Hollyweird’s Depiction of the Green Industry

Did you see American Idol the other night? It’s the first few episodes of the season when they show clips of some of the weirdos who auditioned. One of them was a nature-loving “lawn guy” from Massachusetts. The Idol producers did a great job of playing up this character as a free-spirited flower sniffer you could hardly take seriously. He wasn’t a “professional landscape contractor” or a “licensed irrigation contractor” or a “Landscape Industry Certified Lawn Care Technician.” He was a “lawn guy”. How’s that rub you?

~ Gregg Wartgow, PRO Magazine



 

GIE+EXPO Report: The worst is behind us

I’m getting ready to head over to the Kentucky Exposition Center for the final day’s events at the 2009 GIE+EXPO. It’s been an interesting show. Attendance has been surprisingly solid. Most exhibitors said that, while perhaps the number of total attendees was down a bit from past years, the number of “decision makers” attending the show was very strong. In other words, owners of equipment dealerships and landscape companies attended the show, but didn’t bring as many of their employees along as normal. That makes sense, because these days it’s been all about doing more with less.

I was thrilled with the level of enthusiasm and optimism from both dealers, contractors and green industry suppliers. Many commercial equipment manufacturers said they are encouraged by dealer intentions with respect to inventory plans in 2010. That means dealers are feeling better about where their commercial customers are at the end of this challenging year. Next year will be a step forward for the industry, how long a step is still anyone’s guess.

But commercial equipment manufacturers are meeting the challenge as contractors creep closer to unleashing some of their pent-up demand. I was impressed by the number of new products introduced at this year’s show. As contractors and dealers begin their paths forward out of this recession, there are a variety of tools, products and services at every turn to help them prosper.

Keep an eye on www.greenindustrypros.com for new Equipment Guide listings and videos of new product introductions at GIE+EXPO as we continue to post new information over the course of the next couple weeks.

~ Gregg Wartgow, Yard & Garden and PRO editor-in-chief



 

By Definition, Leaders ‘Lead’

On page 10 of PRO’s Oct/Nov 2009 issue, a design/build contractor relates that he has “been in business over 20 years and has never seen economic times like this.” His D/B sales are off 40% from last year, and without additional maintenance sales and practicing a rather conservative growth strategy over the last few years, his company would be in trouble. Despite the murky outlook, he’s forward-thinking and making plans to recover fast with the economic recovery.

By definition, isn’t that what leaders do? Leaders look ahead and make plans today for a brighter and more profitable tomorrow. This past year, it has been all too easy to get mired down in the economic muck. Layoffs, wage reductions and other cost-cutting, along with spending more hours selling and worker harder, have been key components to contractor survival kits.

But a survival kit isn’t complete without a plan for moving forward, and “making plans” is what savvy contractors do. As you read through this issue, you’ll discover how contractors are finding ways to succeed in a changing market, how holding effective strategic planning meetings can help identify new opportunities, and how making a few on-site adjustments can set a company apart from the competition and reduce costs for customers.

Do you have the stomach to succeed in the new normal—in what promises to be a more competitive business environment driven by even higher customer expectations? Certainly, the above contractor whose D/B sales are off significantly has the stomach, as do three of his peers, all of whom share growth plans and strategies in the toughest of markets.

This issue provides an opportunity to find out what industry leaders are saying about next year. Also take a moment to read through the GIE preview section on page 24 for a look at some of the new products being introduced at the upcoming GIE+EXPO to be held in Louisville October 29-31. For an even closer look at the show, visit gie-expo.com.

Then there’s the Green Industry Conference, which is also being held in Louisville October 28-31. The GIC’s keynote address features three industry leaders who will share their vast knowledge and experience. Also, readers have always told me that just attending the GIC’s PLANET Breakfast with Champions is well worth the trip. Listen to a conversation with contractor Bob Grover at greenindustrypros.com/procast for a rundown of five “can’t miss” events.

GIE/GIC is indeed a “can’t miss” opportunity this year, especially for leaders looking for new ideas to build for the future. While there, please stop by PRO’s exhibit on the show floor (Booth #2138) to say hello and share some of your thoughts about the industry.

Finally, the winners of the 2009 Pros in Excellence landscape contractor recognition awards will be announced at a press conference on Friday, October 30 at 3 p.m. So stop by the New Products Arena stage on the show floor to see who this year’s winners are. The awards are sponsored by Ariens, Stihl and GIE+EXPO.

~ Rod Dickens, senior editor of PRO



 

A Relationship Business Built on Business Relationships

It didn’t come as a huge surprise when news broke back in March that Echo Inc. and Shindaiwa Inc. would be merging, since an eventual merger had been in the works since May 2007. The announcement that the Echo and Shindaiwa U.S. distributor networks would be consolidated wasn’t really a shock either (page 38 of Yard & Garden’s Sep/Oct issue), as consolidation has long been a trend in this and many other industries.

What has surprised me has been the somewhat apathetic response from many of the dealers I’ve talked to. If there ever was an industry with an element of “good ole boy” to it, I guess it would be this one. And when a dealer has been doing business with a certain distributor for years and years, only to have an OEM tell him that he’ll now have to start working through a different distributor, you can expect a certain level of anxiety on the part of the dealer.

But I haven’t really sensed that anxiety. Most of the dealers I’ve talked with are taking the changes in stride. Sure, they feel bad for their long-time distributor who can no longer carry Shindaiwa (there’s that personal element), but realize they must do what is in the best long-term interest of their dealership (there’s the business element).

As one Shindaiwa dealer put it, “You bet I’m going to continue carrying Shindaiwa. My commercial guys are hooked on it, and I can’t chance losing them to another dealer.” Another dealer who has been selling both Echo and Shindaiwa says he will forego plans to get rid of Shindaiwa now that he can purchase both lines through a single distributor, allowing him to combine orders.

On the other hand, one Shindaiwa dealer says he will likely drop the line and focus on his other handheld line (Stihl) now that it looks like a nearby Echo dealer will also be selling Shindaiwa. It is up to the individual distributors to decide which dealers can carry which brands. Time will tell how this plays out.

Then there are some Shindaiwa dealers who are looking at alternative handheld lines. Many are considering Maruyama, which is now partnered with several ex-Shindaiwa distributors. Efco has also picked up a couple of ex-Shindy distributors. RedMax is a third name I’ve heard come up, although dealers remain cautious as they wait to see how things pan out now that the RedMax Georgia operation has been consolidated into Husqvarna’s Charlotte operation. Boy, talk about an industry segment in flux right now.

As the new Shind-Echo starts to take shape, it will be interesting to see which side of the fence dealers land on. Today’s dealer network is not the same as it was 20 or even 10 years ago.

Dealers these days are more sophisticated and business-savvy. They realize that even though this is still a relationship business, their business must be built on strong business relationships. And you can bet dealers are going to do what’s in the best long-term interest of their business. So let the best man win.

 ~ Gregg Wartgow, editor-in-chief of Yard & Garden



 

Your Uniform is Your Reputation

As a follow-up to the post by Rod Dickens (”Can’t Always Judge a Book by its Cover”), I feel compelled to also offer my perspective, since I was the editor who traveled to Kearney, MO, to visit the contractor and shoot the image for PRO’s Summer 2009 cover.

Let me start by making one thing clear: The three contractors who took exception to the cover did so because they are very passionate about this business. That is honorable. Everybody wants an even playing field where all contractors are insured and certified, employ legal workers, drive clean trucks, operate commercial-grade equipment, look like professionals, perform the work like professionals, and charge a fair market price for that work. Regretfully, that day has yet to arrive. And unfortunately, the reasons why go way beyond something as simple as “mowing in a sweatshirt.”

But let’s talk about personal appearance, since that was the bone of contention with respect to our Summer cover. As a contractor and business owner, you’ve put your livelihood on the line and invested tens if not hundreds of thousands of dollars of your own money in trucks and equipment. That said, whose right is it to tell you what you have to wear to work in order to refer to yourself as a professional?

At the same time, thousands of other contractors have taken similar risks and made similar investments, and they’re pretty adamant that uniformed crews are essential to projecting a more professional image of this industry. It’s not fair to them when a segment of the industry continues to harm that image.

So … who decides what is and is not professional? Do regional and national associations that represent only a small percentage of all established landscape companies in the U.S. issue a decree? Does the biggest, baddest landscape company in a given market set the tone for that market? Conversely, is it the fly-by-night trunk slammer who shows up to mow in a Metallica tank-top? Should Nancy Pelosi and Barney Frank get involved?

Here’s an idea: The customer is the decider. In the case of the contractor on our Summer cover, he specializes in commercial and high-end residential maintenance. Because of his reputation and the professional “behavior” of his crews, the movers and shakers in his small market have sought him out to maintain their properties. He’s enjoyed a 95% customer retention rate for years.

If you look on page 8 of that same Summer issue, you’ll see that this contractor does have company shirts, because he’s wearing one himself. It got a bit rainy and chilly the day I was in town to shoot the cover photo, so the mower operators had thrown on sweatshirts. The bottom line is that the owner of the property they were mowing could care less, because when the crew finished up and drove off, that property was the crown jewel of the neighborhood.

Perhaps the issue isn’t whether or not it’s OK for a landscape professional to be mowing in a sweatshirt. Maybe the issue is simply PRO Magazine showing that on a cover. I promise you, we’ll be much more conscientious in the future.

Case in point, a week after we’d received those two emails about the Summer cover, I headed out to hang with a local landscaper who was installing a retaining wall and staircase in the backyard of a duplex. As I was shooting pictures, thinking that down the road we may want to use one on a cover of PRO, I asked the contractor, John Martin of Lawn Enforcement, if he had a company shirt he could throw on over the dusty, sweaty gray T-shirt he’d been wearing all day.

John looked down at the ground for a second before responding. “Actually, I don’t,” he said softly. “But I do have a jacket with my company logo that I wear in the off-season to help advertise. I could run home and bring that back after lunch.”

I thought about how John responded to me, willing to do whatever he could to accommodate my request. I thought about how considerate and honest he is, and how much his customers appreciate that. I looked at the gorgeous project that was unfolding before my eyes. I looked at the wedding ring on his left hand, remembering that he has a wife and young daughter he provides for by being a professional landscape contractor with not a single unethical bone in his body.

“No dude,” I responded. “It’s really humid today. Forget the jacket, because you’re doing just fine.”

~ Gregg Wartgow, PRO editor-in-chief



 

Can’t Always Judge a Book by its Cover

I recently received a few emails from readers concerned about the cover of PRO’s Summer issue. It lacked professionalism, they wrote, because the operator should have been attired in uniform. To show anything or anybody less is doing the industry a disservice.

I replied that their point was well-taken, and that we’ll strive to ensure a more “professional look” on all of our covers; most of our cover subjects in the past were wearing company uniforms. But it got me thinking (and that can be scary) that there is more to professionalism than meets the eye. Oh, we all know that, but sometimes it’s good to revisit old axioms.

What does it take to be a professional in this industry, or any other industry for that matter? Interestingly enough, I’ve had several conversations recently with PLANET president Bill Hildebolt, Ph.D., CTP, CTP-CSL on just that subject. Bill is very focused and vocal about the need to continue to raise the level of professionalism within the green industry. Bill identifies five key ingredients that comprise all true professionals. They are, in no particular order, technical skills, life balance, personal character, social skills, and the willingness to work hard.

On the subject of appearance, he suggests that individuals need to be cautious when making a direct comparison between looking and being professional. Yes, an unkempt appearance can bring into question one’s credentials and work ethic, Bill related to me, but a clean-shaven, nicely outfitted person can still be technically inept and lazy.

From Bill’s perspective, and he has years of industry experience under his belt, when green industry service providers look and act professional, then customers will view them as professionals, which gives them a leg up on “less professional” competitors. But it’s the complete picture that truly counts, and one PRO strives to paint in every issue as well.

It is agreed that, from time to time, we profile contractors who may be wearing a sweatshirt without a company logo. Would we like everyone in our industry to wear a uniform? Sure. Is it likely? No. Would we prefer everyone on our cover to be wearing a uniform? Of course, but it’s also unlikely because we want our stories to be real and representative of the industry.

Our charge is to make sure the individuals who wear the clothes are professionals. As Bill points out, appearance is important, but there are other factors that are just as important such as being ethical and having other “professional” attributes.

~ Rod Dickens, PRO senior editor



 

Random Act of Kindness

Several years ago, I talked with a contractor who enjoyed performing what he called “random acts of kindness.” It sounded like a great thing to do, but I’ve never been that “kind” until having experienced one such act myself.

Last week, I was traveling in Oregon right next to the Columbia River and the border with Washington. The toll to get from Oregon to Washington over a bridge was 75 cents. No big deal, but as I fished out the change, the toll gate operator motioned me through saying, “The car ahead of you paid for your toll.”  Cool, I thought, but before I could gesture a thank you to the driver, the generous operator and the car had disappeared.

Ten minutes later, I realized what I should have done, and that was pay the toll for the car behind me. So neither am I kind, nor fast. Anyway, as one thinks about the recession, the slow-moving simulus packages, and the unemployed, there’s room for acts that demonstrate both kindness and generosity.

Hey, maybe that’s a key to recovery. No, three quarters don’t count for much, but they sure made my day, and I may have been more generous with a restaurant or two because of them. I guess the point is, we can’t depend totally on the government and its financial wizards to bail us out of this mess. We can help oursleves by spreading a little economic kindness, which, in turn, will help boost our faith in fellow man and keep what money we have circulating.

Rod Dickens, PRO Senior Editor



 

Is Being ‘Brand Loyal’ Business Smart?

Even though the media loves to report that these are the worst of times, most outdoor power equipment dealers are as busy as ever during this time of year. There is no question that customers are more discerning and many are repairing machines rather than replacing them.

However, it would seem that dealers, at least PPEC members, are staying the course. Many large manufacturers are reporting double-digit losses and sales figures 20 to 30% below 2008—but it makes you wonder where the losses are coming from. Are smaller, less progressive dealers suffering more than the cutting edge, innovative ones? Could it be possible that the mass merchants are not selling equipment at previous levels?

The manufacturers that are true partners with their dealer base are the ones that have helped avert the storm by acting proactively. Special pricing and promotions, zero percent financing (in some cases up to 36 months), aggressive discounts for bid assistance, and fleet pricing and demo programs all help us achieve our common goal of selling products. If we continue to do that one task, everyone wins—and both the manufacturers and dealers thrive.

Do you consider brand loyalty when you decide which products to place in your showroom? Many manufacturers are subtly trying to steer dealers away from competitive brands. Is it really a good business practice to place your name beside only one brand of power equipment? No one brand can cover every category, in spite of what the OEMs want you to believe. You can do your business a disservice if you do not keep your options open. If an OEM provides a quality product and a competitive price, why should they care if their competition is close at hand?

May the Best Manufacturer Win

If it is true that the largest companies are experiencing double-digit declines in sales, who will survive and what will happen to the remaining manufacturers? A lot of companies have been purchased or absorbed: Dixon, Snapper, RedMax, Shindaiwa and Great Dane to name a few. This begs the question, who is next? Bush Hog is teetering on the edge, and many manufacturers have been furloughing a record number of employees. This seems to suggest that the size of company is not a contributing factor, but rather the way the companies are managed.

How helpful are the sales representatives from your OEMs or distributors? Do they treat you like a customer, partner or percentage of their paycheck? A successful rep will visit you often, explain programs, solve service issues, and provide the feedback to the manufacturer based on your comments.

If you are really lucky, he or she will spend some time on your sales floor helping you during the busy season, will provide loaners or demos to help a customer in need, and also help resolve service, co-op or many of the other issues as they come up. The best ones care about your business and understand that they will only be successful if you are.

Moving forward, most of us are doing whatever we must to close sales. We treat our customers with courtesy and respect, giving them a reason to choose Professional Servicing Dealers (PSDs) over the mass channel. There are two truths that will always keep us moving forward: Grass will always need to be cut, and leaves will fall toward the end of the year. As long as those needs are out there, we can provide the solutions and answers that make this industry so unique.

Join us at the PPE Congress (ppecongress.com) and share your thoughts and ideas with your fellow dealers.

~ The Professional Power Equipment Congress



 

Walking on Egg Shells

As we start the second half of arguably the most challenging year since “Barney Miller” was being aired in prime time, how do you feel coming out of the locker room? If you’re like most dealers, you’ve been fighting and clawing just to stay within striking distance. Do you have enough grit left in you to close the year out strong?

According to a recent Yard & Garden dealer survey conducted in early June, two out of four dealers have been holding their own, one has seen a significant drop in business, and one has actually seen a slight increase. When asked how they expect to finish 2009, the numbers are very similar. (Read the report on page 14 of Yard & Garden’s Summer Issue.)

Why do you suppose some dealers are up while others are down? Factors the dealer can’t control, such as local economic and weather conditions, have surely played a large role, as always. Successful dealers have also done a good job of ramping up parts and service operations this year. They were proactive in determining their existing customers’ equipment needs early on so they could stock the right amount and type of inventory. And they’ve been aggressive in marketing that inventory, in many instances with the help of their suppliers.

Check out the “Dealer Pulse” column by the Professional Power Equipment Congress on page 16 of Yard & Garden’s Summer Issue. Some interesting points are made, one of which is the notion that dealers can become too brand-loyal for their own good. A trend of the last several years has been dealers narrowing their product lines. While I agree that this often makes good business sense, it’s also important to recognize that putting all your eggs in one basket can be risky—especially if it’s the wrong basket.

There aren’t too many manufacturers who can say they are having banner years in ’09. That shouldn’t come as a surprise to anyone. The questions you have to ask yourself are, “How are my suppliers handling the challenges they’re facing, and how are their handlings affecting me as their dealer?”

Good suppliers will help you stock the right inventory, sell that inventory and support it post-sale. Good suppliers give you room to operate. Good suppliers employ good sales reps who are properly trained and willing to help you manage and grow your business. Good suppliers treat you like a partner.

Hopefully you are feeling good about which baskets you’ve placed your eggs in, and are equally comfortable with the things you’ve done as a dealer to remain a valuable partner to your suppliers. But even if you’re partnered with who you feel are the best suppliers in the world, in times like these you could still get blind sided; just ask a recently terminated Shindaiwa distributor (see related story on page 10 of Yard & Garden’s Summer Issue), or take a look at what GM and Chrysler have done to thousands of their dealers in the automotive industry.

Desperate times sometimes call for desperate measures. How desperately do you want to continue being a dealer?

~ Gregg Wartgow, editor-in-chief



 

Adversity Defines Leadership

Here’s a scary thought: Even I could be an effective leader during the good times. The money rolling in would sweep all my mismanagement moves under the rug, minimize my meddling fingers, and keep my employees gainfully employed. In essence, I wouldn’t have to lead, and that would be good for everyone’s attitude.

As my father, at the tender age of 94, is so fond of saying, “Every dog has its day.” I submit that every leader has his or her day as well, and the time for real leaders to step forward and make use of their needed skills is right now. You already can see it happening. Companies with strong leaders are surviving, and they are positioning themselves for the forthcoming recovery. Their management teams have made the tough decisions, taken advantage of company strengths, and focused on retaining their best customers.

Management has been creative, committed and inspiring. I say inspiring because I believe that in itself is a sign of sound leadership. Sure, you have to make sure that employees understand how tough the market is. At the same time, if you’re all “doom and gloom,” what kind of message is that sending to associates charged with selling your services and maintaining your accounts? Being optimistic (at least on the surface) in the face of 20%, 30% and 40% declines in revenue is difficult, but it’s also leadership’s charge.

Getting back to my dad for a second, I don’t hold a candle to his mettle and leadership abilities. Like so many people his age, he lived through the Great Depression and has a drawer full of “hardship” stories to relate—something he enjoys pulling out when he thinks I’m whining about something insignificant. I can’t relate to those stories and hope I never have the opportunity. What I can relate to, though, is what I’ve seen later on in his life when a tornado leveled his farm equipment dealership and a lightning bolt burned his dairy barn to the ground.

Either one of those occasions probably would have leveled me, but not him. In fact, he seemed to almost relish tackling these new challenges. As head of our family, he never exhibited anger or despair, but instead looked at the bright side and just went about his business, constructing a new dealership, selling off the cows and moving forward.

I know that you can’t compare what he experienced to what our industry is going through today, but it is times like this that define true leadership. If you’re in a difficult market offering exclusively design/build services, your row is extremely tough to hoe. It may just be a matter of hunkering down and surviving until the turnaround.

Other contractors, though, are still finding themselves in a difficult market, but with opportunities to leverage their strengths. Sales may be down and reasonable margins tough to get, but there is business out there. How much of that business you capture and how well you encourage your employees to give that extra effort will define your ability to lead.

~ Rod Dickens, senior editor