Plant Marketing has about 40 acres of production space between its Wisconsin and Florida locations. |
When Plant Marketing in Eau Claire, Wisc., began a business relationship with Target in 1987, it started by supplying two stores — one in Fargo, N.D., the other in Milwaukee — and eventually grew to 600.
“We’ve always had the philosophy that we’re large enough to supply you, but we’re small enough to respond to you,” says Larry Reit, founder of Plant Marketing. “I think that’s been one of our successes is that you know we’re big enough to supply 600 Target stores or a large chain, but if a large chain calls up and says ‘I need this or that,’ we can respond to them and get it there for them.”
Applying that philosophy may not sound like an easy feat. But by finding the right customers, having a good knowledge of the industry and implementing smart management practices, Plant Marketing’s philosophy has turned into reality.
Find the right customers
Before Reit sold his company in 1998, Plant Marketing pursued every potential customer.
“When we were first starting, we were chasing about every dollar there was to chase,” he says. “We were spending a lot of money chasing, trying to get new business that wasn’t profitable.”
So when Reit re-purchased his company in 2001, he decided the company would only go after customers it thought were profitable. And based on its previous experience with Target, big-box retailers and larger accounts were one of them.
“We had a very good relationship,” Reit says of his work with Target. “You hear these stories about big-box retailer chains demanding stuff and things like that, and we didn’t have that experience with Target.”
But Plant Marketing did have to prove itself to Target to keep its relationship growing. In fact, Target never intended on using Plant Marketing as a permanent supplier.
“They just wanted to buy until they could get somebody else in place,” Reit says. “And we just kept performing and kept the relationship going and the next thing we know, we turn around and we had 600 stores.”
When it comes to working with a large chain, you have to start small.
“Don’t take on more than you can handle, because it’s easier to build up than it is to step back and say, ‘Geez, we screwed up, we need to settle back and do less.’ That’s harder,” he says. “As long as you do a good job with your buyer, he’s going to respond to you, and he’s going to give you the benefit of the doubt.”
In 2005, Target decided to get out of the plant business, so Plant Marketing began looking for new avenues to pursue, which resulted in a new facility in Florida for foliage production, as well as getting into bedding plants and poinsettias in its Wisconsin location.
“One of the chains we were working with started growing quite rapidly into the bedding plant business, and we were able to hook on with them and grow with them,” Reit says.
Top: Plant Marketing’s employees have played a crucial part in the company’s success. Part of that is due to Larry Reit’s committment to learning their strengths and weaknesses. Bottom: Plant Marketing offers foliage, bedding, perennials, holiday/seasonal plants and more. |
Plant Marketing had to grow and expand to keep up with its new customers and meet their demands. Today it has about 20 acres of production space in both its Wisconsin and Florida facilities. The company is also prepared to continue growing if the customer demands increase.
“We don’t have any plans [to expand] right now, but that changes quickly,” Reit says. “We have a site prepared for more greenhouses if we need to expand more. If the customer demands it, we’ll be prepared to respond.”
Know the industry
One of the key aspects to Plant Marketing’s success has been its ability to understand the industry and stay ahead of the curve.
“The biggest challenge we face today is staying ahead of the market,” Reit says. “Trying to find the new plants, the new colors … .You as a greenhouse producer, you’re always looking for something new. You go to the Ohio Short Course to look for new ideas, new colors, new combinations, things like that. You present your case to the big-box retailer, and the buyers will ask, ‘What’s new in the market? What’s happening? What’s going on?’
“You need to know what’s going on in the industry and staying current is the biggest thing.”
One way it does that is through its different business operations. Not only does it have its production facilities in Wisconsin and Florida, it also has two garden centers, run by Reit’s wife and two daughters.
“By [having garden centers] you are familiar with what the customers’ wants and needs are, and you can take that knowledge and experience to the big boxes and honestly present something and say, ‘This is what’s selling right now,’” he says.
Having that one-track focus on the consumer is what makes both the customer, and Plant Marketing, successful.
“Focus on the customer and what the customer is really shopping and buying these days. Because when it’s all said and done, you’ve got to supply a product that the customer’s looking for to be successful. You’ve got to supply something that they’re buying, and if the chain can make a profit out of it, then you make a profit too,” Reit says. “We both have to make a profit or neither one of us will be here.”
Understand your operations and employees
When you’re trying to be large enough to supply 600 stores, but small enough to respond to last-minute requests, having a good team of employees and a management strategy is crucial for success.
Reit’s office staff and management team only consists of eight to 10 people. But some of those employees have been working for the company for around 20 years.
“We have good employees,” Reit says. “Our management team has been in place for a long time, so they know how to do it. I mean, it kind of runs pretty smoothly.”
It’s important to know if someone will make a good employee for your organization. Reit has a key he looks for in potential employees.
Plant Marketing maintains the philosophy of being large enough to supply a retailer, but small enough to respond to them. |
“The thing I use all the time is someone looking for a career and not a paycheck — somebody that cares as much about the company as I do; Somebody’s that willing to say, ‘Well, gee, we have to work this weekend, or we need to work some extra hours here and we have to do this,’” he says. “I think we have a very close-knit family, if you will. We talk about things, we work things out. Our employees are our family, too.”
One thing Reit does that helps him connect with the company and his people better is taking the time to learn every job involved in his company. He believes it’s important for an owner to understand how long a job should take, and what is possible to accomplish and what isn’t. He also works alongside his employees in the spring. He recommends that all greenhouse owners learn how to do every job in their operations and work next to their employees if they want to see better results with their labor.
“You know I think sometimes we get too detached from the job and don’t know what the problems are or what needs to be changed,” he says. “Because people are creatures of habit, they’re going to do the same thing day after day thinking that this is the way it should be done.”
By understanding what your employees are capable of, or should be capable of, you can accentuate their positives. One employee’s weakness may be another’s strength. But the only way to find out is to take the time to learn your employees and learn their jobs.
It’s a small step, but just like with those first two Target stores, it’s starting with the small steps that can turn your operations into a big success.
Explore the August 2012 Issue
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