Don’t just survive — thrive

Watering restrictions. New regulations. Pleas to consumers to reduce water consumption. Economic ramifications.

The lack of precipitation in recent times coupled with the rapid population expansion in urban areas has had a significant impact on U.S. states, counties and municipalities, some of whom are now federally declared drought areas.

As a green industry business that doesn’t want its plants (and profits) to turn brown, the current situation concerns many retailers. But what does it mean for your business? “Every situation is different,” says Jon Belmont of Belmont Nursery in Fresno, Calif., who is currently facing drought conditions. For this reason, we’re focusing our efforts on providing you with the tools you need for the journey through uncharted areas for many businesses.

As Belmont stated, no one situation is the same. However, this also offers an advantage — with everyone adjusting to individual circumstances, there are many unique ideas that could be shared with businesses in different areas. We spoke to Belmont, Stuart Cofer, owner of Cofer’s Home & Garden Showplace in Athens, Ga., and Johnette Taylor, president of Roundtree Landscaping in Dallas, Texas, and vice chair of the Texas Nursery and Landscape Association (TNLA), to get different perspectives about the best ways to adjust to the drought. If you’re feeling overwhelmed, you’re not alone. Read on for some tried-and-true ideas that might help you get out of a rough spot.
 

Get out in front of it

Cofer is no stranger to running a garden center through tough times. Back in the early ’90s, Cofer faced drought conditions at his garden center, but says that it wasn’t as difficult of a situation as when water restrictions were imposed in the 2007 drought. Fortunately, Cofer caught wind in the fall of 2006 of rumors of a total outdoor watering ban for spring 2007, and took action early.

“It’s very important to be on the front end of it,” says Belmont. “You can’t just stick your head in the sand and say, ‘I’ll come out when this goes away.’ You have to try and be proactive about where the opportunity in the disaster, because there’s always an opportunity for somebody.”
 

Offer customers alternatives

Just as you may have offered alternatives to impatiens due to downy mildew, customers will need to be made aware of the drought situation and directed to more suitable plants. “Now the challenge to that is many customers say, ‘Yeah, that’s a really good idea. We should do that, but not in my backyard,’” Belmont says.

So the trick is finding something they like as much as that red banana plant in California, or looking at it from a different angle, as Taylor does at her landscape business. If customers have emotional ties to plants she dubs “water hogs,” and can’t be convinced to replace those plants completely with more drought-tolerant ones, they try to minimize their use. Rather than planting 20 of the water hogs as they may have done in the past, they’ll plant two or three, and place them right by the back door or in another location where homeowners will see them frequently and can easily maintain them. Customers are more willing to branch out and try something new if they know they can still have a couple of their favorites. Obviously it would be ideal to eliminate the water hogs from drought-affected areas, but it’s not always feasible.
 

Get to know your local water system

In order to keep your business in compliance with water restrictions and prepared for future water problems, you should get to know your local water system, says Cofer. “You can’t throw a blanket policy over every community. This applies to Cleveland, Los Angeles, Athens, etc.” he says. “There’s no one water system that is identical.” Retailers need to learn the specifics of theirs: where water is pulled from (wells, lakes, rivers, reservoirs, etc.), who consumes the most, how many gallons a day of clean water is produced and wastewaster is treated, etc.

Knowing more about where water is coming from and where it’s being used is key information to have in your toolkit in the case that water is being restricted and your store is unfairly targeted, as was the case with Cofer’s garden center and local car washes, both of which were not using as much water as the local government believed. The restaurants and the school system were using considerably more water, which was surprising to some.
 

Increase awareness and encourage conservation among customers

As the saying goes, an ounce of prevention is worth a pound of cure. In the world of water, sustainable solutions can be difficult to come up with if consumers aren’t doing their part to conserve. For example, one solution is to develop a new reservoir to provide a more stable water source. However, this process can take many years, and have a significant impact on the environment.

That’s why it’s important to work together to educate consumers about the importance of conservation now. “It’s conservation, not restriction,” says Taylor. “If we all conserve all the time we’re going to be in a lot better place than if we all use what we want when it’s raining, then have the faucets shut off when the [rain stops].”

When customers are coming in to buy plants for their yard, educate them on how to prepare the soil for maximum water retention, encourage them to maintain irrigation systems and hoses, work with them to develop sustainable methods, give them watering tips, and keep yourself informed about the local situation so you can pass that information on to them.
 

Adjust your marketing and merchandising angle

Most garden centers already stock plants that fit into the “drought-tolerant” category. “We’ve grown water-friendly plants for years. It’s just a matter of pointing them out,” says Belmont. “So we didn’t have to reinvent the wheel, we just had to focus on the things we already had. We already had the tools in our box.” Many of the popular “low-maintenance” plants like daylilies and hostas can also be considered drought-tolerant. Belmont Nursery developed a revised list of these plants, and some growers provided drought-tolerant tags. They also promote soil moisture crystals, soaker hoses, and anything that would help customers be more water-efficient.

Cofer’s Home & Garden Showplace launched a “Fall is for planting” marketing campaign during the drought. While fall isn’t typically when gardeners think about planting, it was an ideal time, a point Cofer wanted to drive home. “You don’t have to water in the fall. Don’t worry about the water restrictions. Plant in October [through] February, stick it in the ground, walk away and let Mother Nature water it,” Cofer would tell customers.
 

…And your attitude

“You have to stay focused on the positive,” says Taylor. “I heard someone saying, ‘Well, the drought is having an effect on our business but we’re surviving,’ and I think we all have to get out of survival mode and think about ‘How could I thrive?’ Because if the future is going to have less water, [we need to think about] ‘What things do I need to change in my business so that I can thrive?’ We all did that during the recession and we have to do the same thing with the drought.”

“But the main thing is you keep your head up,” adds Cofer. “You’ll come out of the drought — it doesn’t last forever.”
 

Position yourself and your team as the resident experts

The information swirling about in times of crisis isn’t always completely accurate, as can be expected. In the case of Dallas, Texas, Taylor says that some of the water purveyors are giving customers advice that doesn’t quite match up with what a nursery professional might tell them. “One of the local water purveyers keeps saying ‘Turn your irrigation system off,’” she says. “But they will allow you to water with a handheld hose. I think the push should be on making sure that your irrigation system works efficiently, because if it’s working properly you can put down the appropriate water in a shorter amount of time and actually save water.” This is a great opportunity to educate customers not only on the most efficient watering methods and plants for the zone, but also the reasoning behind it.

At Belmont Nursery, they created a “We plan, you plant” program tailored to customers who didn’t need someone else to redo their yard, but still wanted to be water-wise. “Instead of our springtime TV advertising featuring pretty flowers, it was ‘Let us help you in this drought situation,’” Belmont says. “I think by being up front on our advertising beforehand, lots of people came and said, ‘Yes, we want you to help us with that.’ We’ve become the go-to place for information, and we try to be a resource for the community.”
 

Communicate and work with suppliers and distributors

In Cofer’s experience, many of his suppliers and distributors were willing to work with him after he sent each one a letter explaining his situation. As it wasn’t a statewide problem at that point, many were unaware of the circumstances. He was able to negotiate longer payment terms, smaller, more frequent ordering and even consignment on some products. Cofer had to raise prices, as he no longer received as many bulk discounts, but he said it was worthwhile. He suggests talking to your suppliers and distributors both to make them aware of your situation, as well as negotiate different terms that may facilitate continuing the relationship as well as keeping your business viable.
 

Emphasize products and activities that don’t require water

Take a look around your store, and take note of what you’ve already got on your shelves that you can promote. Is it grills and patio furniture sets that will help customers enjoy their backyard, even if their garden isn’t as lush as usual? Or is your gift section second-to-none? Even if or when the water situation normalizes, it will still benefit your store to market its non-plant strengths.

of making a few extra bucks. In Cofer’s case, he has a billboard on the property that brings in an extra $2,500 a year. He says that cell phone companies are also looking for places to place cell towers, and you may even be able to rent out your parking lot when the store is closed. If you aren’t already doing so, you can rent out your greenhouse or outdoor garden space for a special event, such as a wedding reception. “You’ve just got to get creative in what you do,” he says.
 

Cut expenses wherever it makes sense

As you look to increase revenues wherever possible, also examine your expenses for places you can reduce them. Every little bit adds up, and you may find some unnecesary expenses you can avoid in the future, such as getting rid of the fax machine and its separate phone line that you’ve replaced with a digital service.

Here are a few places to check for unnecessary expenses or places you can cut costs, according to a presentation thatKen Lain of Watters Garden Center in Prescott, Ariz., gave last year:

• Labor: Can you realistically reduce hours during slow times?
• Insurance: Reevaluate your current insurance to see if you can get lower rates.
• Credit cards: Again, shop around for lower rates, and make sure to verify charges when bills come in.
• Uniforms: Can you simplify them to reduce their cost for future employees or as replacements are needed? In addition, Cofer suggests looking at the number of phone lines you have — do you need all of them during the off season, or could you have those lines temporarily shut off?
   

Look into getting outside help

Back when the drought was at its worse in Georgia, it was declared a federal drought disaster area, and as such, many small businesses, including Cofer’s garden center, were eligible to receive financial assistance. Cofer applied for and was granted a 30-year, low-interest loan through the Small Business Association (SBA) to help keep him in business. He recommends that interested retailers contact the SBA to determine if they qualify for similar assistance. Visit www.sba.gov/content/drought-disaster-assistance for more information.
 

Develop deeper relationships

When the rains in Athens stopped and the rivers’ water levels dropped dangerously low, the city started pulling water exclusively from the reservoirs, where levels also dropped, resulting in an outdoor watering ban. All businesses with visible outdoor water usage were asked to develop a written plan detailing how they would reduce their water usage by 20 to 25 percent. “It didn’t matter that right next door to me was a restaurant that was probably using two to three times as much water as I was,” he says. “Since my water was visible, I was the bad guy.”

At that point, Cofer and other business owners, including other retailers and growers, banded together and went to city hall to demand equality. They quantified their businesses’ economic impact with a study the University of Georgia conducted, and demonstrated their willingness to work together to find a solution that would both benefit the water conservation efforts and allow them to stay in business. As a result, they were able to gradually reduce the water restrictions, and increase conservation efforts in the community.

When it came time to talk to the state government about the situation, Cofer and his allies teamed up with the state nursery association and Athens city officials to make their case. After successfully lobbying the state government, the watering rules were changed on a state level and effectively overrode the local regulations. Just as business owners need to know as much as possible about their water system and users, “You’d better know who your county and government officials are,” Cofer says. “It helps to do that [sooner rather than later], so that you have a working relationship with them before there’s a crisis, because once you’re in a crisis mode you’re now in a reaction mode. And it takes a long time to turn the ship around when you’re in reaction mode.”
 

See the bright side

And when all else fails, try to look at the bright side. In most cases, having to deal with this crisis head-on means that rules and regulations are revisited, and many times, reformed to suit the current situation. In Georgia, as mentioned earlier, the new laws actually benefited the green industry because of how proactive local businesses were in finding a workable compromise for all involved. This ensures that these businesses won’t have to start from zero again in future cases of drought.

Green industry businesses, especially retailers, have also played a key role in increasing water conservation efforts and awareness in their communities. As both consumers and businesses work to conserve water, all will benefit.

In addition, innovators are developing technology with water conservation in mind, which will be increasingly beneficial as time goes on. “There’s a lot of great new technology, things like water-saving irrigation emitters for growers or retailers,” says Taylor. “Calloway’s Nursery here in Dallas built one of their new stores with completely permeable pavers so that after they water the plants, the [excess] water is caught and can be recirculated.

There are all kinds of really great things that we didn’t have 20 years ago that we can turn to. Sometimes necessity is the mother of invention, and there will be even new and better things coming down the pipe.”