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

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

7. 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 A.Identify types of greenhouse businesses

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

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

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

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

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

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

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

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

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 ExpenseGroup CostIndividual Pot Cost Poinsettia start$400$1.00 Pot$80$0.20 Soil$140$0.35 Fertilizer$60 (2 bags)$0.15 Insecticide$150$0.37 Pot Cover & Bow$200$0.50 Materials Subtotal:$2.57 Greenhouse utilities $2.57 x 3 = Labor Advertising Facility Improvements Grand Total $8.00 3:1 mark up above cost of materials covers misc expenses and provides for a profit

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

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

20. 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 E. Create a marketing plan

21. 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 E. Create a marketing plan

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

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

24. Example Sale Pattie’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! G. Sell Greenhouse Plants 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 23 rd at 10 AM Follow through!