Scanning the front page of the Nov. 29 issue of the Fort Worth Star-Telegram, my eye was quickly drawn to a colorful photo of a woman standing in a greenhouse full of poinsettias ready for sale. The headline read "Power Plant." A smile came to my face as I read the photo caption identifying the person and greenhouse operation. P.J. Ellison-Kalil, owner of Ellison's Greenhouses in Brenham, Texas, continues to operate the business started by her parents Jim and Ellen Ellison in 1968.
The newspaper article discussed the impact of poinsettia sales ($14.6 million) to the Texas economy, ranking it third behind California and North Carolina as the top poinsettia-producing states. The article reported the Texas Department of Agriculture ranked the state's horticulture industry second for 2002 cash receipts at $1.3 billion, which accounted for 10.6 percent of the state's agricultural economy. Only the cattle industry with $5.8 billion in sales, accounting for just over 46 percent of the ag economy, was larger.
Another reason for my smile was only a week earlier I had been in Brenham to witness firsthand Ellison's Greenhouses 13th Annual Poinsettia Celebration. The two-day weekend event drew more than 2,000 people not just from Brenham, but from all over the state. Each day cars were lined up along the street near the greenhouses with Ellison's providing shuttle service from remote parking lots. Total plant sales for poinsettias and other miscellaneous plants for the event was more than $24,000, with the poinsettias accounting for nearly $21,000.
What was even more impressive than the number of people was the fact that these attendees willingly paid an admission fee ($2 for adults, $1 for children) for the opportunity to walk through selected greenhouses to choose the poinsettias they wanted to purchase.
In addition, large white tents were erected adjacent to the greenhouses to allow 23 other vendors to sell a variety of food and arts-and-crafts items. Representatives from Fischer USA, Paul Ecke Ranch, the Flower Fields, Casa Flora and Abbot-IPCO had displays of their plant products. More than a few attendees were disappointed when they learned that most of the plant material was for display purposes only. Some would have been happy to walk away with just a cutting of the plants they couldn't buy.
Seminars by industry experts on container gardening and poinsettia selection and care provided attendees an opportunity to learn simple ways to use the plants and how to get the most enjoyment from their plant purchases.
Selling poinsettia's intangibles
On the Friday before the start of Ellison's Poinsettia Celebration, Texas A&M University sponsored a Poinsettia Workshop in Brenham that focused in part on different aspects of poinsettia production and marketing. During the session on marketing, Stan Pohmer, executive director of Flower Promotion Organization, said nothing screams Christmas louder than poinsettias. Unfortunately, so many retailers are selling the plants that many consumers know the plant's price points. Prices didn't seem to be a major obstacle for visitors to Ellison's.
Pohmer said that too many growers and retailers are selling poinsettias on price alone and not the value added -- the benefits, the intangibles. He said when the intangibles are being sold, it's difficult to compare prices.
Jennifer Young, a floral buyer for HEB's Central Market grocery stores in Austin, said her company is looking for suppliers who can differentiate products and the processes involved with handling and selling plants. Central Market has differentiated itself from other grocery chains by offering a wide selection in specific product categories including plants.
Her company, which buys poinsettias from Ellison's, plans to track customer preference for varieties and container sizes. Ellison's grows about 30 different varieties. During the Poinsettia Celebration, red varieties were the biggest sellers, but no one variety was dominant.
Both Ellison-Kalil and Pohmer said selling in the mature poinsettia market is a real challenge. Regardless of how growers and retailers differentiate their product, whether it's through different sizes, types of containers or at point of sale, the benefits must be communicated and apparent to consumers.