Ellison Chair in International Floriculture
Ellison Chair in International FloricultureTeaching, Research, Extension and Service

Mother's Day Consumer Intentions

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According to the National Retail Foundation’s 2008 Mother’s Day Consumer Intentions and Actions Survey conducted by BIGresearch, consumers will spend an average of $138.63 this year, compared to $139.14 last year. Total consumer spending is expected to reach $15.8 billion.

When it comes to popular gifts, consumers will shell out nearly $3.0 billion on a special dinner or brunch, $1.2 billion on consumer electronics like digital cameras, digital photo frames and video cameras, $2.0 billion on flowers, $1.4 on clothing and accessories and $1.1 billion on personal service gifts like a trip to a favorite spa or salon. Shoppers will also spend $1.6 billion on gift cards/gift certificates, $696 million on housewares and gardening tools and $672 million on greeting cards.

For the complete survey results, click here.

Leading at a Higher Level

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While “vacationing” this week [spring break], I happened across an article by Ken Blanchard in a periodical I had never heard of before called Success At Home, a magazine targeted at home-based businesses. In this article, Ken recounts leadership principles that I think are applicable to Green Industry firms that take a differentiation strategy serious. For example:

When you are leading at a higher level, you have a both/and philosophy. The development of people is of equal importance to performance. As a result, the focus of leading at a higher level is on long-term results and human satisfaction. Leading at a higher level, therefore, is a process.

Ken has found that in organizations where leading at a higher level is the rule rather than the exception, leaders do four things well.

They set their sights on the right target and vision. Great organizations focus on three bottom lines instead of just one. In addition to financial success, leaders at great organizations know that measuring their success with people—both customers and employees—is just as important as measuring the success of their financial bottom line.

They treat their customers right. To keep your customers today, you can’t be content just to satisfy them. Instead, you have to create raving fans—customers who are so excited about the way you treat them that they want to tell everyone about you.

They treat their people right. Without committed and empowered employees, you can never provide good service. You can’t treat your people poorly and expect them to treat your customers well.

They have the right kind of leadership. The most effective leaders realize that leadership is not about them and that they are only as good as the people they lead. These kinds of leaders seek to be serving leaders instead of self-serving leaders.

To read the complete article [which I highly recommend], click here!

How to combat falling consumer confidence

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The University of Michigan’s consumer sentiment index tumbled to 69.6 in its preliminary February reading from 78.4 last month, marking its lowest point since February 1992 when the economy was emerging from a recession. The component of the index that gauges consumers’ expectations — a possible sign of their willingness to spend — dropped to to 59.4 from 68.1. Time will tell whether the infusion of stimulus rebate checks will counter this trend. Regardless, now is the time for the industry to promote the value that landscaping provides in increasing perceived real estate values. A recent study by the S-1021 Multi-state research committee provided key findings regarding the effects that landscape design sophistication, plant size, and diversity of plant material has on consumer perceptions of home value.

Design sophistication accounted for 42% of the value added to the home, so clearly doing more than foundation plantings yields a greater return.

Plant size accounted for 36% of the value added to the home, so larger plantings translate into greater value.

Diverse plant material accounted for 22% of value of the value added to the home, so it appears that having many large numbers of different plants was not as important.

Adding one or two island beds (increasing design sophistication) can alone add 2% to the perceived value of the home.

Although a small investment (less than $250), colorful annuals and perennials added nearly $1000 to home value; returning 400% on the investment.

Moving from the least valued landscape to the most valued landscape, perceived home value increased, on average, 8.6% across all states included in the study.

A landscape is a good investment, yielding a greater than $1 return in home value for every $1 invested in the landscape.

Landscapes are one of the only home improvements that increases in value (and size) over time. Other renovations (e.g. bathroom, kitchen) typically yield less of a return than the amount invested.

Clearly, installing more than foundation plantings yields a greater return for consumers. Curvilinear beds are effective design elements in adding value to the home.

Obviously, this is vital information for landscape firms and retail garden centers to include in their marketing and sales literature. To view more details of this study, click here.