Profitability may be closer than you think Many growers complain about shrinking margins, rising input costs and constantly being squeezed on price by their customers. While most growers have a legitimate reason to complain, what's more important is what they are doing to reverse or resolve these issues. This summer's industry trade shows and conferences gave me an opportunity to learn what some growers are doing to ensure that their companies remain profitable. At this year's Southeastern Greenhouse Conference, Carole Barton, co-owner of Barton's Greenhouses and Nursery in Alabaster, Ala, told me she is starting to use the term "localization" to describe how her company is trying to become more profitable. She used this term as a point of reference as more companies look to expand their business through production and sales on a global basis Carole's company is focusing on how to do more business with its local customers. To that end, Barton's has hired garden center veteran Cliff Myers, who operated his own retail store for more than 20 years. Cliff, who Carole has known for 25 years calls him the company's "everyman," and that's the way Cliff likes it. She said he came to Barton's with a "do-whatever-needs-to-be-done" attitude. "Cliff is great on the sales side for the retail customers because he can relate to them," she said. "He's been where they've been and they trust him." She said he also works with the company's landscape contractor customers. One of Cliff's best assets, said Carole, is he thinks outside the box. In the past when Barton's had a few plants left over, they may have gone unsold because it was assumed retailers wouldn't want anything less than a full flat of plants. "Cliff realized that retailers can and will buy less than a flat of plants if they look good," Carole said. "He's willing to pick up his cell phone out in the nursery and sell them right on the spot." Myers has also provided input on crop selection and prospecting of potential customers. As a result of focusing on the needs of local customers, spring sales at Barton's were up 10 percent. A merger in the making At the OFA Short Course, employees of Peace Tree Farm and Gro 'n Sell were handing out formal announcements about the merger of the companies. What started out as a potential land sale between Gro 'n Sell and Peace Tree Farm, turned into an agreement to merge to take advantage of their existing facilities, product lines, personnel and marketing expertise. Lloyd Traven, co-owner of Peace Tree Farm, said negotiations concerning the merger have been ongoing for two years between the two Bucks County, Pa., growing operations. "We are doing this from what we feel is a position of strength," Traven said. "We're both at an awkward stage size-wise, which is resulting in the lost opportunities. We are literally turning away business." Traven said by combining production, personnel and marketing assets, the two companies have an opportunity to capitalize on their combined strengths. Before agreeing to the merger, the companies hired business consultant Bill McCurry to discuss the pros, cons and synergies. Traven said the discussions answered the who, what, where and why. "We both offer each other a significant upgrade in production capacity without adding a penny of investment," he said. "Neither Dave Eastburn at Gro 'n Sell nor myself wants to lose our identities. We are very different people, but our philosophy and the way we want things to be done are very much identical. "The change will be in the opportunities that we will be able to take on. Gro 'n Sell is an outstanding plug producer that has a strong relationship with the brokers. My market is the broker salespeople and the growers. We can show them the various finished forms growers can produce along with the schedules they need to finish them. It's a complete marketing message that we can present." Lessons learned If you're looking for new and better ways to lower your costs and increase your returns, consider looking at your business from a different perspective -- through the eyes of your customers, employees or a fellow grower. Their insight may provide you with opportunities you have missed or weren't even aware were available. Send this article to a friend Enter your e-mail address: Enter your friend's e-mail address: Click the image below to send: © 2006 Branch-Smith Publishing