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Innovate Developing a Trendsetter Attitude 11 Maximize Inventory Management with RFID Tags 12 Streamline Information with a POS System 14 Support Customers with QR Codes 23 Member Profile: Pine Lane Nursery Colorado Nursery & Greenhouse Association Serving Colorado, New Mexico, & Wyoming Nov./Dec. 2011 Volume 29 Number 6

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Innovate: Developing a Trendsetter Attitude is the theme of the November/December 2011 issue of the LooseLeaf magazine. This issue’s features include reports on how greenhouses and nurseries are integrating innovative RFID tags, POS systems, QR codes, and merchandising/marketing plans to improve their profitability. Another feature provides insight into how mobile cash registers work, and how Ikea and Kohl's have developed sales success through a strong emphasis on marketing. The Member Profile introduces Pine Lane Nursery of Parker, Colo., while the CSU Update reports on underused perennials in Colorado and the New Mexico Chapter News describes ebb and flow watering in the desert.

TRANSCRIPT

Page 1: NOV DEC 2011

InnovateDeveloping a Trendsetter Attitude

11 Maximize Inventory Management with RFID Tags

12 Streamline Information with a POS System

14 Support Customers with QR Codes

23 Member Profi le: Pine Lane Nursery

Colorado Nursery & Greenhouse Association Serving Colorado, New Mexico, & Wyoming

Nov./Dec. 2011 Volume 29 Number 6

Page 2: NOV DEC 2011

LooseLeaf November/December 20112

Our quality is your success

2224 North Shields Street Fort Collins, Colorado 80524

970-484-1289 | fax 970-484-1386

800-794-1289

availability password: hotwings

LEADERS IN

Nurturing grower businesses for 100 years!

Your #1 source.All the latest for your hydroponicand traditional growing!

Page 3: NOV DEC 2011

3

Board Of Directors

Kent Broome, PresidentBailey Nurseries, Inc. 303.823.5093

Dan Gerace, Vice PresidentWelby Gardens Company, Inc. 303.288.3398

Bill Kluth, Secretary/TreasurerTagawa Greenhouse Enterprises, LLC 303.659.1260 x205

Les Ratekin, Past PresidentRatekin Enterprises 303.670.1499

Stan BrownAlameda Wholesale Nursery303.761.6131

Matt EdmundsonArbor Valley Nursery 303.654.1682

Tom HalverstadtCountry Lane Wholesale Nursery 303.688.2442

Bob HeathRRH, Inc. 303.904.3330

Warren JordanJordan’s Greenhouse970.482.4471

Bob LefevreAdvanced Green Solutions303.916.0609

Monica PhelanPhelan Gardens 719.574.8058

Davey RockPicadilly Nursery 303.659.2382

Terry ShawHarding Nursery, Inc.719.596.6281

Ex-Offi cio Members

Dr. James KlettCSU Dept. of Horticulture & Landscape Architecture 970.491.7179

Lynn Payne, N.M. Chapter SenatorSunland Nursery Company505.988.9626

Griff Sprout, Wyo. Chapter SenatorSprout’s Greenhouse LLC307.332.3572

Sharon R. Harris, Executive DirectorColorado Nursery & Greenhouse Association 303.758.6672

Our MissionProfessionals growing for a better tomorrow... your growing resource.

In This Issue

5 Calendar, New Members, & Advertisers

6 Board Message: Innovate – Developing a Trendsetter Attitude

7 CNGA – Setting a Trend of Innovative Programming

9 Innovation – Increasing Effi ciency & Profi tability

Maximize Inventory Management with RFID Tags

Streamline Information with a POS System

Increase Sales with Merchandising Creativity

Support Customers with QR Codes

16 Innovations to Borrow: iPad/iPhone Registers, Ikea Merchandising, & Kohl’s Loyalty Programs

20 CSU Update: Underused Perennials for Colorado

21 Safety Corner: Choosing the Right Medical Provider

23 Member Profi le: Pine Lane Nursery, Parker, Colorado

24 NM Chapter News: Ebb and Flow Watering in the Desert

New Mexico Gets Nursery Pro Certifi cation

Publishing Info

Colorado Nursery & Greenhouse Association

959 S. Kipling Pkwy., Ste 200Lakewood, CO 80226303.758.6672 or 888.758.6672Fax: [email protected]

The LooseLeaf is produced by CNGA and Millbrook Printing Company3540 West Jefferson HwyGrand Ledge, MI 48837-9750Fax: 517.627.4201www.millbrookprinting.com

EDITORIALSharon R. Harris Executive Director Colorado Nursery & Greenhouse Association 303.758.6672 [email protected]

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 classifi ed advertisements, plant publications, upcoming events, a member directory, and much more!

CONTRIBUTING WRITERSKent Broome Marilyn Davenport

Sharon R. Harris Tanya Ishikawa

Dr. Jim Klett Amy Statkevicus

ADVERTISING INFORick Haverdink

3540 West Jefferson HwyGrand Ledge, MI 48837-9750Fax: [email protected]

Cover Photo Courtesy of Knox Nursery, Winter Garden, Fla. See related article on page 11

www.coloradonga.org

Page 4: NOV DEC 2011

LooseLeaf November/December 20114

Flowering Shrubs Junipers Ornamental Grasses Vines Perennials Container-Grown Shade & Fruit Trees

Represented by Les Ratekin303-670-1499 303-670-1133 fax

[email protected]

S I N C E 1 9 5 7

AlphaOneInc.com

Speci cally formulated for

our Colorado Plants & Soils.

www.gerdes-wholesa le-nursery.com

Scan this QR code with your smartphone to visit our website!

Page 5: NOV DEC 2011

www.coloradonga.org 5

Owners and Managers MeetingFriday and Saturday, Nov. 4 and 5, 2011, Vail Marriott Resort & Spa, Vail, Colo.

$99 room rates. $55 to register for program. Thank you to our sponsors: Pinnacol Assurance, Wells Fargo Insurance Services, and Plant Select.

ProGreen ExpoTuesday to Friday, Feb. 7 to 10, 2012, Colorado Convention Center, Denver, Colo.

Don’t miss the best regional show in the Rocky Mountain West featuring 115 seminars and 600 booths. Visit www.progreenexpo.com for more information.

CNGA Industry CelebrationThursday, Feb. 9, 2012, The Ritz Carlton Denver, Colo.

The Annual Banquet is so yesterday… Come celebrate the industry, and relax and socialize with your peers! Cocktails at 5 p.m. Dinner at 6 p.m. Thank you to our sponsors: Pinnacol Assurance and Tagawa Greenhouse Enterprise, LLC.

2011/2012 calendar

new MEMBERSNomina Nurseries20509 CR 3Berthoud, CO 80513303.396.9590Tony [email protected]

classifi ed ADSCNGA offers free posts and searches of our online classifi ed ads, including items for sale or lease and job openings. For more information and to see current postings, visit the Industry Professional side of www.coloradonga.org and click on Classifi eds under the Resources tab.

advertisersAlpha One Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4American Clay Works & Supply Co . . . . . . . . . . . . . . . . . . 22Baxter Wholesale Nursery, Inc. . . . . . . . . . . . . . . . . . . . . . 21Britton Nursery, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Carlton Plants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Circle D Farm Sales, Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Clayton Tree Farm LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Daniels Nursery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2DWF Grower Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Fort Collins Wholesale Nursery . . . . . . . . . . . . . . . . . . . . . . 2Gerdes Wholesale Nursery, Inc. . . . . . . . . . . . . . . . . . . . . . 4Harding Nursery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Hash Tree Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Jayker Wholesale Nursery . . . . . . . . . . . . . . . . . . . . . . . . . 21RatekinEnterprises/Hollandia Nursery . . . . . . . . . . . . . . . . . 4Richards, Seeley & Schaefer, Inc. . . . . . . . . . . . . . . . . . . . . 8

CNGA thanks the following companies for their sponsorship of events!

Register for Calendar events with CNGA unless otherwise noted.Tel: 303.758.6672 or 888.758.6672 Fax: 303.758.6805 E-mail: [email protected]

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.

Your comments from the 2011 evaluations were used in planning the 2012 seminar sessions. The Seminar Committee developed an excellent program with an emphasis on the experienced skill level of attendees and emerging, relevant topics.

“Heavy Hitters” especially for CNGA members include Peter Konjoian who will present “Analyzing Opposing Profi tability Strategies: Sell Out or Grow Long” on Wednesday, February 8. Back by popular demand is Dr. Charlie Hall with two 90-minute sessions on “Tactics for Survival and Maximizing Profi t” on Wednesday, February 8 and Thursday, February 9. With all the classes to choose from, including the new Urban Agriculture sessions on Friday, February 10, you are sure to fi nd many classes of interest and relevance.

Early bird pricing through Monday, January 9 offers the best deals especially with the CNGA member discounted pricing.

Exhibit sales continue to be strong. As of the fi rst week in September, 453 booths have been sold to 188 companies with six months to go until the show opens. Exhibitors will enjoy the seminars ending at 11:30 a.m. on Friday, providing an hour and a half to visit the fl oor. Attendees will be drawn upstairs to enjoy Show Specials, Aloha Friday, and a cash bar.

If you are an exhibitor and didn’t take advantage of promoting a Show Special in 2011, consider participating in this free program in 2012. Identify an item, that if booked and paid for during the show, will be offered at a discounted price you set. All Show Specials are advertised on the ProGreen website.

“Based on member feedback, the ProGreen Expo is one of your most highly-rated educational and training programs offered by CNGA...”

“It’s going to be a great show! Take full advantage of this great CNGA member benefi t.”

Photo by Pine Lane Nursery, Parker, Colo.

Page 6: NOV DEC 2011

“Watch as

CNGA adapts,

excels, gives

you more

value, con-

nects with you,

plans, and in-

novates to help

your business

do better.”

Great companies and resilient people do amazing things even in a down economy. Remember the Great Depression? Can you think of a worse time in our economic history? I know exactly what you are thinking. It is rough today, and for most of us, this is the worst economic time we have seen. During the Great Depression people and companies looked at their situation and decided to change, improve, innovate, and move forward.

Take the example of a man named Jacob, who spent time in the infantry and served in the Philippines. He came down with dysentery and was transferred to Alaska. Jacob tried mining for gold but hurt his ankle after several attempts. Times were tough and he was held up in a tent recovering when he decided to do something about his situation. He invented what he thought was something great, something that would make his life simpler. When he recovered and was back in the states no one wanted Jacob’s invention. He tried everywhere. Jacob rejoined the army in WWI, but again he became ill and had to quit. With the Depression coming, he had no funds for his invention, so he pressed forward.

Others were also trying to improve their position at that time. Clarence Birdseye found a way to freeze and save food, and made $22 million in 1929! Richard Hollingshead started to show movies in his driveway. Soon neighbors were driving over, and after some adjustments, he had the fi rst drive-in theater.

Everyone was looking to do something better. Companies and individuals all were looking to move forward. As a result, we got Scotch tape, neoprene, nylon, jet engines, Polaroid cameras, and the fi rst tape recorder. For my least favorite invention: the parking meter, you can thank innovator Carl Magee. My favorite invention was by Kruger Brewing, which brought us the fi rst ‘portable’ canned beer.

We can list many more people and companies who reached inward and tried something new. Oh, and Jacob? He and his wife mortgaged their home to fund the development of his invention. Jacob Schick’s fi rst electric razor was a hit. Schick is still around, and I am sure they are improving, too!

As employees, we need to look at what we do and at what is being done around us. There is always a way to improve, to innovate. And companies need to look at new avenues for revenue. CNGA members are always changing. At the BBQs, we have found companies starting to grow greenhouse crops, fi lling empty acres with produce. Some have not been as successful as hoped, while others have done very well.

This past year, the Looseleaf focused on adapting, excelling, adding value, connecting, planning, and innovating. Hopefully your company has benefi ted from the articles, suggestions, and examples of companies doing new and innovative things. CNGA has been improving and adding to your member benefi ts. If we had stayed the same I think you would have noticed. Our goal is to be one of the sources for your company’s direction.

The most anticipated CNGA event of the year is happening shortly after you receive this magazine. The Owners and Managers Meeting in Vail will be November 4th and 5th. Do not miss this chance to do your part in giving the board the direction CNGA needs. You will also be surprised at what your peers have been doing this year. Find out what has been working and what has not. Be an involved member and get your full benefi t.

CNGA wants to be your partner during these tough times. It is also a great time to get on a committee, volunteer at an event, or think about running for the board. I can’t remember exactly how I decided to run for the board 10 years ago, but it happened. If I remember correctly, I was talking to Sharon about something and she told me to get involved. So I did, and thanks to all of your input and suggestions over these past two years, CNGA survived.

I hope you get involved. Talk to a CNGA board member and I’m sure you’ll hear from them that the benefi t of involvement far exceeds their service time on the board; it sure did for me. Dan Gerace is the new incoming President; welcome him the next time you see him. And watch as CNGA adapts, excels, gives you more value, connects with you, plans, and innovates to help your business do better.

Innovate–Developing a Trendsetter

Attitude

LooseLeaf November/December 20116

MESSAGE FROM THE BOARD

By CNGA Board PresidentKent Broome

Page 7: NOV DEC 2011

www.coloradonga.org 7

“We take your

feedback on

what you

want from

CNGA very

seriously and

make

adjustments

and additions

accordingly.”

Like all businesses, CNGA has been working diligently this year to evolve, innovate, and remain relevant to customers. We’ve been watching our pennies, expanding partnerships, and working at becoming more effi cient. Like you, we evaluate what products and services members are using, and combined with your feedback, fi ne tune our “inventory.”

In addition to monitoring your “purchases,” we also use your comments to set our goals. It cannot be overstated that we take your feedback on what you want from CNGA very seriously and make adjustments and additions accordingly.

This year, you have responded in record numbers to our brief, quick-response electronic surveys giving us your CNGA priorities. Additionally, evaluations from 2011 ProGreen seminars were used as we planned for 2012. In response, a number of changes or additions have been made to the seminars.

ProGreen – A large number of attendees asked that the seminars teach to a more experienced audience, go longer than 55 minutes, and not overlap so much. Attendees also asked that we bring back a select few popular speakers, and continue offering some sessions more than one time during the four-day show.

As a primary ProGreen partner, CNGA has worked hard to meet member requests. For the 2012 show, we are expanding the length of 22 seminars to 90-120 minutes each, are increasing the educational level, and are bringing back Dr. Charlie Hall. Modifi cations have been made to the look of the seminar brochure for easier use. The grid will also be placed on the CNGA website, and remember: you can register for seminars on the ProGreen site.

Video/distance learning – In mid-March, a training program was held on two topics you told us you wanted: branding & marketing and communicating with employees. The two-part program was presented by panelists from local member companies, and was professionally video-taped for online viewing for those unable

to attend the live program. An attendee preview of the program is available on the CNGA website at www.coloradonga.org.

The CNGA Education Committee and staff are working on identifi cation of webinar topics. If you are unfamiliar with webinars, they are presentations that you “attend” by computer and telephone. You watch the PowerPoint or live presentation on your screen, and can ask questions or make comments by entering them via your computer or telephone, depending on how the program is set up.

Public awareness of CNGA members as experts – The Home Gardener side of the CNGA website and the CNGA Featured Plant promotion position our retail members as the experts who the public can visit for gardening answers. The website also promotes the Colorado Certifi ed Nursery Professional program and CCNP-certifi ed professionals in detail to clearly illustrate the difference between this program and the big box certifi cation programs. Customers can fi nd you in the online Member Directory by name, city, or zip code as well. Companies with CCNPs on staff have that logo listed after their name. This page alone had 1,066 hits in March to June of this year.

The CNGA Education Committee develops a month-by-month gardening checklist, and identifi es 14 Featured Plants annually that are described in articles with photos published in local newspapers and on the CNGA website. Retail members, who promoted the Featured Plants program with the “bench cards” offered by CNGA, have their company names listed on the CNGA website with a link back to their websites.

So, what do we need to provide to you in 2012? I hope to hear from more of you about what you want from your association.

Thank you for your continued involvement with CNGA.

Setting a Trend of Innovative Programming

By Sharon R. HarrisCNGA Executive Director

CNGA — A MEMBER-DRIVEN ORGANIZATION

Page 8: NOV DEC 2011

LooseLeaf November/December 20118

RICHARDS, SEELEY & SCHAEFER, INC.Insurance by Greenhouse Specialists

WESTMINSTER, COLORADO

303-429-3561CASTLE ROCK

303-814-2679www.rss-insurance.com

[email protected]

“Professional Insurance Service with a Personal Touch”ENDORSED BY THE COLORADO NURSERY & GREENHOUSE ASSOCIATION

(208) 267-1016

Page 9: NOV DEC 2011

www.coloradonga.org 9

Innovation – Increasing Effi ciency

&Profi tability

Greenhouses and nurseries innovate as a matter of survival. As competitive markets and a changing economy impact profi tability, companies fi nd innovative ways to operate more effi ciently and increase success.

“In a competitive environment like the production greenhouse, innovation is one of the only advantages you have,” said Brad McKee, the general manager of Palisade Greenhouse, Inc. in Palisade, Colo. “The biggest cost sink in my operation is labor. I am constantly trying to fi nd ways to multi-task my workforce through innovative ideas and labor-saving innovative designs for activities such as watering, cut backs, and transplanting.”

Jon Gerber, the sales and logistics manager at Today’s Nursery in Parker, Colo., explained, “Innovation is basically the only way to really get a leg up in this industry right now. A lot of the traditional

or generally accepted principles are not applicable anymore.”

He noted an example of property size, asking, “Is it better to have a smaller footprint or larger with more inventory?” While the longterm trend was to increase property size to improve inventory, Today’s Nursery decided to keep a small size, so they can keep getting fresh material and diversify more quickly.

Managers need to evaluate the effect of any innovation on the bottom line, not just profi tability but also customer satisfaction, employee morale, and environmental concerns. Each new procedure or equipment purchase must pass the cost versus benefi t test.

“At some point, you just have to say ‘Give it a try,’ throw caution to the wind, and do it. Don’t go in neck deep. Dip

your toe in the water fi rst versus jumping in head fi rst,” said Gerber, adding you always have to balance risk with rewards. “We try to anticipate and fl ush out any problem in advance, but there is only so much you can do. Wherever we fi nd a hiccup or kink in the system, we go back to the drawing board and try to fi x it.”

“Often, it can be looked at like an investment that will pay back over time,” said Dan Wise, the head of wholesale sales at Fort Collins Wholesale Nursery in Fort Collins, Colo. “You have to decide if the length of time to a payback is acceptable – is it one year, fi ve years, longer? Some ideas may be so costly that the payback isn’t clear. That is a time to go back to the drawing board and see if there is another solution.”

One area where Fort Collins Wholesale has measured an increase in effi ciency

This RFID (Radio Frequency Identifi cation) Mass Scan Portal is used by Knox Nursery for scanning entire plant beds at one time. Photo credit: Knox Nursery.

Page 10: NOV DEC 2011

LooseLeaf November/December 201110

through innovation is in its production planning. The company uses a custom software program to calculate how many plants it needs to propagate to get a desired number of fi nished plants of different ages. For example, Wise said, “We may grow an item as a 1-year-old seedling, a #1 container, a #5 container, a #10 container, and a fi eld-grown B&B plant. We sell plants at all fi ve sizes, and they are up-shifted from one size to the next. This makes it challenging to have the correct number of plants of every size available for sale and to move into the next size container. With our program, we can calculate how many of each plant to grow and not over or under produce, which optimizes our inventory levels.”

At Today’s Nursery, many innovations are happening on the technology side. The company has outfi tted sales staff with iPhones with a QuickBooks application that allows sales to be transacted right in the yard on the phones instead of registers. Receipts can even be sent by e-mail to customers. This innovation is not only improving customer relations, but also reducing labor and paper costs.

The nursery in Parker also used Google Earth to pull up satellite imagery of its property on the Internet. An online service with both free and paid versions, Google Earth provides an aerial view of the nursery, which managers employed to develop an improved path for getting tractor trailers through.

While making innovations to the loading process, Gerber and the staff came up with a portable loading dock for tractors. The dock is made up of trays of containers, which hook up to a skid steer, pulled to the tractor, and loaded together. “It cut labor time by 80 percent, if not more. Before, it was an all-day ordeal to load semis. Now, it’s maybe two hours,” he said.

The success of each innovation often creates a synergy that makes future innovation possible. With increased profi tability or sales, companies have the additional resources to invest in additional innovations. Gerber’s nursery dramatically increased sales between 2010 and 2011, which led to its ability to replace worn-out hoop houses with seven or eight newer ones.

“Our property has a better appearance overall, and that part’s important to retail customers when they look at your place,” he said.

At his former employer, Boxelder Creek Nurseries, Gerber said customers “just

gobbled up” the company’s efforts to go green and grow locally. Its focus on such green solutions as blue green algae as a soil fertilizer and solar and wind power for energy were met with positive customer feedback, besides their fi nancial and environmental benefi ts.

Boxelder Creek was also promoting itself under the state agricultural department’s Colorado Proud campaign, expanding it from the original food crops to landscaping crops. This innovative marketing strategy was multifaceted from labeling plants with the Colorado Proud logo to ensuring sales staff promoted the concept.

Successful development and adoption of innovations are truly a group activity, requiring input and buy-in from many people – employees in the fi eld up to top management. Without cooperation from all staff, innovations are more diffi cult to discover, evaluate, and implement.

Palisade Greenhouse learned the importance of sharing the responsibility of innovation by trial and error, said McKee. “I used to have the attitude that every task needed to be evaluated for effi ciency and then optimized. Eventually, this led to massive micromanaging and major morale problems. We (my management team and I) found the key to success is the workforce itself,” he said.

“Realizing there are a couple of major time sinks that need to be evaluated every year, and focusing on these we started using a team approach (everybody has one vote no matter who the are). This yielded some major advancements in our automation and in our morale. What used to be a greenhouse that was 100 percent hand watered, we now have several automated sprinkler systems and an automated transplant line,” said the general manager.

Palisade Greenhouse also adapted a couple of its production machines to do multiple tasks, to save in two ways. First, it saves on the capital budget by utilizing equipment for multiple tasks. Secondly, it increases production while decreasing labor needed to complete the task.

A commitment to open-mindedness, trust and “doing things right” by every staff member, especially management, is key to innovation. At the same time, a diversity of perspectives can contribute to problem-solving and developing new ideas.

“All of the employees know that in the current economic environment we all need to be operating at as close to 100

percent as possible. They all know that if they contribute what they have, we will be here for them and them for us next season,” McKee said.

When employee ideas lead to innovations that are effective, they are recognized for their contributions. Motivating and inspiring employees to help the company succeed is an important part of innovation. Then, even when increased sales lead to more work for everyone, “you can see the excitement,” said Gerber, the manager from Today’s Nursery. “It’s the opposite of what you might expect. Instead of grumbling over the extra work, there’s more energy. By refi ning systems, their jobs get easier and they become more productive.”

“Money is only an incentive for a certain amount of time. After that, people need a certain amount of gratifi cation, so they can take pride in a job well done,” he said, describing the informal ways that his company shows employees appreciation, such as through pizza parties, lunches and picnics.

When employees feel like they have some ownership of their responsibilities, they have the power to contribute more to their companies, agreed Wise of Fort Collins Wholesale Nursery.

“My mentor, Gary Epstein, has always said that people new to the organization sometimes have the freshest ideas, because they haven’t repeated some of the same tasks so many times that they become automatic. We try to have open ears to our employees – especially the newest ones,” Wise said. “One great way to get new ideas is to network with peers. Visiting fellow growers will often reveal different ideas, or spur brand new ideas. Simply getting out of your routine can help remove mental blinders to a problem.”

“Sometimes it takes something to quit working to spur new ideas – so those frustrating moments can be an opportunity to try something new,” he added.

McKee agreed about the benefi t of sharing information about innovations and small inventions throughout the industry. Describing an example of when his company was trying to determine how to best address a machinery need, he concluded, “It would be benefi cial to see what others have done as well, so we don’t have to reinvent the wheel every time we need a piece of specialized equipment.”

Page 11: NOV DEC 2011

www.coloradonga.org 11

Maximize Inventory Management with RFID TagsReport from Eric Claiborne, Information Systems Manager, Knox Nursery, Winter Garden, Florida

The Dilemma: How does a supplier keep track of plants throughout their life cycle and ensure customer orders are loaded accurately?

The Solution: By embedding RFID tags into the printable label on plant trays, greenhouses can accurately identify and track each tray and its variety. RFID stands for Radio Frequency Identifi cation, and the tag

has a tiny microchip with an antenna that communicates with an RFID Controller via radio signal. Grower’s Own™ ERP Software, developed at Knox Nursery, handles the RFID-related plant management at workstations around the greenhouse.

At a shipping station, each tag is read and verifi ed as the trays are packed into a box or rack for loading customer orders. In production, the trays are read as they are sown. In the greenhouse, culled trays are removed from inventory by scanning them using either the RFID tag or a barcode in some cases. And fi nally, we can do mass scanning of inventory for availability counts, dumps, and other disposals.

First, RFID allows for easier data collection because you are no longer concerned with barcode obstruction from soil, water, foliage, etc. Secondly, we can scan a large number of trays very quickly, instead of individually scanning each tray with a barcode scan. We are able to scan a 42-tray table in about fi ve seconds! Lastly, we are able to build inventory and shipping solutions that do not interfere with the workers’ workfl ow.

These features allow one person to perform an accurate inventory rollover (availability count) in about one hour. In the old days, it would take three days with several people using clipboards and writing inaccurate item counts. So we can turn our inventory and expose it for sale very quickly. This has resulted in reduced dumps and higher sales.

From a workfl ow standpoint, RFID allows a shipping station operator to pack as they always have, while the RFID system scans their trays and gives them an audible beep to indicate if the proper tray is being packed. A barcode system will require a person to stop, lift foliage, clean the barcode, and then hand-scan each code. So RFID is very much quicker and saves worker time.

Implementation & Training: I actually adapted the technology to the greenhouse setting, and it took about three years. As of 2010, the software was relatively stable and we are now looking at some newer RFID hardware that will help us even more as we go forward. Any RFID implementation in a greenhouse/nursery setting needs to be coupled well with software designed for the application. Companies who plan to adopt the system now have the tools that we didn’t have, so the implementation should be much faster.

Training is vital and has been one of our biggest challenges. We have a company that had been doing business for 10-15 years primarily on paper without any data collection (not even barcode). One day, we jumped into RFID with both feet and had to work feverishly to get management and workers to embrace and adapt to doing business in a new innovative way. Management has really taken charge of the training and insisting that the rules are followed very closely. I.T. staff is also available for training and support and routinely holds meetings to review and reinforce lessons from the past, as well as new features.

Financial Impact: Our upfront investment was over $200K (RFID + associated software and developer time). Return on investment has been diffi cult to calculate because we didn’t have any data from before the system was up to compare to. We believe that this investment paid for itself in less than a year.

In the past, we know that we had numerous shipments with shipping errors, and sent a lot of trays out to correct orders (and lost the original trays sent). We know our customers are getting what is on the packing list now, and we don’t throw thousands of trays in the dumpster any longer. We know we have increased our sales for availability. We know we have more room and better inventory turns in our greenhouse. These things are all huge improvements. And if we were to do the implementation today, knowing all the lessons we have learned, we would achieve that ROI very quickly. Building the system from the ground up and being the innovators has had costs from hard knocks and trial and error. Now, the system is exercised and working very well.

The Conclusion: RFID has benefi ted Knox Nursery by allowing us to verify our inventory counts quickly and pack 100-percent accurate shipments. We pinpointed our yield rates for each variety, resulting in less over-sow and waste. The result is tighter inventory management, more accurate shipments, and increased sales. We worked hard to achieve a workable RFID implementation, and are proud of what has been achieved. We often do live demonstrations in our greenhouse for anyone who wants to see it. We would enjoy having partners to share the software with and continue to make improvements. We are working on new solutions for inventory location tracking, automated pick confi rmation, and shipping rack tracking to take full advantage of the RFID tags, and will continue to develop new solutions.

This RFID (Radio Frequency Identifi cation) shipping station is used by Knox Nursery for monitoring packing processes. Photo credit: Knox Nursery.

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Streamline Information with a POS SystemReport by Gail Vanik, Co-Owner, Four Seasons Greenhouse & Nursery, Dolores, Colorado

The Dilemma: How does a company manage inventory effi ciently and organize customer and sales information effectively to generate more sales?

The Solution: Our POS (point of sale) system provides a wealth of information, along with more accurate check outs for our customers. Simplifi ed, it is a computerized inventory, customer relations management, and cash register system. It gives us a more accurate way to assess and manage inventory and sales. Checking out customers is clearer and more concise because receipts are detailed and provide more information than previous ones did.

Virtually everyone in our company uses the system in one way or another. After looking at Activant, SIMPOS, Shopkeeper, and Counterpoint, we chose Counterpoint for our POS system. I believe it would work for both nurseries and greenhouses, though the way it is used would be a bit different between retail and wholesale operations.

The benefi ts for the company are huge, just in terms of inventory management alone. The system allowed us to become “lean and mean” with our inventory, and pinpoint areas that need fi ne tuning.

For the customer, the benefi ts have been huge, too. If someone comes in to purchase more of a white perennial they bought last year but can’t remember what it was, we have the ability to look that up in their record. If they purchased a fruit tree and now need the pollinator, we can tell them what they need. We use it to fi lter our mailings by people who purchase certain items. People who purchase vegetables are more likely to be interested in a postcard announcement of a

vegetable sale, for instance. If they need to return an item, the receipt is itemized to make it easier for us to make that exchange. Because we store as much information as possible, we’ve even used it to call someone who left their purse or wallet here.

The POS system has even given us a way to spot theft.

While many owners may not want to think theft exists, the more you know about it and where it is occurring, the better equipped you are to deal with it. With what we learned, we changed customer traffi c patterns and store layout to discourage shoplifting.

Implementation & Training: We spent several months researching which POS system to purchase. Most companies will do webinars or demos, or will furnish you with a demo version that you can try out on your existing computer. The company we purchased our system from fl ew a trainer out twice for hands-on training for several days. She was here when we went “live” to make sure that the fi rst day went smoothly. Counterpoint also has an annual conference, along with online tutorials and webinars each month. I believe this support and training was key to our success with the system. After three years, we’re still learning new things we can do to push our system to be even more effi cient.

Financial Impact: A company of any size would benefi t from having a POS system, because the value of the cash register functions as well as the customer relationship and inventory management make it appropriate for small and large businesses. Cost, of course, could be an issue. A smaller, less complex system might suit the needs of a smaller business.

The cost savings and time period necessary to realize a ROI depends on how you use your system. Some people use it as little more than a cash register, in which case it’s an expensive cash register and takes a much longer time to get a ROI. For our company, just in the inventory management savings alone, I would say that it paid for itself within a year.

The Conclusion: For Four Seasons, a POS system has provided a way to become lean in a tough economy. Years ago, many greenhouse operations were “mom and pop” businesses, where many thought having money in your pocket at the end of the season meant you were profi table. We now run by the numbers and trust the system. This has made us more cognizant of our merchandise and buying patterns, and hence, more profi table.

While POS systems aren’t new, many new innovations have been made within these systems. They can now do more than most people realize. When we got ready to purchase ours, we had each of the staff sit in on the webinars and demos for each system we were considering. Some of the folks threatened to quit if we implemented any system, and ironically, they are the very ones that ended up using (and loving) it the most!

I would recommend that you “buy up” from what you think you’ll need – something with more power in the back offi ce than what your current needs are. You will grow into it quickly and fi nd a multitude of new uses.

Four Seasons Greenhouse & Nursery’s POS (point of sale) system is helping the company streamline its inventory management as well as better serve customers.

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Increase Sales with Merchandising CreativityReport by Jennifer Timms-Hobson, Co-owner, Jericho Nursery, Albuquerque & Santa Fe, New Mexico

The Dilemma: How does a business continually attract the attention of new and current customers, and maximize limited advertising and marketing dollars?

Marketing Solutions: We re-examined our spending on marketing, and redirected our ad budget to fewer venues. In the past we have spread our budget relatively thin to cover many types of media, but this year we are spending more dollars on television at targeted times, very specifi c radio spots, and our online presence with blogs and social media.

In our latest TV campaign we instituted a battle cry, if you will, which has become very popular throughout our fi ne city. Much to the liking of my hammy husband, we get people stopping us at the grocery store, restaurants, and even on a fi shing trip to holler ‘Hoo-Ra!’ to us. People like to identify with something, even if it’s at the local nursery.

We also entered into an arrangement with a local pottery and housewares retailer that created a way for us to have multiple locations to better serve customers in Albuquerque and Santa Fe, with low overhead and a slightly different experience for average nursery goers. Jackalope stores offer products from all corners of the globe right here in New Mexico and have pottery yards you can see from outer space, so it’s more or less a peas-and-carrots situation to have as many plants as we offer and the pottery to go with it under one roof. The relationship we have with the folks at Jackalope has allowed us to make better purchases for our fl agship location so there is a great balance.

We utilize our reader board at the fl agship location to advertise sales and add humorous pitches for buying locally. This store is on a major road that crosses the Rio Grande, so it has very high traffi c and we fi nd that people do read the board.

And last but not least, our online budget increased considerably over the past two years, and so did our web traffi c. We have several thousand hits a month, and though the results are less tangible fi nancially, we know people are visiting.

Merchandising Solutions: We also pay close attention to merchandising and displays. Our strength is being the fi rst on the block with each seasonal change. Our customers have become accustomed to knowing we’ll be the fi rst with most everything – a big color selection in spring, ristras and pumpkins in the fall, and Christmas trees in winter. This takes some salesmanship by the staff to educate a customer about methods to protect certain products from frost, for example, but customers who are able to plant their tomatoes in March instead of May feel as though they are very special and let in on a trade secret.

I think most retailers will agree that the more orderly you keep your products the better your sales will be. Customers these days seek convenience, so well-signed, clutter-free spaces make for easy shopping, which lead to more sales. This can sometimes be diffi cult when your indoor retail space is about 1,000 square feet, but we try.

This year, to make it easier for customers to navigate and shop, we moved all of our bedding to sit directly on our parking lot and minimized some of our shrub area to create more space to keep the bedding area organized. We created a main path dividing perennials and annuals, which gave us room to keep the most colorful items in large, noticeable displays. As a result, we had better turns in our smaller shrub area.

Implementation & Training: Advertising and marketing techniques change continually; what we’re doing now will need to be adjusted to meet current criteria in another year or two. We’re just trying to keep as up-to-date as possible.

Financial Impact: As far as the changes we’ve made toward refi ning our advertising budget, we won’t see any results until next year. We didn’t actually save a lot of money, but instead feel like we’re spending it smarter. We’ll be deleting certain budgets completely, minimizing some budgets by taking on more in-house advertising, and spending more in places where we know we’ve seen a return.

The Conclusion: In today’s world, most anyone can have a relatively successful marketing campaign if they’re Internet savvy and creative with marketing and merchandising. However, you still have to be able to deliver with high quality products and customer service. I tend to believe that advertising your company should always be a priority, even as the company ages. Communities change and so should your business with each generation, so it’s important to have something fresh and “hip” to keep people interested.

DID YOU KNOW?The Colorado Certifi ed Nursery Professionals (CCNP) Manual is

a resource for everyone in the nursery industry, available whether or not you enroll in certifi cation seminars. Chapter 16 of the manual features lessons in “Salesmanship and Marketing” as well as merchandising and store layout, with valuable information and concepts that can be put into practice immediately. For more information on the CCNP program and manual, call CNGA at 303-758-6672 or e-mail [email protected].

The New Mexico Certifi ed Nursery Professional Manual will be available in 2012!

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LooseLeaf November/December 201114

Support Customers with QR CodesReport by Krystal Keistler-Hawley, Annuals/Indoor Plant Area Merchandising Manager, Echter’s Greenhouse and Garden Center, Arvada, Colorado

The Dilemma: How do companies effi ciently and effectively provide as much information as customers need to make their purchasing decisions?

The Solution: QR (quick response) codes are an easy way to provide links to information our customers can use to become more successful gardeners. QR codes spark curiosity, inviting consumers to fi nd out more about products and solutions. They are helpful to those who might be intimidated by “the experts” and wouldn’t otherwise seek out our expertise. Consumers can also save the QR link to the information, so they can refer to it when they need it, at home.

These small, computer-generated codes (see photo) are easy to create and to include on signage anywhere in the store. A growing list of free QR code generators, like QuickQR or Quirify, is available online. Just type in the url for your desired web page and a code will be instantly generated, which you can download and print on various types of promotional material.

Smart phone users, who constituted more than 60 percent of cell phone users at the end of 2010, can use the camera function on their phones to scan codes (assuming they have downloaded a QR code reader application). Once the code is scanned, the phone’s search engine will connect to the destination web page. The page link will often be available in the phone’s browsing history, and can be saved as a favorite for future reference.

Increasingly, QR codes are found in magazines, on packaging, and even on billboards. In our store, the most

common use has been among customers who scan codes on hard goods to assist in product selection. As hard as it may be to believe, some customers don’t want our help and prefer to fi gure things out on their own.

Here are just a few ways to use the codes:

Generate interest in print advertising

Access coupons or sale information

Inform about products and services

Provide planting instructions

Advise on growing tips and suggested plant combinations

Connect to the sign up page for your company e-news or blog

Link to your company’s Facebook page or Twitter feed

QR codes are another tool to help customers access your company and product information as well as promotions. Each time a consumer links to information, it increases our online reputation. It also reduces paper costs, since fewer handouts are needed. In the future, these codes could help reduce labor costs and peak season stress on labor, as consumers become accustomed to using QR codes to answer many common questions about plants and products.

Implementation & Training: We are still in the process of implementing our marketing plan for QR codes. Like any new marketing practice, it’s a step-by-step process used to reach a predetermined goal that evolves over time and is, like most everything in our business, seasonally infl uenced. The trick is determining what information the customer wants us to provide.

At Echter’s, our merchandising managers can use these codes to target specifi c information that our marketing committee has chosen. No special training is needed. If you can use a computer to download and copy/paste, you’ll fi nd QR codes easy to use. There are no special requirements, provided you have a website. It doesn’t take a lot of time to implement.

Financial Impact: There is little monetary investment involved. In most cases, these codes are simply added to new signs as they are produced. It takes only a couple of minutes to generate a code and save it to an existing sign format.

The Conclusion: Determine what you wish to accomplish using QR codes. Forge a plan and stick to it. You’ll fi nd more ways to use them as you implement your marketing strategy. Start small – a sign on the door that links to your newsletter sign up, for instance.

Remember you are targeting a specifi c audience. Not everyone uses smart phones. Some people actually reject such forms of marketing, so don’t plaster the store with QR codes. Be specifi c. Make sure the link you provide goes directly to the page relating to the product or service. Smart phones may make it easy to reach their users, but no one wants to have to search your website for a secondary link to the information. Keep in mind: the purpose of these codes is to make information faster and easier to access.

Customers can use their smart phones to take photos of the QR (quick response) codes around Echter’s Greenhouse and Garden Center, to pull up web pages of production information or promotions and sales.

Page 15: NOV DEC 2011

Palisade Greenhouse employee Gloria Lopez works with a transplant line conveyor, a home-grown innovation modifi ed to accept a sickle bar cutter.

Today’s Nursery Sales and Logistics

Manager Jon Gerber is working with staff on many technology and

equipment innovations to increase save labor and

other costs.

www.coloradonga.org 15

Fort Collins Wholesale Nursery uses custom computer software to track its plant inventory like these Gambel Oaks through their growth stages.

Page 16: NOV DEC 2011

Innovations to Borrow

LooseLeaf November/December 201116

Retailers adopt technological developments and marketing innovations to keep up

and stay ahead of customer needs and wants. Check out some tools and strategies

used by cutting-edge businesses and the sales leaders in other industries.

Page 17: NOV DEC 2011

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ShopKeep.com iPad Cash Register (pictured in two photos to the left)

Square’s iPad and iPhone Credit Card System

Square and ShopKeep.com Develop Mobile Cash Registers

Just as many greenhouses and nurseries are getting comfortable with their computer POS systems or their upgrades to those systems, 2011 has brought an infl ux of online cash register systems for wireless, mobile computer devices. These new software applications or apps, as many are called, can be combined with iPads, iPhones and DROID mobile phones to free up sales staff to handle customer transactions around your store or property

While a company would need to invest in the mobile devices, they are usually much cheaper than traditional POS computer systems.

The most touted app in tech publications this year seems to be Square, known best for the little square device that can attach to mobile devices to read credit cards. Square (Squareup.com) was listed as the top app in the “Ten Essential Apple iPad Apps for Small Business” by Lakeshore Branding, a digital strategy and optimization agency based in Chicago.

Square Register can process and track sales including calculating sales tax and recording fi nger signatures. The software and card reader are free. Fees are 2.75 percent of each transaction for swiped cards increasing to 3.5% + 15¢ per manually entered transaction

A Square customer testimonial from Jonathan Plotzker, owner of Heliotrope all-natural skin and health care product store, says, “We bring the iPad to the customer so there’s no physical barrier between us and them.” “Customers notice the difference too, they love the interface and how green it is.”

The website, appadvice.com, lauded Square’s design and use, which “is amongst the best we have seen in this category of apps. You can create your own inventory to make adding items to the bill quick

and easy.” Lindsay Wiese, Square’s public relations coordinator, had the good news that greenhouses and nurseries are already using Square, including The Tree Man Nursery in Paso Robles, Calif.

Another really versatile cash register system getting attention with its iPad application this year is from ShopKeep.com. Though ShopKeep.com’s iPad Cash Register is not used by any greenhouses or nurseries yet, according to their public relations staff, it was recently used in Colorado at the Telluride Film Festival over Labor Day weekend.

ShopKeep.com has been providing online POS systems for PCs and Macs, and expanded to iPads for small retail businesses,with the ability to handle 270 items with fi xed prices. The system prints receipts and pops a cash drawer like a standard register, while allowing secure web access to all the store’s activity from anywhere. Managers using ShopKeep’s BackOffi ce watch sales in real time and can manage inventory, run reports, and export to QuickBooks from anywhere as well. A key feature of the system is that it can continue operation even when the Internet is down.

Though 2011 was a major year in mobile cash register innovation, the future is sure to hold more development in this area with many service providers to choose from. While this opens up unique, new opportunities for the green industry, businesses should be sure to research their options fully for a range of considerations, including hidden costs, payment policies, inventory tracking limits, online and offl ine capabilities, and security features.

Ikea Sets Trends with Sales-Inspiring Merchandising

Ikea has built itself into a phenomenon and continues to grow around the world with an unusual cult status. The furniture giant’s sales increase year after year, with a catalog of more than 9,000 products. In 2009, the global company employed 123,000 people in 25 countries, who welcomed a total of 590 million visitors to 267 stores, including 48 in North America.

Ikea is such a cultural icon and economic force that business magazines not only feature insights into the company’s philosophy and operations, but editors give consumers advice on how to make the most out of shopping at Ikea stores. The August 2008 issue of Money magazine provided strategies for customers to help with “the challenge” of “getting out (of a

Check it out on Video!CNGA members can watch videos on using wireless, mobile cash registers at web links provided on the association website at www.coloradonga.org/mobile-cash-register-videos.

Page 18: NOV DEC 2011

LooseLeaf November/December 201118

store) with only what you went in for,” recommending shortcuts, maps, pre-shopping research, and even when and where to take a snack break during a shopping trip.

Wouldn’t it be satisfying if your store was so successful at merchandising and displays that people had to come up with ways to resist spending too much money with you?

Ikea gets customers through its doors (and on to its website) through strong, consistent and recognizable branding and company philosophy, as well as a focus on building buzz through the media and word of mouth with exciting, interactive promotions and events. The retailer closes the sales through a carefully planned and skillfully managed customer experience.

Job descriptions for graphics and interior design staff at Ikea demonstrate their seriousness about the in-store experience. When a new store opened in Tempe, the employment ad declared: “you will have a flare for visual merchandising and a desire to understand and energize our customers. You will be responsible for creating that ‘wow’ factor by ensuring our range is presented in such a way that it inspires our customer’s and brings alive the impulsive shopper in us all.”

In another help wanted announcement, the job description proclaimed: “The IKEA graphics & interior design teams work to make the visitors’ shopping experience truly inspirational. Using their design skills and grasp of merchandising techniques, their role is to ensure the visual identity of the store and make it easier for customers to buy our products with as little assistance as possible.”

In fact, Ikea avoids the hovering sales staff to put customers at ease and allow them to explore freely. At the same time,

they provide easy-to-find information booths, store maps, and lots of signage. Even before the customer enters the store, Ikea is guiding them to their purchases. The website (http://info.ikea-usa.com/centennial/) for the first Colorado store, opened in Centennial in July, offers lots of pre-shopping tips. The “Ikea virtual store” button welcomes us to see the specific floor plan of the Centennial store, while the “Know before you go” button leads us to slides on how to make the most of the Ikea shopping experience.

In an article on “Visual merchandising tips” from the September 2009 Ikea business e-newsletter, the company shares its secrets, explaining that “the purpose of visual merchandising is to create a logical and visually pleasing environment that will grab attention and translate into increased sales.” Beyond a clean, well lit, and neatly organized store, Ikea offers the following tips for retail visual merchandising.

1. Take It Outside With Outdoor Displays

2. Identify Everything With Noticeable Signage

3. Set The Mood With Your Windows

4. Embrace All The Senses With Music And Scents

5. Show Them How It Will Look At Home

6. Group Like With Like

7. Group By Lifestyle

8. Use Dramatic Lighting

9. Change Your Displays Often!

10. Use Strong Colors

11. Integrate Motion To Catch The Eye

12. Display In Sets Of Three (tall, taller, tallest; fat, fatter, fattest; good, better and best price; etc.)

For the full descriptions of each tip, go to the CNGA website at www.coloradonga.org/ikea-merchandising-tips.

Kohl’s Improves Customer Attitudes with Loyalty Programs

In survey after survey, Kohl’s places at the top of large corporations for its customer service savvy. Recent awards include a number 2 ranking in the Top Retailers for Customer Satisfaction, surveyed by the University of Michigan’s American Customer Satisfaction Index (ACSI), and a number 7 ranking in Top Retailers for Customer Service, surveyed by the National Retail Federation.

More than just nice kudos, these ratings point to the reasons for the company’s significant financial success. In the past five years, Kohl’s sales have increased from $13 billion to more than $17 billion. Headquartered in Menomonee Falls, Wis., the department store started as a grocery store in 1920, and has grown to become the 24th largest retailer in the United States, with 1,050 stores located in 49 states.

While most independent greenhouses and nurseries have no vision of expanding to the mammoth size of Kohl’s, its customer service and retention strategies could provide some valuable lessons for any retailer.

The store touts its focus on selling popular name brands and locating stores conveniently with plentiful parking for its success. Kohl’s also places a high value on marketing as demonstrated by its commitment to expanding customer management programs such as its loyalty rewards, store credit cards, and online promotions.

The popular Kohl’s Cash program gives customers $10 certificates for each $50 purchase to use as “cash” toward future purchases, both in-store and online. Although data was not available on the redemption rate of Kohl’s cash, the 2011 COLLOQUY Loyalty Census reported that about two thirds of loyalty program rewards in the U.S. are redeemed.

The census, a study of loyalty programs, also reported that the average household has signed up for 18.4 programs, up from 14.1 programs in 2009. However, the average number of programs in which households actively participate is 8.4, less than half of the actual programs they are enrolled in.

Ikea inspires impulse buying and increased sales through a carefully planned and skillfully managed customer experience.

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Besides its in-store loyalty reward programs, Kohl’s has rewards attached to its store credit cards and its online shopping. Kohl’s also began partnering with Chase Card Services in early 2011. When Chase card members within the Ultimate Rewards program shop at Kohl’s, they get increased rewards such as enhanced gift card promotions and expanded bonus point programs.

An August 2011 article in Financial edge by Investopedia.com describes the “Best Loyalty Programs for 2011” as having: “Clear benefits. Achievable rewards. Consistency. Sustainability. A feeling of appreciation.” The article goes on to explain: “If customers don’t understand a program or have the terms changed on them, they’ll be uninterested at best and feel betrayed at worst.”

Ebates, which is listed as one of the best programs, allows consumers to earn cash back through online shopping at several different online stores including Kohl’s. Ebates has no membership fees. To earn cash back, customers sign up, log in to their accounts, and click on a retailer’s link to shop. The cash-back amounts vary by store between 1 percent and 8 percent, with Kohl’s offering 4 percent.

Kohl’s is even more proactive with its own credit card loyalty program. According to a May 2003 article on allbusiness.com, Kohl’s direct mail program is crucial to its advertising and marketing strategy. The linchpin of that effort is pieces that Kohl’s sends to its more than 6.2 million active credit card holders.” The department store’s credit card customers receive special discounts and various rewards similar to other store loyalty programs.

In 2003, Kohl’s card sales accounted for 34 percent of its annual sales, up from 19 percent in 1993 – the sharpest rise in such sales for any leading department store chain, according to the article. A 2009 investor report showed

continued growth in the store credit card purchases.

Though credit card users previously only earned rewards after $600 worth of purchases, Kohl’s updated the program this year with “extra discounts on everything 12 times a year, plus regular 15 percent to 30 percent discounts on all regular-, sale and clearance-priced merchandise.”

The department store’s online shopping was introduced in 2001, and in 2010, it opened a second e-commerce fulfillment

center to support the sales growth. Kohl’s even installed in-store computer kiosks for customers to find what wasn’t on the sales floor. To enhance its web presence, the store has videos on Youtube, Facebook pages, and Twitter feeds – all offering promotions and connected to its shopping website.

As reported in Direct Marketing News in October 2009, Kohl’s increased its spending in digital media by 25 percent that holiday season. The retail chain also boosted the amount of mailings to its credit card users, as well as its social media and e-mail marketing efforts. Kohl’s Facebook page, which was reported to have 700,000 fans in 2009, was up to 5,721,620 fans in September 2011.

Though Kohl’s results are remarkable, other research shows that companies need to carefully evaluate the effectiveness of customer loyalty programs by monitoring sales and customer data before instituting the programs and along the way. Many factors influence customer loyalty and providing discounts and rewards may be a money-losing strategy if not implemented effectively.

Kohl’s customer service and retention strategies can provide some valuable lessons for any retailer.

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LooseLeaf November/December 201120

Underused Perennials for Colorado

CSU UPDATE

By James E. Klett, Professor and Extension Landscape Horticulture Specialist,

and Lindsey Greeb, Undergraduate Landscape Architecture Student,

Colorado State University Dept. of Horticulture and Landscape Architecture

The Plant Environmental Research Center (PERC) at CSU is home to the Herbaceous Perennial and Ornamental Grass Gardens. This one-acre garden has more than 850 perennial species. Open year round from sunrise to sunset, the main objective of this demonstration garden is to determine which herbaceous perennials are best suited for the Rocky Mountain area and to display for public and teaching purposes.

Most of the plants are labeled for easy identifi cation. Flowering data is collected for each plant species throughout the growing season, along with yearly data on growth, overall size, maintenance requirements, aesthetic value, and any major disease and pest problems. Some of the species in the garden have been there for almost 30 years, but new species and cultivars donated from different sources are planted each year. One source of plants is the Perennial Trial areas located at the annual trial gardens. After their three-year evaluations at this site some of the best are moved to the PERC site.

The 2011 growing season featured some outstanding and unusual perennials from the PERC site. Judgments were based on unique or uncommon features, and a potential for increased use in the landscape.

Origanum rotundifolium ‘Kent Beauty’ (Kent Beauty Ornamental Oregano) features gracefully draping sprays of unique hop-like bracts tinged purple, which are excellent for dried fl ower arrangements. The dark green, heart-shaped leaves feature prominent whitish veins. They perform well in a border, in containers or in hanging baskets, which show off their elegant trailing growth habit. They

tolerate sun or shade, with purple bract color in the sun, and prefer dry to average moisture in a well-drained soil. Kent Beauty can get up to 14 inches tall with a 2-3 foot spread. Grown as an

annual in many parts of the country, this plant is rated hardy for zones 5 to 9, but seems to be hardy at this site. Growth should be cut back in late fall.

Cerastium alpinum var. lantanum (Alpine Mouse-ears) is a dense, wooly, mat-forming grey-green perennial very useful as a ground cover. It can grow up to 3.5 inches tall and forms a mounded cushion up to 1-foot wide. Small white fl owers emerge from May to June. It is hardy in zones 3 to 8 and is native to arctic alpine areas. It prefers well drained soil and regular watering, and is an excellent rock garden plant.

Hemerocallis x ‘Brocaded Gown’ (Brocaded Gown Daylily) stood out from other daylilies in the garden due to its delicate creamy lemon yellow fl owers. These 5-inch blooms have ruffl ed, recurved petals and matching stamens. The grassy green foliage has a graceful arching habit. ‘Brocaded Gown’ grows up to 30 inches tall and 18 inches wide. Daylilies can survive many harsh conditions including poor and dry soils and winter salt spray. They are adaptable to full sun or partial shade and hardy in zones 3 to 9.

Veronica spicata ‘Blaufuchs’ (Blue Fox Spike Speedwell) produces bright blue spiked fl owers up to 6 inches tall. They bloom for a period of 4 to 8 weeks from June to July and attract bees. They have an upright habit and grow 24 inches tall and 18 inches wide. Blue Fox prefers a site in full sun but will tolerate partial shade. Soil should be moderately fertile and well drained. It is hardy in zone 3. Deadheading midsummer will allow a second bloom.

Ophiopogon nigrescens (Black Mondo Grass) is a low-growing 6-inch high perennial with narrow black evergreen foliage. It is a slow grower but once established spreads by underground stems. It prefers partial shade, moderate to high moisture, and soils high in organic matter. It has pinkish fl owers in summer. Black Mondo Grass is borderline hardy (zone 6) but has performed well in this garden, provided it gets enough moisture. Snow cover is benefi cial along with winter watering.

Feel free to visit http://lamar.colostate.edu/~percgard/Perennial.html for further information.

Origanum rotundifolium ‘Kent Beauty’ (Kent Beauty Ornamental Oregano)

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Pinnacol Makes Choosing the

Right Medical Provider Easy

SAFETY CORNER

Pinnacol has made choosing the right SelectNet provider for your company easier. SelectNet is Pinnacol’s integrated, preferred medical provider network for injured workers employed by Pinnacol policyholders. Pinnacol’s new web-based provider rating system allows you to see how SelectNet primary care clinics score in important areas such as clinic comfort, cleanliness and service, the timely submission of medical records, the thoroughness with which they address modifi ed duty, and more.

SelectNet Network Operations Lead Ken Crane says the goal of Pinnacol’s provider rating system is to educate and inform consumers and to help policyholders fi nd the provider that best fi ts them and their injured workers.

“Our online SelectNet directory has always been a great resource; now it is even better,” said

Crane. “Using the ratings data, policyholders can make an informed decision about choosing a medical provider in their area. It’s another value-added service that sets Pinnacol apart. This rating system benefi ts everyone: policyholders, injured workers, providers, and Pinnacol. We encourage all policyholders to go online and take advantage of it.”

This rating system is a key component of the Clinic Performance Initiative (CPI), which was developed as part of Pinnacol’s ongoing commitment to serve our policyholders through quality improvement.

To access the SelectNet provider directory, visit Pinnacol.com and click on the “Manage SelectNet Providers” link under “QUICK LINKS.”

From Pinnacol Assurance

Instantly

view clinic

performance

ratings at

Pinnacol.com

Quality specimen trees

888-777-8199Emmett, Idaho | baxternursery.com

Baxter WHOLESALE NURSERY

The market has changed...our trees haven’t

Evergreen | FloweringShade

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LooseLeaf November/December 201122

HASH TREE

COMPANY

WHOLESALE CONIFER NURSERY

Growers of Quality Specimen ConifersSelected Seed Sources of Pine, Fir & Spruce

1199 Bear Creek Road

Princeton, ID 83857

Fax: 208---875---0731

E---Mail: [email protected]: www.hashtree.com

877---875---8733

Clayton Tree Farm

Shade and Ornamental B&B and Container Trees

Growing Grounds Nampa and Wilder, Idaho

Office 208.482.6600 [email protected] www.claytontreefarm.com

Specimen Trees for Color and Comfort

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www.coloradonga.org 2323

MEMBERPROFILE

How did your business get started? Pine Lane Nursery has been a fi xture of the

Parker business community for more than a quarter century. It has always been an independent, family-owned business. Four years ago, Kurt and Angie Hughes decided to buy the business and expand its presence and commitment in Parker and the surrounding area.

Tell us about your staff and your property.

Owners Kurt and Angie have operated a landscaping business for many years. Angie has been interested and involved in the green industry for more than 20 years.

Pine Lane employs four staff members whose fi rst priority is our customers. We also have a crew of fi ve who run our machinery, load trees, and handle the customer deliveries and plantings.

We are located on eight acres on Twenty Mile Road, just south of Lowe’s. Eighty percent of our property is dedicated to shrubs and trees, both containers and ball and burlap. We also have three greenhouses for our perennials, annuals, ornamental grasses, and shrubs.

Please describe your product line and services.

Pine Lane is a full-service nursery and garden center, selling to retail and wholesale customers. We specialize in trees and shrubs that will thrive in our local growing environment. We carry a full line of the heartiest trees and shrubs for our south Denver area, and also seasonal inventory such as annuals and perennials during summer months and living Christmas trees, wreaths and greens during the holidays.

Why do longtime customers keep coming back to your business?

Our customers appreciate our personal service. Although that term is used frequently, it is truly the way we do business. We will walk our entire eight acres with a customer to pick the right tree for them. We also spend as much time as the customer wants to educate them about their plants, and how to properly care for them and identify problems.

When and why did you become a CNGA member?

We became members in 2009, shortly after we bought the business. CNGA helps me understand the current industry environment and how to better align my business with customer needs. The networking has been extremely helpful, and I have taken several classes that have provided important information in keeping my business healthy and competitive.

How do you develop innovations in your business operations?

I attend one or two conventions a year. Every year I attend ProGreen in Denver. The events motivate me and give me new ideas to bring to my nursery. I also depend on my staff to keep up on news and fresh ideas.

What recent innovation has been important to your business?

Last year we began growing our own product from bare root. This demands that my staff and I are even more knowledgeable about our product, but it is extremely rewarding to have strong healthy shrubs for our customers by midsummer, and be able to improve our margins while keeping our prices competitive.

What company outside the green industry is a good example of innovativeness?

Google is the best example I can think of. They use their employees as a great resource in keeping fresh new ideas ahead of the marketplace.

Pine Lane – Personal Service, Fresh Ideas & Healthy Plants

Pine Lane Nursery

18200 Apache Drive

Parker, Colo. 80134

Tel: 303.841.3009

Fax: 303.841.7281

www.pinelanenursery.com

23

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LooseLeaf November/December 201124

Colorado Nursery & Greenhouse Association

959 S. Kipling Pky, #200

Lakewood, CO 80226

Water fl ows into Ebb and Flow trays, containing 136-day-old Koelreuteria paniculata (Golden Raintree) on the left and 117-day-old Fraxinus velutina (Arizona Ash) on the right. Photo by Marilyn Davenport.

Plants of the Rio Grande, LLC is located in Lemitar, N.M. at the northern edge of the Chihuahuan Desert, 70 miles south of Albuquerque, on the Rio Grande river. A family-owned business, Don and Marilyn Davenport moved out of the cattle business into the nursery industry in 2002, specializing in evergreens, native plants and shade trees, which they market in containers, B&B, and grow bags.

“Being located in the Desert Southwest has made irrigation one of the most important challenges,” said Don. “In the past three years, both farms with 60 acres under production have been converted from open ditch irrigation to a closed pipeline system.” The farms have irrigation wells and surface water rights from the Rio Grande.

In November of 2010, their daughter Dixie joined the family business and a decision was made to expand the product line to include shrubs and grasses.

“With a slower economy and water always an issue,” Don said. “I felt we needed to propagate as many of our own product liners as possible and make sure we can keep them wet.” With

that idea in mind, a new 3,000-square-foot shade house was constructed with an Ebb and Flow watering system.

The shade house contains 19 pond-lined trays of frame construction varying from 4' x 8' to 8' x 24' in size. “No one likes weeding plants sitting on the fl oor,” said Don. “So, waist height trays turned out be ideal for both convenience and the Ebb and Flow system.”

“The water is pumped in from one end and after 10 minutes is drained at the opposite end,” said Dixie. “This allows the plants to get as much water as they need for the day. Of course, time can vary depending on the container size and potting medium used.”

“Being able to propagate additional plants and keep the plants effi ciently watered here in the Southwest is the goal,” said Don. “The family is already making plans for another shade house with the Ebb and Flow system.”

For more information: Plants of the Rio Grande at 575-838-0564 or www.plantsoftheriogrande.com.

Ebb and Flow Watering in the Desert

CHAPTER NEWSNEW MEXICO

11

New Mexico Gets Nursery Pro Certifi cation ProgramCNGA is pleased to announce the soon-to-be

available New Mexico Certifi ed Nursery Professional program. Based on the Colorado seminars and exam with adjustments for New Mexico regulations, climate, and plant palate, this certifi cation program will be launched in February 2012 at the New Mexico Xeriscape Conference in Albuquerque.

You can learn about the program’s value to employers and customers by visiting www.coloradonga.org/certifi cation-ccnp and www.coloradonga.org/gardener/certifi ed-professionals to read about the Colorado Certifi ed Nursery Professional program.