pots, windmills, and longer-lasting batteries are just a few of the developments from manufacturers that are helping to address new and old issues in plant production. As nursery and greenhouse businesses look for ways to improve operational efďŹ ciency and sustainability, pressures from market trends and legislative mandates are just a couple of the factors to consider.
Matt Stuppy, the president of the National Greenhouse Manufacturers Association and the president of Stuppy Greenhouse Manufacturing, agreed. “The biggest issue in front of growers is they have to figure out how to survive and grow and what other things they can grow to be successful. We don’t have double digit growth in horticulture anymore; you can’t be successful just because you are in business,” he said.
“Successful businesses are maintaining what they have and doing some expansion. For growers to take over market share, they have to expand and reinvest in their businesses. Some growers are adapting to the different market pressures, but some are not. We see people who need to get more efficient. We do tend to see a desire to expand operations rather than take over someone else’s and try to make that operation work,” Stuppy added. Michael Geary, the CEO of OFA – The Association of Horticulture Professionals, agreed about the continual search for more efficient production. As the OFA was preparing to welcome manufacturers, growers and retailers from around the nation to the annual Short Course this July, Geary explained, “People are always looking for ways to decrease human or energy costs. The goal is not just to produce more product more efficiently but also to produce it more consistently with uniformity. If you need 10,000 petunias to look the same, the holes in all packs have to be the same, so you may need new tools or equipment to accomplish that.”
“There’s nothing really new in the marketplace that I’m aware of – primarily just minor improvements of existing technology,” said Chris Beytes, the editor and publisher of GrowerTalks and Green Profit. “The key is growers are making investments in efficiency —both labor and energy—because they know that if they want to stay in business, they’ve got to make them eventually, and the sooner they start, the sooner they’ll realize the payback.”
Beytes of GrowerTalks is impressed with a “pot-spacing droid” for field growers that Massachusetts-based Harvest Automation released this year. The robot is designed to space, collect and consolidate plants in all weather conditions alongside humans, while reducing production costs and improving productivity in greenhouses, hoop houses and nurseries. Harvest is promoting the robots as a highly adaptable, behavior-based platform that responds immediately to changes in the work environment, intelligently accounts for imperfect sensory data, and requires little setup and no programming. A video of the robot’s operation can be viewed online at http://bcove.me/5nq1ekjv.
Equipment upgrades
Barry Mulnix, a sales manager at the L.L. Johnson Distributing Company, explained that new battery technologies are making trimming and mowing work more efficient. Handheld equipment, which previously required cords or gas power, can now decrease work time and energy due to lithium battery developments by manufacturers. Some cordless equipment is even becoming more energy efficient and environmental friendly, when are powered by batteries recharged with solar energy from photovoltaic panels.
Many battery-operated tools, such as Greenworks 40-volt and 24-volt lithium ion mowers, are more for consumer use than for large-scale commercial uses. Garden centers could benefit from promoting the environmentally-friendly and convenient operating features to their customers. The batteryoperated tools are compact, low maintenance, oil-free, easy to store, and battery charging and replacement are also simple. To address commercial landscaper and grower needs, a few manufacturers are producing some tools with propanepowered engines. “The introduction of the stand-on mower for the commercial market has really changed how landscapes are mowed and maintained in the greater Denver area,” Mulnix noted. “The stand-on mowers take up less space on the trailer and in the field than traditional sit-down mowers or walk-behind mowers. They are more efficient because they can get in tighter areas, which increases productivity.”
Automation and re-tooling
Innovative technology
While some crops have limitations on how much work can be mechanized or automated, computer-controlled processes and robotic equipment continue to be developed for plant production. In smaller operations where computerization is not economical, efficiency can often be achieved through the design of innovative tools. Geary visited a business recently, where a maintenance worker devised a tool from a plywood board and wooden dowels that simultaneously made multiple holes in potting soil that were previously made one-by-one by employees. This development not only decreased labor but also increased uniformity, which may lead to increased quality and consistency.
Commercial mowers are also becoming more energy efficient with decreases in fuel consumption and cleaner operation through electronic and digitally fuel injected engines, as well as the use of biodiesel, Mulnix added. Investment in these technologies could mean lower costs plus a better environmental record for companies.
www.colorado nga.org
For greenhouse growers, windmills are a revived option for providing energy for heating and cooling needs. While the energy and cost savings can be valuable, some additional work is required before installation to obtain permits and land use approval.
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While investing in additional buildings, property or equipment can improve operational efficiency and expand capacity, another solution adopted by some companies is to improve product flow in and out of the greenhouse or nursery through a technique called lean flow. This business concept, most notably linked to Toyota car production in the early 1990s, is a method of organizing a company’s structure to avoid inefficiency and waste of space, equipment and labor, as well as getting rid of excess materials and inventory.
Suppliers are always refining the formula for growing media and soil to increase nutrition for plants and decrease water use, said Geary of OFA.
According to GrowerTalks Editor Chris Beytes, lean flow is gaining in popularity with greenhouse and nursery owners because proponents have found increased efficiency using less space, and in some cases, less automation.
Inventive solutions California-based Ecke Ranch developed its own propriety growing media for use in plants imported to the U.S. Since soil can not be imported with plants, Ecke created artificial media which can be transplanted with the plug into soil after entering the U.S. Companies can get plants started overseas in areas like Central and South America, to save on labor costs. Stuppy of the National Greenhouse Manufacturers Association commented that greenhouse businesses and other growers should also make efforts to be aware of governmental sustainability initiatives. As states and other agencies adopt new energy codes, the green industry needs to pay careful attention to proposed laws about building materials and land use that make sense for residential or commercial facilities but may not be appropriate for a business with the purpose of growing plants. “If the goals are to make buildings 50 percent more energy efficient than years ago, it could affect people’s ability to make an income from plant production. While certain R values for windows could be right for a professional building, they may not suit a greenhouse and a requirement to comply to such energy efficiency codes could have unintended impacts on growers,” Stuppy said.
Harvest Automation’s nursery and greenhouse robot. Photo Courtesy of Harvest Automation, Inc.
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Investing in Efficiency
Meanwhile, manufacturers continue to make incremental improvements in high-efficiency boilers, heating systems, energy curtains, and growing supplies developed from new materials that are more ecologically sustainable. Seed pot makers are developing new materials such as corn husks and chicken feathers for biodegradable pots that can be planted in the ground or composted. Cow manure pots are an innovative use of dairy farm waste that also reduces waste by growers and gardeners while adding nutrition to the soil.
The concept behind lean flow is to speed up operations in a sustainable way to increase profitability. FlowVision is a Dillon, Colorado-based firm specializing in lean business and supply chain consulting services to a wide range of industry sectors. According to FlowVision’s website, the goals of lean flow are to accomplish faster response to customers’ demands and quicker conversion of orders to shipments, components to finished product, and shipments to cash, as well as improved efficiency in supply chain management. Tagawa Greenhouse Enterprises, Inc. in Brighton, Colo. hired FlowVision about nine years ago, to help identify areas where lean flow could improve the company’s business. “From that
Strategic reinvestment One federal government program that is changing the business of growing food crops and may bring more competition to the green industry is a “high tunnel” or cold frame financial assistance program. The USDA’s Natural Resources Conservation Service is near the end of a three-year trial to determine the effectiveness of cold frame plant propogation in conserving water, reducing pesticide use, maintaining vital soil nutrients, and increasing crop yields. The USDA pilot program’s goal is to connect farmers and consumers, strengthen local and regional food production,
Greenhouses growing edibles are adding positive pressure fans and screening to keep bugs out. Photo Courtesy of Stuppy, Inc.
LooseLeaf July/August 2012
through Lean Flow implementation we learned that we needed to have a broader evaluation of an operation or department in order to fully execute lean flow successfully,” said Tagawa’s Senior Business Manager Bill Kluth. “We became more aware of unintended consequences of implementing a process in one area that affected other areas of the company. We look critically at all our operations and while not necessarily going through a complete lean flow evaluation, we recognize low hanging fruit that can be changed to become more efficient. In the areas where we fully implemented lean flow, we have experienced a significant improvement in efficiency.” Tagawa currently uses lean flow in seeding, soils, retail-ready order processing and young plant collation. Kluth calculated that in the retail-ready order processing area, the company has reduced the lead time for an order from as much as 72 hours to as little as eight hours, and in young plant collation, they can process more trucks at the same time with fewer staff in a shorter time. “We had some equipment and facility costs of changing or rearranging work flow. We are monitoring labor in great detail resulting in a Labor Metric for every operation so we can better predict our labor requirements based on actual work load due to production or sales. This required investment in systems and programming,” he said. “Some equipment or facility changes have resulted in payback in months. Larger investments in systems or programming realized payback in less than two years.”
increase the use of sustainable agricultural practices, and promote consumption of fresh, local food. Started in 2010, the program provided $13 million in grants to landowners throughout 43 states. “What’s happened is a lot of people have taken advantage of that program and that segment is starting to mature so they’re going to go through a learning curve that most of the established growers went through 20 to 30 years ago, but they are going to go through it faster,” Stuppy said. “The grant recipients think they found a new way of doing things and new technology, and all of these successful new growers that have some form of a greenhouse or cold frame will begin to add
heat, and then think about irrigation and cooling.” While most of the new growers will stay on the agricultural side producing food for markets, some will inevitably expand to other hoop house and greenhouse crops and enter the ornamentals market, he said. Knowing that these new faces will be entering the industry soon, current businesses can plan for reinvestment in their own facilities to continue to be steps ahead of the new competition.
Targeted capital improvements As more greenhouses and nurseries increase vegetable and fruit growing to satisfy the continually increasing demand from home gardeners, they will need to make adjustments in their facilities. “If companies are growing vegetable plants as starts and selling them in flats, they don’t have to retool drastically,” Stuppy said. “If they are growing vegetables to maturity or harvesting them, that can require some different equipment, especially for irrigation.” For example, flats of annuals can be irrigated with an overhead watering boom, but lettuce and tomatoes that are growing in different media or bags require different irrigation. “If they’re growing tomatoes seven months out of the year instead of poinsettias just in the fall, they’ll have to be able to switch the greenhouse over quickly. For a vine crop, they’ll have to put in a trellising system and take out the benches. Some growers that grow on the floor will have an advantage because they can do that pretty easily The trend for all U.S. growers, but especially those in the vegetable plant market, is towards investment in insect control. Production of food crops that are more attractive to certain bugs is increasing investment in screening and fans that create positive pressure to keep bugs out. These types of investments may not be as viable for smaller growers or companies growing very limited food crops, but may be considered necessary by the larger producers.
Atlas Manufacturing, a manufacturer of greenhouse structures and accessories.
A cordless cultivator with an improved lithium battery power source.
Photo Courtesy of OFA–The Association of Horticulture Professionals.
Photo Courtesy of L.L. Johnson Distributing Company.
www.colorado nga.org
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Investing in New Mar Environmental “What you need to change is your attitude and intention from viewing what you sell as only decorative to promoting the function of plants and their environmental services.” – Kim Sorvig
Photo Courtesy of CSR, Inc.
rkets: Restoration Environmental restoration work can provide a new, longterm market for landscape contractors and their suppliers at greenhouses and nurseries. The addition of new plant species and restoration services could add new revenue streams and increase the customer base, but will also require some reinvestment in equipment, staff and business partnerships. Kim Sorvig, a co-author of Sustainable Landscape Construction and contributing editor to Landscape Architecture magazine, spoke during the 2012 ProGreen Seminars about the opportunity for landscape contractors and their suppliers to enter the market for environmental restoration work. “This is a growing specialty and one that has immense potential demand as well as longevity for any business that gets serious about it. The scale can be vast – many square miles of planting, transplanting, and seeding, as well as creating ongoing work in maintaining the re-establishing vegetation. This kind of longterm work could help some of the more progressive nursery folk to stabilize the inherent seasonality of their business,” said Sorvig, who is also a research associate professor at University of New Mexico’s School of Architecture + Planning.
One of the largest projects that Sorvig researched was planned by a landscape architecture student who was hired to pull together a coalition of experts to restore several miles of the lower Colorado River in Arizona. “He got the job because he was the only one crazy enough to try it. Now, he has done some incredibly large-scale restorations in incredibly difficult environments,” the author said. The goal of environmental restoration is to “recreate a situation where you get environmental services” – where vegetation is cleaning the air, filtering water, slowing down storm water to reduce flooding, and protecting and preserving the environment naturally and efficiently. The process of restoration includes a range of products and services, many of which are already available at or easily adopted by greenhouses and nurseries. “What you need to change or invest in is attitude and intention. If you change your attitude from viewing what you sell as only decorative, and change that intention to thinking about the function of plants and environmental services, then you will be able to supply certain plants that have functions in restoration,” he said.
Photo Courtesy of CSR, Inc.
www.colorado nga.org
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Besides having a strategic mindset, most growers need to increase and diversify their production of native plants. Restoration work requires a specific subset of native plants that may not be popular for garden center customers. The native grasses may be a less showy variety that is better at water absorption, for example. Growers may also have to adjust to different demands related to the preferred growth stage and size of plants as well as the overall number of certain species, since most restoration projects require large numbers of young plants. This market is a good one for bare root seedlings and starts, Sorvig said. Reinvestment for this market involves creating new connections with organizations, partners and clients, as well as some staff changes. Sorvig recommended the hiring of an employee or independent contractor who is a specialist on regional ecosystems and native plants, plus a “facilitator” who is less of a sales person and more of a liaison to government agencies, communities and clients, helping them stay on the same page with project goals. Besides knowing what to grow and how, specialized skills are necessary for re-vegetating environments naturally. Rather than planning a new landscape, the task is to restore a former landscape. “The idea is to try not to disturb what’s there. It’s more about responding to existing conditions than about reading a design plan and doing what it says,” he said. Environmental restoration is a very good job creator, he added, because it tends to favor skilled hand labor over mechanization. The work schedule also helps address the
seasonality issue for labor in the green industry. “Much of environmental restoration works happens in the dormant season, which means it’s an option to keep skilled workers working during what is normally a down time for employers,” he said. “If you know the local situation really well, you could plan ahead, because you know most of the major restoration work could be done well after everything else is put to bed in the rest of the nursery. You would have a more stable workforce and a more even revenue stream.” Steven Paulsen, the CEO of Conservation Seeding and Restoration Inc., agreed. “That’s why we continue to grow – we shift focus between seasons but always some aspect of our business is exceedingly busy,” Paulsen said. “In the spring and fall, we are in the field. At other times we are writing grants, generating reports and doing office work. Winter is also when we are growing new crops. When it’s really cold outside we have it flamed on.” Since the careful organization and maintenance of records and data is critical in restoration projects, investments may need to be made in staffing and database systems specifically geared to those tasks. While many nurseries and greenhouses have some of the heavy equipment needed for large-scale projects and initial clearing of weeds, polluted land or other non-native land cover, some companies may choose to rent equipment or work with other contractors for that part of the process. After that or in some remote locations, most or all of the work would be by hand or with smaller equipment. In some cases, the lighter equipment would be required from the start to avoid compacting soils.
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LooseLeaf July/August 2012
As far as other aspects of production or growing in the field, each company needs to determine how much they want to invest in organic and sustainable practices, based on their mission and customer requests. Integrated pest management, the elimination of toxic materials and low energy usage are an important consideration in sustainable restoration work. The investments necessary to enter the environmental restoration market are worth the effort and costs, according to Sorvig. Though he said the demand and size of the market is unknown because it is so new that people are not keeping track of it as a separate segment of the landscape or horticulture market yet, he added, “It’s clearly a market that is taking off, and given the amount of drastic change to ecosystems over the last couple hundred years, the demand is next to infinite at the moment.”
economy, when many people can no longer justify buying plants simply for decorative purposes, the fact that plants are more than decorative and even essential has become an important selling point. “The more the industry as a whole can do to educate the public about the environmental services of plants, soil and water, the more likely we can diversify what we are able to do professionally in an economy that is no longer favorable to the old-fashioned way of doing ornamental gardening,” he concluded.
“I’m guessing that even if everyone in the horticultural industry went to work at environmental restoration, it would take up to 100 years to repair the damage that has been done on this planet,” he commented. The type of client is limitless, according to Paulsen of CSR Inc., who is proud to serve small and large customers alike, from large riparian and fire damaged areas on public land to privately owned ranch lands and butterfly gardens. Sorvig explained that promoting native plants and environmental restoration expands the market for every green business. In recent years with the current
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When to Repair vs. When to Replace Equipment Preventative maintenance and warranties will keep equipment running for a while. But as the tools and systems for plant production age, a time comes when managers and owners must decide whether to repair and continue maintaining equipment or simply replace it. Determining the best time to reinvest in capital assets depends on specific factors at each business including overall company finances, staff skills and type of equipment. “If it’s something we can get the parts for and our staff can fix it, that’s what we do. When we have to repair out of house, the costs go up. If the repair costs come close to or equal to a new piece of equipment, we replace,” said Dan Gerace, the production manager of Welby Gardens Company, Inc., in Denver, Colo. “If equipment is becoming obsolete and there’s something out there doing a better job and we can afford to replace it, we will.” To repair equipment in-house, companies need to have a versatile, talented staff with the right skills and expertise. Still, these days, vehicles and newer equipment may have computerization that requires specialized knowledge to repair that is not available outside the manufacturer and its suppliers. Another issue with newer models is they’re not built to last forever like the old ones, which could be repaired over and over again, Gerace said. “Now things are more disposable.” His company depreciates a lot of its equipment, decreasing the value each year. When it is totally depreciated it, he said, “We feel like we have gotten our money’s worth. Now we can go ahead and replace it. The cost of repairing it could go toward a newer version that works better.” In good years, companies can consider reinvesting in capital, especially to take advantage of the tax benefits of deducting large expenses instead of showing a larger profit. In other years, repairing is more sensible. However, companies need to
This pre-DOS-based software was installed around 30 years ago to control the greenhouse environment. More of a hassle to maintain with technical support and parts almost impossible to find, if the old system breaks down during a critical time, crop delays or losses could be high. Photo Courtesy of
be cautious of keeping old equipment too long so they are forced to replace it at a bad time. Gerace gave the example of an environmental control computer that the company was repairing over and over again. The cost of a new computer was so daunting that the company avoided buying a new one. It became so outdated that it was eventually too hard to find parts, and the company had to replace it at a difficult time. Matt Edmundson, the president and owner of Arbor Valley Nursery in Brighton, Colo., said, “Recently the decision has been based in part on budgetary concerns and taking on additional overhead and cash outlays. We have worked on being more diligent with preventative maintenance. Despite this we have had a few instances of major repair expenses we chalk up to manufacturer defects. There have not been recalls yet. We are now investing in extended warranties with loaders for this reason.” Arbor Valley reassesses its equipment needs crew by crew and activity by activity at least annually to determine when it’s time to replace and upgrade equipment. “The time of the season and activity prioritization are important. If you are in the heat of potting season and your machine goes down, it’s a no brainer. If it goes down the last week and you aren’t going to use it again until next year it becomes a winter project,” Edmundson said. “The opportunity cost of downtime while waiting for repairs to be completed is important. How much does productivity fall when something goes down?” Functionality and the ability to work with suppliers and customers is key to deciding when computer systems and programs should be replaced. With computers, it seems especially important to keep informed about new technologies and get recommendations and feedback from current users of the new technologies. Gerace gave the example of Microsoft Windows software, explaining, “We need to be staying up with the times to be able to communicate with the outside world. Having old software makes
Whereas older style pumps are all on or all off, this new pump modulates the electricity being used to match how much hot water it needs to moves. The new pump will pay for itself in less than 18 months with the cost of electricity being saved. Photo Courtesy of Welby Gardens Company, Inc.
Welby Gardens Company, Inc.
LooseLeaf July/August 2012
it more challenging, but we want to make sure the bugs are out and the system works before we go ahead and buy it.” Another example at Welby Gardens in the last five years was production and sales software that was failing and becoming obsolete. The company staff was always looking at ways to work around the problems. Finally, though it was a very big investment, the company bought a new system and was able to reduce labor costs as well as become more accurate for customers. “Overall we feel it’s paid for itself very quickly because of all the benefits we got from the new software,” Gerace said. Edmundson commented, “We work in a dirty environment so computers don’t seem to last as long. When it breaks we get a new one, depending on the problem. If it’s a power supply or something easy we will repair it. Server wise, our IT people monitor its performance and try to get a new one every four or five years. Our tape backup failed and it was almost cheaper to buy a new server with updated backup technology than to replace the tape backup and update new tapes.” Arbor Valley recently switched from hosting its own e-mail to remote hosting. “Although we took on a small monthly payment, we have 100 percent uptime, unlimited storage and access from any computer with an Internet connection. This also improved the performance of our server for other applications and extended its useful life for us. There are many little opportunities like that to reallocate resources to improve efficiency and eliminate potentially costly hardware problems,” Edmundson explained.
Flowering Shrubs • Junipers Ornamental Grasses • Vines • Perennials Container-Grown Shade & Fruit Trees since 1957
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CSU UPDATE
By Dr. Jim Klett Professor, CSU Dept. of Horticulture and Landscape Architecture
Woody Plant Evaluations Approximately 1,180 different taxa of woody plants are currently being evaluated in the woody plant area at the Plant Environmental Research Center (PERC) and the evaluation area on Center Avenue located by Spring Creek in Fort Collins, Colo. Woody plants are evaluated yearly for growth rate, hardiness, growth habit, foliage, flower, and fruit characteristics, disease resistance, and other landscape features. Discussed below are six plants that merit attention for use in the Rocky Mountain/High Plains Area. The following have been selected for their outstanding ornamental features and reliable performance.
Buxus microphylla koreana ‘Julia Jane’ – Julia Jane Boxwood This boxwood seems less prone to “winterburn” than most other boxwoods and often remains dark green through the winter. It develops into a rounded, dense growth habit maturing to about four feet tall and wide. The April flowers are not showy, but they are
fragrant and attract bees. This plant is best suited to more protected spots out of winter winds, and mulch and winter watering are helpful.
Chioanthus virginicus – White Fringetree This small tree or shrub grows to about 10 to 12 feet in height and width. It prefers a moist, neutral pH soil, but shows some adaptability. It will tolerate partial shade. The clusters of white flowers in May to June are the most outstanding ornamental feature. In September, on female plants, fruit turns from green to an olive-blue color and is followed by good yellow fall foliage color.
Cornus alternifolia – Pagoda Dogwood This spreading, low, horizontal-branched small tree or large shrub matures to about 12 to 15 feet in height and width. It will grow in full sun to partial shade, and where soil pH is 7.5 or
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lower. It is quite cold hardy to zone 3 – 4. The flowers are yellowish-white in late spring and are followed by bluish-black fruit in July and August with reddish fruit stalks that persist. The conspicuously veined, dark green leaves turn reddish in the fall.
Malus x ‘Coralburst’ – Coralburst™ Crabapple This crabapple is available as a low graft (shrub-like) or four foot high graft (small tree). It develops into a rounded habit about 12 to 15 feet tall and wide. The rose-pink buds open to pink flowers giving it a “two-tone” appearance. Few fruits if any develop. It has good disease resistance, is very cold hardy, and seems very adaptable to alkaline clay soils. It would make a good smaller patio tree.
Prunus mandshurica – Manchurian Apricot This is a very cold hardy, small tree. It is unlikely to fruit most years due to spring frost killing flower buds. It has pink to white flowers in March to early April with orange to yellow fall color. The plant adapts to alkaline clay soils well and is relatively drought tolerant once established. It matures to about thirty feet in height and width.
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Sorbus aucuparia ‘Michred’ – Cardinal Royal® European Mountain Ash This mountain ash develops an upright, oval habit maturing to about 30 feet tall and 20 feet wide. It seems to adapt well to more alkaline soils. It is best suited to be planted on north or east exposures. The leaves are dark green above and silvery below. The white flower clusters appear in May followed by red fruits in September that persist into the winter. The fall color is rust-red to yellowish.
Manchurian Apricot
You are welcome to visit PERC, located in the southwest corner of the CSU campus and Center Avenue site in Fort Collins any day of the year during daylight hours. Yearly evaluation of these and all woody plants are posted on our website at www.woodyplants. colostate.edu.
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SAFETY CORNER
Accident Investigation & Analysis are Critical From Pinnacol Assurance
“The key to preventing more similar accidents is determining the accident’s root cause.”
The first 24 hours following a workplace accident are critical to your injured employee and to you. What you, as an employer, do during this period can help reduce your workers’ compensation claims costs, and most importantly, help prevent the accident from happening again.
of the accident. By conducting a thorough analysis of the data collected, employers will be able to move beyond the immediate event or condition that caused the accident to the event or condition that, if corrected, will prevent a recurrence.
One of the key tasks during this initial 24-hour period is to try to determine the cause of the accident so you can institute loss prevention measures, if necessary. A thorough accident investigation will show not only what happened and how it happened, but also why it happened.
The following are steps for conducting a root cause analysis:
Accident Investigation The first step – and a fundamental part of the accident investigation process – is data collection. Here are the elements of a thorough accident investigation: • Interview anyone who witnessed the accident. • Take a statement from the injured worker. Have the worker write down what happened and sign and date the statement. • Take photos of the accident scene as soon as possible. If the injury involved machinery, you may need to shut it down to preserve evidence. • Gather any equipment specifications and manuals. • Gather applicable safety rules and training records. • As part of your investigation, try to determine if one or more persons outside your company caused or contributed to the accident. If so, get their names and the name of their employer if they were working when the accident occurred. Call Pinnacol Assurance with the information immediately. We may need to send an investigator to the accident site to gather evidence that can help us recover some or all of our claims payments from the responsible party.
Root Cause Analysis The key to preventing the same accident from occurring again is to determine the root cause
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• Review photos of the accident scene. • Read witness statements. • Identify trends (e.g., is there a pattern of the same type of accident involving the same piece of machinery). • Examine the direct (immediate event or condition that causes the accident) and contributing (event or condition that collectively increased the likelihood of the accident) causes of the accident. • Drill down to the root cause. You may determine that the direct cause of the accident was the failure of a piece of equipment. But to get to the root cause, ask yourself if there is something you could have done differently to prevent that failure.
Taking Corrective Action Once you have investigated and analyzed the accident, you’re ready to take corrective action. Ask yourself what can be changed to make things better. A good corrective action should prevent recurrence of the accident, be feasible, and not create new hazards or risks. Pinnacol’s new “Accident Investigation” webinar will be available soon on our website (Pinnacol.com). This webinar will provide detailed information about how to conduct an effective accident investigation. It is free to Pinnacol policyholders. To view Pinnacol’s available webinars, go to Pinnacol.com/ employer/training. If you have additional questions about accident investigation and analysis, please contact your Pinnacol marketing representative.
LooseLeaf July/August 2012
Always Room for More Improvement Greetings from the Land of Enchantment! Well now, we’ve just been through one of the best seasons we have had in years. I hope all of you have had the same experience as we did. Now that we have all our bills paid and our bank accounts are bursting at the seams (HA), it’s time to relax and take a deep breath and think about how we can improve. Take a look at your facilities and reconsider your policies and procedures. You might already know what changes you need to make but even so, I would still suggest you ask your customers and employees what improvements they would like to see. Sometimes the best ideas come from the most unlikely sources.
Every now and then we have a customer tell us exactly what they think! Sometimes I think they’re just having a bad day and taking it out on one of our employees, but about 99 percent of the time they have a legitimate gripe, so listen to them and try to turn it into constructive criticism so you can achieve a positive result. As for that other 1 percent, those are the customers we encourage to shop at our competitors! Here are some things I ask myself and my employees after the season is winding down:
CHAPTER NEWS NEW MEXICO
By Lynn Payne CNGA New Mexico Chapter Senator
“By asking
Was our selection adequate? Was our signage adequate? Did you hear any customer comments about prices or quality, and if so, which products or plants were they commenting on?
questions to your customers,
By knowing this, you will be able to make smart decisions on whom you should buy more from and whom you should buy less from. Take notes on all of this now before you get busy and forget.
employees and
Another source for very valuable information could come from your competitors, but only if you have a good relationship. Some people think competition is a bad word but if you can sit down with them over lunch or a cold beer you might get a little tidbit that proves very helpful. I heard several great ideas at last year’s Owners and Managers Meeting in Vail, Colo. Actually, I was taken aback by the open attitude and sincere desire to help each other. Thank you; that’s the way it should be!
information to
competitors, you can get help you make smart decisions for next season.”
Always look for ways to improve, and remember: no matter how good you get, there’s always room for improvement!
www.colorado nga.org
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MEMBER PROFILE
Rocky Mountain Native Plants Co. Expands Services What is the background of Conservation Seeding & Restoration? The owners saw a distinct need in the western U.S. for an integrated wildland restoration company, specifically for dryland areas. When CEO Steven Paulsen moved from the Chicago area to Idaho, he had a bachelor of science degree in rangeland ecology and watershed management. He could not find work in his field, so he began his career as a restoration ecologist by starting CSR on January 1, 2003.
Rocky Mountain Native Plants Co. dba Conservation Seeding & Restoration Inc. 3780 County Road 233 Rifle, Colo. 81650 Tel: 970.625.4769 Fax: 970.625.3276 E-mail: info@csr-inc.com www.csr-inc.com
Starla Paulsen, his wife, joined the company as president and one of the three principal owners. With a master’s in food microbiology, she works as a research scientist developing new generation liquid soil amendments for Living Earth, an offshoot of CSR, Inc., when she is not attending to the company’s financial and administrative needs. The third owner and operations manager is Kevin Osborne, a former Air Force explosive ordinance specialist. He has worked for more than 15 years in the landscape and restoration field, and been involved in nursery management. Today, CSR employs about 100 full-time year-round staff which can increase to 150 people during the busiest times.
How did CSR come together with Rocky Mountain Native Plants Co.? Besides the original office in Kimberly, Idaho, the company has four other regional offices in Casper, Wyo., Rock Springs, Wyo., Vernal, Utah, and Rifle, Colo., where it acquired Rocky Mountain Native Plants Company in February. The acquisition followed many years of partnership that started with a project in Longmont, Colo. While CSR has always grown native plants, the owners saw a unique opportunity to take over the operations of the cutting-edge growing facility in Rifle, built over 14 years by the former owners. The Colorado facility has 74 acres of deeded ground with 3 acres under greenhouse roof and 8 acres in pot yards. Two offices and the production manager’s home are on site. Plans include putting 50 acres into native seed production and expanding greenhouse and pot-in-pot production. CSR has also expanded Rocky Mountain Native Plants into a full-service, vertically integrated operation by adding research, restoration consulting and planning, and comprehensive restoration services.
Above: CSR, Inc. employee Victoria Baumann preparing 10 ci containers for sowing Below: Managers Tom Glass and Shawn Wissel in Rifle, Colo.
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LooseLeaf July/August 2012
Who heads up the Colorado operation? Tom Glass, the production manager in Rifle, Colo., has nearly 25 years of experience in nursery and greenhouse production. He aims to bring the same production standards and reliability common to ornamental nursery production to native plant and seed production. Shawn Wissel is the regional manager in Colorado, and has 22 years of experience in the construction aspects of restoration, most recently with the Oregon State Parks. He has worked on native landscaping and wildland restoration projects in various settings from parks to residential properties all over the western U.S.
Please describe the product line and services. “Restoring the Planet one Native plant at a time” is a central part of CSR’s business model. The company develops native ecology communities for oil and gas restoration fields, butterfly gardens, home landscapes, and other land uses. Customers include individuals, corporations, and local, state and federal government agencies. CSR’s services range from biology monitoring to habitat management, GIS and GPS mapping, landscape design, native plant and seed collection and propagation, landscape installation, erosion control, and soil amendment. Customers can select from a menu of services or products, which are made available as complete packages or on an a-la-carte basis. No project is too large or too small.
What is most important about CNGA membership? Rocky Mountain Native Plants Co. did a great job of building a valuable business through networking with CNGA members and taking advantage of the association’s services and events. CSR plans to continue to participate in outreach activities and build relationships through CNGA. Since the Colorado operation has become so much
www.colorado nga.org
more than a native plant grower, the staff is excited to share the news with the industry through CNGA.
When
How has CSR been investing in capital assets in Colorado?
producing
A huge capital expansion will increase the efficiencies of the property and the workflow. The investment is enabling the facility to be operated not only for plant production but also for construction management to facilitate nature stewardship and restoration programs.
millions of
The company is also upgrading facilities with the immediate aim of achieving 10 percent to 20 percent efficiencies in water use and labor. One of the major improvements will be replacing propane gas heating with natural gas, which will be piped directly to the property. The switch should decrease energy costs by about 50 percent.
Where can mechanization most effectively increase efficiencies in operation? Just about every aspect of the nursery industry has found some form of mechanization to improve the efficacy of what we are doing. As we’ve become far more efficient at producing larger volumes, we have created a better value for consumers.
plant units, each step that is cut can end up saving millions of steps.
In the area of landscape installations, marginal gains have been made in tooling. So, the more history and institutional knowledge at CSR, the more the staff can push the curve in efficiency and produce farther and faster with better results. Anything that can save a step or cut two strides throughout the day can make a company that much more efficient. When producing millions of plant units, you can end up saving millions of steps. Some savings can be accomplished with very simple changes in equipment, but never by sacrificing safety. CSR is constantly investing in safety. For instance, we are replacing outdated soil-handling equipment and tractors at Rocky Mountain Native Plants, because the new models will not only be more efficient but safer as well.
Left: Managers Tom Glass and Shawn Wissel in Rifle, Colo. Below: Marie Conner and Victoria Tittes sowing germinants
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Colorado Nursery & Greenhouse Association 959 S. Kipling Pky, #200 Lakewood, CO 80226
TAKING CARE OF BUSINESS
Careful Credit Card Processing Protects Your Company Few things are more central to your success than your payments transactions. That’s why careful attention to credit card processing is important in securing your bottomline.
By Scott Shick Heartland Payment Systems
“Never accept a transaction that has been declined.”
Here are suggestions for processing your customers’ credit card payments to protect your company from fraudulent transactions and to ensure the lowest possible credit card processing rate:
• Always compare the credit card account number on an electronically printed draft to the credit card number printed upon the face of the credit card. If the numbers are different, call the Automated Voice Authorization Center and inform the operator that you have a “Code 10” authorization and that the card numbers do not match.
• Swipe your customers’ credit card with signature capture rather than hand keying in. I-phone and Droid cell phones now have this capability with Heartland.
Scott Shick is a Senior Relationship Manager of Credit Card, Check, Payroll, Gift & Loyalty programs at Heartland Payment Systems, which provides CNGA members with discount credit card processing and payroll services. Heartland Payment Systems offers a complete suite of payment solutions, and processes all major credit cards, 24 hours a day, every day of the year. Heartland Payroll Services has the experts when it comes to handling payroll processing. They can save companies time and money by taking care of payroll taxes, new hire reporting, and calculation of payroll checks. For more information, contact Scott at 303-883-1468 or scott.shick@e-hps.com, and visit www.heartlandpaymentsystems.com.
• If you do hand key in the credit card number always enter the customer’s billing zip code and CVV code when prompted by your terminal. • Always request a phone authorization on an expired card. If the card issuer approves the transaction, proceed with the sale. Never accept a transaction that has been declined.
Coming Up Next! The theme of the September/October 2012 LooseLeaf will be Evaluate – Update Plans Based on Experience. Featured articles will include: • Reevaluating plans to adjust future buying and budgeting
• New plant varieties
• Why revamping old yards is as important as remodeling old homes • Container sizing trends Also be looking out for the November-December 2012 LooseLeaf with articles about ProGreen 2013, preparing for the future: advances in catalog production, slow season solutions, and upcoming regulations. And remember: you can always find back issues at http://issuu.com/looseleaf
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LooseLeaf July/August 2012