CNGA LooseLeaf June/July 2019

colorad o nga.org LooseLeaf June/July 2019 12 For all plant sellers, the seasonality of the business makes ordering more difficult. Planning six months or more ahead of the next big sales season can be tricky. “When I look at hardware stores, they seem to be happy when they don’t have to buy much in advance. They would like to not have to put the emphasis on early order stock-up programs, just have everything they need in stock at the wholesaler, and be able to order weekly based on what they need to keep the shelves full,” he said. Garden centers, on the other hand, are generally ordering as much as can fit in their display and storage areas, so they ensure they have sufficient inventory to meet peak customer demand. The other challenge for garden center inventory managers is trying to keep the store looking nice for customers. Though Echter’s tries to keep the display areas attractive, they inevitably will start looking a bit bare late in the season. “We have no good answer for it. In April to May, it is looking good out there. All of the benches are full. In July, if we are trying to keep benches and shelves full, we are buying too much,” he explained. “As the benches empty out, when customers come into the store in August, it’s not as exciting, but the numbers say we don’t need to replenish those products. We try to consolidate towards the front of the store and let the back go empty. I’ve seen stores take out benches and widen aisles and take out shelves so they are not bare.” While Echter’s keeps bird feeders, gifts, holiday decorations and indoor tropical plants on display year-round, it’s not nearly enough Track sales so that you can easily create a sales history list. Choose a POS (point of sale) system that can provide the level of detail necessary to understand what sold, when, and for how much. Because garden center sales are seasonal in nature, having a system that can conveniently give you a daily or weekly look at sales data can be useful for developing more accurate orders. Do a complete physical inventory before you place the main orders for the next year. Ensuring that the current stock is counted accurately will help in better planning the next year’s needs. Look at the sales history and the current inventory. Decide what items to drop. Start by projecting that the same number will sell again next year. If you have a number of products that are left over in inventory, subtract those from the order total. Also subtract products that are on order but have not been delivered yet so have not been counted in the current inventory. Step 1 Step 2 Step 4 Step 3 LOOKING AT ALL THE NUMBERS Planning for next year’s orders is a process of reviewing sales history, doing a physical inventory, and making decisions about ordering based on what sold, what’s still in the store, and sometimes what’s already on its way. Here are the steps that Echter’s Nursery & Garden Center takes in creating its main, annual orders. Photos courtesy of Echter’s Nursery & Garden Center » continued from previous page