As IGCs and other small businesses forge into 2021, many are reporting record numbers of job openings, which retailers are finding difficult to fill.
According to the National Federation of Independent Business' (NFIB) latest jobs report released on Dec. 3, an uncertain economy is presenting a slew of hiring challenges.
“Small businesses are doing their best to end the year on a good note, but the economic recovery remains uneven with some industries near full recovery and others still struggling,” said NFIB Chief Economist Bill Dunkelberg in the report. “Finding qualified workers for open positions has only gotten worse as the pandemic caused an even tighter labor market. A surge in the labor force participation rate would be welcome news to small employers.”
We gathered some of the key findings from the report examining the month of November.
People who work in retail have all read the common advice about handling angry or uncooperative customers. It’s recommended that we stay calm, and show that we are truly listening to a client’s complaints. This is good advice, although it’s not always easy to do. Human nature is to mirror the attitude of others who are confronting us. It’s increasingly more challenging in the time of COVID-19, when people are feeling generally cranky and on edge. It’s also problematic when any customer, no matter how out-of-line or unreasonable, can post one-sided, scathing reviews online and on social platforms.
Recommendations to keep calm and listen still hold true, of course, as does the practice of repeating back to a customer the gist of what they’ve said. This response shows that you’re actively listening and trying to understand. Some IGCs hold preparation sessions during staff training days, where employees take turns being an irate customer while others practice smiling and responding with composure.
Yet, even after rehearsals for acting with restraint, some situations are especially difficult. IGC employees often benefit from suggestions of useful language for specific situations.
Customers without masks
Even with pending COVID vaccines, it’s estimated that we may need to wear masks in public places into the fall of 2021 or beyond. Retail establishments are becoming accustomed to asking some customers to get a mask or pull one up over their nose. One approach to lighten these situations is to have a box of colorful, disposable masks at the entry or service counter. These are now widely available and affordable in assorted designs that can be offered to an unmasked customer. “I see you’ve forgotten your mask. Well, I’ll save you the trip back to your car, and look! I’ve got one that’s tie-dyed, or are you more of a basic-black kind of guy?”
Repeating the same phase calmly, and making it personal, not political, can help. “My mask is for your protection, and yours is for my protection. We’d be happy to give you one, because it’s a requirement for shopping here.” Be sure that the signage about mask wearing is prominent in your store, so that your customers can point to it as they speak. One of our local stores has signage that reads, “In this store we wear masks over our noses.” Keep it simple and clear. Employees should know to call a manager for reinforcements if the client gets argumentative or refuses.
Gently remind customers that masks only work if they are worn correctly.
When working in retail, it’s common to deal with people who are rude and unreasonable because something fairly small has pushed them over the edge. That dry and wilted hanging basket that the customer wants a refund for isn’t just an un-watered plant…it’s the straw that broke the camel’s back. This is especially true as we enter nearly a year of dealing with pandemic fears and restrictions.
For these situations, phrases like, “This is such a difficult time,” “I know that a thirsty plant is the last thing you wanted to deal with today,” or “I’m so sorry you’re upset” can be useful. While sticking to your normal procedure and policies for resolving customer complaints and requests, sympathize with the complainer human-to-human.
Some years ago, I dealt with a rude customer whose tree had died. After commiserating with her she broke into tears well before we started to discuss why the plant might have failed. “I’m so sorry you had to come in about this today,” I said after she yelled at me for selling her a tree that “clearly came from a bad batch.” I knew nothing about her, but I continued by saying, “It sounds like this is the last thing you needed right now.” At that point she backed down and listed all the hardships that had come her way lately, from the recent death of her husband to a nasty neighbor who was mad at her garbage pails being put in the wrong place. We ended up giving this woman 50% off of a replacement tree, but more importantly, she was given an opportunity to be heard and somewhat consoled.
The world’s foremost authority
Even before the pandemic, garden center staff have dealt with self-appointed experts who are willing to argue about plants. I remember the day when a customer was shopping for summer squash seedlings at my IGC, and was unhappy at what he saw. We had flats of newly sprouted squash in three-packs, fresh from the grower, but some of the cells in these packs had only one seedling, while others had four or more. Clearly, the machine that the grower had used to plant the seeds had done an uneven job of it. The customer informed me that the latter was how normal, “healthy” squash should grow, convinced the one-seedling pack was defective. He wanted a three-pack where each cell had four stems, and he ended up yelling at me when I told him the singles were normal and the multiples were the result of too many seeds in one place. “I’m a Master Gardener, and I know how plants should grow!” he huffed.
As a master gardener (lowercase, since it’s not a title but a volunteer position) myself, I cringed, but I wasn’t about to argue with him. I’ve found that treating these foremost authorities with at least seeming respect is the percentage play, even when they’re wrong. “Since you’re an experienced gardener, I’m sure you can make any of these squash seedlings thrive. So pick the best three-pack you see, and I’m sure you’ll be sharing your excess zucchini with your neighbors very soon.” Try to show that argumentative expert that while you honor his or her expertise, you still need to stick with store policy. “I know you have a green thumb and more experience than I do, but it’s our policy that annuals can’t be returned three months after purchase.”
Can I fire a customer?
Even with a calm, sympathetic attitude and reaching out on a human-to-human basis, there are occasions when a customer just won’t be mollified or satisfied. For some people, even expressions of concern just make them more unhappy or angry. When a situation is escalating to that level, the first response is to remove yourself temporarily. “I’m going to get the store manager,” you might say, or “Excuse me for a second so I can have a word about this with John.” Your client doesn’t need to know who John is, or if he even exists. The point is for you to be able to break away from their emotional state and energy.
There are some people who, even when given sympathy, respect or time to calm down, remain bad-tempered and unreasoning. These are the times when we must weigh the potential damage that they can do online against the need to preserve our sanity, support the rest of our staff, and provide a pleasant shopping environment for other customers. A peace offering of a $25 gift card might just be worth it. “This is just a small apology for your trouble,” or “I know that we haven’t made you happy today, but I’m hoping that you’ll take this card and come back another time when things might be better,” are possible responses.
When all else fails, admit to your rude, righteous or unreasonable shopper that you’ve done your best but, “I just don’t think I can make you happy here,” or “Maybe we both have to admit that this isn’t the store for you right now.” Make a calm statement that says that you’re letting them go as a customer.
Then take a deep breath, and carry on.
C.L. Fornari is a speaker, writer and radio/podcast host who has worked at Hyannis Country Garden, an IGC on Cape Cod, for more than 20 years. She has her audiences convinced that C.L. stands for “Compost Lover.” Learn more at www.GardenLady.com
In with the new
Features - Cover Story
Get ahead of the latest trends in home décor and see how your IGC can profit.
Al’s Garden Center’s 2021 theme is ‘indoor oasis,’ which will be fully displayed in the second week of February when the IGC kicks off its Escape to Spring promotion.
Photo courtesy of Al's Garden Center
Stuart Leventhal, owner of Down To Earth Living, got into the home décor business sideways. It developed as an adjunct to the Pomona, New York, IGC’s successful patio furniture business. Leventhal has long considered his IGC an entertainment business, competing for customers’ leisure dollars not only with other garden centers but big box stores. As such, he has strived to create a reputation for his store as a purveyor of high-end furniture, and for marketing and presentation purposes, décor became a necessity.
“We had to dress the tables,” he says. “So as a result, we added tableware into the business.”
As its customers purchased tabletop items in addition to the furniture, Down to Earth began to delve into the broader spectrum of home décor.
“By having the furniture to the extent that we do and having the accoutrements that go with furnishings, that led us to a full-blown home décor presentation,” Leventhal says.
This doesn’t mean that Down to Earth Living is neglecting the green goods side of the business. Quite the opposite, as Leventhal says the IGC built out a section of a greenhouse to accommodate the home décor items. As a result, customers shopping for interior plants or containers inevitably will encounter Down to Earth’s home décor offerings. It’s by design, as the company aims to provide the total experience for customers looking to furnish their homes.
“You’re furnishing your home with plants; you’re furnishing your home with furniture; you’re furnishing your home with décor and we believe that’s all one piece,” Leventhal says.
Home décor benefited from the same pandemic boost as gardening, maybe more so.
“If you’re stuck at home for three months, you might say, ‘I don’t like that painting,’” says Candace Moffatt, gift and holiday buyer for Al’s Garden Center in Oregon. “With people being more indoors and the focus on that, our business has been incredible.”
Home décor has been a growth area for Al’s Garden Center, especially in 2020. And there are no signs of slowing down. In fact, Moffatt says her indoor area has seen double-digit growth through the first few weeks of 2021.
Leventhal says the home décor segment has grown steadily at his business as well. “As time passes and people respect our offerings, it becomes more and more obvious to them that even if they’re just going to someone’s home for dinner and they want to bring a little gift that we’re a logical place to come to acquire that extra little bowl or set of glasses or a wall hanging.”
Themes and trends
One of the toughest parts of the home décor segment is deciding stocking levels. Unlike the plant side of the business, where an IGC knows how many hundreds of thousands of a particular plant it needs to stock, there’s more uncertainty with home décor. which responds to fashion trends that tend to be more volatile. At Down to Earth Living, Leventhal tries to be careful not to get caught holding a ton of items that were last year’s style. He cautions IGCs to not stock deeply and to stock only to the level that they can afford.
“As quickly as people fall in love with green, they can fall out of love with green,” he says. “And then everything you have in green and any green shades, you might as well just dump in the garbage.” The furniture market is very color-sensitive, Leventhal says, and it usually lags the fashion market by about a year. He says green was the hottest furniture color years ago, then it was supplanted by brown, which remains strong but has been displaced to an extent by gray. Leventhal also expects gray’s popularity to continue as Ultimate Gray joins Illuminating (yellow) as the Pantone Colors of the Year.
At Al’s Garden Center, Candace Moffatt breaks the area down into themes, then by color within the theme. Clustering items together that share similarities makes it easier for the customer to shop. The 2021 theme is ‘indoor oasis,’ which Moffatt describes as a natural modern feel with a color palette that includes lots of greens, blacks and taupes. It utilizes natural woods and highlights succulents.
“Once you cluster that together, I do think it’s very enticing for the customers,” she says. “It’s very easy for them to shop. If you just don’t like green, you don’t go to the green section.”
Another theme at Al’s Garden Center is called ‘South of Province,’ which has pops of green, white, lemon and orange for more of a citrus feel. Moffatt developed that theme around lemon, which has been particularly popular for a few years now.
With Illuminating, one of the 2021 Pantone Colors of the Year, being yellow, Al’s Garden Center is anticipating even more interest in that theme from shoppers.
“When you really break down the themes, it’s color,” she says. “So yellow is a Pantone color of the year. So within it for the home décor, we have a lemon wreath or lemon candles, yellow silk, a yellow table runner. There are house pillows with little sunflowers with a pop of yellow, and pots too.”
From items that have the yellow color to items that are related to the citrus fruit by scent, the idea is to have a one-stop shop for customers.
“For gift giving, it’s really nice,” Moffatt says. “If you need a quick gift, it’s all in one area, so you can kind of get that look all in one place.”
Monica Holst is the merchandising and floor manager for Wallace’s Garden Center, in Bettendorf, Iowa. Whether it’s art, pillows, vases, or other home décor items, Holst also arranges her sections by theme. When a customer sees the section you’ve painstakingly designed, not only will they be convinced to shop that look, but they will be more willing to buy multiple items because you’ve shown them how they can work well together.
“I like people to look at that and say, ‘Hey, this could be my whole living room. I’m buying 20 of these pieces,’” Holst says.
Al’s Garden Center’s 2021 theme, ‘indoor oasis,’ will highlight succulents, houseplants and containers with a modern look.
Photos courtesy of Al’s Garden Center
Down to Earth Living integrates green goods and home décor.
The trendsetters
Moffatt and Leventhal both tout the Atlanta Market, but this year much of the shopping has been done virtually. Holst also shops multiple vendors and credits HGTV for pushing several trends forward.
“Even last year, yellow was such a nice little pop,” Moffatt says. “Here in Oregon today it’s super gray and rainy and yellow is such a happy color. It does make a big pop of spring in your house, and outside too, if you’re planting.
As far as other trends, Holst says the industrial look is hot in Iowa. Gold is the top trending color, although the neutral palette and the “greige” look is still very popular. Anything to do with houseplants is selling, even pillows with houseplants stitched onto them.
Moffatt runs reports every Monday to see if she needs to reorder items. Al’s Garden Center has four different stores and she always tests new and trendy items at the Beaverton store first.
It’s the largest store, and the closest to metro Portland, and the most receptive to trends so it serves as the bellwether. If it does well there, and the sell-through numbers look good, she’ll roll it out to the smaller stores.
One important metric to track with home décor items is price point. At Al’s Garden Center, Moffatt says you have to know your market. At her more rural stores, she encounters more price resistance. She can test items in the high-to-elite tier at the Beaverton store where customers are willing to spend more.
“Because they’re looking for something very special and unique, price isn’t an issue,” she says.
In the home décor market, once an item hits that $80 to over $100 price point, it’s a tougher sell. Even if it’s a beautiful and well-made container. However, there are examples of items at that elite price point that can still be successful. Moffatt purchased a series of kinetic spinners that ranged from $100 to $300 depending on size. They sold well initially, so when it was time to re-order, she tested them in all of her stores.
“It was just a win all around,” she says. “That’s something I initially probably wouldn’t have bought for everybody.”
Photo courtesy of Down to Earth Living
Down to Earth Living began selling home décor to supplement its patio furniture business. The IGC aims for displays that pull customers in and show off multiple products.
Photo courtesy of Down to Earth Living
Display: the silent salesperson
Make sure you have someone on your staff who is very attuned to color, shape and display.
“Presentation is the coin of the realm,” Leventhal says. “You must make the displays a gravitational point for customers in your store. Without display, you can present the finest goods in the world and you won’t sell them.”
Holst agrees that presentation is key to increasing multi-item spend. Around Christmas, a customer came into Wallace’s Garden Center looking for a loveseat. She ended up buying two chairs, the matching dining set and some of the accessories as well. “She said, ‘This is how I want my home to look,’” Holst says.
That sort of multiple buy is a triumph of presentation. It makes the work that goes into building a themed décor section worth it.
By design, the home décor market contains many types of items. It can be overwhelming for shoppers. But the thematic layout can make it easier. Instead of shopping for a specific small item, stores can break it down to lemon or citrus, for example, then go from there to help customers achieve a more cohesive look.
To make that happen, Al’s Garden Center has an in-staff visual team and contracts designers to showcase it, especially at Christmas. The goal is a cohesive theme that is consistent across stores that does not look like it’s just tossed out onto shelves.
“There’s a thought process, there’s a plan behind it,” Moffatt says.
And when it’s done right, you can see the results. Customers go straight to the section they’re interested in, and it results in more multiple sales.
Another important factor to presentation is be cognizant of what your competition provides. Then, make certain you’re presenting goods that are reflecting the uniqueness of your store and what you perceive the taste of your customers to be.
Holst suggests IGCs should devote a section near the front of their store to home décor — too close to the greenhouse and your staff will be spending a lot of time cleaning dust and dirt from your merchandise. As you move back in the store, you can weave in garden accent décor pieces, items for which a little dirt won’t hinder a sale.
One pitfall Leventhal cautions IGCs to avoid is sacrificing quality for price. If you make that compromise at your store, you’re competing with box stores, outlets and anyone else that sells home décor goods.
Currently, the top trending items at Down to Earth Living are candles and candlesticks. After two booming years, succulents have cooled off.
Popular items at Wallace’s Garden Center include pillows, picture frames, candlesticks and furniture. Holst never uses any items in her displays that aren’t for sale.
As Wallace’s sales of dining sets and sofas has increased, it’s become easier to merchandise around those items. Instead of glass shelves holding all the items, she uses the larger home décor items themselves to showcase the littler pieces.
“It’s more work, because you’re selling a cabinet, then you’re taking everything out of it, but you’ve got a sale that you never would have had for a thousand dollars,” she says.
Tactical economics
Features - Market Outlook
Green industry experts weigh in on the 2020 sales boom, predictions for the coming year and what it all means in terms of operational spending.
The green industry is coming off a hot streak as we kick off the new year. Operations across North America, save for a few regions where lockdowns didn’t exempt greenhouse growers, saw historically positive sales volumes last spring, stretching into summer and fall.
Now that the wild and seemingly never-ending 2020 is firmly in the rearview, many horticulture operations that are flush with cash find themselves at somewhat of a fork in the road: is it wise to take advantage of grower-friendly finance rates and invest in expanding production to meet the new demand we saw in 2019? Or should they pay down debt and prepare for the possibility of yet another economic downturn? Hold market share and keep on keepin’ on, hoping for better days ahead?
Of course, many believe that any decision in this regard should strongly consider that the virus appears likely to stick around with us at the very least through yet another spring production season.
So, is 2021 the year for growers to make some big moves? Build that shiny new Dutch double-gutter expansion, or snap up that new environmental controller you have been eyeing?
Let us see what some experts in the industry have to say on the subject:
2020: outlier or new normal?
Mintel is a well-known market research firm that has been tracking and reporting on all kinds of consumer trends throughout the COVID-19 pandemic. The group conducted green industry focused research this summer, finding that 84% of American consumers are spending the same or more time in the garden than before the pandemic, and 10% have increased plant purchases from the year prior.
Purdue University’s Ariana Torres, an associate professor in the school’s ag economics department, warns not to read too deeply into those numbers, however.
“We believe that this is more due to a regional-specific effect, and we are finding evidence that non-essential shopping (including plants) has actually decreased. Consumers are feeling less confident about the growth of the economy going forward,” she says.
That said, Torres is seeing a significant shift in how people acquire plants, and greenhouse operations are also looking for new customers and markets.
“Data from the [Mintel] tracker also shows that 36% of plant purchasers are buying more online. One way growers can address new and complex industry trends is to aim direct sales as much as possible,” Torres says. “Today you’re seeing that happen with many growers that previously were only selling wholesale now trying to bypass the traditional brick-and-mortar retail route to market by selling to consumers online.”
Torres says that since March, a bunch of new businesses have sprung up as a response to the online demand to deliver plants, flowers and other green products directly to consumers. In the greenhouse world, this is especially true with the proliferation of delivery and curbside services.
“And retailers that were not traditionally plant-purchasers (e.g. Aldi) have agreed to support farmers and local centers and channel their products through this retail market,” she says. “Using social media marketing and other types of digital marketing can help businesses reach local customers in a cost-efficient way, often without a large up-front capital investment.”
Associate Professor Ben Campbell lectures on applied economics at the University of Georgia’s Department of Agriculture. Campbell himself advocates a restrained approach when it comes to the long-term investment and expansion question going into 2021. His own market research in 2020 revealed a mere 4% increase in consumer spending on plants compared to 2018 levels.
“I myself am a very risk-adverse person, and there are just too many uncertainties right now with coronavirus and what will happen with consumer buying next year,” he says. “There’s some optimism about a vaccine, but the odds of all of us having received it by spring 2021 are not great. Right now, I just don’t think we’ll see the same plant-buying boom that we saw in 2020.”
Campbell foresees more people returning to their normal office work routines, and more unemployed workers without the same unemployment compensation safety net they had in 2020, contributing to a return to pre-pandemic plant demand. Or possibly even lower levels of demand.
“Unless you have a local market already setup, and the demand is there and it is firm and stable, I would be very concerned about how 2021 is going to go from a sales standpoint, and I’d want to watch what I am doing as far as expanding,” he says. “We’re probably not going to have 2020 happen again in 2021, at least not anywhere near the size or scale that we saw. And if everyone expands their operations at the same time, we’ve seen in the past that can have a compressing effect on prices, and then demand likely will go down. That’s a big double whammy.”
“Are all of the ‘newbies’ going to come back for a second helping of this whole lawn and garden thing?” Hall wonders. “A big part of that is whether they were successful or not with their plants. If they were successful, then sure, maybe. At the same time, it’s not like I’d be building 50 acres of greenhouses right now expecting this giant tidal wave of demand to be there.”
Hall bases that analysis on preliminary data from independent garden center pre-bookings for the upcoming spring season.
“Right now, including the lawn and landscaping side of the industry, it’s looking like we’ll probably see something in the neighborhood of about a 10% bump in demand from pre-pandemic levels,” he says.
Consumer spending habits are evolving.
Economists across the board are sounding alarm bells on what businesses can and should expect to happen in 2021. Federal Reserve Chairman Jerome Powell recently cautioned that the economy is likely to shrink substantially across both the first and second quarters of the new year, with unemployment projected to increase up to near the 10% mark.
As of press time in mid-December, congressional passage of a new stimulus package had just been passed to help boost consumer spending. President-elect Joe Biden’s transition team has reportedly also been warned of the potential for a particularly devastating “double-dip” recession.
This would almost certainly have devastating consequences for the green industry. Generally, when consumers lack confidence in the economy, they save money and pay down debt while decreasing discretionary spending on goods and services until the economy recovers, or a stimulus is disbursed.
One of Hall’s many fortes is analyzing consumer spending trends and making sense of what those trends mean for the green industry, and more specifically, for growers themselves. Looking at the data of late, Hall is seeing a near future featuring less consumer spending on things like plants and flowers and trees.
“As we go through this pandemic, it is important for business owners to find technologies that reduce labor needs."
“Durable goods purchases have been extremely strong (during the pandemic) and consumers are still spending money on durable goods, some of which we attribute to the last stimulus payments putting a little extra cash in people’s pockets,” Hall says. “In most recessions we do see a bump in flower and other plant sales early on in the recession, but once the recovery starts consumers start spending more on durable goods, and there’s less to spend on flowers. It seems like that’s where we’re headed right now.”
For her part, Torres agrees that we will likely see a drop in consumer disposable income outlay during this second wave of the pandemic.
“Over time we will likely hit a demand-supply equilibrium, and it is better for growers to behave conservatively by paying off their debt with the highest interest, investing in cost efficient equipment, automating activities and processes, and reducing costs and increasing efficiency,” she adds.
Even with Americans’ discretionary fund spends likely to decrease in the short term, there are a couple positive developments that Torres thinks could help soften whatever blow the industry ends up absorbing.
“Plant demand from the Baby Boomers is increasing, and this segment of the population has spending power and is prioritizing local purchases and purchasing online,” she says. “And private home improvements continue to increase due to the fact that Americans are spending more time at home and prioritizing quality of life and gardening more.”
Torres also believes a strong and only growing stronger real estate market will continue to prop up demand for plants and new landscape features, benefiting garden centers and growers alike.
Long before anyone knew what the coronavirus even was, the green industries’ labor situation has long been singled out as the top constraining factor for growers looking to scale up.
“If you expand production and invest in new structures, then you’re going to need that much more labor,” Campbell says. “But the question still remains for many growers: Can you get it?”
The ag labor pool was essentially taking hits from all sides in 2020. Global travel restrictions made a very competitive immigrant labor pool that much tougher to maneuver, and laid off domestic laborers largely stayed home and collected the controversial $600 per week Pandemic Unemployment Assistance (PUA) payments rather than take lower-paying, manual labor intensive positions in farming.
“If you expand production and invest in new structures then you’re going to need that much more labor.”
These developments are only going to continue to exacerbate, according to Torres.
“Labor issues are becoming larger due to the pandemic,” she says. “Labor is one of the most important and expensive inputs for industry businesses, and it promises to remain a major worry due to lack of mobility, government unemployment payments, and immigration issues.”
Therefore Torres, while reminding growers to be smart and conservative and analyze any investments accordingly, does advocate they take a close look at adding automation technologies where they fit.
“As we go through this pandemic, it is important for business owners to find technologies that reduce labor needs,” she says. “Automation of activities, tools and technologies that improve the quality of products and services, and new processes that can spread or reduce the need for labor, should be prioritized.”
There are many factors to consider before choosing a path forward for 2021. Strive for diligence in your pre-planning meetings and leave no stone unturned.
All three green industry economic experts we consulted independently offered growers the same advice: a conservative approach today could actually be more beneficial in the long run, versus a frenzied plan to expand in the immediate short-term.
“Having a conservative approach with the recently experienced liquidity can pay off later on,” Torres says. “And it appears that the best route forward today involves investing in economically feasible technologies that promote automation, and most importantly reaching out to consumers directly through online sales and uncovering new or non-traditional markets.”
She also believes growers should “prioritize cash flow health in the long-term” while trying to diversify their offerings into new or emerging crop markets like indoor strawberry production, or hyper-local vertical produce farming.
Campbell recommends much of the same risk-adverse go-forward plan as Torres, and he is keeping a keen eye on developments with the new administration coming into office.
“There is a lot of research and data out there that shows the economy tends to slow down coming out of an election, and when people are uncertain and don’t know what to expect from a new administration, they save rather than spend,” he says, noting that we don’t know what a Biden administration means for trade tariffs or input prices.
Perhaps the industries’ foremost voice on economic analysis and issues, Hall cautions growers not to get complacent and contented after many had their finest spring sales seasons in decades.
“Make sure you’re lean and make sure you’re efficient in everything you do,” he says.
“If another downturn is coming then I will generally tell people to defer large capital expenditures, defer maintenance expenses as much as they can, forget paying dividends and pay your suppliers within terms, meaning if you have 60 or 90 days to pay off a balance, then go ahead and take it. You do not have to pay everything off within 10 days.
“And making full use of any available lines of credit,” he says. “Is usually a good strategy, especially considering that during the last great depression if growers didn’t use those lines of credit the banks clawed those limits and rates back from them.”
Bottom line
The path ahead for the next few miles seems unclear at the present time. Perhaps there are more good times on the horizon, yet the prospect of more danger could lie just ahead. However you decide to play your hand in 2021, like any seasoned gambler, be sure to do your homework first.
Matthew J. Grassi is managing editor of sister publication Greenhouse Management magazine.
The challenges of the past year have turned into amazing opportunities for independent garden centers. The pandemic started out as a potential crisis and a threat to the very livelihood of retailers, but has transformed into an incredible opportunity for IGCs all over. Thanks to your innovation, dedication and perseverance, customers were able to find refuge during tough times by beautifying their yards and homes with plants — some for the first time.
As the industry works to capitalize on this renewed interest in all things gardening, it’s time to think big, think bold and think about the future.
All of that means there’s no better time than now to come together, share what you’ve learned from the past year and plan for all of the great things to come in the future.
That’s why I’m so excited for the launch of the first Garden Center Conference & Expo, coming Sept. 28-30 in Orlando. We’ll be bringing together some of the top minds in the IGC world to discuss how to take charge, seize gardening’s moment in the spotlight and move the industry forward. Just like our Executive Summit in past years, the educational sessions will be focused on collaboration, discussion and presentations from your peers in the industry.
This year, thanks to your suggestions, we’re adding an education track specifically designed for vital employees at your operation like team leaders, department heads and managers who will have their own space share ideas and knowledge. It’s all a part of growing together.
Over the next few months, be on the lookout for more details on speakers, educational opportunities and networking sessions. As always, if there’s a problem you’d like to see addressed or a topic you’d like to hear about, please reach out and let me know. This conference is all about you and your success!
It’s been far too long since we’ve all been able to come together, and we want to make sure we do so safely. Rest assured we’ll be doing everything we can to provide a safe environment for all.
We have a lot to catch up on and discuss. I hope you can join us for two and half days of problem-solving, networking and much-needed fun. See you in Florida!