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The Second Half

Still Keeping Score?

Welcome to the Second-Half of the Business Year

This is the second half of the fiscal year for most garden centers, aka the un-profitable half according to one client.

The second half of a ball game is where it all happens most of the time. The second half of the calendar fiscal year of a garden center is not so exciting, but it is still where the game is won or lost. Although I’ve never seen a garden center add even one dollar to their bottom line after June 30 (in any year), every dollar that is preserved from July 1 forward is preserved for profitability.

BUT, if you want to end up with a small pile of profit at the end of the year begin with the biggest possible pile of profit by the end of the first half of the year. You can quote me on that.

Maximizing Second-Half Profit Starts in the First Half of the Year

Even though every dollar of margin earning income from the second half is to the good, there are no lines at the concession stand during the second half of the game, and thus, limited  potential to accumulate significantly more margin dollars. Continue reading

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Saving Money IS Making Money

Saving Money IS Making Money

It is a simple principle: Saving Money IS Making Money.

When it comes to making money there is no faster way to do it than to hold on to what you have already earned.

We’ll discuss that for sure, but hold on because there is more to it than simply holding on to what you have and we’re going to discuss that as well.

A Penny Earned

You’ve heard the adage “a penny saved is a penny earned”, which is true, but would you consider that holding tightly to a dollar may also mean saving your company from the brink of bankruptcy.

Continue reading

The $5.26 Million Dollar TOO High Cost of TOO-LOW Prices

Are you LOSING 2% or MORE of your Bottom Line to Poor Pricing?

As moderator of the session on Pricing Strategies for Profit at Today’s Garden Center magazine’s Revolutionary 100 Roundtable held in Atlanta’s America’sMart I asked the people representing the 22 companies in the session if they would write down on the note pad in front of them the number representing 2% of their annual sales. Then came my challenge to them.

The challenge was to put the piece of paper on the front of the table for me to pick up if they had learned enough new information about pricing in the previous hour of the session to add a minimum additional profit of 2% of sales to their bottom line in 2010 – WITHOUT THE CUSTOMER NOTICING. I would then pick the note paper up and have the event staff total them and share the number at the Town Hall closing session. ALL of them did. And what a number we had to share!

A total additional profit of $5,261,000.00, averaging $239,000.00 per company was produced. The least amount claimed was over $30,000.00. And think about it – every one of these companies has left those dollars on the table every prior year. Did you?

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All you believe…may be ALL WRONG – Belief #6

Merry 2010 CHRISTmas to all! Did your business return a gift of profit to you this year?

(Read time approx. 3 minutes.)

This is the sixth misconception in a series of six. The concepts being discussed here will likely be counter to your beliefs. The comments left on the previous posts are quite interesting so you may want to go back and read them.

Click HERE to go back and begin with the first post related to this series.

“Was any profit left in your business this year?

“My salary is in the profit.”

“We don’t want to be ‘greedy’ about it.”

“If we do everything ‘right’ it will all work out in the end.”

“We leave all the profit in the business.”

“I get paid in the rent.”

Those were common responses to our questions about garden center profit going back several years:

Continue reading

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