Linda LandrumRegional Specialized Agent

Marketing & Rural DevelopmentUF/IFAS North Florida Research and Education Center - Suwannee Valley

Florida Value of Nursery/Greenhouse

Crops in 2004

$1.63 Billion

4th National Nursery Survey

• Conducted in 2004

• 476 Florida Nurseries

Responded

Marketed Product

0

20

40

60

80

100

Per

cen

t

Wholesale Retail

Channels Sales

Sales Methods

37%

56%

4% 2% 1%

In-Person Telephone Trade Show Mail Order Internet

Market Areas

29%

71%

Florida

Out-of-State

Georgia Alabama Texas

California North Carolina South Carolina

New York Michigan

Why Marketing?

• To stay in business

• Earn money

Positive Profits

• Profits = Revenue - Costs So how can profits be increased?

• Keep “C” as small as possible

• Keep “R” as large as possible

What are “costs”?

Overhead or ‘Fixed’ Costs• Depreciation of equipment

• Interest on investments

• Repairs on structures and equipment

• Taxes• Insurance “DIRTI 5”

Variable Costs

Inputs such as:

* Fertilizer

* Pesticides

* Containers

* Potting mix

* Liners

* Labor

What are revenues?

The product selling price X

the number of total product sold.

Increase revenue by selling more product OR

by raising the price per unit.

Your job as a manager is to:

Know your costs and to keep them in line with your

revenues.

Marketing is a plan or strategy for increasing profitable sales!

Points to Remember

> Do not take selling for granted.> Although making a sale can be

tough, selling profitably often requires more effort.

Marketing Principle #1

To be successful,

marketing must come at the beginning of the production process, not at the end.

$

Which best describes your operating style?

There are three types of companies:

those that make things happen,

those that watch things happen

and those that wonder what happened.

Steps to a Proactive Approach to Marketing

Identify Market Opportunities

Ask yourself…..• What are you selling?• Who are you selling it to?You must match the special features of your

product or service with the preference of the consumer.

What are you selling?

Plants

Potted Flowers

Landscape

Cut Greens/Flowers

Foliage

Hanging Baskets

Potted Foliage

Palms

Orchids/Bromeliads

Green Foliage

(Pot Size)

Small(3” – 6”)

Medium(8” – 12”)

Large(14”)

When selecting your niche market,questions to be answered are:

• How competitive is this market?

• Are there already a lot of established businesses?

• How are these businesses faring profit-wise?

Step 2

Examine “Buyer” Groups

Your product and services will largely determine your customers.

Knowing what your customers want most

makes the difference over your competitors!

Principle # 2

Failing to clarify your target market, or attempting to satisfy too many markets at once, may result in satisfying none of them well.

WHO

Who are you selling to?

Preference Attributes

Quality

Variety

PriceMarketOutlets

Mass Merchandisers

Flower Shops

Garden Centers

Grocery Chains

Interiorscapes

Landscape Contractors

To spread or reduce risk, it makes sense to diversify.

However!

With a variety of product, the more knowledgeable you and your staff have to be in order to avoid losing your

investment!

Step 3

Select Your Target Market

You must ask yourself the

Critical Marketing Question(CMQ)

Why should potential customers

buy from me?

Principle 3

$uccessful $elling relies on

Customer Oriented Thinking

COT strives to go beyond customer satisfaction to

customer delight.

COT

Step 4

Monitor Changes!

Peoples’ needs change as they move throughout their life.

Consumer trends change over time.

What Customers Want• Friendly employees.• Someone to know their name and make them feel important.• To be heard

– Customers want to be provided a wonderful shopping experience.• Solving problems

– Tell customers what you can do; don’t focus on what you can’t.– When there’s a problem, fix it. Fast!

• Good information– A display garden is a great way to supply additional information on

products.– Be prepared with other information, as well.

• Extras– Is there a customer loyalty program? Appreciation day or dinner?– Are you involved in the community?

• Make it simple– Obvious things: Good signage, clear isles, clean restrooms, etc.– Not-so-obvious things such as great end cap displays to pique interest.

What Customers Don’t Want

• Long checkout lines– Train EVERY employee to run a cash register and keep an eye on the

front.

• Several employees talking while customers wait.• Inability to locate staff.

– Are you understaffed or has your staff disappeared?

• Poor math skills– Can’t figure out discounts or count change back

• Inability to locate items or “in the back”– Better training should alleviate this problem.

• Missing or wrong prices– Teach employees to fix this immediately after it is reported.

Adapted from “Marketing Nursery Products”

By Dr. John HayduFood and Resource Economics

Dept.University of Florida

Thank You

• For more information visit the Small Farms web at http://smallfarms.ifas.ufl.edu

• Take a virtual field day tour by visiting the Virtual Field Day web at http://vfd.ifas.ufl.edu

This presentation brought to you by the

Small Farms/Alternative Enterprises Focus Team.