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Sales & Marketing in the H orticultural Industry

Sales & Marketing in the H orticultural Industry. At the completion of this unit students will be able to: Identify costs related to plant production Identify types of greenhouse businesses Determine retail prices Describe effective packaging Create a marketing plan

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Sales & Marketing in the H orticultural Industry

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  1. Sales & Marketing in the Horticultural Industry At the completion of this unit students will be able to: Identify costs related to plant production Identify types of greenhouse businesses Determine retail prices Describe effective packaging Create a marketing plan List factors a consumer looks for when purchasing plants Sell greenhouse plants

  2. Identify costs related to plant production What does it cost to raise a successful crop? 1-Labor -Greenhouses are labor intensive For example: -Watering (by hand or automation) -Fertilizing -Insect Control -Potting & Preparing for sale

  3. Identify costs related to plant production What does it cost to raise a successful crop? 2- Cost of Goods -Seed/starts -Soil -Pots -Fertilizer -Insecticide

  4. Identify costs related to plant production What does it cost to raise a successful crop? 3- Operating Expenses -Utilities for heat/cooling -Water -Building/maintaining greenhouse

  5. Identify costs related to plant production What does it cost to raise a successful crop? 4- Marketing/Advertising -Ad in the yellow pages -Printing signs/flyers/brochures -Newspaper Ads -Billboards

  6. Identify types of greenhouse businesses Are all greenhouses the same?

  7. Identify types of greenhouse businesses Wholesale/Commercial • Grow plants to sell at a wholesale cost • Usually specialize in one or a few types of plants • Usually produce on a large scale • Must have a tax id # (be a business) to buy from here

  8. Identify types of greenhouse businesses Wholesale/Commercial • Milgro • Newcastle, Utah • Poinsettias • Easter Lillies • Mums • Uses Geothermal Heat Geothermal heat

  9. Identify types of greenhouse businesses Wholesale/Commercial • Perennial Favorites • Layton, Utah • All Perennials • Specialize in gallon size pots • Also do some annual hanging baskets

  10. Identify types of greenhouse businesses Wholesale/Commercial • Ogden, Utah • Poinsettias • Easter Lillies • Mums • Etc

  11. Identify types of greenhouse businesses Wholesale/Commercial • Layton, Utah • Bedding plants • Poinsettias, Lillies, etc

  12. Identify types of greenhouse businesses Retail • Buy plant stock from a wholesaler • Sell at Retail prices to the customer • Usually carry a variety of plants

  13. Identify types of greenhouse businesses Retail • Only sell plants • They do not grow them here

  14. Identify types of greenhouse businesses Retail • Only sell plants • They do not grow them here

  15. Identify types of greenhouse businesses Broker • Middleman • Buy from wholesaler • Sell to Retailer

  16. C. Determine Retail Prices How are retail prices calculated? Usually live plants are marked up using a 3:1 ratio Example: -If it costs $1.50 to a raise a geranium, it will sell for $4.50 -If it costs $3.00 to raise an Easter Lilly, it will sell for $9.00

  17. C. Determine Retail Prices Calculate Cost of raising 1 poinsettia 3:1 mark up above cost of materials covers misc expenses and provides for a profit

  18. D. Describe effective packaging Which would you rather buy?

  19. D. Describe effective packaging Which would you rather buy? • Pots should be covered with a holiday foil • Add a bow to increase appeal • Remove any dead or miscolored leaves/bracts

  20. E. Create a marketing plan How to Create a Marketing Plan 1- Identify an audience 2- Determine how you can reach your audience - Newspaper Ad - Phonebook -Word of mouth -Flyers/brochures -etc 3- Design marketing materials

  21. E. Create a marketing plan Assignment: • Create a Marketing Plan for the Floral business of your choice • Make a slogan • Create a sign advertising the products that are for sale

  22. F. List factors a consumer looks for when purchasing plants What factors effect your purchase choices? • Cost • Convenience • Quality • Where it was produced/grown • Etc.

  23. G. Sell greenhouse plants List what makes this salesman successful??? • Went to a target audience • Showed the qualities • Wasn’t afraid to ask • Let them try it

  24. G. Sell Greenhouse Plants Example SalePattie’s Palm Trees • Identify potential customer • Present your product to them • Display it’s qualities • Make the sale • Arrange details (pick-up or delivery) • Follow through! • Southern Utah Resident • Mexican Fan Palm Tree • Grown in St. George, already acclimatized, supports local economy • Make the sale • I’ll deliver it on November 23rd at 10 AM • Follow through!

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