Bank Credit Line …Here Today, Gone Tomorrow …Gone Yesterday
Garden Centers and Nurseries will have an added challenge thanks to our wonderful banks. With banks closing or reducing operating lines for small business’s, cash flow is going to be the big problem this spring. This is going to affect the wholesalers and the consumers. If the retailers hold back and do not buy direct at least in the spring, consumers will have limited choices as retailers play it safe and will shop elsewhere or wait.
Here are a few things you can do to avoid this.
- Talk with your suppliers: .Though it’s hard for small business owners to ask for extended terms. Talk with your sales reps or growers you may have a long history with. They will be glad to go to the grower on your behalf. They are there to help and want you to be successful. Truth is,nurseries are already bracing for slow payments. Believe me, they want their plants in your garden center or re wholesale nursery vs. throwing them on the burn pile. My nurseries are going through the same things and believe me they are not judging anyone who is late in pay. Don’t avoid getting the product you need.
- There will be traffic this spring, but customers will not overpay. You will not stay competitive unless you buy right. Inventories are going to stabilize a bit this year. Some varieties of trees and shrubs are going to be short by the mid year due to major reductions in production. Just ask the liner growers. Many growers do not have anything smaller than 2 1/2″ trees on their nursery. Some have not planted anything in 3 years. Growers have been cutting container production for three years in a row. There seems to be an over adjustment happening. The $4.00 18″ birdsnest spruce and spirea days may be coming to an abrupt halt.
- Don’t cut advertising and get a marketing plan in place to bring early . It can be difficult, but getting those early customers can really help your cash flow. Use eMarketing for weekly special.
- Seminars: I know of a garden center in Ohio. Rob Cowie from Suncrest Gardens has regular seminars on Hydrangeas for one. He gets a great turnout , gives out coupons, refreshments and has a great sale day. Fruit trees and vegetable gardening would be a great seminar for early spring. If you do not feel comfortable with public speaking, ask your sales rep or local hort professors. I do them all the times for my clients.
These are just a few ideas. Some are obvious but still work.