Benchmarking Strategies Finance Marketing Human Resources

Benchmarking

Strategies

Finance

Marketing

Human Resources

Media Placement

Mystery ShopperService

Site Design &Development

“Helping garden centers develop the business side of their business”

Consultation

Merchandising

Training

PO Box 801494 | Acworth, GA 30101 | Tel 678.909.7770 | Fax 678.909.7771 | [email protected] | www.thegardencentergroup.com2

HELP WANTED?

HELP GIVEN.

Forward-thinking, innovative independent garden center? Seeking like-minded to help

you increase sales, build traffic off-season, increase net profit,

and minimize the stress of ownership and management?

Forward-thinking, innovative, group for independent garden centers will

offer services and professional resources for business solutions to

operational issues facing retail, with the goal of increasing sales, improving

operations, and retaining more profit.

See what other garden centers are saying at:

| www.thegardencentergroup.com |

Being Independent is GREAT... but you’re on your own to figure out how to grow and manage your business.

For less than $300/month ($10.00 per day) you can be an active part of a network of more than 120 independent garden centers, just like you, to learn and share business-building ideas and experiences.

The Group Experience…consists of two major components of sharing…

(1) sharing data, benchmarking, and experiences with fellow garden centers

Group Sharing Programs: Weekly Enews - GROUPtalk Weekly Department Review (WDR) Annual P&L Study TimelyTopic-SpecificConferenceCalls-GROUPtalk-Live Group Email ListServ FullGroupMemberContactsforDirectAccess

Group Meetings - The Annual Fall Event and Other Activities Retailers’ChoiceAwards™orCoolProductsAwardsatindustrytradeshows suchasCultivate,Farwest,SNA,TPIE,MANTS,NewEnglandGrowsandmore

(2) interaction with our Service Providers – professional in their areas of expertise

Service Providers: Robert Hendrickson, Sid Raisch, Steve Bailey, Tom Kegley, Jean Seawright, John Kennedy, Robert Hayter, Mary Gaskell, Arlene Tannis, and others

Intoday’sbusinessclimate,tryingtogoitaloneisdoingitthehardway.TheGardenCenterGroupoffersyouaccesstothemostinnovativeideasintheindustry.Provenmethods that take the guesswork out of important business decisions. Direction, support, guidance and step-by-step assistance in some of the most important aspects of operating a successful garden center in these radically changing times. And best of all, you’ll be part of The Group – a multi-million dollar alliance of some of the industry’s leading garden centers.

We invite you to leverage the power of The Group!

HundredsofGardenCentersacrossNorthAmericahaveseenthebenefitofTheGroup. Our community is like no other group of independent garden centers you willfind.It’sauniqueexperience.WeinviteyoutobeapartofTheGroup!

PO Box 801494 | Acworth, GA 30101 | Tel 678.909.7770 | Fax 678.909.7771 | [email protected] | www.thegardencentergroup.com 3

Who We AreThe Garden Center Group (The Group) is an alliance of garden centers, consultants, service providers and vendors who work together creating a community of professionals with one goal in mind... helping each other build successful companies. We believe that the success of The Group is dependent on the success of each participating company.

From marketing to merchandising... budgeting to human resource concerns, The Group offers a way for you to develop your business while reducing the time and trials of doing it alone. The secret is to know just what to do and when to do it, then pulling things together to make it all happen.

When you join The Group you will have access to some of the industry’s leading experts on business management issues along with more than one hundred garden center owners from across the country, centers facing the same business concerns as you on a daily basis.

This is what The Group is all about... helping you achieve your goals by focusing on the business side of your business.

The Annual Fall Event

Debbie Pinkerton, Gill Landscape Nursery, Corpus Christi, TX“This is my first time attending the event, and I’ve really en-joyed being here. It’s been eye opening and very informative. The people here are welcoming, and I hope to keep learning more.”

Beth Simpson, Rolling Green Nursery, Greenland, NH“The networking is priceless. After going to the promotions breakout session, we tried “boosting” a Facebook post. Holy Mackerel! What a crazy response. We plan to do this to promote our winter farmers markets. The visit to Dale Deppe’s trial gar-dens at his home were every plant geek’s dream. The speakers at the Event were inspirational. I am still carrying around our notebook to remember it all. The Fall Event makes going back to work more fun.”

Erma Rhadigan, Ray Wiegands Nursery, Macomb, MI“I learned a lot from the tour. Following our visit to Koetsier’s, I purchased one of the games, and I’m going to have the bee ride made for next year. I also saw some new items from the vendors that I’m going to carry. I have about 15 employees going out this coming week to Spring Meadow including my grower so they can discuss what Proven Winners varieties we want our grower to grow in the future. I also want to educate my sales-people what the plants look like in the landscape. It gets them excited to see it. I got a book autographed from Ernest Wert-heim, which is fabulous. What a hero! Katie Doran (Wiegand), my niece, learned a lot about emailing, Facebook, Instagram, etc. just from a gentleman she met in class. It is nice just to catch up with everybody.”

The Annual Fall EventGrand Rapids, MI


Frances & Larry Grossman, Grossman’s Garden & Home, Penfield, NY“We are fortunate to be in an industry where there are still so many ‘indepen-dents’… We are even more fortunate to be involved with The Garden Center Group where we have an active platform to speak up, share and help each other through struggles or cheers…”

Ross Brockshus, Del’s Garden Center, Spencer, IA“The Garden Center Group has really helped with our financial direction. Before, we ran by the seat of our pants. Now we know financially what we should be doing and what our benchmarks should be compared to other businesses like us. There are a lot of similarities between companies in this

group, so we always compare notes and how to do things. It’s great to compare notes with someone more advanced than us so we can learn how to progress.”

Ed Knapton, America’s Best Flowers, Cottage Grove, WI“Since we have been members since 1999 and attended many fall conferences, I can honestly say without The Garden Center Group we would be out of business. This past Fall Event was one of the best. This year we got copies of the Powerpoint presentations shortly after the conferences, and the information presented in those Powerpoints will pay for dues for many years. What many owners do not understand is, unless you are open to new ideas and ways of doing things, you will become extinct. The group shares ideas and how it has worked for so many.

Lisa Graf, Graf Growers, Akron, OH“We are so grateful for the Garden Center Group and the positive impact it has had on our business. It is a unique opportunity to work collectively with the service providers, members and vendors to improve our busi-nesses and share our expertise. The group is very forward thinking and provides in-depth information that is relevant and current. The value of the fall event is the opportunity

to network, learn and share experiences to help each other. It always reinvigorates me and stretches us to improve our business.”

Peg Castorani, Gateway Garden Center, Hockessin, DE“The Garden Center Group supports its members on all levels for the indepen-dent garden center: financial, marketing, HR, and facilities. We are provided with inspiration and information, both of which are critical. The GCG provides a forum for the experiences of owners and managers of many garden centers. This in itself is invaluable.”

Gail Vanik, Four Seasons Greenhouse & Nursery, Dolores, COI can’t even begin to express the value in being involved in The Garden Center Group and attending Fall Event. The first time I went to Fall Event was in 2006 in Hartford, CT. When I was coming back, I called my husband from the airport and said, “I’m going to change our company and business.” He laughed and said, “How are you going

to do that?” I said, “Watch me!” And eight years later, we have done exactly that - changed almost everything - and for the bet-ter. Perhaps the best part of The Group and Fall Event however are the people. The information and advice from Robert, Steve, Sid, and now Danny, have all helped us grow as a company and as individuals. They’ve helped us set attainable goals. The WDR is an incredible tool and there aren’t many industries where such information is shared so freely and willingly and that’s just one of the ways in which this group is unique. The relation-ships we’ve formed with our peers is the real value, however. No matter your size, geographic location, or revenue level, we have a network of people we can call for advice and who are always willing to help. It’s that sharing across all levels that makes membership in The Garden Center Group a “must have” each year for us.

Kim & Chris Carter, Nobles Greenhouse, Live Oak, FL“Just wanted to thank you for instruct-ing us not to plan for lower sales. I was beginning to get nervous about all the gloom and doom economic news at the beginning of spring. You snapped me out of it and we forged ahead with the nursery fully stacked as always and sales held steady. “

WHAT OUR CLIENTS ARE SAYINGGroupClientshavealottosayaboutTheGroup...eachgardencentercomestoTheGroupwithuniqueneedsthatareanalyzedand addressed by both Service Providers and the sharing between the clients that is a very important of The Group experience. Most individual needs of any garden center that comes to The Group has most likely been successfully addressed by others who are willing to share their experiences and lessons learned that have helped them become more successful.


Telephone & Email Consultation – You now have direct access to limited private consultation time regarding all aspects of your business from some of the industry’s most respectedtalents.Informationwhenyouneeditdesignedtohelp you achieve your goals.

Financial Budgeting and Review – At the end of a busydayorbusyseason,thefinalscoreismeasuredonhowwellyourcompanydidmeetingit’sfinancialgoalsandobliga-tions.Nowthere’shelpwiththeentireprocessfromplanning,budgeting and monthly evaluation.

Human Resources – Nowthere’sanswerstoyourques-tions about compliance with employment regulations, policy manuals,affirmativeactionplans,hiring,firing,performanceevaluations, compensation plans and other personnel related matters. This is an area where one mistake can cost you a tre-mendous amount of heartache and money. Working with our experts will help you be prepared before problems arise.

Marketing/Advertising Review – All forms of adver-tising from radio, newspaper, direct mail and television can be reviewed,critiquedanddesignedtomakesureyourcompanyis creating the right message in the proper medium.

Marketing – Proven advertising and marketing messag-es designed to build sales, expand market position, secure customer commitment and extend the selling seasons. A wide array of media choices are used to provide the best mix for the most impact... gaining new customers while maintaining the ones who continually build your business.

Media Placement – Nomoredealingwithannoyingme-dia sales reps, not knowing for sure if the offers they present are in your, or their, best interest. As part of your retainer our media buyer makes sure your advertising dollars are being used in the most cost-effective and results-driven manner possible.

On-Site Consultation – Any number of Service Provid-ers can work with you on-site for a more detailed, focused ac-tivity that can have a dramatic impact on your business. This process can speed-up the time between planning and taking action on issues ranging from site development, marketing, merchandising,finance,employeetrainingandhumanre-source issues. On-site consultations are additional fee-based services not covered as part of the Group retainer. On-site consultation fees are set by individual service providers.

Strategic Planning – The deciding factor that sets your company apart from all the rest is the passion and excitement that exists between the company, the staff and the customer. Discoverhowtocreateauniqueretailenvironmentthatwilldefineyourcompany’spositioninthemarketplace.On-siteconsultation fees are set by individual service providers.

Team Building – Let us help you create a world-class team through a systematic and simple team-building program that brings to bare all four areas of team development. From forming a team to storming, norming and all the way through performing, learn how to drive engagement, encouragement, andsupporttotakeagroupofpeopleandgalvanizethemintoa team of professionals.

Site Design and Development – From property eval-uation to architectural design, you have access to an award winningdesignfirmthatprovidesafullrangeofindustryspecificdesignassistanceprograms.On-siteconsultationfeesare set by individual service providers.

Visual Merchandising – Learn how to use the character of your site, your product mix and merchandise presentation tocreateashoppingexperiencethatwillimprovetrafficflowwhile increasing sell-through rates and inventory turns. On-site consultation fees are set by individual service provider.

Mystery Shopper – An industry exclusive, your compa-ny can now take part in the same type of program used by most of the country’s leading retailers. This Mystery Shopper service has been designed to focus on garden center spe-cificactivitiestohelpyouandyouremployeesimprovetheshop-ability of your store. On-site fees are set by individual service provider.

WHAT WE DOThe Garden Center Group (The Group) is your resource for solutions to operational issues facing your company. This is not another “buying group” revolving around selling you more goods, but a company that focuses on business solutions designed tohelpyouincreasesales,improveoperationsandretainmoreprofit.Byconsolidatinggardencenterswhoagreetoworktogether towards a common goal, The Group is able to provide a host of professional products and services most centers would not be able to access on their own.

Professional ServicesThe core to the success of The Group rests on the people involved. We’ve pulled together an ever-growing list of experts called Service Providers who assist our centers in solving operational problems by providing insight, direction and one-to-one assistance when needed. The following is a listing of some of the current products and services available to garden centers in The Group. Many are included in your annual retainer – at no extra fee.


Business CommunicationsBeing part of The Group provides you with direction, support, guidance and assistance in some of the most important aspects ofrunningyourgardencenter.You’llfindprovenmethods,techniquesandprinciplescomingstraightfromcentersinTheGroup as well as from a carefully selected group of Service Providers.

CommunicationplaysanimportantroleinprovidingGroupcenters with valuable, business building ideas. We keep you in touch through a variety of channels:

Clients Only Website Pages – Once your company becomes part of The Group, you will have access to a password protected section of our website with a constant update of ex-clusive information from service providers, preferred vendors, and retail clients, as well as other business tools.

This is the communication tools that keep you in touch with the latest Group happenings plus information about seasonal business planning and market observations you can immedi-ately apply to your business.

GROUPtalk Weekly eNewsletter – AquickreadprovidingGroupandIndustryupdates,timelyarticlesfromService Providers, spotlights new ideas and program from Preferred Vendors and other industry resources.

GROUPtalk-Live – Offers live seasonal conference calls to exchange of the best ideas, products and programs, while their still fresh in our minds, to help you get a jump on planning, buyinganddisplaying,andmakingmoreprofitinthecomingyear.

gardencentergroupEs – The YAHOO online listserve is anexchangeofinformationforthebenefitofthosewhowanttheirgardencentertobecomeorcontinuetobePROFITABLE!With highly focused content one topic at a time participants postquestionsandreceivequickfeedbackfromotherGroupcenters.

Financial BenchmarkingOurindustry-exclusivefinancialprogramsplayanimportantrole in providing Group centers with valuable, business tools for managing their operations – each are valued higher than the annual cost of Group participation.

Weekly Department Review (WDR) – Being part of The Group allows you, at no additional cost, to participate in an industry exclusive that has garden centers from all over the countrysharingtheirsalesfiguresonaweeklybasisformorethan25product/departmentcategories.You’llfindareasofopportunity to help each department of your garden center perform at a progressively higher level by comparing sales trends and promotional results with other centers in your ClusterGroupaswellasnationwide.Thereisnootherbench-marking program in the industry where you can go for detailed financialinformationlikethis.Severalcentershavetoldusthat this one service alone is enough to make them decide to become part of The Group.

Annual P&L Survey – The industry’s most detailed sales and expense study to date is included at no additional cost.TheanalysisoffinancialinformationsubmittedisinastandardizedformataccordingtoTheGardenCenterGroup’sofficialchartofaccounts.Participatinggardencentersre-ceive their results followed by comparison reports based on Regional Groups and Sales Groups. The results of this survey are presented at a private Fall Event reception for P&L Survey participants only.

Meetings & ActivitiesThere’s no substitute for face-to-face interaction. The annual Fall Event and other activities throughout the year provide the perfect opportunity for you to meet other like-minded in-dependent garden retailers – to share, create and multiply the capabilities beyond that of any one individual garden center.

The Fall Event – Itwasjustamatteroftimebeforeweallrealizedthatthetraditionalindustrymeetingsthattakeplaceevery Winter needed a change. Winter is not the best time to consider new concepts, create plans for Spring or make serious buying decisions. Between an over-load of association seminars and almost weekly trade shows, who has time to put anything you might see or hear in place before Spring? That’s why The Group has positioned our annual meeting in the Fall, so there’s plenty of time to implement new ideas before Spring arrives.

Thisuniqueevent,heldinvariouspartsofthecountry,provides you with the opportunity to meet face-to-face with other Group centers, talk with Service Providers and see the newest products from our Preferred Vendors. Workshops and seminars conducted by professionals from all facets of business are short on theory and long on ideas and processes you can put right to work to help your center improve.

Group Gatherings – Your participation in Group activi-ties is one of the most important reasons for being “connect-ed”. This is the opportunity for you to take part in a number of meeting, workshops, training sessions, tours and corporate retreats, all designed to provide you with the information you need to help you reach both your business and personal goals. One activity drawing much attention in the Retailers’ Choice Awards™ held at various industry trade shows throughout theyear.Allretailersareinvitedtotakepartinthisquesttodiscover the best, new products for retail.

A Sense of Community – AveryuniqueaspecttoTheGroup is the environment of sharing information between everyoneinvolved.Ifyouhavequestionsorconcernswithalmost any topic revolving around your business, help is as close as a call, fax or email to one of the Service Providers ortoanothercenterinTheGroup.Interactionbetweenallparticipants is encouraged and welcomed. This is networking at it’s best... between friends and people interested in your success.

We hope you jump right in and start participating!As The Garden Center Group Agreement says…

“I accept the responsibility for my involvement knowing that what I get out of it is in proportion to what I put in.”

WHAT WE DO


Managing DirectorDanny SummersThe Garden Center Group [email protected]

Client Services Karen [email protected]

Founder, Business Strategies & On-Site Consultation Robert HendricksonNext New Planet

Business Strategies & On-Site Consultation Sid RaischHorticultural Advantage

Financial Management and Analysis & On-Site ConsultationSteve BaileySteve Bailey Consulting

Human Resources Jean SeawrightSeawright & Associates, Inc.

THE PEOPLE INVOLVEDThe Garden Center Group (The Group) was created to provide a full-service menu of expert advice that deals directly with the most important business functions facing garden centers today and in the future. We knew that would mean bringing togetherexpertsfromwithinthegardencenterindustryaswellasprofessionalsfromotherfields.Theresultisanetworkofprofessionalswithspecifictalentsthatprovidegardencenterswiththemostinnovativeideasandsolutionsintheindustry...proven methods that take the guesswork out of important business decisions.

The Garden Center Group’s Team of Service Providers

Team BuildingJohn KennedyJohn Kennedy Consulting

MarketingTom KegleyTom Kegley Communications

Property Development and Site Design Robert HayterLKC Engineering (formerly The Hayter Firm)

Media PlacementMary GaskellGaskell Media Management

Voice & Production ServicesArlene TannisArlene Voice & Production Services


Annuals/Perennials/Nursery StockAmericanBeautiesNativePlants/NorthCreekNurseriesBaileyNurseriesBower & BranchC.Raker&Sons/HortCoutureMonroviaPridesCornerFarmsProvenWinners/ColorChoiceStar Roses & PlantsWillowayNurseries

Credit Card ProcessingLawn & Garden Dealers Association

Employee Training & Development ProgramJohnKennedyConsultingMystery Shop Service

Garden AccessoriesBorderConceptsBotanicalInterestsTheEspomaCompanyHenri Studios/StonecastersOldcastle Lawn & Garden/Jolly GardenerOrganic Plant MagicSun Gro Horticulture

Marketing and Advertising NextNewPlanetSunrise MarketingTomKegleyCommunications

POS SystemsEpicorSoftwareCorp.LPA Retail SystemsMarinerBusinessSolutions/CounterpointSimPOS!Software

Sign SystemsGrowTech SolutionsSunrise Marketing

Tropical Plants, Orchids, Bromeliads & MoreMorning Dew Tropical Plants

OtherGardenCenterMagazineLawn & Garden RetailingMasterNurseryGardenCentersTropicalPlantIndustryExpo(TPIE)

SPONSORS & PARTNERS FOR SUCCESSThe following list of companies provide garden centers in The Group with special products, pricing and/or new introductions. Sincewearenotatraditionalbuyinggroup,ourgoalistodevelopvendorrelationshipsforlongtermmutualbenefit...andnotmake decisions based on who offers the best “deal” for their goods. For that reason, our choices for Sponsors and Partners for Success remain small but very important for all parties involved.

PARTNERS FOR SUCCESSWhileTheGardenCenterGroup’sprimaryfocusishelpinggarden centers develop better business skills, we also under-standthelong-termbenefit,foreveryoneinvolved,toworkclosely with a select number of product suppliers.

The “Partners for Success” Preferred Vendor status is offered toalimitednumberofcompaniesthatrecognizetheuniquenature of the independent garden center operation and are interested in developing methods that can help improve re-tailer/vendor relationships through open dialog, new product introductions and when possible, special pricing for Group garden center clients.

Partners for Success products news and program information is shared through GROUPtalk – our weekly enews.


Are You Taking Full Advantage of The Garden Center Group Benefits?Take a look at this list of benefits and check off The Group Benefits you are utilizing and make note of the items you need to work on! If you don’t participate in all of the benefits you will be missing opportunities to make your business more profitable!

Communicationso GROUPtalk – weekly electronic newsletter (every Monday morning)o GROUPtalk Live – seasonal conference calls on hot topicso GroupEs – group email list-serve for information exchange

Financialo Weekly Department Review (WDR) – retail sales tracking & analysis via emailo Annual P & L Study – an industry exclusive detailed benchmarking

Group Website Resources (Clients Only)o Welcome page – weekly updates and Group news linkso Client List – plus photos and Google location map of Group garden centers and direct links to websites and emailso Group Partners – service provider and preferred vendor contact list with direct links to websites and emailso Business Tools – forms, templates and documents to help you better manage your day-to-day operations including Financial, Marketing, People/HR and Planning Tools o GROUPtalk enews – posted weeklyo Group Events – listing of trade show gatherings, Fall Event details, GROUPtalk-Live scheduleo Meeting Notes – notes, handouts, trade show reviewso Retail Spotlight – your eyes on the road, photos & commentary of retail products, displays, and signageo WDR reports – posted weeklyo GROUPtalk-Live – recordings posted seasonally

Meetings & Eventso Annual Fall Event – workshops, retail tours, P&L review, sharing and moreo Group Gatherings – at trade shows & industry events, including Retailers’ Choice Awards

Product/Program Supporto Group Preferred Vendor – programs & productso Fall Event Sponsors – reviews of new product introductions

ServicesRetainer includes phone and email access to industry experts with expanded service available for additional fees:

o Business Strategies – Solutions Consulting Services, Robert Hendricksono Business Strategies – Horticultural Advantage, Sid Raischo Financial Management & Analysis –Steve Bailey Consulting, Steve Baileyo Human Resource Services – Seawright & Associates, Jean Seawrighto Marketing Strategies – Tom Kegley Communications, Tom Kegleyo Media Placement – Gaskell Media Management, Mary Gaskello Mystery Shop Program – Danny Summers, The Garden Center Groupo Property Development & Site Design – LKC Engineering, Robert Haytero Visual Merchandising – Color Results, Terri Coldreck

A Sense of CommunityThe Garden Center Group provides an environment for the open exchange of ideas, experiences, best practices, and information to fuel success. This community brings together a diverse group of independent retailers from across North America to share, create and multiply the capabilities beyond that of any one individual garden center.

NEED HELP in connecting or implementing any new services at your business? Contact Danny Summers today and we’ll get you moving toward taking full advantage of The Group!

“Helping garden centers develop the business side of their business”

The Garden Center Group | PO Box 801494 | Acworth, GA 30101Tel 678.909.7770 | Fax [email protected] | www.thegardencentergroup.com


Only Group Clients have access to ‘Clients Only’ pages atwww.thegardencentergroup.com

Client Contact List – Direct links to email, website and photos

Group Partners – Service Provider & Preferred Vendor contact list with direct links to their email and website

Business Tools – to help Group centers manage their day-to-day operations

Current & Archived issues of bottom line e-newsletter Group Events – details on upcoming Group events

Meeting Notes – notes from Group events, industry trade shows and seminars, and documents to help you plan your business strategies Retail Spotlight – highlights retail through photos with commentary and includes photos from department categories

Current & Archived issues of GROUPtalk e-newsletter

Weekly Department Review Report

WDR Categories and Reporting Form plus a list of “who’s who” in all WDR reporting groups


FINANCIAL BENCHMARKING SAMPLESSteve’sDollarisagraphicrepresentationofhowExpensesand,mostimportantly,ProfitshouldlineupinyourRetailGardenCenter.Whilestudieswillvarysomewhat,dependingupontheirspecificcircumstances,theseExpensegoalsaretheresultofyearsofProfit&LossStudiesbyTheGardenCenterGroup.And,whilewewouldliketotakecreditfortheProfitgoal,10%iswhat all retailers selling all types of product desire to attain at the end of any year.


FINANCIAL BENCHMARKING SAMPLESThe issues and challenges facing your independent garden center today are the same at other centers across the country - and world.Inordertobea‘ProfitMonger’andattainthelevelofProfityourdeserve,yourcenterhastorecognizeandsolvethesesameissues.Howmanyaffectyourcenter?Ifmyguessiscorrect,atleast8.That’sthegoalofTheGardenCenterGroup,toassistyouinidentifyingandsolvingyourfinancialissues.

#10 Since leased property does not contribute to cash-out Equity,a higher Profit should be expected and attained.

#9 The amount of Inventory On Hand doesn’t have to beproportional to the Area that’s available.

#8 High Operating Costs can be a sign of an aging facilityprompting the need for Investing in improvements.

#7 Retail and Landscape will never know if either is Profitableif both are using the same inventory and one is maintaining it.

#6 Use the “Shrink and Swell” method to insure your centeralways appears full regardless of inventory levels.

#5 Budgeting doesn’t mean Perfection but it should deliverImprovement.

#4 Know, manage and project your Profit & Loss Statement.Profit feeds Cash Flow and fuels the Balance Sheet.

#3 Know, manage and project your Cash Flow Statement.Cash Flow determines your Line of Credit needs.

#2 Know, manage and project your Balance Sheet. Both lenderrelationship and your Future depend on it.

#1 Manage your garden center financials Today as if a buyerwould come knocking on your door Tomorrow.

PROFIT MONGERTACTICS for 2016$teve’

s

TOP 10


FINANCIAL BENCHMARKING SAMPLESThe industry-exclusive Weekly Department Review (WDR) is a compliation of sales and transaction data of 25 product/departmentcatagories.GroupRetailerssubmittheirdataandwithindaysreceiveacompiledreportwiththeirfigurescompared to all others. Below is the summary cover page followed by the Sales Group Report, Regional Group Report, andtheSalesbyCategoryComparisionReport.

WDR Summary Week 17

April 18 – April 24, 2016

decreased in revenues

17%

Increased in revenues

82%

1% Same or did not

report

82 Centers and 82% Up Key Numbers

of the Week!

2011 vs. 2008 Average Sale

6

Reported 85%

High Revenue Category By Region

82 out of 97

6-10 Day Temperature Forecast Average Sale 2016 vs. 2008-2015

Carolinas/TN – Annuals MidAtlantic – Shrubs Midwest – Annuals Mtns West – Hardgoods Northeast – Shrubs

Northwest – Annuals NY/ON – Trees Ohio – Annuals South – Annuals Southeast - Shrubs

It’s Hard To See . . . You get up almost every morning and head for the garden center. You take the same route, park in the same place, and walk the same path into the building. During the day, you are concentrating on many different issues, most of them product or customer-related. But, have you ever stopped and taken a look around at your center from a customer’s viewpoint? I always found this an advantage when Robert worked with us on our garden center, to get a fresh set of eyes. Now the role is reversed, and I get to be the fresh set of eyes. And even though signage isn’t my forte, working with John, Rex, and the staff at Town & Country (ID) allowed me to offer a suggestion to direct their customers to their great covered shopping. The sign that resulted – More next week!


FINANCIAL BENCHMARKING SAMPLESThe Weekly Department Review (WDR) Sales Group Reportreflectsindividualclient’sdatabycolumntoallowcomparisontoothersofsimilarannualvolume(organizedlefttorightbyannualsales).Thetopheaderindicatesthestate/locationandclassificationofretail only (R) or retail grower (RG). An email hyperlink is included in the company name to allow easy com-municationwithotherretailers.SalesandEventsnotes(ontheright)provideaquickglanceatfactorsthatmayhaveimpactedsales that week. Highest sales categories are highlighted in yellow (both individually and group average). The majority of data in this report is sales dollars, margin by category (if available) and transaction data. Two cost areas are included (labor to sales and inventory to sales ratios). Weather conditions for the week are reported at the bottom.

© 2016Week 20

May 9 - May 15, 2016Sales Category Sales Mar% Sales Mar% Sales Mar% Sales Mar% Sales Mar% Sales Mar% Sales Mar% Sales Mar% Sales Mar% Sales Mar% Sales Mar%Annuals 20,349 1,033 2,887 60% 6,770 69% 3,068 38,695 54% 13,364 56% 5,927 17,300 60% 12,155 60%Bulbs/Seeds 1,042 69 37 37% 24 53% 409 751 62% 1,743 46% 262 272 52% 512 50%Casual Furniture 0 0 0 0 45 0 0 0 0 5Artificial Christmas Trees 0 0 0 0 0 0 0 0 0 0Christmas Fresh Greens/Trees 0 0 0 0 0 0 0 0 0 0C'mas Seasonal Non-Plant 0 0 0 0 0 18 62% 0 0 0 2 62%Christmas Plants 0 0 7 56% 0 0 0 28 45% 0 0 4 51%Container Gardens 0 0 0 516 77% 50 5,445 52% 1,820 55% 13 2,018 65% 1,096 62%Food 0 0 0 0 25 0 10 45% 0 0 4 45%Garden Center Floral 0 1,369 0 0 0 8 53% 0 0 0 153 53%Giftware 437 832 1,208 56% 838 44% 220 10 75% 1,145 42% 4,672 21 91% 1,042 62%Hardgoods 10,167 563 1,705 57% 1,061 62% 3,439 832 58% 10,175 54% 4,205 7,529 54% 4,408 57%Herbs/Veggies 5,409 445 633 61% 837 60% 1,750 7,900 64% 5,917 66% 3,364 888 60% 3,016 62%Labor 990 85 1,752 106 0 30 260 33 4,900 906Landscape Non-Plant 0 1,645 12,010 48% 2,683 43% 3,022 1,924 46% 8,930 46% 4,255 29,154 49% 7,069 46%Outdoor Living 216 811 2,095 59% 2,171 60% 443 1,876 74% 692 33% 46 0 928 56%Perennials/Groundcovers 2,282 4,384 4,142 61% 6,222 66% 2,444 8,356 62% 6,763 63% 3,952 12,079 61% 5,625 63%Pet 0 0 0 0 11,219 0 0 0 0 1,247Pottery 1,035 1,810 1,515 58% 1,240 51% 736 1,572 48% 391 52% 1,481 1,793 51% 1,286 52%Seasonal Non-Plant 0 0 0 0 0 0 0 0 99 90% 11 90%Seasonal Plant 22 420 0 0 50 122 55% 0 0 0 68 55%Shrubs 7,301 3,597 9,386 59% 6,416 63% 950 1,677 61% 7,792 57% 3,312 15,885 62% 6,257 60%Sod 0 0 0 1,025 51% 0 0 82 26% 0 1,513 53% 291 43%Trees 1,483 2,205 3,525 61% 2,582 57% 1,613 95 27% 5,459 58% 210 5,394 65% 2,507 53%Tropical Plants Indoor/Out 1,699 5,028 628 51% 2,445 63% 54 2,165 55% 385 48% 2,464 0 1,652 54%Water Gardening 37 0 104 55% 0 0 101 49% 972 56% 0 0 135 53%Wild Bird 264 0 73 54% 45 64% 293 134 55% 115 52% 317 0 138 56%(-) Bonus Bucks/Coupons 0 0 0 -140 0 -540 -673 0 550 -89Total 52,731 24,296 41,707 58% 34,841 61% 29,828 71,170 56% 65,370 55% 34,513 99,395 50,428 57% #### 9Gift Cards and Certificates 217 50 0 1,095 0 325 1,279 0 435 378Week Sales To Last Year -23.5% 35.9% 14.0% 10.7% 22.2% -33.3% 21.6% 11.3% 6.3% 7.2% 7 2YTD Sales to Last Year 91.2% 18.2% 11.0% 0.3% 11.7% -12.9% -5.9% 10.5% -6.4% 13.1%Average Sale This Week $37.19 $51.15 $75.28 $69.40 $35.81 $50.26 $50.36 $38.22 $100.81 $56.50 ####Avg Sale This Week / Last Year 0.7% 11.6% 14.5% -18.3% -12.6% 11.4% -3.6% 21.4% 3.1%Average Items per Transaction 5.9 6.0 6.7 5.6 8 8 4 6.4Average Sale Year-to-Date $40.07 $52.47 $80.22 $68.26 $40.67 $52.23 $50.99 $40.85 $95.84 $57.95Avg Sale YTD to Last Year YTD -0.4% 2.9% 7.2% 7.6% -1.2% 8.4% 8.2% 16.0% 6.1%Transaction Count This Week 1,418 475 554 502 833 1,416 1,298 903 986 932 7,910Transaction Count to Last Year 34.9% 2.2% -3.3% 49.6% -23.7% 9.2% 15.5% -12.4% 9.0%Trans Ct YTD to Last Year YTD 18.7% 7.9% -6.5% 3.9% -11.8% -13.2% 2.0% -19.3% -2.3%Labor to Sales Ratio 18.6% 11.5% 11.6% 13.9%Inventory to Sales Ratio 12.0 11.9 8.3 10.7

0 20,349 5,028 12,010 6,770 11,219 38,695 13,364 5,927 29,154 12,155

Weather ConditonsHigh/Low Temps 80 - 4090 - 70 82 - 50 88 - 58

Rainy Windy Nice Need Rain

WeatherAtAGlance

Bad first of Week Pretty Nice67 37 81 - 50 72 - 46

XXXX - XXXX - Promoted Caladiums in paper -

XXXX - 4" Seed Geranium BOGO 50% Off

XXXX - XXXX - Questions or Comments?

[email protected] & Events

XXXX - XXXX - XXXX - Orchid 101

Bonsai Class -

Denotes 100% WDR

Reporting 7.14-6.15

Index Page

Denotes High Sales Category

WA - R MA - RG

All Plant Nursery

Always Green Nursery

Planter's Nursery

Out of This World Gdn Ctr

Dalia's Nurseries

Sedum Valley Yreka

WeLovePlants Greenhouses

Tom & Chris Plants

GrandPlant Gdn Ctr

RightTree Shade GC

Sales Group Averages

2016 Weekly Department ReviewSales Group 3

MN - RG TN - R FL - RG TN - R AL - R CA - R MI - R ID - R


FINANCIAL BENCHMARKING SAMPLESThe Weekly Department Review (WDR) Regional Group Reportreflectsindividualclient’sdatapercentagesbycolumntoallow comparison to others in the same region (regardless of annual volume).

Thetopheaderindicatesthestate/locationandclassificationofretail only (R) or retail grower (RG). An email hyperlink is included in the company name to allow easy communication with other retailers. Sales and Events notes (on the right) provideaquickglanceatfactorsthatmayhaveimpactedsalesthatweek.Highestsalescategoriesarehighlightedinyellow(both individually and group average). The majority of data in this report is sales dollars, margin by category (if available) and transaction data. Two cost areas are included (labor to sales and inventory to sales ratios). Weather conditions for the week are reported at the bottom.

© 2016Week 20

May 9 - May 15, 2016Sales Category Sales Mar% Sales Mar% Sales Mar% Sales Mar% Sales Mar% Sales Mar% Sales Mar% Sales Mar% Sales Mar% Sales Mar% Sales Mar%Annuals 20,349 1,033 2,887 60% 6,770 69% 3,068 38,695 54% 13,364 56% 5,927 17,300 60% 12,155 60%Bulbs/Seeds 1,042 69 37 37% 24 53% 409 751 62% 1,743 46% 262 272 52% 512 50%Casual Furniture 0 0 0 0 45 0 0 0 0 5Artificial Christmas Trees 0 0 0 0 0 0 0 0 0 0Christmas Fresh Greens/Trees 0 0 0 0 0 0 0 0 0 0C'mas Seasonal Non-Plant 0 0 0 0 0 18 62% 0 0 0 2 62%Christmas Plants 0 0 7 56% 0 0 0 28 45% 0 0 4 51%Container Gardens 0 0 0 516 77% 50 5,445 52% 1,820 55% 13 2,018 65% 1,096 62%Food 0 0 0 0 25 0 10 45% 0 0 4 45%Garden Center Floral 0 1,369 0 0 0 8 53% 0 0 0 153 53%Giftware 437 832 1,208 56% 838 44% 220 10 75% 1,145 42% 4,672 21 91% 1,042 62%Hardgoods 10,167 563 1,705 57% 1,061 62% 3,439 832 58% 10,175 54% 4,205 7,529 54% 4,408 57%Herbs/Veggies 5,409 445 633 61% 837 60% 1,750 7,900 64% 5,917 66% 3,364 888 60% 3,016 62%Labor 990 85 1,752 106 0 30 260 33 4,900 906Landscape Non-Plant 0 1,645 12,010 48% 2,683 43% 3,022 1,924 46% 8,930 46% 4,255 29,154 49% 7,069 46%Outdoor Living 216 811 2,095 59% 2,171 60% 443 1,876 74% 692 33% 46 0 928 56%Perennials/Groundcovers 2,282 4,384 4,142 61% 6,222 66% 2,444 8,356 62% 6,763 63% 3,952 12,079 61% 5,625 63%Pet 0 0 0 0 11,219 0 0 0 0 1,247Pottery 1,035 1,810 1,515 58% 1,240 51% 736 1,572 48% 391 52% 1,481 1,793 51% 1,286 52%Seasonal Non-Plant 0 0 0 0 0 0 0 0 99 90% 11 90%Seasonal Plant 22 420 0 0 50 122 55% 0 0 0 68 55%Shrubs 7,301 3,597 9,386 59% 6,416 63% 950 1,677 61% 7,792 57% 3,312 15,885 62% 6,257 60%Sod 0 0 0 1,025 51% 0 0 82 26% 0 1,513 53% 291 43%Trees 1,483 2,205 3,525 61% 2,582 57% 1,613 95 27% 5,459 58% 210 5,394 65% 2,507 53%Tropical Plants Indoor/Out 1,699 5,028 628 51% 2,445 63% 54 2,165 55% 385 48% 2,464 0 1,652 54%Water Gardening 37 0 104 55% 0 0 101 49% 972 56% 0 0 135 53%Wild Bird 264 0 73 54% 45 64% 293 134 55% 115 52% 317 0 138 56%(-) Bonus Bucks/Coupons 0 0 0 -140 0 -540 -673 0 550 -89Total 52,731 24,296 41,707 58% 34,841 61% 29,828 71,170 56% 65,370 55% 34,513 99,395 50,428 57% #### 9Gift Cards and Certificates 217 50 0 1,095 0 325 1,279 0 435 378Week Sales To Last Year -23.5% 35.9% 14.0% 10.7% 22.2% -33.3% 21.6% 11.3% 6.3% 7.2% 7 2YTD Sales to Last Year 91.2% 18.2% 11.0% 0.3% 11.7% -12.9% -5.9% 10.5% -6.4% 13.1%Average Sale This Week $37.19 $51.15 $75.28 $69.40 $35.81 $50.26 $50.36 $38.22 $100.81 $56.50 ####Avg Sale This Week / Last Year 0.7% 11.6% 14.5% -18.3% -12.6% 11.4% -3.6% 21.4% 3.1%Average Items per Transaction 5.9 6.0 6.7 5.6 8 8 4 6.4Average Sale Year-to-Date $40.07 $52.47 $80.22 $68.26 $40.67 $52.23 $50.99 $40.85 $95.84 $57.95Avg Sale YTD to Last Year YTD -0.4% 2.9% 7.2% 7.6% -1.2% 8.4% 8.2% 16.0% 6.1%Transaction Count This Week 1,418 475 554 502 833 1,416 1,298 903 986 932 7,910Transaction Count to Last Year 34.9% 2.2% -3.3% 49.6% -23.7% 9.2% 15.5% -12.4% 9.0%Trans Ct YTD to Last Year YTD 18.7% 7.9% -6.5% 3.9% -11.8% -13.2% 2.0% -19.3% -2.3%Labor to Sales Ratio 18.6% 11.5% 11.6% 13.9%Inventory to Sales Ratio 12.0 11.9 8.3 10.7

0 20,349 5,028 12,010 6,770 11,219 38,695 13,364 5,927 29,154 12,155

Weather ConditonsHigh/Low Temps 80 - 4090 - 70 82 - 50 88 - 58

Rainy Windy Nice Need Rain

WeatherAtAGlance

Bad first of Week Pretty Nice67 37 81 - 50 72 - 46

XXXX - XXXX - Promoted Caladiums in paper -

XXXX - 4" Seed Geranium BOGO 50% Off

XXXX - XXXX - Questions or Comments?

[email protected] & Events

XXXX - XXXX - XXXX - Orchid 101

Bonsai Class -

Denotes 100% WDR

Reporting 7.14-6.15

Index Page


WA - R MA - RG

All Plant Nursery

Always Green Nursery

Planter's Nursery

Out of This World Gdn Ctr

Dalia's Nurseries

Sedum Valley Yreka

WeLovePlants Greenhouses

Tom & Chris Plants

GrandPlant Gdn Ctr

RightTree Shade GC

Sales Group Averages

2016 Weekly Department ReviewSales Group 3

MN - RG TN - R FL - RG TN - R AL - R CA - R MI - R ID - R

© 2016Week 20

May 9 - May 15, 2016Sales Category TN-3 TN-3 NC-5 TN-5 NC-6 NC-9Annuals 39% 7% 35% 36% 43% 27% 31%Bulbs/Seeds 2% 0% 0% 2% 0% 0% 1%Casual Furniture 0% 0% 0% 0% 1% 2% 1%Artificial Christmas Trees 0% 0% 0% 0% 0% 0% 0%Christmas Fresh Greens/Trees 0% 0% 0% 0% 0% 0% 0%C'mas Seasonal Non-Plant 0% 0% 0% 0% 0% 0% 0%Christmas Plants 0% 0% 0% 0% 0% 0% 0%Container Gardens 0% 0% 0% 0% 1% 1% 0%Food 0% 0% 0% 0% 0% 0% 0%Garden Center Floral 0% 0% 1% 0% 0% 1% 0%Giftware 1% 3% 2% 3% 2% 4% 2%Hardgoods 19% 4% 9% 17% 3% 5% 9% Index PageHerbs/Veggies 10% 2% 4% 9% 4% 3% 5%Labor 2% 4% 2% 1% 1% 1% 2%Landscape Non-Plant 0% 29% 6% 0% 4% 3% 7%Outdoor Living 0% 5% 2% 2% 2% 0% 2%Perennials/Groundcovers 4% 10% 10% 6% 17% 17% 11%Pet 0% 0% 0% 0% 0% 0% 0%Pottery 2% 4% 4% 3% 4% 4% 3%Seasonal Non-Plant 0% 0% 0% 0% 0% 0% 0%Seasonal Plant 0% 0% 6% 0% 0% 0% 1%Shrubs 14% 23% 16% 13% 13% 20% 16%Sod 0% 0% 0% 0% 0% 0% 0%Trees 3% 8% 1% 2% 2% 6% 4%Tropical Plants Indoor/Out 3% 2% 4% 5% 3% 3% 3%Water Gardening 0% 0% 1% 1% 0% 0% 0%Wild Bird 1% 0% 1% 1% 1% 1% 1%(-) Bonus Bucks/Coupons 0% 0% -3% 0% -1% 0% -1%Gift Cards and Certificates 0% 0% 0% 0% 1% 0% 0%Week Sales To Last Year -23.5% 14.0% -8.3% -21.3% 8.9% 6.1% -4.0%YTD Sales to Last Year 91.2% 11.0% -2.7% 100.6% 6.7% 9.6% 36.1%Average Sale This Week $37.19 $75.28 $55.24 $47.51 $72.85 $89.88 $62.99Avg Sale This Week / Last Year 11.6% -3.6% 5.3% 2.5% 3.9%Average Items per Transaction 6.0 7.0 6.3 8.4 6.9Average Sale Year-to-Date $40.07 $80.22 $66.36 $50.21 $76.02 $83.79 $66.11Avg Sale YTD to Last Year YTD 2.9% 16.7% 5.6% 5.3% 7.6%Transaction Count This Week 1,418 554 1,300 2,136 1,445 2,763 1,603Transaction Count to Last Year 2.2% -4.8% 3.4% 3.5% 1.1%Trans Ct YTD to Last Year YTD 7.9% -16.6% 1.0% 4.1% -0.9%Labor to Sales Ratio 15.4% 15.4%Inventory to Sales Ratio 12.0 18.5 3.7 6.0 10.1

39% 29% 35% 36% 43% 27% 31%


Denotes 100% WDR Reporting 7.14-6.15

Questions or Comments? [email protected]

2016 Weekly Department ReviewCarolinas/Tennessee

Everwind GC

My World

GC

My Garden Nursery

EverTree Ghn

Fare Flowers

Grh

Barnwell GC

Regional Group

Average


FINANCIAL BENCHMARKING SAMPLESThe Weekly Department Review (WDR) Regional Summary reflectsall10regionsbalanceofsalebycategory.Ataglance,youhaveaquickperspectiveofweeklysalesfromacrosstheentirecountry.

© 2016Week 20

May 9 - May 15, 2016Sales Category Annuals 31% 28% 49% 26% 30% 25% 36% 47% 16% 17% 30%Bulbs/Seeds 1% 1% 1% 2% 1% 3% 1% 1% 0% 0% 1%Casual Furniture 1% 0% 0% 0% 2% 0% 0% 0% 0% 0% 0%Artificial Christmas Trees 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%Christmas Fresh Greens/Trees 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%C'mas Seasonal Non-Plant 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%Christmas Plants 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%Container Gardens 0% 3% 4% 1% 1% 3% 2% 1% 0% 1% 2%Food 0% 0% 0% 1% 0% 0% 0% 0% 0% 0% 0%Garden Center Floral 0% 0% 1% 0% 1% 1% 0% 0% 4% 0% 1%Giftware 2% 0% 0% 2% 2% 2% 1% 1% 8% 5% 2%Hardgoods 9% 6% 3% 10% 4% 8% 5% 5% 4% 5% 6%Herbs/Veggies 5% 8% 8% 9% 5% 9% 5% 5% 1% 2% 6%Labor 2% 1% 2% 1% 2% 1% 0% 1% 3% 2% 1%Landscape Non-Plant 7% 8% 6% 8% 9% 11% 9% 6% 8% 5% 8%Outdoor Living 2% 2% 2% 1% 2% 1% 2% 2% 13% 4% 3%Perennials/Groundcovers 11% 17% 11% 11% 13% 8% 10% 11% 8% 19% 12%Pet 0% 0% 0% 0% 0% 9% 0% 0% 0% 0% 1%Pottery 3% 3% 2% 2% 2% 3% 2% 2% 7% 4% 3%Seasonal Non-Plant 0% 0% 0% 0% 0% 0% 2% 0% 0% 0% 0%Seasonal Plant 1% 0% 0% 0% 0% 1% 2% 0% 0% 0% 1%Shrubs 16% 14% 8% 15% 18% 7% 11% 9% 16% 19% 13%Sod 0% 0% 0% 0% 0% 0% 0% 0% 1% 1% 0%Trees 4% 3% 2% 10% 4% 4% 7% 2% 5% 8% 5%Tropical Plants Indoor/Out 3% 4% 3% 1% 4% 2% 6% 7% 5% 9% 4%Water Gardening 0% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0%Wild Bird 1% 1% 0% 0% 1% 1% 0% 0% 0% 0% 0%(-) Bonus Bucks/Coupons -1% 0% -1% -1% -1% 0% -1% -2% 0% 0% -1%Gift Cards and Certificates 0% 0% 0% 1% 1% 10% 2% 1% 1% 2% 2%Week Sales To Last Year -4.0% -9.8% -20.1% 28.1% 1.1% 9.7% -39.6% -28.7% 104.8% 8.6% 5.0%YTD Sales to Last Year 36.1% -8.8% -4.7% -3.1% -1.7% 8.4% -11.5% -7.3% 5.0% 5.7% 1.8%Average Sale This Week $62.99 $77.52 $68.68 $66.37 $86.54 $42.95 $66.19 $65.17 $49.84 $63.93 $65.02Avg Sale This Week / Last Year 3.9% 9.5% -1.4% 12.2% 10.2% -1.9% -9.4% -0.4% 71.7% 6.5% 10.1%Average Items per Transaction 6.9 8.3 10.3 8.2 7.0 5.9 7.0 7.8 5.2 6.2 7.3Average Sale Year-to-Date $66.11 $68.11 $66.72 $61.18 $73.88 $42.52 $54.09 $60.97 $51.79 $60.94 $60.63Avg Sale YTD to Last Year YTD 7.6% 1.1% 0.9% 3.5% 6.6% 1.1% -9.0% 0.3% -2.4% 8.4% 1.8%Transaction Count This Week 1,603 2,378 1,676 1,638 1,503 1,359 1,067 2,213 1,136 866 1,544Transaction Count to Last Year 1.1% -16.0% -18.5% 13.2% -8.6% 5.2% -32.6% -28.7% 21.4% 1.6% -6.2%Trans Ct YTD to Last Year YTD -0.9% -9.5% -5.4% -6.4% -7.1% 7.8% -1.7% -7.0% 7.5% 0.1% -2.3%Labor to Sales Ratio 15.4% 19.4% 8.6% 10.4% 14.4% 11.5% 16.1% 22.4% 20.7% 21.2% 16.0%Inventory to Sales Ratio 10.1 7.4 6.0 8.0 6.8 6.6 6.5 5.9 12.6 11.9 8.2

31% 28% 49% 26% 30% 25% 36% 47% 16% 19% 30%


Total jRegional

Group Average

Southeast

2016 Weekly Department ReviewRegional Summary

Questions or Comments? [email protected]

Northwes BC

New York Ontario Ohio SouthCarolinas

TNMidAtlantic Midwest Mountains

West Northeast


FINANCIAL BENCHMARKING SAMPLESTheAnnualP&LStudyisanindustryexclusiveandthemostcomprehensiveprofitandlossstudyofitskind.WhiletheWDRReport focuses on sales and margins by category, and transactions on a weekly basis, the Annual P & L Study includes sales and expensesandcomparespercentofsalesfiguresforthesubjectgardencentertotheirregionalgroupandthegroupasawhole.Thisstudyalsoincludesinventoryturns,andtheresultingGMROII.


GROUP RETAILERS STAND OUTThe Proof is in the Numbers...

When compared to other garden centers across the country Group Retailers show a higher performance. Although there may beseveralfactors,onereasonattributabletothisistheiruseofconsultantsasreflectedinToday’sGardenCenter’sRevolution-ary 100 Garden Centers 2012 White Paper (see excerpt and table below.)

Professionalconsultants(theexperts)canmakeadifferenceinyouroverallsuccessandTheGardenCenterGroupoffersyouaccess to some of the top consultants offering expertise in

Property Development and Site Design

Business Strategies

Marketing Strategies

Financial Management and Analysis

Visual Merchandising

Media Placement

Human Resources

Mystery Shopper Program

Background Screening

and more

Put the Experts to Work for You Today!

Use of Consultants (ExcerptfromToday’sGardenCenter’sRevolutionary 100 Garden Centers 2012 White Paper)Another area of marked difference between Revolutionary 100 retailers and others can be found in the Revolutionary garden centers’ willingness to use consultants to make their businesses run better.

Thetwogroupsuseoutsideaccountantsequally.However,theysharplydivergefortheremainingconsultants,nevergettingcloser than 20 percentage points. One half or more of all Revolutionary 100 garden centers used consultants for every category asked about with the exception of “Merchandising Expert.” Only 41 percent sought outside advice for this area. But that is still much higher than the mere 7 percent that sought our merchandising help among the non-Revolutionary group.

Today’s Garden Center February 2012

Today’s Garden Center 7 February 2012


GROUP ARTICLES & CLIENT RECOGNITIONThefollowingisacollectionofarticlespublishedinindustrymagazinesbyourServiceProviders.We’realsoproudofthefactthat more articles are written by our Service Provides and about our retail clients than any other group of garden center retailersinthecountry!




IGCRETAILwith Robert HendricksonR U L E S O F

T H E R OA DRobert is Managing Director of

The Garden Center Group

I just never understood the attraction. A few macho guys running back and forth on this way-too-big field, and after what seems like hours and hours of pointless jogging, someone finally scores. It becomes such a big deal that half the participants run around and even more rip off their clothes in celebration like they’ve just discovered the cure for bald-ness. It’s called football by most of the world - we call it soccer. I call it boring as hell.

By the mind-numbing end of the game, sometimes one team wins. But with an average score of just two goals per game after 90 minutes of watching people scamper in the grass, is this really winning? According to World Soccer Talk, “In order for the sport to gain acceptance in the United States, there has to be more scoring - an increase in the offense portion of the game.” Sounds like my sugges-tion for the garden center industry.

Let me explain.

The New RulesIt’s been some time since the industry regaled in record sales and continued growth. As with the general population of businesses in many retail categories, we’re closing in on a 10-year run of what some have dubbed, “Flat is the new up.” During this time of stagnant, if not dropping, sales results, a lot of companies resorted to cutting or saving their way to suc-cess. Some called it just good business - others called it survival.

Not too long into this “new norm,” I started calling it “winning by not losing.” A win just the same, people told me, but from my point of view, definitely not a sustainable way to do business.

When a company succeeds by cutting staff, reducing marketing and renegotiating their trash pick-up fees, eventually there’s nothing left to cut. At this point, all a garden center can hope for is that its new norm is enough to make running the company worth the effort and that no outside entity will dare to increase their costs.

At our recent conference, I asked attendees

to write down a few numbers. First, they wrote down the year and the dollar amount of their best sales year ever. Next, they wrote the year and achieved percentage of their best profit year. Very few companies had matching years. My proposal: What if we combined the skills of managing for profit with the excitement of those growth years? I believe we’d all have fun again. The public rewards companies that try to win by winning, playing offense and going for growth instead of trying to stay in the game by not losing. The public likes “Wow!”

Get in the Game As a marketer at heart, I find trying to win by not losing boring - sort of like soccer. Run through the motions, get all tired and sweaty, and then celebrate a thin victory just good enough to do it again. It’s much more exciting for me when a company sets out to grow sales compared to ones that sit back, count pennies, try to save their way to victory and wait for the clouds of concern to pass.

Without excited customers and an effort to grow the garden center business (the differ-ence between playing offense or defense), the future won’t be much different from the present. As expenses increase (as they always do) and sales stay flat or drop, garden centers trying to win by trying not to lose will need to be content with what they’re given and hope it will continue to be enough.

Some in the industry have said lawn and garden sales would reach close to $42 billion by 2016, which, when adjusted for inflation, means real dollars will fall below 2006 levels - the supposed beginning of this great recession and well below the industry peak years prior to 2006.

My focus is on individual companies that want to create a different outcome. I believe we already know what needs to be done in order to avoid becoming an industry statistic.

A Winning MessageRecent industry research mirrors a similar but even larger study The Garden Center Group

conducted in 2001. The more things change, the more they remain the same.

In the current research, consumers - and in our case garden center shoppers in 2001 - were asked why they spend time with the plants and products our industry provides. The overwhelming response fell into three categories: fun, relaxation and personal reward. No other reasons came close - not improving home value, getting in touch with nature or even making the world a prettier place.

Shoppers from all generations exchange their money for what our products do for them personally. They actually think digging in the dirt is fun. After a hectic day, spending time with plants in a garden or in back porch containers soothes the stress and relaxes the body, mind and spirit. (This emotional connection to gardening is vividly explained in the book, Tending the Earth, Mending the Spirit: The Healing Gifts of Gardening by Connie Goldman, a presenter at our 2007 Fall Event. I’m rereading the book for insight I may have missed the first time. You should as well.)

When this gardening experience is com-pleted, our customers say it becomes a per-sonal victory and feeling of accomplishment. We make people feel good about themselves. Sounds like a recipe for success.

Once we understand the beneficial role garden centers play in people’s lives, it becomes our responsibility and opportunity to convey the message that fun, relaxation and personal reward comes with every product we sell. Customers have told us why the garden center industry deserves to exist. I believe the buck-the-trend future belongs to those with the heart to win, not those just trying not to lose.

Robert Hendrickson is Managing Director of The Garden Center Group, an alliance of 100-plus garden centers, vendors and service providers. He may be reached online at thegardencentergroup.com.

it’s about winning, not ‘trying not to lose’

14 IGC MAGAZINE January/February 2014








Think about this: Customers come into your garden center andare wowed by all of the different colors of flowers. They gravitatetoward the mounds of purple petunias or masses of red verbenaor the seasonal delights of primula and poinsettias. But no mat-ter what the color, if it’s in bloom, someone will buy it, right?

Now, if we can agree we’re in the color business, let’s use color to our advantage and put it to work on products other than live-goods. Plants need to be cared for to keep their color—and thenthey eventually die. This isn’t the case with pottery, which can befound in just as vast an array of colors as flowers themselves. Ifbuying is planned accordingly and the merchandise is displayedcorrectly, pottery can make a huge impact on your customers aswell as your bottom line. Let’s learn from our success selling col-orful flowers and create colorful, profitable pottery destinationswithin our garden centers.

I caught up with color and merchandising guru Terri Coldreck,of Color Results, at the Garden Center Group Fall Event inAtlanta, Georgia. Rumor has it, Terri can come into a garden cen-ter and coach the owner or manager on how to buy, merchandiseand sell pottery with amazing results. Needless to say, I had a lotof questions for her, and she was happy to offer some advice andtips for retailers of all sizes.

Make it a priority

First thing’s first, Terri says. “Make a plan, buy into it and stickwith it.” Apparently she’s seen too many operations that havemade a commitment to ordering and merchandising pottery—for a little while. After the initial excitement from staff, displaysbegin to get cluttered and look picked over. After all, it’s spring,and there are more important things than pottery waiting forattention. To be successful with pottery, the attention needs to be consistent, even if only for a few minutes each day when youreset your displays. Make it a priority and it’ll become a habit,like watering. Keeping the areas clean and orderly will also helpwith inventory and let you know what’s selling hot and should bereordered or noted for next year’s order.

Especially with the competitive retail environment these days,Terri says, you can’t bring in a line of product, drop it on a benchand forget about it. “Take a step back from your passion for

plants and see your garden center as a retail store,” she says. Inother words, we need to pay as much attention to all segments aswe do our plants.

Color sells

Learning from other retailers, including some of the trendy homestores such as Crate & Barrel, Restoration Hardware and Ikea,color blocking is definitely the way to merchandise garden pot-

COLORB Y B I L L C A L K I N S

www.greenprofit.com

POTTERYSECRETS

Plan ahead to create enticing design elements for all seasons

All it took was a little purple paint to really make the orange pots jump offthis bench at Atlantic Garden Center in Virginia Beach.

Adding spotlights is an easy way to improve your pottery presentation.

PO Box 801494 | Acworth, GA 30101 | Tel 678.909.7770 | Fax 678.909.7771 | [email protected] | www.thegardencentergroup.com30 www.greenprofit.com

tery for indoors and outdoors. The female customer reactsstrongly to color and other sensory stimulations, especially touch.So, group similar colors of pottery for the most impact. And giveher plenty of options in terms of size, because she is looking fora solution and might buy the entire collection. If you sell pre-planted containers, be sure to offer a number of sizes and enoughdiversity of plant material to encourage sales of multiple combos.

Terri warns not to blend too many colors, though, because theeye tends to see this as neutral or will gravitate to the most dom-inant color and ignore the rest. She talks about telling “color stories” when merchandising. An example is using a multi-colored piece or collection of pottery and merchandising it surrounded by pieces that reflect the component colors of the first. This might be most effective with indoor pottery, butcertainly could be employed outside, as well.

Location, location, location

That brings us to the great debate: Should pottery be merchan-dised in one place only or is it okay to display it in different loca-tions throughout the store? Terri says depending on the size andlayout of the store, she usually helps her clients set up a few dis-play areas for indoor and outdoor containers. For immediateimpact and impulse sales, try merchandising glazed potterybetween 20 and 30 feet inside of the store entrance, she recom-mends. And then make sure it’s one of the last things they seewhen they are getting ready to check out.

“Keep your big, outdoor color pots all together,” Terri says. “Andyour indoor pottery needs to be kept separate but close in prox-imity to appropriate plants.” She suggests ordering potteryspecifically for any plant promotions you’ve planned. For exam-ple, if you ordered a selection of orchids, make sure you have theappropriate indoor pottery—shapes, sizes and colors—to com-plement plant purchases.

We’ve talked a lot about decorative pottery, but how about terracotta and plastic? Terri says terra cotta is a destination that shoulddemand a permanent display year-round. Of course the display

area will expand and contractbased on season, but it’s fre-quently a good category to putin a dead corner or on a deadwall. Unlike glazed pottery,feel free to line up terra cottapots like little soldiers, Terrisays. Just make sure you havethe saucers merchandised inthe same place and arrangedby size, as well.

Traditional plastic pots alsodon’t warrant prime real estate,Terri says. Because these itemscan easily be found at boxstores and mass merchants,there’s no point featuring themon endcaps or in seasonalvignettes. If your customerswant a cheap pot, make themsearch for it. And while they’relooking, they won’t be able toignore the $100 glazed cobaltblue pot that’s calling out tothem.

Buyer beware

Finally, Terri shared some mis-takes she has seen garden cen-ters make when getting intopottery. Of course, that’s if thegarden center moves past the“I can’t sell pottery” roadblockthat she frequently encounters.

“Smaller stores tend to ordertoo much,” she says. “Thenthey end up with a hodge-podge that’s hard to sell.” It’sdifficult to display and sell oneof this and two of that, andthey don’t look any better onyour inventory. Buying for asmaller store takes more plan-ning than buying for a largestore or chain, she adds. It canbe more difficult becauselarger stores have the opportu-nity to be much more diverse in their product selection. “Planbased on space,” she suggests. “Margin only matters when theproduct goes out the door.”

Along the same lines, Terri says smaller garden centers may needto forego one category to keep their pottery and containerdepartment manageable. She recommends dropping plastic pots,if necessary, because there’s tremendous competition in that area.

This display of large pottery out in the nursery area was extremely eye-catching at Hastings in Atlanta.

Here Are a Few Pottery Tipsfrom Terri

• When ordering largeoutdoor containers,stick with the basics.Cobalt blue, green, red,black and beige aremost popular and canbe presented well formultiple seasons,if needed.

• If you are hands-on withyour pottery every day, itwill become a priority.

• A full presentation ofpottery sells best. Keepdisplays full and don’torder in ones or twos.

• Unless you have multiplestores, you can’t satisfyyour customer base withone container shippedfrom overseas. Even ifthe designs differ, eachfactory has its own styleand probably won’t appealto all of your customers.

• Merchandise small potsaround your largest ones.This not only createsgood-looking displays withsome height, but alsodiscourages customersfrom lifting (and breaking)large pieces.

• People want what’s inbloom. Use this philosophyto sell pottery by keepingyour selection fresh andin style.

• We are in an “I want”not an “I need” business.Don’t hide your pottery.

• Don’t be afraid to giveher interesting choices.She will figure out howto use them.

PO Box 801494 | Acworth, GA 30101 | Tel 678.909.7770 | Fax 678.909.7771 | [email protected] | www.thegardencentergroup.com 31www.greenprofit.com

This coordinated display features brown pottery in multiple sizes cross-merchandised with various live and hardgoods.

“Spend your dollars on what you can pre-sent the best.”

Livegoods and pottery go hand in handand can frequently be cross-merchandisedto really increase average sales. Plants sellpots and pots sell plants. As Terri says,pottery is the next piece down the chainafter plants and people go to garden cen-ters for solutions. If you plan your con-tainer buying based on promotions andevents, merchandise it at the right time inthe right place and make the category apriority, it’s an easy category to grow dol-lars. And that’s the goal, right?

POTTERY SECRETS









Robert Hayter, Group Service Provider


MYSTERY SHOPPER PROGRAMIt’sbeen14yearssincetheroll-outofTheGardenCenterGroupMysteryShopperProgram. Two thousand six hundred sixty two (2,662) shops have been competed. For those who have never participated in the Group Mystery Shop Program and a reminder to those who have, here are the details.

ThefrequencyofvisitstheShoppermakestoyourcentercanbeasmanyasyoudeterminewithaminimumof3shops,butwehavefoundthatfortheprogramtohavethegreatestbenefitforemployeedevelopment,it’sbesttoscheduleatleasttwovisitsper month during peak season and monthly off-peak.

The cost per shop is $100 with aminimumof3shopsrequiredperyear.Youwillreceivea5%discount for 6-11 shops and a 10%discountfor12ormoreshops during the calendar year. You will also be billed for a small portion of the Mystery Shoppers purchase. This charge usually does not exceed $10.00. Shops will be billed at the end of the month in which they occur. Upon the receipt of your com-pletedquestionnaire,youwillbe registered to view online reporting results available at the completion of each Shopper’s visit and receive a password for reviewing your completed report.

You will be able to view your store’s results compared to national and region averages and you will also be able to view the shopper’s reports for other GroupClients.

You will receive an automatic notice each time a new shop has been posted for your garden center.

You will receive a bi-monthly report reviewing highlights, trends and training tips based on Mystery Shoppers commen-tary.

You will receive a scorecard with each completed shop reportwhichprovidesaquickview of your garden center’s progress from shop to shop.

TheMysteryShopperProgram,exclusivetoTheGardenCenterGroup,canhelpyouincreaseyoursalesanddevelopa5-starserviceculture.ScheduleyourMysteryShoppertoday!

(Your Garden Center).

(Your Garden Center) Scorecard

(Your Garden Center)


Mark Your Calendar...

The Fall Event provides you with the opportunity to meet face-to-face and cross-pollinate with other like-minded retailers, collarborate and draw inspiration from our service providers and speakers, visit with our preferred vendors and see their newest products and learn about their latest programs.

Workshops and seminars conducted by professionals from all facets of business are short on theory and long on ideas and processes that you can put right to work. You’re guaranteed to walk away with innovative ideas to move your business forward! And, there’s plenty of time to mix and mingle, share experiences and get to know your fellow retailers.

Attending The Fall Event is the most important thing you can do for your business all year. There’s simply no substitute for the face-to-face interaction, networking, education and inspiration. The Fall Event provides you with the opportunity to share, create and multiply the capabilities beyond that of any one individual garden center. It’s the winning formula for your business!

Join hundreds of other independent retailers from across North America for this must-attend networking, educational and creative experience.

Make plans now to attend this unique Group event – September 26 - 29, Houston, Texas.

Experience the Art & Science of Garden Retailing...Learn from the Pros | Connect with Group RetailersSee the latest products from our Partners for Success and SponsorsDon’t miss this once-a-year opportunity to fully leverage the power of The Garden Center Group!Complete details and program coming soon!

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