<b>2011 Profit Quest:</b> The black can be found all around you

If you're scratching your head looking for increased profits in 2011, start with the couch cushions of your break room.

Todd Davis

If you’re scratching your head looking for increased profits in 2011, start with the couch cushions of your break room.

Then invade the ashtrays of your delivery trucks.

You’ll only find spare change, but at least you’ll feel better. Then you can direct your mind to finding more productive ways of improving your bottom line in the coming year.

That’s what this special supplement of Greenhouse Management & Production is all about. As you’ll find out, increased profitability can be found all over your operation – not just where loose change gathers.

There’s not one aspect of your growing range that can’t be improved upon just a little bit. And little improvements can add up to big profits.

Just consider Lawyer Nursery Inc., which is reducing the labor it needs on the weekends. This has direct benefits. It’s not paying as many weekly wages.

But also think of the overtime ramifications. By not having to juggle workers’ schedules to reduce overtime (likely sending some employees home early several days a week), employees can get in a regular 40-hour schedule Monday through Friday. This further increases your productivity.


Better products, better sales
Take a look at your regular expenses. We’re talking about the stuff you buy every day but don’t think much about – containers, tags, media, etc.

Would you consider these profit centers for your greenhouse operation? Some growers do. In attempt to make more money in 2011, Walters Gardens is planning to spend even more money on tags.

These large tags provide ample room for color photos and detailed product descriptions, which Walters Gardens theorizes will drive more sales.

Banner Greenhouses is even banking that its growing media will make a difference to the bottom line next year. The company is promoting the use of rice hulls in its growing mix, which is attractive to the company’s growing organic customer base.


Start small, get busy
Take a detailed look at your profit/loss statement in 2010. Then take a walk around your operation. Ideas for decreasing operating costs or increasing sales should spring up.

Then take the time to talk to every employee in the company. You’ll get more feedback than you could imagine, and most ideas could be implemented right away.

Use 2011 as a time for change, and not just what you find under the seat cushions.
 


 

Todd Davis
tdavis@gie.net

 

October 2010
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