Education and outreach make the difference

Ginny and Joe Schulte know the importance of education in the success of their retail customers and their employees. Photos by Todd Johnson, Oklahoma State University

Southwood Landscape & Nursery in Tulsa, Okla., is focused on the benefits of education. Owners Joe and Ginny Schulte and their employees maintain the company’s competitive edge by regularly attending trade shows and conferences throughout the United States.

“It’s all about education,” said Joe. “By networking through the American Nursery and Landscape Association and related organizations, I stay connected with fellow retailers.”
 
The importance of education extends to the retail grower’s customers with in-house workshops including seasonal offerings. Most workshops are free and include a variety of gardening topics, including backyard orchards, vegetables in containers, rose pruning and orchids.
 
Southwood extends its educational reach through its weekly segments on local television station KOTV. All of the shows are done live and feature Southwood’s “Dirt Dude” Steve Smith, who handles retail customer service.
 
Southwood also runs commercials done by Joe Schulte on local stations particularly during the start of spring (mid-March until May) and fall (September through early November) planting seasons. Some of the radio spots are tied into community events such as Plant a Row for the Hungry.
 
Susan Brammeier, Southwood’s annual and fashion buyer, teaches an evening course on ornamental horticulture at Tulsa Community College. Her course curriculum includes landscape troubleshooting and maintenance, tree installation and pesticide application. Several of her students have become Southwood seasonal employees.

Staying competitive
Despite the economic downturn, Southwood continues to distribute employee bonuses.
 
“We have involved all of our employees in cost-cutting techniques as they are all eligible for our year-end bonus program,” Ginny said. She credits exceptional communication between the staff and the employees’ ability to recognize the need to work even harder during the recession.
 
The Schultes attribute the success of the company to a number of factors in addition to consistently working hard and improving the business. They recognize there is no substitute for years of experience. They have hired formerly retired professionals in the areas of inventory control, accounting and horticulture, who have provided the company with their knowledge and perspective.

During the mid-1990s Ginny realized the importance of computer technology and became active on the ANLA tech committee. As a result, Southwood was one of the pioneers in Oklahoma to computerize its garden center. Ginny said this has resulted in excellent management of the company’s inventory.
 
In keeping with the Shultes’ desire to anticipate the changing needs of its customers, the company conducts annual strategic planning meetings. The Schultes realize that only by keeping their key employees “in the loop” can their business stay competitive. Since 2003, Joe and the entire management team have done one-day presentations on the state of the company during which goals for the year are discussed. Some of the company’s current goals include improving employee orientation and revising job descriptions.
 
“The three components we work on every day are a happy work force, a very fluid inventory and a strong balance sheet,” said general manager Joe Ward.

Expanding production
In 2003, the Schultes recognized the need to expand their production capabilities to grow more of their own plants, particularly annual color. Because the company’s location had no room for expansion, the Schultes began looking for alternative production sites to satisfy their customers’ increasing demand for a varied product mix and locally-grown product. They leased a 4½-acre growing operation that was minutes away from their original location. Two fully automated houses are used for propagation and the company is currently automating the irrigation system throughout the rest of the facility.
 
“We concentrate on fast turning our crops, which includes six packs, 4-inch and 1-gallons annuals, hanging baskets, perennials, groundcovers and mixed containers,” Ward said. “The fastest growing segment in our production division is in perennials and groundcovers. The goal is to supply the retail facility with between 70-80 percent of its color needs. All of our larger green good items, including trees and shrubs, are bought in.”
 
In addition to the leased facility, the Schultes own an 80-acre farm in Jenks, a suburb of Tulsa. Although no decisions have been made about this location, it could eventually be developed to replace the leased facility. Other possibilities include development of a sustainable sites initiative, a public garden for Tulsa citizens and a farmer’s market, depending on the direction the company wants to take and the dollars available to develop some of these ideas.

Much more than plants
One of Southwood’s most profitable markets is landscaping. About 97 percent of this business is residential-related projects. Employees in the company’s landscape department are well aware that the residential design and construction market are truly discretionary expenses. The company saw a 25 percent decline in landscape sales during 2009 from the previous year.
 
Southwood’s landscape customers more frequently request that the company do more of the “hard work” including bed preparation and installing the larger plant material with the clients planting the smaller seasonal color items themselves. Knowing their customers are looking for ways to reduce their spending on landscape projects, Southwood employees have been proactive trying to assist by offering phasing options, alternative payment plans or financing, design fee credit or simple margin reductions.
 
Southwood employees are also always looking at landscape projects or community service opportunities that can result in greater company recognition. Landscape designer Steve Welch said public recognition is a great marketing tool.
 
“If I can land us in the newspaper or do an article for a local publication, it should provide us the opportunity to pick up more market share,” Welch said.
 
Southwood’s designers recognize the company’s competitors are already cutting margins just to get work. The company has hired a local marketing firm to set up focus groups this spring to collect feedback from Southwood customers to determine if its employees are adequately communicating with them and whether additional services should be offered.
 
Southwood currently offers very little landscape maintenance.
 
“We’d rather provide more of a specialty horticulture maintenance service but if we have to mow grass to achieve the business, then we’ll look into it,” Welch said.
 
Southwood is considering whether offering irrigation services would be a good fit. Its landscape personnel see the primary profit potential in this sector.
 
Southwood uses its in-house horticultural library as its closing showroom for landscape customers. The library is used by the landscape department to conduct final presentations of clients’ designs and proposals.

Constant commitment
Southwood’s customers know that the company will help them create the landscape they want the first time around. The company’s employees know that they can offer their customers the products, both plants and hard goods, and services they won’t find at the big-box stores or even at other garden centers.
 
Customers also know that Southwood’s staff (45 full-time and 15 part-time workers) will be able to answer their plant and landscape questions. Some of those employees have been with Southwood for more than 25 years and now their children are working for the company.
 
Joe and Ginny Schulte have developed five core values for their company.

1. Provide quality products in selections that are deep, broad and always evolving.
2. Ensure employees are well trained and knowledgeable so they can provide consistent, superior customer service in a creative and safe environment.
3. Sustain solid relationships with associates and suppliers.
4. Lead and contribute to the industry and community.
5. Maintain profitable growth with integrity, trust, respect and accountability.

 
Joe and Ginny’s daughters Brenda Baird and Margaret Schulte, who are co-owners of Southwood, are proud of the company and business philosophy their parents have established and look forward to continuing their success.
 
“My parents have always managed to keep a positive focus on their employees, their clientele and their overall business goals which has ultimately led to the success we currently enjoy at Southwood Nursery,” Baird said. 
 
For more: Southwood Landscape & Nursery, (918) 299-9409; www.southwoodnursery.com.
 
Mike Schnelle is professor and extension ornamentals/floriculture specialist, Oklahoma State University, (405) 744-7361; mike.schnelle@okstate.edu.