Published:4/1/2008
Ah, you all must be wondering about the headline (I am an avid Sound of Music fan) that I chose for this month’s issue. Well, to cut to the chase, due to some downsizing within Ball Publishing, I am leaving my position as managing editor of Green Profit. In my short time here, I have so enjoyed writing and editing for all of you. It’s always hard to leave a situation where the industry is so rewarding. What can be better than working in an industry that develops, sells and creates the most beautiful products in the world: flowers. I wish you, my colleagues and the company much luck this spring and beyond.
Now, down to business. It seems like all we’ve been hearing is economy, economy, economy, and my guess is, with spring so close, you’re getting a little nervous. In a recent BuZZ! I talked about the luxury market and how it’s not doing so well. I asked readers: Do you think plants and garden products are part of the luxury market. How do you think our industry will fare in the current economic situation? Wow. I got some great responses! Here is a taste of what some people had to say:
I think we are definitely perceived as selling “luxury items” and that’s a problem. Our products aren’t just luxury items, they are essential. I would even go so far as to say I can’t think of any other product on the market that is as sustainable and environmentally friendly as a tree. As America continues to suburbanize, it is more important than ever for people to be educated on the importance of our landscapes to our environment, air quality, water quality, etc.
—Kellie Bowen, Full Bloom Nursery, Clermont, Georgia
Without a doubt, portions of our industry would be considered to be a part of the luxury market. The “outdoor living” trend is a good example, where folks actually spend several thousand dollars on a combination of green goods, hardscapes, and outdoor furnishings in order to extend their indoor living spaces to the outdoors. Anyone who has put in an outdoor kitchen lately fully understands the magnitude of expenditures that go into such a project. And there are numerous consumers that have the means, capability, and desire to tackle these projects even in the midst of depressed economic conditions. So even if folks decide initially to delay investing in these “luxury” outdoor projects, the combination of lower interest rates and the receipt of tax rebate checks may persuade even the most frugal of consumers to purchase, mainly because of the benefits of their outdoor project—a place to relax, entertain and decorate. It’s hard to put a price tag on that. The important point is that there is a place for the full demographic range of customers in our industry—regardless of age, income, ethnicity, etc. The key is tell them and to keep telling them!
—Charlie Hall, Department of Horticultural Sciences, Texas A&M University
I think we carry items that could fall into luxury (large fountains, gas grills, etc.) but I feel most of our lines would be considered staples. Nobody needs anything we sell to survive, but I think that customers feel they need what we sell for quality-of-life factors. In my 39 years [in the industry] we have usually fared pretty well in “recessionary” times. Not too say there was a lot of growth, but there were increases. The whole stay-at-home-spend-at-home theory I think has merit.
—Gary Egerer, Stein Gardens & Gifts, Milwaukee, Wisconsin
While plants may be considered a “luxury” item—in that they aren’t a necessity—a small amount of money goes a long way towards happiness. I hear more comments about “I’ve got to have that!” Plants make people feel good—about themselves and their environment. I don’t see them doing without. In 10 years I have never heard a customer say they have to cut back on the number of plants they are buying, even during water restrictions.
—Barbara Croson, Bell Nursery
I don’t buy into the idea that our industry is recession proof, but I also don’t think we’re strictly luxury either. The first step that people I know take when cutting back is looking at ways to save money without changing their lifestyle. Buying fresh flowers for my kitchen feels like a luxury, but cutting them from my own garden feels practical. Hiring someone to maintain my landscape feels like a luxury, but the grass still needs to be mowed and the landscape is an investment in the property value. I expect some of the people who moved from the DIY crowd to the DIFM crowd to consider getting their hands dirty again.
—Paul Westervelt, Saunders Brothers, Inc.
Happy Spring Sales!