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MARKETING, MERCHANDISING AND SALES Part I: Marketing for the Green Industry Professional Bridget K. Behe What often ends up as the last part of the business plan really should be put first. Many professionals in the horticulture industry grow or buy high quality products, then try to discover a market for them. Marketing is often falsely defined as a synonym for advertising, but there is much more to marketing than simply paying for a message to be played or shown to potential customers. Marketing is a group of activities that together help a business provide products and services for sale at a profit. Like many business systems, marketing needs to be planned and evaluated. Planning helps the manager know what needs to be done and when. Planning the marketing approach should be one of the first orders of business, not one of the last. After implementation of the plan, an evaluation should also be done. An evaluation of how well the plan worked tells the manager what might be changed in the future for better success. Many business textbooks will define the marketing system by using the 4P’s: Product, Price, Promotion and Place. What is missing from that definition is the heart of marketing: the customer. A new definition of marketing shows the system using 4C’s: Customer, Cost and Value, Communication, and Convenience. Parallels do exist between the 4 P’s and the 4 C’s, but at the heart of every marketing system is the motivation to satisfy the needs or wants of customers. Investigating each of the 4 C’s can help the business develop their marketing plan. Customers Customers are the heart and primary focus of every business. Without them, there is no business. Determining who the business serves, customers; who the business could serve, potential customers; and who the business chooses not to serve, non-customers, is a fundamental step for every business. Few, if any, businesses today can survive or thrive by attempting to serve everyone. The market is too large and too diverse to attempt success with a “one size fits all” strategy. Segmentation is the process of dividing all customers into groups or segments. Segmentation of the market can be done in many ways. The following are marketing segmentation scenarios that apply to any

business. Marketing by Consumer Age It should not be a surprise that Americans are aging. Yet, people of a similar age have other similarities as well. They are at a similar life stage, have shared many similar life experiences, have similar values, and may save and spend money in similar ways. Susan Mitchell wrote American Generations which outlines subcultures or groups of Americans who share some similarities relative to their age. GI or WWII Generation – These individuals were born before 1933 and today, most are over age 71. Although they account for ten percent of the population, they are a small group with limited resources. Described in Tom Brokaw’s book, The Greatest Generation, they are great markets for health care products, but not great gardening customers now or in the future. Swing Generation – These individuals were born between 1934 and 1945, and today most are between the ages of 59 and 70 years. They are a small group, accounting for only 12% of the American population, caught between two powerful forces. Many are in retirement and may have smaller residences, limited spaces, but are good markets for container, vegetable, and herb gardening because many have frugal values. Baby Boomers – Baby Boomers comprise 25% or the largest percentage of Americans today. They were born between 1946 and 1964, making them 40 to 58 years old today. Some references may label the younger Boomers, Generation Jones. They are in their first or second career, raising families and building big homes. Their aging has fueled the economic growth of the country and they are prime gardening customers. They are working full-time, therefore they are time constrained and are a good target for services. Think about how their needs will change as they approach retirement. Some early indications show Boomers retire, sell the large home, and purchase two condominiums, perhaps one north and one south.

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Generation X’ers – These individuals were born between 1965 and 1976, and comprise 17% of the population. Their smaller size has contributed to the labor shortage. They are between the ages of 28 and 39 today and are entering their careers and buying first homes. They are quite well educated, but not as materialistic as their Boomer predecessors. They are focused on experiences! Millennial Generation – The Millennial Generation is comprised of people born between 1977 and 1994, who today are ages nine to 26. Some references may label older Millennials, Generation Y. They represent the next big economic boom, as children of Baby Boomers. Many of them are in school now, but have tremendous economic buying power already. They also have busy schedules and will most likely stay busy. They are the most culturally diverse generation we’ve seen, and they have the opportunity to integrate traditions and components of more than one culture into their lifestyle. This provides good gardening opportunities. Recruit them as the next generation of gardeners. Post-Millennials – These individuals are under age eight and were born in 1995 and later. These young people will be developing spending and saving habits as they grow-up. Consider which types of gardening and landscape activities these age groups are most interested in, and examine their values on spending money. Consumers with more money than time may be more willing to pay for services. Consumers with more time than money are better candidates for do-it-yourself projects. For information on demographic characteristics of people in a specific market area, see Census Information at http://quickfacts.census.gov/qfd/index.html. Marketing by Home Ownership Home ownership is a key indication of whether an individual may participate in gardening or landscaping. Bruce Butterfield through a National Gardening Survey reported in 2004, that 67% of American households, approximately 106 million, engaged in some type of gardening activity. The 2000 Census shows that 66% of all housing units were owner-occupied. A study published in 2000, showed that consumers perceived a 12% increase in home value when a good landscape was installed in the front of a new home. This type of information may be helpful when presenting the investment in a custom landscape

to a prospective client. To find out more information about home ownership locally, visit the Chamber of Commerce or become acquainted with a professional realtor. There may also be a market for some small plants or outdoor containers for people who rent homes. Think differently when serving the rental market. While they may not be as interested in making permanent improvements as their home-owner counterparts, some will do a considerable amount of gardening. Marketing by Gardening Experience Joseph Pine and James Gilmore wrote a powerful book entitled The Experience Economy. The book will influence the horticulture industry for years to come. Experiences are different from services in that they happen within the person, whereas services are performed for the person. Experiences change people. Gardens, and even some garden centers, are a place where memorable experiences occur. People garden to create different experiences. Some want to be active in the garden while others choose to be passive. Some want to be immersed in activities while others may want to absorb beauty or information. Entertainment – Entertainment experiences include strolling through public gardens or display gardens, attending flower and garden shows, shopping at special retail garden outlets, watching HDTV, planning and planting home gardens or harvesting fruits and vegetables. Entertainment experiences are created for individuals seeking a passive experience where they can absorb information or beauty. Education – Education experiences can be developed through creating or attending garden-related seminars and clinics such as the Disney Institute, a Master Gardener course, any type of show and tell gardening demonstration, problem solving sessions, discussions with neighborhood or avid gardeners, and by learning first-hand in one’s own garden. These types of experiences are for individuals seeking an active role where information or beauty can be absorbed. Escape – Escape experiences are created by touring gardens in other cities or countries, relaxing or reading in one’s own garden, watching wildlife, butterflies, birds or nature in the gardens. These are for individuals seeking a more passive role where they can simply immerse themselves. Esthetic – Esthetic experiences are created by enjoying social events or occasions with family or friends in the garden. The garden or landscape is also a beautiful

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environment to read the Sunday paper or just relaxing. These experiences are also created for the more passive consumer who wants to be immersed in an environment. Marketing by Geography or Zip Code Zip codes are one geographic means of customer segmentation utilized by many businesses outside the horticulture industry. Businesses have found that there are striking similarities among households in the same zip code, making this an effective means of customer segmentation. There is a wealth of information available today on the internet that describes customers in a particular zip code. These characteristics would include average age, home value, income, and some hobbies or interests. The California Northstate Library has an excellent Internet site to bring the novice up to speed about using zip codes and it shows other websites with useful information by zip code: http:/library.csun.edu/mfinley/zipstats.html . Regardless of a current or future customer type, the savvy business professional makes an effort to deeply understand the customer. Most customers won’t say they are looking for more than plants. They are often trying to create an image of their home, a place to play with their children, or an isolated niche in which to relax. Making an effort to truly understand who that customer is and what that individual is trying to create, will bring most businesses closer to exceeding customer expectations. Understand customer challenges, ideals, and limitations, and then act to solve the problem or to create the unique outdoor living space. Cost and Value Cost is the price the business pays for the product or service. The price the customer pays often is viewed in the context of value: “did I get more than what I paid for”. That is the cost to value relationship. As many customers of the Baby Boom Generation continue to work, they may have more discretionary income than time. Services are considered a real value when the customer has more money than time and is willing to spend money for someone else to do the work. When calculating costs to a business, include the direct cost of materials and supplies, as well as the indirect cost or overhead. A portion of all costs that are not directly associated with a product should be allocated to that product. For example, a percentage of the telephone bill should be attributed to every landscape installation. Although the telephone calls may not

have been directly associated with the landscape job, the telephone bill must be paid. Many businesses lump all the indirect costs together and then determine a percentage of that sum to be allocated or added to the direct cost of a landscape job. Together, the indirect and direct costs equal the cost of production. Setting prices is commonly done by adding a pre-determined mark-up to the cost. This pre-determined mark-up may range from 2x to 4x, depending on how well the business calculates and allocates the indirect costs of doing business. However, simply adding a standard mark-up to each cost may not reflect what customers are willing to pay. Consider what the market will bear when setting any price. Novel, unique, or custom work may command a higher price than what a standard mark-up recommends. For example, a large container of mixed annuals, perennial, and grasses may be artistic and unusual. The container itself and plant material may total $50. Indirect costs added to those materials may bring the total cost to $75. A simple 2x mark-up would bring the retail price to $150. However, the price could be set at $199 since many consumers looking for a large, unusual artistic container, may be as willing to pay $199 as $150 for the same container. If only a limited number of those containers are available, starting at the higher price, and later deciding to lower it, if it doesn’t sell, may be the more profitable strategy. Always think about what the market might be when setting any price. It is always easier to lower a price than it is to raise it. What happens when products are put on sale? Discount sales may bring customers into the store, but how do these sales affect profits? Consider 500 small hanging baskets at a cost of $4 each. To break even or to cover the total cost of the 500 plants at $4 each, $2000 in sales must be generated (Table 1). It is decided that the market may bear a retail price of $9.99. If 400 of the 500 plants are sold, $4000 in sales is generated which covers the total cost $2000 plus $2000 in profit. By selling 80% of the total plants, $2000 in profit is generated. What happens if the price is lowered by five percent to $9.49? To generate the same amount of sales and profit, 421 of the 500 plants or 84% of the total must be sold at $9.49. Lowering the price 10%, requires 89% of the total plants be sold,

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Table 1. Percentage of 500 available plants that need to be sold to reach a $2000 profit goal. Price Quantity Total Sales Total Profit Required Percent of Plants to Sell $9.99 400 $4000 $2000 80% $9.49 (5% off) 421 $4000 $2000 84% $8.99 (10% off) 444 $4000 $2000 89% $7.49 (25% off) 534 $4000 $1745 107% and lowering the price a whopping 25%, generates only $1745 in profit, and every single plant available must be sold. Communication When a business has great products and services available for sale, that information needs to be communicated to all potential customers. In an ideal world, there is enough talk among prospective customers to bring the business all the revenue and profit it needs. If word-of-mouth communication is positive and plentiful, the business would not have to pay to communicate its message. However, the reality for most businesses is that some form of communication with customers is necessary. Just as the landscape professional would use a palate of plants, so does the business professional use a palate of communication forms. When the message originates with the business, is paid for by the business, and goes through a public medium such as television, radio, newspaper, telephone book, billboard, or Internet, the communication form is advertising. If the message originates with the business, but goes through a more personal one-to-one interaction, it is considered personal selling. When the message is delivered through someone other than the business, and delivered through a public medium, it is defined as publicity. If the message comes from outside the business and is delivered by a person in a one-to-one interaction, it is considered to be “word-of-mouth”. Word-of-mouth communication is the most powerful, most credible, and least expensive form of communication. Advertising When a business decides to devote some resources to pay for a message to be delivered to customers, it has decided to advertise. Every advertisement should have a goal or objective and a means to evaluate the success of that goal. For example, the advertising goal of a new radio spot may be to bring in 100 new customers. A business might measure the success of that ad by

asking new customers to say: “I heard your ad on the radio” to receive an additional five percent off purchases. A simple tally sheet at each cash register, with clerks reminded to keep the tally current, will help the business evaluate the success of the advertisement. For newspaper ads, the goal may be to sell 500 more bags of bulbs with a ten percent off coupon to help determine readership and coupon redemption. Television advertisements are expensive, but highly effective for showing the beautiful and creative nature of landscape gardening. They are expensive to produce and can be a challenge to air, given the highly segmented nature of cable and satellite television. Consider other alternatives before investing in television. Radio is less visual, but can still be an effective form of advertising for horticultural business. The sounds of running water, singing birds, or rustling leaves in the breeze can help create the relaxing sounds a customer might hear in their beautiful garden. Radio advertisements are relatively less expensive to produce and, depending on the time aired, less expensive. It is also a highly segmented market, so be sure the demographics of current or potential customers match the demographics of the listening audience. Businesses can get extra mileage from radio advertisements by playing them in the store or while customers are on-hold on the telephone. Newspapers are another highly visual medium, but carefully consider newspaper readership before placing an advertisement. Gardeners are often also cooks or interested in cooking. Consider asking the newspaper editor to place nursery advertisements on the food page. Colorful ads can work better than black and white ads, but they are also more expensive. Placement at the top of the page is more visible than the bottom and the outside edges are read more than inside near the seam.

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The telephone book advertisement is sometimes routinely made without any thought to its effectiveness. Consider showing the business’s least used telephone lines in the ad to count how many people call it. After all, the customer has probably already made a decision to make a purchase when consulting the phone book. The only decision remaining is from whom do they buy? Billboards are another relatively inexpensive method of advertising in a highly visual way. Keep text short, but images colorful, on a billboard. How much text can a person read driving at 55 miles per hour? The typical person should be able to read three to seven words at a glance, which is not very much. Bill boards placed in highly trafficked areas will have a higher cost, but the results may be worth the added investment. Few businesses today do not have an Internet presence. While web purchases of gardening plants and supplies may never reach the volume of books and CD’s sold on-line, every business should have, and keep current, an Internet Site. Many consumers may use this as their first attempt to investigate where and from whom to make a purchase. Having a website indicates a 21st century business. It provides or points to credible sources of information. View other websites to get ideas on what might work best. Keep a count of how many people visit the website. Work with home builders or realtors to have them reference a specific website to recruit new customers. Prominently post on a website, a telephone number and address for customers to call or visit with questions. Above all, keep the website current. Customers and potential customers will stop visiting a website if there is nothing new to see. Consider sending customers an email after requesting their permission, if an electronic company newsletter is available. Publicity When the message comes from the business, but is transmitted through a public venue, it is called publicity. If a newspaper does a story on a business or the local television news runs a story on heat or frost tolerant plants, it is publicity. Most consumers view publicity as more objective and unbiased than paid advertisements. To take advantage of this, consider developing a relationship with someone at the newspaper, regional magazine, or television station. Develop timely press releases to send to these individuals. One page summaries of new plants, composting, landscape advice, soil testing, or decorating with annuals can be constructed during

“down times” and brushed up just prior to distribution. Be sure to include current contact information, including the contact person’s name and telephone number. Sales Staff Another form of communication is the professional sales staff. All sales personnel should be trained and prepared to answer a wide range of customer questions. Word of Mouth The best advertising is free, but can word of mouth advertising be purchased? Consider recruiting garden club members or Master Gardeners as marketing allies. Many of their friends will turn to them for gardening advice, recommendations for new plants to try, and places from which to buy plants. If actively recruiting these types of customers, why not consider the value of giving them new plants to try. Include them as part of a core customer group, invited in for a focus group discussion two times each year. Ask these customers, who were probably the first to try new products at a discount or free, about any challenges encountered. If these experts had a problem with a new product, a change in the product or the marketing of it, must occur. Again, for all types of communication, the business should establish a goal or objective, and then evaluate the success of each communication piece. Use the procedure described above, collecting tallies at the cash register or over the phone. Simply ask customers how they found out about the product or the sale. Mentioning radio ads to receive an additional 5% discount can help keep track of radio listeners, or simply ask at the check-out which station they listen to most. Evaluate every communication piece annually to see if the return on the investment was high enough to warrant spending the money again next year. Convenience The fourth C is convenience or how easy it is for customers to locate the store, get information, and make a purchase. One relatively easy way to make a business available to the customer is through a Website. Whether this site is maintained in-house or by a paid out-sourced service, it is a worthwhile investment. Many customers, and increasingly younger customers, will seek information and potential retailers while looking on the Internet. In the simplest form, a web page with contact information and links to other credible sources of information will “get your name out there.” Many times, if a customer can find

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specific information on-line, they will call at their convenience to discuss their question, or make an appointment for a consultation. For retail businesses, consider the hours the store is open and determine how convenient these hours are to customers. Many stores have extended spring and holiday hours to accommodate the working professionals who may not be able to visit between the hours of 9 A.M. and 5 P.M. Increased staffing during busy hours will help customers make their purchases in a timely manner. For service businesses, think about the times it is most convenient for customers to schedule a consultation. It may be difficult for them to find an hour of uninterrupted time to view a proposal and ask questions about design and installation. Early evening hours, offered as an option, or lunch hour appointments may be most convenient for some busy customers. How convenient is it to be reached by telephone? In this era of cellular telephones, it should be possible to reach the professional landscaper or garden center in an expedient manner. However, frustration is often created with the automated menus, voice messages and phone tag. Add the personal touch when possible by having a human answer the phone. Return inquiries as quickly as possible. It is surprising how much this small courtesy means to customers today. Customers are the core of every business, not just horticultural businesses. Serving different groups of customers can be accomplished by segmenting the market by age, home ownership, gardening experience, or Zip Code. There is no one right way to segment the market, but do divide to conquer. A Cost and Value relationship is the second of the 4 C’s. Direct and indirect costs of doing business, with profit added, should not be the only determinants of price. Consider what the market will bear when setting prices as it is easier to lower prices than to raise them. When putting items on sale, consider the effect reducing prices will have on profits. Communication with customers is important. Think about the investment, who is likely to see the message, and whether or not they are likely to act on it.

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MARKETING, MERCHANDISING AND SALES Part II: Merchandising Dale Bachman and The California Retail Nurseryman's Manual Display Selling and Maintenance There are various methods of promoting products and services in order to entice potential customers into the parking lot. However, customer dollars are won, or lost, by professional salespeople and displays, bearing in mind that first impressions are extremely important. One goal of a display is to create buying impulses in the mind of the customer by suggesting purchases the customer did not intend to make. This is called impulse buying. A second goal is to inspire customers to buy more than they expected by linking products which complement each other such as snail bait and bedding plants. These are companion, link, tie-in, or associated products. A third goal is to make products attractive and easily available without the appearance of being `dumped' into a bin, a plant bed, or an ill-kept display. The display philosophy of a particular garden center, nursery or landscape business will depend on company policy. Some organizations prefer a simple `stack and sell' approach while others have a supermarket grid system of beds. Many garden centers and nurseries are now developing themes for displays which informally suggest uses or groupings for products or plants. Whichever policy is adopted by the business, it will be up to the salespeople to insure that all displays are constructed and maintained to the highest possible standard. Badly maintained or messy displays will result in fewer dollars taken in at the cash register. Customer or Traffic Flow Every square foot of space in the nursery costs money and if at all possible, all areas should pay their way. In reality, all nurseries and garden stores have dead areas. The first step towards identifying where these are and how to improve their performance is to plot the flow of customers through the store. This is often difficult to do objectively by people involved with the business, so a plan of the place of business should be given to strangers and ask them to walk the site and mark an expected flow. If done several times, a pattern will emerge ranging from areas of likely heavy traffic to areas where no one wants to visit. Consider the following guidelines when establishing a certain flow pattern:

1. Upon entering the nursery, most customers will

walk away from, or skirt around the cash register. 2. Narrow pathways look uninviting and this feeling

is increased when goods or plants are stacked higher than normal.

3. Customers will only browse in areas of quiet

traffic flow or where paths are widest. 4. Dead ends or paths which appear to be dead ends

will not invite customers. 5. Many customers will not venture through areas of

tall plants or where they cannot see their way out of the section. If there is a shortcut to avoid this, most people will take it.

6. “Adjustment space” at the entrance to a section

may be required so people take a few steps or moments adjusting to changes in light, noise, heat, etc. They will not be looking at merchandise during that time unless the display is overwhelming.

7. Most customers will avoid badly lit, neglected or

cluttered areas. 8. Wet, shiny or slippery pathways make people

unsure and some customers will avoid them. 9. Uninteresting vistas down paths or aisles deter

people from shopping in those areas. 10. Open sight lines are important. Tall displays or

tall plants create `shopping shadows' behind them and these should be avoided.

11. Items in pathways due to too much inventory or

due to goods left by customers can do serious damage to the carefully planned customer flow.

12. Negative signs on displays about terms of sale

deter customers from returning.

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Hot Spots and Dead Spots The main purpose of a customer flow plan is to highlight the areas that have the potential to provide maximum exposure to customers which are called hot spots, and the areas of least likely exposure which are called dead spots. Hot spots are traditionally found on the ends of islands, beds and gondolas where traffic is heavy and in the main view points around the nursery. It is from these hot spots that most impulse sales will be made. Therefore, it is essential that all such areas to be identified, and well known, to all salespeople. Dead spots are areas which would not be visited or noticed by the majority of customers. Dead spots occur under the following conditions: 1. Dark corners, shadows behind high trees, or dead

ends. 2. Poor lighting. 3. Merchandise out of easy reach. 4. Merchandise below or above eye level. 5. Beds or shelves that are too wide or too deep. All of these can add up to a considerable amount of expensive sales area not paying up to its potential. Display The correct product must be in the correct place at the correct time. In order to facilitate this, all salespeople must be aware of all aspects of the garden center, nursery, or landscape situation; the products to be sold, and the sales promotions in effect. Impulse Products – All green and dry goods can be classified as either impulse or purpose items. Impulse items are essentially those products purchased which were not intended to be purchased that particular day. Customers may have intended to replace a rose bush with a Mockorange, but only when they saw and smelled the Mockorange in the nursery did they decide to buy it. Other items such as colorful flowering plants provide an even stronger, “instant impulse” reaction. Obviously, if such items are not visible or are not available without a search, there will be no impulse and no purchase. Impulse items should, therefore, be placed in hot spots, areas of high traffic and at the end of view or vista lines. However, in some situations, the impulse to buy, for example, a large patio plant, may need to include some time to browse while deciding which one to choose. In such situations, a

clear sight line will be needed to catch the impulse initially, as well as space for browsing. Consequently, some vista lines should end with browsing areas for large items, although they must remain attractive and inviting. Surveys show that over 60% of all non-food merchandise bought in the U.S.A. is bought on impulse. Impulse items are usually highly decorative or appear to be a good value. It should be mentioned, however, that if customers are overwhelmed with walls of color and impulse items when they step into the nursery, there is a danger of the higher priced items such as large shrubs, shade trees, and furniture being obscured. If this occurs, the customer will spend less, reducing the dollar sale per customer. Staple Products – In the supermarket, the staple items are things such as bread, meat, dairy products, produce and breakfast cereals. In the garden center, staple items include chemicals, tools, bedding plants and containers. These items are sought out by customers, but no one wants to shop where there is an obstacle course. To be easily seen and found, such items should be well marked with signs even though not located near the entrance or in a hot spot. By placing staple items at the ends, corners and sides of the sales areas, customer flow is encouraged around a greater portion of the nursery, provided these items are clearly marked and displayed in an attractive manner. Some basic items are very, very price sensitive, wherein the price becomes the main motive for buying. If promotions by the garden center are aimed at creating a price awareness of a certain product line, this line can be used to pull traffic into a quiet or dead spot, but only if the merchandise and its price are very obvious. Impulse items are not nearly as price sensitive. In this respect color, suggested use of the goods, and the attractiveness of the product, not price, should be the central message in displaying staple items. Browse Products – These are products for which customers do not make a quick decision. Sometimes they need time to read instructions on packets and the supporting literature. These items can be as large as a $1000 set of patio furniture or as small as a 65 cents packet of seeds. Browse products require space, plus, customers will require time in that space. Browse items should never be placed in areas of high traffic flow, narrow or busy areas, hot spots, or near the cash register. Such placement will deter customers from shopping and these goods will not sell very well. For example, seeds placed near the cash register for security reasons will not sell as well as when placed in a browse area, which should still be “open” to deter shoplifting. Many garden centers increase browse sales by providing seating so that customers can sit and

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read through books or seed packets. Companion, Tie-In or Associate Products – Tie-in products complement each other in the customers' minds, or these products are associated if the display suggests that they are associated. Frequently, a link is created between a hard good or non-plant item, and a plant. This necessitates a flexible approach rather than an approach which determines that hard goods are inside and plants are outside. Companion sales are common in other retail businesses and could be used more often by the nursery business. It is simply a way of increasing the dollars spent per customer. Useful companion or tie-in sales include:

• Trees: tree stakes, ties, fertilizer, mulch. • Foliage Plants: leaf shine, fertilizer,

containers. • Bird Feeders: bird food, bird books.

• Bedding Plants: fertilizer, labels.

Types of Displays Types of displays will be governed by company policy. All display types need to be serviced or maintained to produce maximum effect. Stack and Sell Approach – For certain product lines, stack and sell displays can be very effective if built correctly. Fertilizer and soil amendments are good examples of stack and sell items. End caps at the ends of benches or islands within the store are ideal places for building such displays of boxed lawn seed, fertilizers or chemicals. For plant material, bedding plants can be arranged on tiered shelves in this way, as can colorful flowering plants, another high impulse item. Important points for success with this method are that displays are built safely and look touchable to a customer. Facing the product towards the usual customer view line is also an important requirement. Grid System – The best examples of a grid system are found in supermarkets, but many garden centers have adopted this type of layout. For staple products, a grid system can be effective providing that signs are clear and items are accessible. If a nursery uses this system for either hard goods or plants, it must encourage customers to walk methodically up and down each aisle. This means that each aisle must be wide enough to be inviting and colorful, or interesting displays must be in view at regular intervals. Some nurseries

combine a grid method with an alphabetical display of plants. This may create difficulties for staff trying to keep displays interesting and attractive. Although labels or color pictures will enhance sales in any system, they are particularly useful in a grid system where products can appear uninspiring to customers. Grouping By Use – Grouping products or plants by use can make an area of staple products more interesting. In response to customers' reasons for visiting garden centers, many merchants are considering grouping products of similar use to make them easier to locate. Examples of this theory would be a lawn care center embracing grass seed, sod, fertilizer, lawn herbicides, lawn pesticides, lawn tools and lawn books. Another grouping to make life easier for those customers who have a complete job in mind would be to create a home-landscaping section which includes brick, paving material, patio rock, tubs, planters and the larger landscape-size plant material. Equivalent ideas in the plant area would be to create beds or groups of low growing plants, privacy plants, shade tolerant plants, plants with fragrance, and herb gardens. Obviously this would make displays more difficult to maintain and could create inventory headaches, but it does make shopping more interesting for the customer. Grouping By Theme – An extension of the grouping-by-use method would be to copy the displays in furniture stores. They do not line up tables by the dozen. They surround them with tie-in items such as book-shelves, coffee tables and silk plants to simulate a room in a house. By doing this, the store is giving ideas to customers, not just providing what the customer has already decided to buy. Many nursery customers visit garden centers for ideas and inspiration. By grouping plants, tubs, and furniture, and recommending which types of plants or species look good together, the garden center is in fact giving ideas and inspiring customers to buy more than planned. Examples of theme groupings that could be simulated are “Your Fall Color Corner,” “Patio and Poolside,” “Gourmet Garden Collection.” To add realism to the display, a fascia board can be mounted behind the display to suggest the side of a house, garage, hedge or pool. Theme Gardens can either be for display only with a sale area adjacent to it, or for actual shopping from the display. If the second option is adopted, it is very important to make the display look “disturbable”. If the display is too neat and undisturbed, customers will not pull plants or hard goods out of it. However, it must also be serviced to

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remain full and presentable. Rules of Display Most garden centers will compromise and use a mixture of various styles of display. This depends on company policy, availability of sales personnel and the area available for display. Whichever styles are used, basic rules of display are required. Color – The correct color is unnoticed and taken for granted by customers. The wrong color makes them uneasy or disinterested. Colors can change with the seasons and situation. Warm colors such as red, brown, and gold can be used to attract attention to dead spots or distant vistas. Remember that red is associated with excitement, danger, passion, and increasingly, with low price. Sale ticketed items are never blue! Cool colors such as blue, white, and green often give a feeling of distance or space in a small or enclosed area. Generally, these colors should not be used in dead spots, vistas, or darker, shady areas. Seasonal use of colors is valuable as follows: Winter: Cool colors to reflect the season with

sparks of warmth such as red houseplants. Spring: Bright yellows, pinks and greens to bring

freshness to a display. Summer: Lilacs, pinks and other pastel shades to

cool down the hot months. Fall: Natural shades of brown, bronze and gold

to reflect the season. Facing – All goods should be faced so that the front of the product or plant faces the most common sight line from the customer's view point. Some businesses believe in leaving one or two gaps in the shelf or bed to suggest that someone else has just bought a similar packet or plant to promote customer confidence in the product. There are different theories about whether to block hard goods vertically or horizontally. In vertical blocking, small sizes are on top shelves, medium-sized packets on the middle shelves and large items on the bottom shelves. With horizontal blocking, a range of different sizes of the same product are displayed side by side at the same level. Vertical blocking tends to be more popular with nursery businesses, but whatever method is chosen, the display should look tidy. With a shelf, gondola or plant bed over 30 feet in

length, there is a tendency for customers to `switch off' and not look at products in the middle of the area. This is especially true if it carries an endless row of seed packets or chemical bottles. To help overcome this, something radically and visually different can be hung or placed every ten to 15 feet along the bed. The purpose of hanging mini-sprayers, bags of potting mix, or books is to catch attention and to get the customer to start looking at the merchandise in more detail. Research from supermarkets has shown that only a certain height of a display gets full attention from the customer. For every 100 items sold in a band of merchandise, roughly 30% less will sell above eye level with variations down to 80% less on the floor. Consequently, the items offering the greatest potential to the nursery should be placed in the prime sales level in the sizes which the nursery wishes to make the greatest sales effort. Areas above the prime sales area can be used for tie-in sales such as sprayers or seed flats. Slower moving or larger mark-up items can be placed on the lower shelves, although if there are no such items connected with a particular range of goods such as seeds, it is probably better to block off the lower shelves and use them for storage. Theme or Message – All displays say something to a customer depending on the merchandise, color, arrangement, price and so on. It is important to bear this in mind when building a display, particularly one involving plants and hard goods which tie-in together. The message will come, in part, from signs, but the style and organization of the display set the tone of the message. For example, customers do not look for bargains when gift buying, so a sign reading “10% off for Mother's Day” would have the wrong effect on sales. Stand back and ask: “Is the message clear, does it say what it should say?” Maintaining Displays – Displays can look good at the start, but by Sunday afternoon, displays can look “tired”. Someone in each department should have the responsibility for replenishing, dusting, cleaning, pricing and replacing labels. This applies to green goods as well as hard goods. Dirty pots, non-labeled plants, non-priced plants, and container plants with weeds, turn customers off rapidly. Restocking of both hard and green goods should be regular and objective. All employees involved should know exactly what constitutes non-saleable goods, and these employees must know the company policy as to what should be done about questionable products. All new merchandise should be placed behind existing items.

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MARKETING, MERCHANDISING AND SALES Part III: Green Industry Sales Dale Bachman and The California Retail Nurseryman's Manual Selling is the act of assisting customers in making a buying decision which will be to the mutual advantage of both parties. Customers that shop at garden centers and retail nurseries are looking for help, information, and above all, assurance that what they are buying is the right item for their garden and landscape. Customers accept this help and guidance much more readily from a fellow human being than from a sign or a label. Maintaining a home landscape is essentially a leisure pastime which means that spending money on plants, lawn mowers or chemicals comes after spending money on food, clothes and gasoline. Therefore, customers are usually at the garden center because they want to spend money rather than because they have to spend money. This creates three ingredients which differentiate plant sales from, for example, gasoline sales: 1. Customers are not nearly as price sensitive about

an item in proportion to their monthly paycheck. 2. Customers have more time to choose. 3. Customers respond more to personal assistance. A garden center manager once stated that trees do not sell in his area even though people have big yards and healthy bank balances. A drive around the area showed that boats, poolside equipment and recreational vehicles were extremely common. Therefore, the home landscape was placed low on the list of leisure items. One reason for this is that no one had really tried to sell trees and other plants. The recreational vehicle industry is a major competitor of the nursery industry, not just fellow nursery colleagues or mass marketers True selling is a skill embracing product knowledge, effective communication, listening to customers, technical knowledge, technical assistance, and problem solving. This must all be conducted professionally within a pleasant customer-salesperson relationship.

Many stores carry plants, chemicals and other dry goods, so customers always have a choice. A good way to remember the importance of a good customer- salesperson relationship is to visualize a sign on the back of every dissatisfied customer who walks out of the nursery or store. This invisible sign is saying: 1. “I came in here voluntarily; I may even have

responded to your advertisement.” 2. “I thought your store looked good so I gave it a

try.” 3. “I work hard for my earnings and I intended to

spend some of it with you.” 4. “I am willing to spend up to $250 per year on my

yard and patio.” 5. “I expect to live in this area for at least 10 years.” 6. “I would like to find a helpful reliable store and

stick with it.” 7 “I will try that store down the street if I'm not

satisfied here, as it also looks nice from the outside.”

8. “You had your chance to win my loyalty as a

regular customer, but you blew it!” No retailer would admit that employees did not put the customer first, but as a customer, it's easy to find stores where educated and knowledgeable personnel are difficult to locate and consult with. In order to find the effect of various "turn-offs" that a business can give to its customers, New York state garden centers carried out a survey. Customers were asked if they had returned to shop at a particular garden center since their first visit. Those who answered "No!" were asked if it was because of one of the reasons listed below. The results were as follows:

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Question: "What deterred you from shopping at the same store after having been there once?” 1. 68% gave "discourteous treatment" as their prime

reason. 2. 14% said that their problems or complaints were

not dealt with satisfactorily. 3. 9% said that lower prices elsewhere were the

cause. 4. 5% were persuaded to change by talking to other

people. 5. 3% moved away from the area. The above results should be memorized by all people involved in retailing or sales of any services. What this particular survey showed is that 82% or four out of five people were turned-off by HUMAN rather than economic factors. Again this demonstrates how important the personal touch is to shopping customers and how relatively unimportant prices are. Host – Consultant – Seller There are three personalities that the successful salesperson must have: the Welcoming Host, the Informative Consultant and the Assuring Seller. These three are closely linked and are also inter-dependent. If a salesperson is a rude host, that person will not be taken as a credible consultant or a believable seller. The Host Host Appearance – A host should look the part. It doesn't matter how much money the store puts into advertising if the salespeople look sloppy or shabby. If this prevails, the business image also becomes shabby. Salespeople must look well groomed and self-confident at all times. The sales people do represent the company to most customers and by establishing a good rapport with regular customers, the sales people also will find their job more rewarding. Therefore, if salespeople look untidy with dirty clothes, unwashed hair and are unshaven, they suggest an untidy, noncaring business to the customer. This destroys any confidence built up by the company's advertising. Smoking on the sales floor should be banned by the store owner. First impressions work both ways. As a salesperson, do not judge customers as being big spenders or small spenders by the way they dress or behave. Some people capitalize on this and always go to the garden center dressed in their best suit knowing that this will

get them the quickest service and good carry-out assistance. Be careful not to let prejudice play a part in sales responsibilities. By developing courteous and enthusiastic service for all customers, a salesperson can create a following of satisfied and permanent customers. Host Welcome – Customers are guests of the business and should be treated accordingly. The least the salesperson should do is give them a smile and a greeting when they enter the store. No amount of "welcome" signs or audio messages can reverse the damage done by a miserable or disinterested salesperson. The greeting first serves to show the customer that he or she is welcome and secondly, to identify a friendly face among the staff. This is particularly true if uniforms are not worn in the garden center. All customers should be spoken to on arrival or at least this should be the goal. Even on a busy spring Saturday, salespeople should try to make eye-contact with customers as they pass. Even when pulling an order for a customer, never walk past new arrivals with eyes fixed on the floor; always take time to return a smile, a glance, or a "Hi". The Host aspect of a salesperson is not the time to start asking what the customer wants or to comment about some merchandise being looked at. This would result in an invasion of the customer's "personal circle". Everyone has an invisible personal circle which is private territory. Other people are only allowed into it when the individual is ready to do so. A warm pleasant greeting is the first step. Since the nursery industry is based on environmental and leisure activities, managers should spend a lot of time and effort making stores look extremely attractive. It is important that customers are given time to browse and take in the color and beauty that surrounds them. This will relax them and predispose them to buying far more than if they are immediately assaulted with a sales pitch. So without intruding into their personal circle, greet customers with a word and a smile and answer any of their immediate questions. The Consultant Credibility – Most customers will patronize a store because they believe it is the place which knows the most about plants, lawns, chemicals, etc. Because it is called a “garden center,” it suggests it is the place to go for expert advice and information rather than a discount store or supermarket which sells everything. Customers expect a professional, reliable and knowledgeable team of salespeople to help them decide what tree is best for their yard. Customers also assume that the salespeople in a garden center

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know all there is to know from soil amendments to houseplants. Obviously, no one salesperson may know all of this information, but the secret of being a good problem solver, which is what a consultant really is, is to first identify the customer needs. Taking the trouble to look credible in appearance provides creditability. Customers can usually see right through salespeople who make everything sound so simple or appear to be "know-it-alls". As a consultant, honesty is most definitely the best policy to eliminate a series of after-sale complaints. An honest salesperson who says, "I'm not quite sure whether Potentilla can tolerate wet conditions - let's see what the book says," is at once being human and open without being ignorant or incompetent. It's far better to do this than to let the customer take a Potentilla with your blessing only to find that it's too wet for it in the planting area. That customer will come back to complain or, more likely, will not return to store again. Honesty – A customer looking for a chemical to kill aphids on a prize viburnum will be bewildered by the sheer number of products claiming to be effective against this pest. For a salesperson to merely repeat what the label says is not giving the customer the assurance needed. The salesperson must properly explain the label in detail. Always remember the label on any product is a legal document, and it is unlawful to recommend anything that is in direct conflict with the label. The only exception is when a manufacturer's report or a "special use" bulletin issued from the agricultural commissioner's office stating that additional use and product information is available. This information, which would not be on the label, can be passed on to the customer. If honesty means advising the customer against the plant the customer has fallen in love with, because it will not grow in a particular site, then honesty must prevail. As a professional, it is the responsibility of the salesperson to point out the drawbacks of sun on a beautiful azalea the customer has picked up to plant in a sunny corner of the yard. The customer will then expect the sales consultant to offset the disappointment over the azalea by coming up with an alternative. Don't be shy in advising customers that their choice will not thrive in the situation they had selected it for. It's far better to lose a higher margin on one sale, and build respect and reputation for the company, than it is to allow people to take away something that is wrong and will cause dissatisfaction. By advising people honestly, they will regard the place of business as being a fair and informative nursery. This is how to

get a steady stream of loyal customers that garden centers continually strive for. Problem Solving – An extremely common form of customer contact arises when there is a problem to be solved. This is not when a complaint is aired, but when the customer needs further information, clarification or assurance. To help customers, know how to get the facts and how to listen. The rule is: "You have two ears, but one mouth so listen twice as much as you speak”. The role of a consultant is not to show how much the consultant knows by telling people everything there is to know about a specific topic. To be a good advisor, first probe and find out what sort of problem exists and listen carefully before formulating a solution to the problem. There could be several good reasons why the problem exists. Getting to the truth will take time, patience, prompting and asking the right questions. These questions will start with "what, why, where, how many, how much and how often”. A good advisor will find by fact or inference, what type of soil is involved, some previous history of plant performance, how long it gets daily sun, how often it is watered, and how other plants in the area are performing. Obtaining useful answers takes time and in busy periods cannot be done at the expense of other customers. Not all customers will need this type of help. Try to recognize needs by customer facial expressions, by customers "hovering" near a salesperson or the cash register area, or by observing difficulty as a customer reads label after label with a pronounced frown of confusion. Dealing with Complaints – Sooner or later, sales personnel will be on the receiving end of a complaint about merchandise or service. The main objective must be to turn an unhappy customer into a happy one who will return to the garden center. Personal feelings must not enter into the situation regarding the value or service the customer received. Make a judgment according to company policy and if this does not satisfy the customer, politely refer the matter to the manager who will have to further interpret company policy and make a decision. The salesperson's job is to defuse a potential or actual conflict between the business and a paying customer. Unless obnoxious or abusive, all customers' complaints should be heard, but not at the cash register area or in the middle of the store. Take them aside to a quiet part of the nursery or ask them into an office. This will not only stop other customers from hearing the problem,

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but it goes a long way towards defusing a customer by isolating him or her from an audience. If the store is very busy and if company policy permits, it is often quicker to simply replace the merchandise or refund the money. This will give a feeling of justification to the customer; however, it will probably still frustrate him or her because no one seemed to have the time to listen. Therefore, whenever possible, observe the following guidelines with a complaining customer: 1. Listen and look attentive so the customer knows

someone is listening. Don't look down at the floor, over at the shelves or past a person's head. Look into the customer’s eyes and look interested.

2. Show sympathy to the customer by nodding

occasionally and by the proper tone of voice which can demonstrate sincere understanding of the situation.

3. Avoid justifying the failure of a plant or product to

the customer. The customer is not interested in excuses like "The computer failed," “The staff was too busy to spray those plants" or other problems. All the customer wants to know is what is going to be done about his or her particular purchase disappointment.

4. Ask the customer several questions. Probe the

situation with open questions to obtain facts: "Where has it been in the house?" or "How much water did it receive each week?" Check facts with closed questions like, "So you've had it for six weeks?" or "Is your yard facing north or south?"

5. Avoid antagonizing the customer. Do not lead a

customer into increased anxiety by such phrases as, "You claim you have sprayed it, but..." or, "You didn't spread it on the lawn in full sun or anything like that, did you?"

6. Agree to a course of action in a timely manner.

This will depend on many factors including company policy, the customer's attitude, and terms of the sale. Sales consultants must know all of the terms of a sale in advance of serving customers.

7. Inform all others on staff who need to know that a

plant is being replaced free of charge. There is nothing worse than a customer who is stopped at the cash register by a salesperson who didn't know that the plant was a replacement!

8. Keep a record relative to the customer and the problem. For future reference, record the details of each complaint including: who, what, how much and the date.

9. Never, never argue with the customer. It may

sometimes be extremely hard to stay calm, but if tempers flare, a customer is lost and the sales consultant may be fired.

Technical Language – There's always a temptation to "show-off" technical knowledge and talk to customers about "pH" or "liners" or "pre-emergence" or "23-3-3". This is trade talk and in the proper place its fine, but it must be explained in detail to most customers. A good salesperson talks in a language or explains a topic so that it is easily understood by the customers. People visit garden centers to get clear and up-to-date information. Most gardeners are interested in learning more about how and why plants do or do not grow. Teach them the language, but do not overwhelm them with it. No matter how much money and effort is put into advertising and public relations by a company, it is only part of the planned process to obtain regular, happy customers. The enthusiasm, knowledge, communication skills, and a positive attitude of the salesperson are the best ways to instill a connection in a customer's mind between a customer’s gardening needs and a specific garden center. The Seller In the process of selling, there are many areas where mistakes can be made and customers lost. Before the actual sale occurs, there are many potential hurdles to avoid which may stop customers from spending money in a particular place of business. A "cold" atmosphere, lack of merchandise, poor labeling, and unattractive displays are areas that will make a salesperson's job much more difficult. Selling requires a team effort. If a store merely takes money for merchandise picked out by the customer, it is order taking and not selling. Selling is the process of finding out what the customer needs or wants and using product knowledge to match the product whose benefits come closest to fitting those needs. For instance, a customer may be looking for a lilac tree seen in bloom while on vacation. By asking the correct probing questions, it becomes apparent that it is to be planted on the edge of the patio in full shade so that the fragrance can be enjoyed inside the house. The customer must be advised that the lilac would not

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thrive in a location receiving a full day of complete shade, but would tolerate a location that received partial shade. Approaching the Customer – With the exception of the person waiting for the store to open to buy a bag of lawn fertilizer before going to work, most customers will want to browse around before making a buying decision. As mentioned previously, everyone has "personal circles" of comfort in which friends or strangers are not automatically welcomed. Friends will find it much easier, but this is based on past relationships, not by merely putting a smile on your face and barging in. When entering a store that a customer has not previously visited, the customer will have a larger invisible circle than normal. Each salesperson will develop a specific approach, but each and every approach must be friendly, sincere, helpful, inviting and professional. They must not be over-bearing. Reading the Customer – A salesperson must able to read a customer's facial expressions and body posture. A customer with eyes on the floor or on the merchandise is not yet opening that circle to the salesperson. Similarly, those customers who turn their backs to the salesperson are saying, "not yet". The "help me" signals are such things as making eye-contact with, or following or turning to face the salesperson. Being able to read a customer comes from experience. Being aware of "silent" signals helps one be on the lookout for them. Don't confuse the Welcome Approach with the Sales Approach. Both contacts are vital, but only in the order mentioned. Do not use the Welcome Approach as the Sales Approach unless the customer is obviously in a hurry or starts the approach themselves. For example: Salesperson: "Hi, how are you this morning?" Customer: "Fine thanks," and moves off. Salesperson: "I will just be over there if you need

any help". OR: Salesperson: "Hi, how are you this morning?" Customer: "Fine thanks; tell me, do you have any

herbs?" Salesperson: "We certainly do. Come with me

and I will show you.” Do not just point to where the herbs might be. The above Welcome Approach only leads to a sales conversation if the customer obviously wants it at that time. Do not push the conversation if, as in the first example above, the customer moves off. The Service Approach is based on a general question having read the "help" signals. A customer may be in the plant area looking across the beds with a "help" signal and in this instance, the approach may be, "Hi, is there something I can help you with?" This, however, is a closed question. It can still get a "No thanks, just looking" answer. It is far better to use an open question which makes the customer give a lead into an approach such as, "Hi, what type of shrub are you looking for?" Once a closed question had been answered with a "No," it will be very hard to get back into his personal circle without seeming to pressure the customer. The Merchandise Approach is used where someone is obviously examining the different types of products by picking them up and putting them down again. The approach here should be an affirmative one agreeing with the customer that the product being examined is worth buying like "Aren't those azaleas attractive? They really brighten up a shady corner in spring." This is a natural introduction and does not seem "pushy". It can lead the way into a friendly conversation in which the salesperson's knowledge and enthusiasm can be conveyed, besides making it possible to find out what the customer wants and needs. Finding Customers’ Needs and Wants – It is obvious that the correct approach and correct questions necessary to find the customer's needs, all take time. On Sunday afternoon, this is unlikely to be a practical way of dealing with all the people wanting service. However, it is the best way of creating customer loyalty, and is more effective than competitive prices. The skill in determining the customer’s needs is similar to that used by doctors, lawyers and counselors, who use both open and closed questions to extract information rather than just listening to what the other person thinks is important. Open questions are essential in order to get details and often begin with the words: what, where, how, when and why. For example: 1. “What trees do you have in the lawn?”

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2. “Where do you intend to plant these impatiens?” 3. “How do you feel about vines?” 4. “When do you plan on replanting your lawn?” Such questions explore details and feelings. To get even more details, you might ask, 1. “Could you explain something about the style of yard you have in mind? 2. “Tell me how you visualize the finished design.” The danger with open-ended questions is that some customers tend to be vague or don't know when to stop. Use closed questions to gently bring them back to the subject or prevent them from telling the family history by asking: 1. “Does your lawn have a north facing slope?” 2. “Do you have a dog?” 3. “Do you have children?” 4. “Can you keep these plants moist?” 5. “Would you like a flowering or foliage plant?” Closed questions check facts and keep the conversation within boundaries. This is important due to the limited time available for each customer. Product Knowledge – People will shop at a particular garden center because the store has experts. A salesperson must learn and gain as much knowledge as possible about the products to be sold, and be able to translate that information to the customer. Honestly admit when the answer is not known. Say this in a helpful way like, "I'm not too sure about this plant, let's look in the book to be on the safe side”. Many customers will be uncertain about some products, particularly those concerning chemicals; the salesperson must overcome those doubts and sales resistance by interpreting product knowledge as product benefits. All too often salespeople talk about features or functions and ignore benefits. Customers want to know the benefits of buying a product and what it will do for them. Generally, customers do not want to interpret gardening and landscaping as work. Therefore, the benefits should be based around how the product makes life easier, more enjoyable, or more convenient.

People's motives to buy products or services range from saving or gaining money; to convenience, status, pride and enjoyment. The last three are particularly strong in leisure industries and should be stressed when listing benefits. Thus, ground covers should be sold as a planting that will lead to "greater leisure" because it reduces the time spent mowing a lawn. The idea of matching product benefits to customer needs will help make it possible to achieve a sale by making sure that the customer knows about and appreciates the benefits of a product. By doing this, customers will be satisfied with the service and will be more likely to return to the store. Tie-In Sales – In most retail trades, the principle of selling a second product with a direct link to the first purchase has been firmly established. Shoe stores offer shoe polish to protect the new investment, or purses to match the shoes, while music stores often sell dusting or cleaning devices for CD’s and tapes. In garden centers, this may be done very conveniently and appropriately on a regular basis as it isn't considered pressure selling. It's a disservice if the salesperson fails to suggest purchasing a specific lawn fertilizer to a customer who has just spent a lot of money on grass seed. A customer may not be aware that for only $3, a specific type of fertilizer could be purchased for a $50 houseplant. Closing the Sale – When the salesperson feels no other potential sale is possible with a particular customer, or when there are other people waiting for help, it is time for the Sales Approach to close the sale. Obviously, the close is the most important part, since the whole process has been non-productive if there is no sale. Sales will be lost if the salesperson does not stop talking and learn to recognize the signals of customers intent upon making a purchase. Such things as picking up and putting down an item, setting plants aside and reading the label two or three times are good signs that a close is imminent; all the customer needs is that final assurance. This assurance must be given with sincerity. One can use a summary close by just repeating the main points in which the customer has shown the most interest, ending with a confident, "I'm sure you will enjoy the color of this plant" and walking him or her towards the cash register area. An affirmative close is useful when the customer has doubt about the purchase. In such a case, a nice personal, "This product is the best on the market and it will serve your purpose very well," may do the trick. When the customer is wondering whether to put off a decision to buy and asks, "Do you always have these in stock?," use a close which stresses that now is the best time to buy as they may not be available in future

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weeks; this is the so-called "fear" close. Other closing remarks include: "Can we deliver this for you?" “Do you prefer the #1 or the #5 container?" "Is this to be cash or charge?" These should only be used when one reads the signs of readiness on the customer's face. Physical actions such as rearranging stock on the shelves to fill the gap left by what the customer is holding, or by standing back and facing the exit, will help to subconsciously encourage the patron to leave. Reaching for wrapping paper or the credit card machine are other gentle moves towards a close. Whatever method is used, make sure that the customer finally gets everything needed and departs satisfied. If customers are not satisfied, are undecided, or do not wish to buy, still thank them for coming and express a desire to help them with their future needs. All people leaving the store should be sincerely thanked and encouraged to return. Attitude of Sales Consultant From a proper greeting, to engaging the customer’s interest, to answering questions, to interpreting the benefits, to overcoming objections, the most important aspect of being a good salesperson is attitude. People can read methods and watch others, but in the final analysis, the words and feelings of each individual reflect on the person and the store. Each sales consultant needs to be a professional listener, problem solver and socializer. Each sales consultant needs to look the part and will need tolerance. Sales people must never let their enthusiasm wane. Never forget the basics of selling: 1. Warmly greet the customer, but give them time and

space. 2. Professionally determine the customer’s needs and

suggest choices. 3. Help customers make buying decisions. Include tie-

in sales. 4. Thank the customer and invite them to return.

Purpose of the guideThis publication is intended to provideguidance to industry retailers and theirsuppliers on the minimum informationrequired by law in selling “packagedproducts,” including containerizedplants. This guide summarizes the lawand regulations about what types ofinformation are required and how thatinformation must be presented. Wherepossible, this guide offers specificsuggestions on how businesses in thehorticulture industry can meet theserequirements that have been in the lawfor a number of years, but are just nowcoming to the industry’s attention.

Origin of this GuideWith the dramatic increase in containerplants sales, state and related weightsand measures compliance staff havestepped up their scrutiny of industrymarketing practices. These authoritieshave discovered that some long-timepractices in the industry regardinglabeling and advertising violate orignore consumer information require-ments. They have warned the industrythat it must come into compliance.Retailers not in compliance can incurstop-sale orders and substantial finesand penalties for misleading or inade-quate labeling and advertising.

The industry is responding to theirwarning. Labeling and signage practicesin this industry affect businesses alongthe entire supply chain, from containerand label manufacturers, to growers andplant branding firms, to the ultimateretailer. National trade associationsrepresenting businesses along thesupply chain have appointed multipletask forces to research the law, identifycommon areas of non-compliance, anddevelop guidelines to assist industrybusinesses in conforming to the law.

Following all these recommenda-tions addresses compliance with theseregulations as they are understood, andstrict compliance is strongly encour-aged. Individual businesses may chooseto follow or not to follow all theserecommendations, with enforcementconsequences varying accordingly.

These guidelines are strictly volun-tary. They were developed as an aid tofacilitate industry compliance with theleast amount of disruption and expenseover current industry practices. Theuniform law and regulations are exten-sive and provide some flexibility that isbeyond the scope of this publication.

The Uniform Law andRegulationsThe legal foundation for the requiredconsumer information is found in theUniform Weights and Measures Law andthe Uniform Packaging and LabelingRegulations. The National Conferenceon Weights and Measures (NCWM)maintains this model law and its imple-menting regulations.

The National Institute of Standardsand Technology (NIST) provides techni-cal assistance to the conference. NIST isalso the intermediary between theseweights and measures representativesand the industries affected by the uni-form law and regulations. NIST actsonly in an advisory capacity. Enforce-ment of the law and regulations restsexclusively with state, or subsidiarygovernment, weights and measurespersonnel.

Fortunately for businesses, no statemay enact a law or adopt regulationsthat are more burdensome than theuniform law adopted by the National

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MARKETING, MERCHANDISING AND SALES Part IV: Industry Guide to Marketing Container Plants

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Conference. NIST Handbook 130 is thefederal publication containing the uniformlaw and regulations on packaging andlabeling. Copies of Handbook 130 may bepurchased from NCWM at www.ncwm.net. The Handbook is also availablethrough download via the internet fromthe weights and measures section of theNIST website: www.nist.gov.

Compliance is possible!Keep in mind that the uniform law andregulations require information that isdesigned to assist the consumer, ratherthan the producer or retailer. They addressthe minimum amount and the format ofinformation required. Information onsignage and labels that many businesseswill want to provide consumers (e.g.horticultural practices) is acceptable—provided it does not conflict with orobscure the required information.

Many industry businesses will dis-cover that they can comply by makingonly minor changes in signage and label-ing. These changes will result in informa-tion that consumers are already accus-tomed to seeing on other packaged prod-ucts, e.g., references to metric measure-ment that have become commonplace.

Given the industry’s numerous plants,container sizes, growers, and labelingpractices, a single approach with allproducts is unlikely to work. These regu-lations also apply to decorative, irregularlyshaped containers, and dish gardens.Retail businesses may find that uniquecircumstances are best met using signage,rather than individual labels to providesome required information for someplants or displays.

Summary of RegulationsThe purpose of this law is to assist aconsumer in comparing similar productsby using uniform and consistent price andquantity information on the productpackage, or in advertising and signage.

This information is not intended to helpmarket the product. Decorative graphicsand supplemental marketing informa-tion on the package cannot contradict,confuse, or obscure the information thatis required for product comparison.

This law applies only to retail salesof products to consumers and not totransactions between wholesale suppliersand retailers. This law does not affectsales transactions within the industry,such as those conducted using theAmerican Standards for Nursery Stock.The retailer, through the normal courseof business, may seek assistance fromsuppliers in providing the requiredinformation.

The required information must beaccurate. In no case may the quantityof the product be less than represented.There is reasonable allowance for theaverage of the quantity to be slightlymore than represented, but not so asto mislead or in anyway deceive theconsumer in comparing similarproducts.

The required information must beeasily accessible to the consumer. Thesize of labels and the typeface used todescribe the information must be suffi-ciently large for the necessary informa-tion to be legible. The required infor-mation may be presented on labels orin signage. Labels include hanging tags,stake tags, and labels affixed to thecontainer. The location of the requiredinformation must not entail unreason-able handling of the product, and storesignage must be in proximity to theproduct. Plants sold with sleeves orcovers need to ensure that labels areeasily located and not underneath thepot cover.

In short, the easiest way for theindustry to comply with the spirit ofthis law is to make this informationeasy for consumers to find, understandand use to make price and quantitycomparisons.

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Three Kinds of RequiredInformation

1. The Declaration of Identity—This declaration must describe theproduct: in this case, a name of theplant. The identity can be the commonname of the plant, such as “daisy,” or itcan be more specific, for example,“Shasta daisy” or the botanical name. Inthe case of containers having more thanone type of plant, terms such as “mixedannuals” or “mixed perennials” areacceptable. The same applies to sign-age. (For reasons other than this law,some states require botanical names.)

2. The Declaration of Net Con-tents— This declaration must describethe contents in terms of weight, mea-sure, or count. There are several meth-ods that might be used by the industryfor this declaration. For transactionswithin the industry, it is common prac-tice to refer to the volume of the con-tainer. Therefore, this guide recommendsthat industry businesses use the volumeof the container as the method for de-claring net contents.

The model law requires that quan-tity declarations must be in both U.S.(inch, pound, ounces) and metric(meter, grams, liter) measure. Thecontainer quantity may be expressed aseither the dimensions or volume capac-ity of the container. For irregular-shapedcontainers, the law requires that thedimensions must include top diameter,bottom diameter, and height. (Referenceto top diameter only is not acceptable.)

Because the declaration must beexpressed in both U.S. and metric mea-sure, using the container’s dimensionwould require six numbers—top andbottom diameters and depth. Using thecontainer’s volume requires only twonumbers: one in U.S. and one in metric.

This guide recommends that thedeclaration of net contents be expressed

in terms of the volume capacity of thecontainer. Industry practice in some indus-try sectors already refers to containervolume using liquid measure (e.g. pint,quart and gallon). Therefore, this guiderecommends that industry businessesdescribe the container’s net contents inU.S.—fluid ounces, pints, quarts andgallons—and in metric—milliliters andliters (see chart of abbreviations includedwith this document); for example:

6 fl oz (180 ml)

Net Contents Declaration for Market PacksThe regulations include instructions onhow the declaration of net contents mustbe expressed for products with multipleunits, such as market packs. The netcontents declaration must include the totalcount and both the unit cell volume andthe total volume of all cells. The followingdescription is an example of this combina-tion declaration:

6 cell x 2 fl oz [60ml]Total 12 fl oz [360 ml]

Market packs are sometimes com-bined into larger packages for sale, e.g., a“flat” that contains four packs. If the fourpacks can be separated and sold sepa-rately, then the net contents declarationon labeling or signage would refer to thecount and volumes of units in each pack,not the flat. In this example, each packwould require a label/tag or, in place ofindividual tags, signage. For these dec-laration purposes, signage would refer tothe individual market packs and packcount per flat with pricing by the flat.

3. The Declaration ofResponsibility—The declaration ofresponsibility provides the consumer withthe location of the vendor, distributor, orretailer of a product. If the product isoffered to the consumer by any businessother than the grower of the plant, at anyplace other than on the premises wheregrown, there must be a “declaration ofresponsibility.” The purpose of thisdeclaration of responsibility is to assist theconsumer in comparing similar products.

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(For example, identical plants producedby the same grower and offered atdifferent prices.) This declaration is not aguarantee or warranty of plant health. It isa declaration of responsibility for plantidentity and the accuracy of the netcontents declaration.

This responsible business may be thegrower, the distributor (e.g. plant brand/marketer), or the retailer. The declarationmust include the responsible businessname, city, state, and ZIP code. Websitesare only considered supplemental infor-mation and do not suffice on their own atthis time. The declaration may state theprincipal place of business in lieu of theactual place where the product wasgrown, distributed, or offered for sale.

This declaration is not required forretailers that grow all their own containerplant material on the actual premiseswhere those plants are offered for sale toconsumers. Retail growers are required tohave a declaration of responsibility for allmaterial grown off-premises. Retailers witha mix of “home grown” and “brought-in”containers must have this declaration forpurchased containers.

Retailers offering products grown byother businesses must determine how tohandle this declaration. Some retailersmay choose to declare themselves respon-sible; others may want or permit thenames of growers or distributors on labelsand signage. Regulations specify thatwhen a product is sold by someone otherthan the manufacturer, the declaration ofresponsibility will qualify that relationshipwith a phrase such as “grown by” or“distributed by.”

The following are sample declarationsof responsibility:

For production by retailer off premises:“Grown by: ABC Garden CenterWashington, DC 20005”

For production by others:“Grown for: ABC Garden CenterWashington DC 20005“ OR“Grown by: ABC GrowersAnytown, MD 20105”

Presentation of the Three Kindsof Required InformationThe required information may appearon either signage or container labels.Retailers can decide which method(sign or label) is preferred and thatmethod may vary among separate plantdisplays in the same store. The declara-tion of identity and net contents mustappear together, on either signage orlabeling as described below. The loca-tion of the declaration of responsibilityis more flexible.

The declaration of identity and thedeclaration of net contents must be inclose proximity; for example, on thesame side of a double-sided label orsign. The declaration of net contentsmust be located in the bottom 30 per-cent of the label/sign. The declarationof responsibility may accompany theother two declarations, or may appearelsewhere on the product or signage.Product advertising that includes anypricing must also provide the declara-tion of net contents of products offeredat that price.

Supplemental Declarations ofQuantity— The required net contentsdeclaration may be supplemented byadditional information. The supplemen-tal information must be visually sepa-rate from the required information andcannot be incomplete or presented in afashion to confuse the consumer regard-ing the required information. For ex-ample, terms like “large” quart wouldnot be allowed (a quart is a quart).Using a term such as “10-inch basket” isincomplete. Terms such “10-inch out-side diameter” is an improvement, but istechnically incomplete because it lacksreference to the bottom diameter andcontainer depth

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Label VariationsThe law provides for different require-ments for different types of labels.

Standard Label— This is a labeltypically found on a consumer package.It often includes graphics, branding,promotional information, and directionsfor product use. This label may coverthe entire container. With so muchinformation, it is possible for the re-quired declarations to be missed orhard to find. For this reason, the regula-tions have details regarding how thedeclarations must appear on this kind oflabel.

These details include provision fora “principal display panel” (PDP) that is,essentially, the “front” of the package.This “front” consists of one whole sideof a square container, or the “span ofview” of a cylindrical container. ThePDP must contain the declaration ofidentity and the declaration of netcontents. The format of information onthe PDP portion of a standard labelmust be graphically presented to sug-gest that it contains the most importantinformation.

Hanging tags and stake tags, withany graphics (e.g., plant photo) orsupplemental information (e.g.,horticultural) would be considered astandard label according to theseregulations.

Spot Label— This is a plain labelthat covers only a small portion of thesurface of the PDP, for example atypical “sticky” label on a plant pot. Thespot label must exist apart from anyother package information. It must havea border in order to stand out visually.A spot label that contains all threedeclarations is sufficient to meet thelabeling law, but it must at least indicatethe identity and net contents (with theresponsibility declaration elsewhere, ornot required when sold by the grower).The spot label may also contain a

barcode, provided that the identity andnet contents are legible, with the netcontents at the bottom of the label.

Either standard labels with the re-quired format, or spot labels with theirrequired format on plant containers areacceptable. See samples of these labels atthe end of this guide. Reminder: Signagecan be used instead of individual con-tainer labels.

Stickers— There is no prohibitionagainst using stickers on the PDP ofstandard labels in order to fulfill therequired information, i.e., plant identity ornet contents, provided the location andformat of the sticker complies with allother requirements.

Container Embossing— Requireddeclarations may be embossed on a con-tainer as long as both the net contents andidentity declaration are included. If thereis any other information included on thecontainer in a contrasting color, then theembossed information needs to be pre-sented in a contrasting color to the con-tainer as well.

Requirements for InformationPresentation

Abbreviations:

U.S. Measure Metric Measurefluid ounces = fl oz milliliter = mL or mlpint = pt pints = pt milliliters - mL or mlquart = qt quarts = qt liter = L or lgallon = gal gallons = gal liters = L or l

Largest whole unit:

In general, volume shall be expressedin terms of the largest whole unit, withany remainder expressed as a common ordecimal fraction.

Acceptable Not Acceptable3 quarts .75 gallon or 6 pints1.25 gal 160 fl oz1.5 liters 1500 mL

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Rounding: Regulations recommendthat in order to avoid overstating contents,all rounding be done as rounding down,not rounding up. The number of signifi-cant digits retained must be such thataccuracy is neither sacrificed nor exagger-ated. In most instances in this industry’scontainers, quantities stated to no finerthan two decimal places (.00’s) is suffi-cient (examples: 1.29 gal, 3.4 fl oz).

Type or print formats: A declara-tion may appear on one or more lines oftype. Both upper and lower case lettersare acceptable. Typeface must be at least1/16” in size. Free space: There must bethe equivalent of at least one line of typefree of information both above and belowthe net contents declaration, and a widththe equivalent of two letters (i.e., theletter “N”) left and right of the declaration.

Timetable for implementation ofthese regulations

The Uniform Law and regulations havebeen in place for a number of years andimmediate enforcement of compliance is apossibility. Typically, when an industrybecomes aware of its non-compliance andits businesses evidence good faith effortto comply quickly, there is a “grace pe-riod.” This grace period involves first-timewarnings and a reasonable period forcurrent inventories of non-complyinglabels to be exhausted.

Most enforcement officials will beless lenient about signage that is incor-rect, and they may expect the retailer touse signage with correct information tooffset container labels that are not incompliance. Similarly, because adver-tising generally has shorter lead-time thanlabel ordering, officials will also be lesslenient about incomplete or inaccurateadvertising.

Based on the law’s long-time exist-ence, and given traditional enforcementpractices, this guide recommends that theindustry do the following:

• Immediately modify or augmentcurrent signage to provide the necessarydeclarations in the required formats.

• Immediately ensure that any futureplacement of advertising with any pricingincludes the necessary declarations ofidentity and net contents, in compliancewith these regulations.

• Make the necessary adjustments tocontainer labeling in the next orderingcycle.

ImplementationRecommendations for VariousTypes of Businesses

Container manufacturers— Con-tainer manufacturers will want to providethe volume capacity information in bothU.S. and metric measure to all of theircontainer customers as soon as possible. Itis recommended that the volume be ex-pressed in terms of ounces/pints/quarts/gallons (U.S.) and milliliters/liters (metric).When applicable and appropriate, fractionsof these quantities should include up totwo digits right of the decimal (.00’s)and/or rounding as described above.

Label manufacturers— Label manu-facturers will become a primary source forinformation on how plant labels and re-lated signage can be modified to fullycomply with this labeling law and regula-tions.

Production growers— Productiongrowers that are under contract to providelabels and/or signage will need to knowwhat the labeling law requires regardingstandard and spot labels that they may beproviding under contract with their retailcustomers.

Traceability—Also, though a distinctissue from the labeling regulations, forplant pest and quarantine purposes,growers may wish to consider whethertheir labeling scheme allows for easyidentification of product based on growerand place of production. Traceability andeasy identification through final consumer

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sale can minimize potential lossesresulting from regulatory holds ordestruction orders.

Distributors— Distributors need tounderstand the law in order to respondboth up and down channel. They mayneed to communicate with growers andmanufacturers regarding labeling andproduct descriptions and specifications.They may also need to communicate withretail customers regarding labeling needs.

Plant branding and marketingfirms— These firms need to understandthis law to determine its effect on currentlabeling, signage and promotion materialrelating to their branded plants.

Retailers— Retailers need to under-stand the three kinds of required informa-tion and then decide how and where theywant that information to appear (i.e. onsignage or on labels). The choice of theparty listed for the declaration of respon-sibility is an individual business decision.Decisions regarding the responsibilitydeclaration may be affected by bothmarketing and cost considerations. Forexample, “private brand’ or “house brand”material could carry the retailer’s name inthe declaration and be identified by termssuch as “Grown for _____.” Other plantsmay have a responsibility declarationattributed to a grower, distributor or plantmarketer.

For further information:All businesses are encouraged to consultthe NIST Handbook 130 for more details.Members of the industry trade associa-tions endorsing this guide may contacttheir associations for further information.Other industry businesses should contacttheir label suppliers or the National Insti-tute of Standards and Technology atwww.nist.gov or NIST Weights and Mea-sures Division, Gaithersburg, MD 20899.

The following samples illustrate thedifferent ways the packaging law andregulations can be met through labels andsignage:

Spot Label with CompleteRequired Information and Stake

Tag with SupplementalInformation

Annual Stake Tag (No SpotLabel) With CompleteRequired Information

Declaration ofIdentity

Declaration ofResponsibility

Declaration ofNet Contents

Declaration ofResponsibility

Declaration ofNet Contents

Declaration ofIdentity

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This document was prepared by ANLAwith the assistance of SAF, NAHSA, PMAand OFA.

Standard Label (No Spot Label) for UseWith Specific Pot Size With Complete

Required Information

Combination Standard Label and SpotLabel (for use with multiple-sized

containers)

Advertisement

Declaration ofResponsibility

Declaration ofNet Contents

Declarationof Identity

Declaration ofNet Contents

Declaration ofResponsibility

Declaration ofIdentity

Declaration ofIdentity

Declaration ofNet Contents Sign Containing All Required Information

Declaration ofIdentity

Declaration ofNet Contents

Declaration ofResponsibility

Label Images Produced by

DISCLAIMER: The producers of this guide have workedto ensure that all information is accurate as of the publi-cation date. The information is provided with the under-standing that the publisher and the contributors are notengaged in rendering legal advice. Additional guidancecan be obtained by contacting NIST directly.