Eads Landscaping and Garden Center shapes its strategy to ...

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by Karl H. Kazaks here are many similarities between how a business forms and how a plant develops. Background and experience, like roots, ground an operation and help bring it to the light of day. Key manage- ment figures — like a stalk or trunk — support and help structure an entity’s functions. Day-to-day business — leaves and flowers — provide the final interface with the world, making the package whole and bringing back inward all that is needed to survive (sunlight, pollina- tion, profitability, satisfaction). Eads Landscaping and Garden Center, which serves customers in western Kentucky and southern Illinois within about a 70 mile radius of its home in Paducah, has a morphology as logical and impressive as those of the plants in its greenhouse and of the shrubs and trees it has installed for numerous satis- fied customers. The business, brainchild of founder, owner, and president Keith Eads, is both a retail garden center and a landscape design and installation service. But it started from more humble roots, as a yard maintenance company. Eads started in business for himself after school. He already had experience doing maintenance for a friend and had absorbed knowledge about plants and horticulture from the nursery located next to his childhood home. Like a burgeoning plant, Eads quickly decided to branch out and learn land- scape design. After a period of study, he began landscaping. Another development quickly followed: the installation of several greenhouses, which Eads uses to grow his own annu- als. With inventory on hand to supply his company’s landscaping needs, Eads thought, “Might as well sell retail.” That retail business blossomed. Three years after opening to the public, Eads moved his garden center from its initial spot at his landscape and operations center to a better retail location. In the earlier years of the last decade, the nursery was the biggest part of Eads’s operation. During the housing boom, landscap- ing grew to become the biggest part of his business. After the housing slump, retail sales plummeted and the landscaping carried the business. Eads had to lay off about 10 employees. Eads’s nursery is positioned at the high-end of the market. It sells a full array of trees, shrubs, annuals, perenni- als, and hard goods. He has four cold frames for potted green shrubs and four growing houses where he grows all of his own annuals and baskets. At the peak of the housing boom, Eads was selling many flats to retail cus- tomers, reflecting the Do-It-Yourself craze of the time. Today, most of his retail sales of annuals are for baskets and potted plants. Likewise, most of his sales of trees and shrubs are to cus- tomers who choose Eads to install them. When it comes to maintenance, Eads has left behind the clip-and-go model of his youth, and now offers full contract services — pruning, weeding, and insect and disease control to go along with basic lawn services. The company provides landscape designs and installation to both commer- cial and residential customers, and has one full-time and two part-time (includ- ing Eads) landscape planners. Last year Eads installed 2500 flats of annuals for his landscape customers — a mix of commercial (industrial and uni- versity) and residential customers. The company also designs, builds, and maintains irrigation systems. Much of that work is repair work. For example, during a drought people might notice one section of their irrigation system is broken or underperforming. Eads will fix that. They also do a lot of the irrigation work for landscape customers who don’t want to deal with multiple contractors. “We’re a one-stop shop,” Eads said. “There’s a market for people who want to deal with just one company.” The retail center has really helped increase the landscaping side of the business. “We’ve had so many people say they never knew we did that kind of work,” Eads said. The retail store not only brings in land- scaping business, but also gives real-life, vibrant examples of the types of plants customers can choose for their land- scapes. “It helps people with come up with ideas,” Eads said. Sometimes customers come up with ideas that won’t work in their particular setting (i.e., there’s not enough exposure to sunlight). “It’s hard to tell someone they can’t have what they want,” Eads said. “But we really focus on communi- cation,” to get the point across gently, always offering other options. One idea customers sometimes have about landscaping, which Eads works to correct, is the notion that landscaping is either high-dollar or high-maintenance. He tells them, “We can design something to fit your needs with plants that will work in your area.” To that end, Eads is in the process of creating package landscaping, most like- ly in three tiers. The first starter package will be aimed at younger homeowners or those with less interest in landscaping, and proba- bly be priced at just under one thousand dollars. The middle tier will use more mature plants, to give a more established look and feel, and be somewhere in the low- to mid-two thousand dollar range. The top level will include more hardscap- ing such as decorative rocks, possibly a fountain or water feature, and come in around forty-five hundred. Eads will continue to offer custom landscape serv- ices as well. This year, Eads’s business will cele- brate 20 years of operation. He attributes his success to re-investing in his company. One change underway this year is the move of his design and operations head- quarters from its current site a mile away to mobile units adjacent to the retail garden store. The move will save money and keep the business more organized and cohe- sive. “When the designers are at the nursery,” Eads said, “it never fails that we make a sale.” Now with the designers always on-site, they’ll be a resource for interested retail customers — and hope- fully boost sales in both the nursery and landscape side of the business. The only regret Eads has is that he didn’t make the move sooner. With the economic downturn, he said, “We’ve kind of been in survival mode for a few years. I wish I hadn’t done that so much. I had always been so wide open.” Instead, he wishes he had used the leaner year to prepare for the recovery by integrating his two locations earlier. “Our survival,” Eads added, “comes Eads Landscaping and Garden Center shapes its strategy to the market Foundation set for a flourishing future T Michelle Becerra, Eads Landscaping. Eads’ retail store not only brings in landscaping business, but also gives real-life, vibrant examples of the types of plants customers can choose for their landscapes. Photos courtesy of Eads Landscaping Founder, owner, and president Keith Eads. Eads 4

Transcript of Eads Landscaping and Garden Center shapes its strategy to ...

Page 1: Eads Landscaping and Garden Center shapes its strategy to ...

by Karl H. Kazakshere are many similaritiesbetween how a business formsand how a plant develops.

Background and experience, likeroots, ground an operation and helpbring it to the light of day. Key manage-ment figures — like a stalk or trunk —support and help structure an entity’sfunctions. Day-to-day business — leavesand flowers — provide the final interfacewith the world, making the packagewhole and bringing back inward all thatis needed to survive (sunlight, pollina-tion, profitability, satisfaction).

Eads Landscaping and Garden Center,which serves customers in westernKentucky and southern Illinois withinabout a 70 mile radius of its home inPaducah, has a morphology as logicaland impressive as those of the plants inits greenhouse and of the shrubs andtrees it has installed for numerous satis-fied customers.

The business, brainchild of founder,owner, and president Keith Eads, is botha retail garden center and a landscapedesign and installation service. But itstarted from more humble roots, as ayard maintenance company.

Eads started in business for himselfafter school. He already had experiencedoing maintenance for a friend and hadabsorbed knowledge about plants andhorticulture from the nursery locatednext to his childhood home.

Like a burgeoning plant, Eads quicklydecided to branch out and learn land-scape design. After a period of study, hebegan landscaping.

Another development quickly followed:the installation of several greenhouses,which Eads uses to grow his own annu-als. With inventory on hand to supply his

company’s landscaping needs, Eadsthought, “Might as well sell retail.”

That retail business blossomed. Threeyears after opening to the public, Eadsmoved his garden center from its initialspot at his landscape and operationscenter to a better retail location.

In the earlier years of the last decade,the nursery was the biggest part ofEads’s operation.

During the housing boom, landscap-ing grew to become the biggest part of hisbusiness.

After the housing slump, retail salesplummeted and the landscaping carriedthe business. Eads had to lay off about10 employees.

Eads’s nursery is positioned at thehigh-end of the market. It sells a fullarray of trees, shrubs, annuals, perenni-als, and hard goods. He has four coldframes for potted green shrubs and fourgrowing houses where he grows all of hisown annuals and baskets.

At the peak of the housing boom, Eadswas selling many flats to retail cus-tomers, reflecting the Do-It-Yourselfcraze of the time. Today, most of hisretail sales of annuals are for basketsand potted plants. Likewise, most of hissales of trees and shrubs are to cus-tomers who choose Eads to install them.

When it comes to maintenance, Eadshas left behind the clip-and-go model ofhis youth, and now offers full contractservices — pruning, weeding, and insectand disease control to go along withbasic lawn services.

The company provides landscapedesigns and installation to both commer-cial and residential customers, and hasone full-time and two part-time (includ-ing Eads) landscape planners.

Last year Eads installed 2500 flats of

annuals for his landscape customers —a mix of commercial (industrial and uni-versity) and residential customers.

The company also designs, builds, andmaintains irrigation systems. Much ofthat work is repair work. For example,during a drought people might noticeone section of their irrigation system isbroken or underperforming. Eads will fixthat. They also do a lot of the irrigationwork for landscape customers who don’twant to deal with multiple contractors.

“We’re a one-stop shop,” Eads said.“There’s a market for people who want todeal with just one company.”

The retail center has really helpedincrease the landscaping side of thebusiness. “We’ve had so many people saythey never knew we did that kind ofwork,” Eads said.

The retail store not only brings in land-scaping business, but also gives real-life,vibrant examples of the types of plantscustomers can choose for their land-scapes. “It helps people with come upwith ideas,” Eads said.

Sometimes customers come up withideas that won’t work in their particularsetting (i.e., there’s not enough exposureto sunlight). “It’s hard to tell someonethey can’t have what they want,” Eadssaid. “But we really focus on communi-cation,” to get the point across gently,always offering other options.

One idea customers sometimes haveabout landscaping, which Eads works tocorrect, is the notion that landscaping iseither high-dollar or high-maintenance.He tells them, “We can design somethingto fit your needs with plants that willwork in your area.”

To that end, Eads is in the process ofcreating package landscaping, most like-ly in three tiers.

The first starter package will be aimedat younger homeowners or those withless interest in landscaping, and proba-bly be priced at just under one thousanddollars. The middle tier will use moremature plants, to give a more establishedlook and feel, and be somewhere in thelow- to mid-two thousand dollar range.The top level will include more hardscap-ing such as decorative rocks, possibly afountain or water feature, and come inaround forty-five hundred. Eads willcontinue to offer custom landscape serv-ices as well.

This year, Eads’s business will cele-brate 20 years of operation. He attributeshis success to re-investing in his company.

One change underway this year is themove of his design and operations head-quarters from its current site a mileaway to mobile units adjacent to theretail garden store.

The move will save money and keepthe business more organized and cohe-sive. “When the designers are at thenursery,” Eads said, “it never fails thatwe make a sale.” Now with the designersalways on-site, they’ll be a resource forinterested retail customers — and hope-fully boost sales in both the nursery andlandscape side of the business.

The only regret Eads has is that hedidn’t make the move sooner. With theeconomic downturn, he said, “We’ve kindof been in survival mode for a few years.I wish I hadn’t done that so much. I hadalways been so wide open.” Instead, hewishes he had used the leaner year toprepare for the recovery by integratinghis two locations earlier.

“Our survival,” Eads added, “comes

Eads Landscaping and Garden Center shapes its strategy to the marketFoundation set for a flourishing future

T

Michelle Becerra,EadsLandscaping.

Eads’ retail store not only brings in landscaping business, but also givesreal-life, vibrant examples of the types of plants customers can choose fortheir landscapes.

Photos courtesy of Eads Landscaping

Founder, owner, and president KeithEads.

Eads 4

Page 2: Eads Landscaping and Garden Center shapes its strategy to ...

Expanded food safety rulesemphasized at OPGMA convention

by William McNuttver 100 industryexhibitors at theannual convention

and trade show of OhioProduce Growers andMarketers Associationdemonstrated their wares to800 Ohio produce growersduring their mid Januarygathering. Ohio growers, plusmany from nearby states,observed the latest productinnovations, services andequipment, while attendingthe three day event. Fortyeducational sessions, plus 10food safety related meetings,were offered to fruit and veg-etable growers and mar-keters. Several sessions onmerchandising were offeredincluding one from the showfloor stressing the basics ofselling.

A top priority at this year’sCongress was on food safetyand the produce growersresponsibility in meetingincreasingly rigorous stan-dards promulgated by Foodand Drug Administration andthe Food SafetyModernization Act. Proposedproduct safety rules to imple-ment this act have been pub-lished by FDA, focusing onstandards for growing, har-vesting, holding and packag-ing produce.

Ohio has already passedlegislation prepared byOPGMA and introduced byOhio Farm Bureau, whichwill allow Ohio Department ofAgriculture to put such regu-lations into effect when 200Ohio growers sign theenabling peti-tion, accord-ing to KarlKolb of HighSierra Group,who is con-tracted withOPGMA todevelop theOhio ProduceM a r k e t i n gA g r e e m e n t(OPMA) theni m p l e m e n tmanagementstructure asOPMA goesinto effect.This agree-ment cameabout when Ohio producersbecame concerned that regu-lations already in effect inlarger states and then-pend-ing food safety regulationswould bring an industry-wide, one type for everybodyset of standards.

Kolb was asked to develop

the current Ohio three-tierprogram which could beadapted to small, mediumand large producers, ratherthan standard program forall producers, so that fea-tures unique to the Midwestcould be considered. As oneexample, Ohio’s large Amishpopulation uses horse drawnequipment and smaller scalefarming practices that morecommercialized growerswould not consider, but arestill quite capable of meetingFDA standards for GoodAgricultural Practices (GAP).The Ohio plan stipulatesmany of the upcoming FDArequirements, much if notmost of which have been ineffect for years among pro-gressive growers. Kolb says itprotects safety and well beingof consumers, which is theprimary reason for usingGAP. He feels OMPA shouldmake Ohio a leader in foodsafety agreements, and willhelp protect farmer reputa-tion.

Ohio growers have untilMid-May to comment on pro-posed FDA Produce SafetyRule, according to AshleyKuhalnek, former GAP coor-dinator for OSU, now exten-sion educator for MedinaCounty. After finalization, itwill go into effect within 60days, a shorter period thanusual to require compliance.Produce Safety Rule publica-tion in the Federal Registerwill put into effect the FoodSafety Modernization Actpassed in 2011. At the sametime a proposed rule for

PreventiveC o n t r o l sfor HumanFood wasi s s u e d ,directed atf a c i l i t i e st h a tp r o c e s s ,package orstore food.The pro-p o s e dP r o d u c tS a f e t yR u l efocuses onstandardsfor grow-ing, har-

vesting, packing and holdingproduce of farms. Especiallyof interest to direct mar-keters producing fruits andvegetables intended to beeaten fresh and locally, thiscould bring inspection morequickly to this type of mar-keting. Ms. Kuhalnek said

exemptions for smalleracreage growers were includ-ed, as was promised by FDA,as is also the case with theOPM agreement, where Tier 1producers are given less reg-ulation. The proposed rulesalso allow states to requestvariances due to local areagrowing conditions. She saidOSU’s horticultural and cropscience department shouldbegin research soon to deter-mine additional GAP neces-sary if alternatives to currentpractices are needed.

Three-hour GAP workshopshave been held throughoutOhio for five years to assistOhio growers in producingsafe produce and will contin-ue on an as needed basis.Kuhalnek, who remains aninstructor of GAP and isOhio’s representative to thenational Produce SafetyAlliance, feels the newly pro-posed rules on water used forproduce may be a big chal-lenge for growers, particular-ly for those who irrigate. Shesaid this can be a problem,since water quality fromstreams, ponds, reservoirs,or other open sources canchange daily — and be easilycontaminated, especially ifanimals or other wildlife arepresent. FDA will not requirefencing, habitat destructionof animals, or allow animalsto be harmed in order to con-trol them.

At the conference’s close,

OPGMA members electedfour industry professionals totheir board of directors: MikeHirsch, Hirsch Fruit Farm,Chillicothe; Kerry Sullivan,Jacquemin Farms Plain City;and Julie Witten, WittenFarm Market andGreenhouses, all for threeyear terms. Mark Stokes,Dale Stokes Raspberry Farmin Wilmington, will serve aone year term. Hirsch waselected from the board toserve as President in 2013(following the custom of

electing fruit and vegetablegrowers in alternating years).Ken Holthouse of DougWalcher Farms, NorthFairfield will be vice presi-dent, with Kerry Sullivanelected as Secretary-Treasurer. Lisa Schacht,Canal Winchester producegrower and farm marketoperator from CanalWinchester, retiring presi-dent of OPGMA, expressedher appreciation for the out-standing service of fellow2012 board members.

OPGMA Board of Directors. Front row: Laurie Grobe, Kerry Sullivan, LisaSchacht, and Julie Witten. Back row: Ken Holthouse, Aaron Buurma, MikeHirsch, Roger Maurer, and Mark Stokes.

Photo courtesy of OPGMA

O

Eads from 3

from not having all of our eggs in one basket. It seems like everytime something is down, something is else is up.” He hopes thatwith the current housing market recovery there will be an uptickin demand for refurbished landscaping.

Aside from market conditions, the biggest challenge Eads hasdealt with in recent years is maintaining a quality workforce.Since his area of the country has a solid union presence, it canbe hard to pay union-scale wages and be profitable.

“One of our key turning points,” he said, “was concentratingon narrowing our customer base,” minimizing the maintenancework and keeping those customers willing to pay for good qual-ity service. That allowed him to retain his best employees andpay them more, thus keeping them motivated to continue to givegood quality service.

“We’re not making more profit at that rate,” Eads said, “but wehave more sanity.”

Not only that, but with a solid foundation of good employees,good customers, and 20 years of experience, Eads has the piecesfor a long and health future — just like a well-cared-for plant or landscape.

Ohio growers haveuntil Mid-May to com-

ment on proposedFDA Produce SafetyRule. . . After final-

ization, it will go intoeffect within 60

days, a shorter peri-od than usual to

require compliance.

Page 3: Eads Landscaping and Garden Center shapes its strategy to ...

by Kelly Gatess a young adult, JeffGatewood was searching fora profession that would caterto his interest in the great

outdoors. So when his father men-tioned a vacant lot the family owned onAllisonville Road in Fishers, IN, theduo determined that the land could beused to sell trees.

“At first, we started selling ever-greens that we purchased fromMichigan, spruces mostly,” Gatewoodtold Country Folks Grower. “There wasa building on the property that myfamily was leasing at the time, butwhen our business really picked up,we decided to set up office in that

space and worked out of there formany years.”

According to Gatewood, while hebegan Allisonville Nursery, sellingevergreens exclusively, he quickly ven-tured into selling shrubs. Then, headded other types of trees to the mixtoo.

He started attending trade showsand taught himself the ins and outs ofthe plant retail business.

In 1985, after expanding the compa-ny to capacity at the original site, theowner made the decision to move to abigger place.

“That’s when we moved onto the fiveacre property where we still are today,”said Gatewood. “That gave us room to

spread out and evolve as con-sumers demanded differentproducts.”

Part of the expansionentailed bringing in a widerange of other plant material,including annuals, perenni-als, hanging baskets, con-tainers and other relateditems. The subsequentexpansions however, werenot what Gatewood wouldhave ever expected when hefirst founded AllisonvilleNursery.

Home décor is one of themost popular divisions at thecompany now. Along with ahandful of garden and land-scape decorations, the busi-ness sells an “unexplainablenumber” of toss pillows, jew-elry and even fine art.

“The local clientele is thereason we have thesethings,” noted Gatewood.“This is somewhat of anupscale area and our corecustomer is female and overthe age of 40. We select ourinventory and even design our market-ing campaigns based on who shopshere and what they typically buy.”

In the early years, Gatewood man-aged the marketing tasks for the com-pany personally. But, as time passed,he opted to hire a marketing managerwho now does everything from plan-ning events and advertising throughvarious mediums to creating in-storesignage and handling the nursery’ssocial media outreach program.

Facebook, Twitter and an interactiveweb site are used to alert customers ofnew products, events and other hap-penings at the nursery. Direct emailsare also sent out, often including spe-cial coupons for those on the mailinglist.

“We used to do radio and someupscale magazines as our main mar-keting efforts, but our biggest mediafocus at this time is local cable televi-sion, during the Christmas season inparticular,” said Gatewood. “The cablecompany provides production servicesfor us as part of our fee for commer-cials. Since the items we sell are sovisually appealing — especially ourhome décor — nothing captures theessence of our business like a t.v. com-mercial.”

Visual interest is also important atthe nursery, he added. AllisonvilleNursery’s staff created vignettesthroughout the entire store that show-case individual plants or products.Often, plants and flowers that lookattractive together are displayed inthese vignettes to help customerschoose an array of items for their land-scapes.

The company will be doing some-thing similar with its shade and ever-green trees soon.

“We will be displaying our trees in anarboretum type setting with one ofeach tree together with all other simi-lar trees in a grouping so customerscan see them all at once,” saidGatewood. “Instead of having largegraphic signage attached to every tree

we sell, we will have a single, highquality graphic photo with extensivedetails about each tree in this display.Then, when a customer chooses a vari-ety, we can walk them out to ourinventory and select from that stock.”

By congregating shade trees,conifers, ornamentals and other typestogether, sales associates will be ableto help customers quickly identify theirtrees of choice. Otherwise, they wouldhave to wander up and down rows oftrees, trying to determine which attrib-utes they prefer without seeing alltrees at the same time.

The vignettes, display gardens andoverall attention to aesthetic detail hascreated an environment ripe for activi-ties that run the gamut from highschool reunions to HGTV host appear-ances.

“I was out in the garden one eveningafter we closed and recognized howpeaceful and beautiful it is at that timeof day, so we started opening up togroup events, like the high school classreunion that was held here last sum-mer,” explained Gatewood. “We alsohave events in May and June for cus-tomers, including one last year withJamie Durie from HGTV who wasgoing around to garden centers inpartnership with Monrovia and speak-ing to consumers all over the country.We had 200 people show up and for anentry free of $40 per person. We wereable to offset our entire costs of havingJamie here in person.”

Each attendee received a copy ofDurie’s new book and AllisonvilleNursery was able to expose the busi-ness to many potential customers whohad never been to the site before.

It’s this unique approach to market-ing that has helped the company con-tinue to grow year after year. And,according to Gatewood, he and histeam plan to keep creating visuallystunning displays, effective promotion-al campaigns and unique events thatkeep people coming back well into thefuture.

The Monthly Newspaper for Greenhouses, Nurseries, Fruit & Vegetable Growers

Country Folks

(518) 673-3237 • Fax # (518) 673-2381(ISSN# 1065-1756) U.S.P.S. 008885

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Country Folks

Cover photo courtesy of Eads LandscapingEads Landscaping, serving customers in western Kentucky and

southern Illinois, installs trees and shrubs for numerous satisfied customers.

Allisonville Nursery

The Gatewoods at Easter.Photo courtesy of Allisonville Nursery

A