Hey Charlie, you are not alone. Did you see the video message from Scotts Miracle-Gro Company® CEO Jim Hagedorn? http://thescottsmiraclegrocompany.com/6-12-12_Video_Message.html
Pretty much sums up everybody’s season in the Lawn and Garden Industry. Weather is the number one driving force every year.
So we started off well and crashed and burned soon after. Now what?
I spoke to a half a dozen business owners and got a few things to consider to salvage the year. Here are a few ideas:
- Inventory- Pretty easy, but run it down. This isn’t just for your finished products, but for your raw materials also. Cut off suppliers, have a sale, lower a contract price to increase shipments.
- Renegotiate- Your suppliers are in the same boat. Renegotiate to increase your inventory for a lower dollar value. Will lower your average cost per unit across the board and will increase your profit next year
- Don’t be afraid to layoff early- It’s a long expensive Winter. Don’t have the work, let them go.
- “Get rid of your leeches”- This came from my friend in Atlanta and will save you the stress next year. If they don’t pay, send them packing, Slow pay is no pay. Let them go. You are not a bank. Next year you will be much happier.
- Work with Friends- Friends make you money and support you when you need it. Buy some of their material and cut them a break for some material
- Find a new Client- Maybe your old clients are not selling like they use to. Get going finding some new ones.
Last year’s draught of raw materials in the Mulch business has given way to a flood of material and cheaper prices this year, yet it seems people do not have the money to carry that material for the winter, leaving a lot of suppliers high and dry. Work with your suppliers to help keep them afloat, you will need them sooner or later. Paying ½ now and ½ later pays ½ the bills instead of no bills.
Hope this helps Charlie. Good Luck to you and your friends.
Questions- Drop us a line