Linda Landrum Regional Specialized Agent Marketing & Rural Development UF/IFAS North Florida Research and Education Center - Suwannee Valley

Florida Value of Nursery/Greenhouse Crops in 2004 $1.63 Billion

4 th National Nursery Survey Conducted in Florida Nurseries Responded

Marketed Product

Sales Methods

Market Areas Florida Out-of-State

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 D epreciation of equipment Interest on investments Repairs on structures and equipment Taxes Insuran ce “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 Price Market Outlets 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 Haydu Food and Resource Economics Dept. University of Florida

Thank You For more information visit the Small Farms web at Take a virtual field day tour by visiting the Virtual Field Day web at This presentation brought to you by the Small Farms/Alternative Enterprises Focus Team.