Late Drench for Bedding Plants

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pohmer on…

Nobody Asked Me, But…

Though it may not seem like it, there are many issues outside the green industry that affect your business.

By Stan Pohmer

his industry has been guaranteed minimum payouts and with Martha’s home décor assort- dealing with a num- a long-term contract. ments and positioning. The negoti- ber of different issues Moving to the present. Fast-for- ating power shifted to Sears, since lately when it comes ward a few years…Martha is con- they have the option of expanding to our businesses — victed of some legal improprieties the Ty Pennington line into Kmart, issuesT that aren’t always directly and serves some “hard” time; though Kmart is still locked into a related to floriculture. It may not because of this, her golden image guaranteed payment to Martha. seem like it at first glance, but became somewhat tarnished. In negotiating retaliation, Martha Martha Stewart’s actions, several Kmart is in major financial and cut a new deal with Federated government debates and your image chaos. And Martha’s now- Department Stores (a.k.a. Macy’s) industry involvement are affecting struggling company is profiting that promises a new, higher quali- all of us, and nobody asked greatly from the wisdom of her ty/image program and will roll out me…but I had a few thoughts on original contract. Even though in 2007. Kmart/Sears’ feathers are the matters. There are some Kmart was forced to close almost ruffled, and I hear there are now Battling egos, lessons to be learned from these one-third of its stores, Martha still veiled threats about dumping topics that just might apply to you. receives her minimum guarantees. Martha or forcing a new, reduced rather than Sales volumes are greatly reduced, payout deal. Martha Stewart yet Martha is still maintaining at Lessons learned. So what are good business The early years. Some years least her minimum cash ﬂow, a far the lessons we can take from this? ago, the Domestic Diva hitched her greater amount than any incented First, battling egos, rather than sense, rarely wagon to Kmart as her retailer of percentage of sales would have good business sense, rarely lead to choice to carry her personality- accrued to her. productive results for either side. lead to branded lines in the domestics and Then Ed Lampert, a hedge fund This type of adversarial relation- lawn and garden categories. Over titan, came on the scene. He ship, where contracts aren’t mutu- time, she expanded into their bought Kmart’s debt for literally ally compatible and both sides productive much broader home décor market- pennies on the dollar, helped lead don’t have a common goal, are place and, at one point, accounted the company out of technical bank- doomed to failure. results for for almost 5 percent of Kmart’s ruptcy and ultimately merged Second, Martha’s agreement total sales volume (there were Kmart with Sears. Martha saw this with Federated raises a question: either side. even rumors when Kmart first as a golden-goose opportunity and Can one effectively manage two entered Chapter 11 bankruptcy tried to expand her reach into the different images on similar prod- protection that she was consider- Sears stores, anticipating new and ucts and categories…can you have ing buying the company outright higher guaranteed minimums on one image that was designed to and turning it into Martha-Mart!). the horizon. From my perspective, put some class into a somewhat Now for Martha, timing is and Lampert feels the original Kmart classless retail environment (i.e., was everything. She was a hot deal is too one-sided (in Martha’s Kmart) and one that is intended to commodity while Kmart was favor), and I hear he is negotiating be upscale (i.e., Federated/Macy’s) struggling to reposition itself to hard to change the original con- at the same time? Will one have a better compete with Target and tract terms. negative effect on the other? Can Wal-Mart and to raise its At the same time, Sears started the images be far enough apart so image…and Martha was, in part, developing a new in-house brand the consumer can truly see a the company’s ticket to accom- — Ty Pennington (of Extreme defined difference between the plishing this. As a result, Martha Makeover: Home Edition TV fame, two? Can you successfully play in was in the position of power and which is coincidentally sponsored different market segments and negotiated one heck of a deal, with by Sears) that competes directly show discernable differences in

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pohmer on… Bonzi® tip of the month quality levels, programs and presentations industry. At least with respect to your without alienating your different customer own legislators, you should be the one to and retailer segments? help make a difference! Industry promotion. In the recent history The Governmental Process of our industry, we have attempted and Late Drench for I can’t remember when government failed to create major national category or policy, legislation and the potential impact industry promotions…Promoflor, Flora- Bedding Plants of these were as critical to our industry as board and Plants America come to mind It is common for bedding plants produced in flats they are right now. Immigration reform, most vividly. To fill the promotion vacuum, to become overgrown before they can be shipped. health care initiatives, the estate (death tax) very well-intended but lesser-funded pro- It is also common for them to become stretched and discussions and industry research funding motional efforts have been established indi- are major issues that can have unprece- vidually through the Flower Promotion overgrown as they sit at retail outlets. Plants grown dented effects on our ability to run our Organization (FPO), America In Bloom, in flats are spaced close together, and when the businesses productively and profitably and Plants at Work, Flowers for Kids and the leaves begin to overlap, they are prone to stretch as plan for family owned business succession. SAF Fund for National PR. the plants compete for light. The same situation can These are issues that ultimately affect Each of these activities is making a differ- occur with bedding plants in pots spaced close all players in the industry, whether you ence and benefiting the industry in their together. This problem is aggravated later in the sea- are a big box retailer, an independent gar- own categories or segments, but there is a son when sales slow and temperatures increase. den center or florist, a mega grower or an major need for our industry to begin work- A solution to this problem is a late Bonzi drench. under-an-acre operation. Yet, as impor- ing together. We need to work together to Spray applications of any growth regulator after tant as these issues should be to every one effectively communicate an all-encompass- plants are budded or flowering may delay or stop of us, there is relatively little participation ing industry message for consumers… flowering. Drench applications at appropriate con- from individuals and individual compa- because unless we market to them, we can- centrations should not affect flowering, but does nies. We need to make our unified indus- not effectively compete with all of the alter- try voice heard by the legislative decision native industries they can spend their stop stretching. The optimum Bonzi rate is one that makers for an orchestrated show of force money on. will hold the bedding plants for about two to three and support. Industry associations. A coalition of weeks. This will allow the plants to grow normally Two recent examples. The Society of individual industry associations, including after consumers plant them in beds. American Florists (SAF) recently hosted the FPO, OFA, SAF, the American Floral A late Bonzi drench can be applied easily by hand Congressional Action Days. Out of a total Endowment (AFE), the Produce Marketing with a hose using techniques similar to applying membership of more than 11,000 retailers, Association (PMA, representing mass mar- water-soluble fertilizers. Using an injector will ensure growers, wholesalers and allied suppliers, ket floral retailers), Asocolflores (the major that the final Bonzi concentration in the irrigation there were only 130 people who devoted trade association representing the water is at the desired drench rate. Several companies the time, money and energy to speak with Colombian cut flower industry), FTD, make portable injectors that are effective for applying a common voice on Capitol Hill on behalf Teleflora, 1-800 Flowers and the Association a Bonzi drench to small areas. of our industry. At the American Nursery of Floral Importers of Florida (AFIF) have An example of the correct calculations for a Bonzi and Landscape Association’s (ANLA) banded together as the Floral Marketing Legislative Conference last year, there Funding Initiative to determine methods of drench is as follows: If you want to drench Bonzi at were about 325 companies out of a mem- funding a national consumer marketing 0.5 ppm, which is 0.016 fl. oz. (0.5 ml) per gallon of bership of about 2,000 companies; there campaign. Once a logical, rational funding water applied to the plants, and the ratio of the injec- was much stronger support but still a mechanism is identified, a referendum of all tor you are using is 1:100, you should put 100 times as major opportunity for increased involve- companies who would be assessable would much Bonzi in the stock tank (bucket). In this example, ment was missed. take place, and if passed or endorsed, dis- the correct amount is 1.6 fl. oz. (50 ml) of Bonzi per There is one program sponsored by cussions on an advertising plan and mes- gallon in the stock tank. Users should read the Bonzi ANLA that is getting more grassroots sup- sage would be crafted. label and follow all prescribed precautions for apply- port than the national legislative meetings This funding review effort recently ing Bonzi by chemigation. in Washington: It is called Lighthouse. launched, and it will be about six months When applying a Bonzi drench by hand using a This is a voluntary program that has before any initial decisions are reviewed. water hose, uniformity of the application is important. become a significant coalition of state asso- This is just a heads up on what is taking Variations in the volume of solution applied will result ciations as well as individual companies. It place to better communicate an industry identifies the pertinent issues, establishes message to our consumers to help grow our in variations in plant growth. Also, the optimum Bonzi methodology for action and support, and industry more aggressively and better posi- concentration will vary depending on the volume of provides that action on a very regular tion floriculture in the consumers’ minds. water applied. Users should follow the Bonzi label basis, especially when critical legislation, Stay tuned for more details as they develop. guidelines and determine the appropriate rate and like immigration, is being discussed on There are a lot of things that affect your drench volume needed to achieve the desired result, Capitol Hill. Suggested letters/letter con- business that you can control, and there are based on both container size and media used. Tests tent, contact information for your individ- a lot you can’t. Some things we can accom- should always be conducted on a small number of ual Congressperson at the state and feder- plish individually, but there are some that plants prior to treating an entire crop. al levels, and updates on current and need our collective efforts to achieve. Keep pending legislation are the mainstays of current on the issues that need your this growing effort. involvement and lend your support and cooperation. Together, we can make a dif- Maximize Profitability. Getting Involved ference… GPN Many of you already participate in leg- Right-size Your Plants. islative actions at the national, state or local level in your own way, and you Stan Pohmer is president of Pohmer should be applauded for your efforts. My Consulting Group, Minnetonka, Minn. He challenge to each of you is to get involved can be reached at spohmer@pohmer- and make your individual voice that of the consulting.com or (952) 545-7943.

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