Bet that got your attention, didn’t it? 

It is every Interiorscaper’s nightmare.  You bid the job, got the job, installed the job, and now 3 years later, they tell you that the job is going out to bid–again.  Right away alarms go off in your head.  What did we do wrong?  Are we charging too much?  I knew we should have changed out that orchid sooner.  Yep, all these thoughts and recriminations go through your mind.  But that’s not bad enough–not nearly.  Give yourself another few hours and the panic really sets in.  We’ve got to keep this job.   We’ve got to keep this job.  We’ve got to keep anyone else from taking over this job.  And, the variation, This job is my  job.  Nobody else’s.

O.K.  That’s Day 1  
After you run around screaming and shouting for the first 24 hours, you need to take a deep breath and come up with a game plan.  First, do you have any idea as to why the job is going out to bid?  Is it because a new  contact person came on board and does this as a matter of fact, or wants to show how savvy and cost conscious they are?  Or is it company policy to put all services out to bid every three years?  Or, is it that they have been mandated to cut all costs by X% across the Board?  Or, has a rival IP firm walked in and promised them lower prices, better service and a free back massage every Friday? 

The reasoning behind the action is all important.  Potentially it is the route to salvation or, if misdiagnosed, the route to ruin.  Ask why.  Yep, just go in and ask.  You may find that it is the third year and policy demands going out to bid every three years.  Or, you might learn that someone just can’t stand "corn plants".  You get the idea.  You can address the situation once you know why.  Then, if you cannot find out the reason or if it is a cost lowering situation check out the following.

For Every Action a Reaction  
First, let’s see if we are actually making money on this account.  You can’t kill yourself to keep something that is a detriment or costing you money, nor can you lower a fee if you don’t know how low you can go before cutting in to heart and lungs.  Do a really detailed analysis.  Next, analyze the job to see if and HOW it could be done so that you could lower fees and still make money.  In other words, could it be maintained every other week?  Or with fewer people?  Could the Blooming Program be adjusted?  Are there other locations you are currently not maintaining that could be added? 

Make New Friends but Keep the Old 
Each company, no matter how large or small, should have some standard reactions to potential loss of a client.  If it is a price thing, see how you can reengineer the account and lower their charge.  You also should have on hand a letter you can send.  The letter should be one side of one page, on recycled paper, and it should let the client know that you understand why they want interior plants and service.  If they have clients that visit the space, let them know you always make sure everything projects the healthy, client oriented surroundings they want to project.  If you do their Holiday, renind them all the great comments they receive from their clients about the tree etc.  Reiterate in this letter that you value them as a client and are anxious to please and if there are any concerns you would like to discuss.  If you have come up with suggestions for them about redoing some aspect of the job, ask for an appointment so you can discuss.  You get the idea.

Keep Your Wits About You   
And every so often, the contact is not the instigator and is on your side.  If the specs have yet to be written for the bid package, offer to help write them.  The more involved you are the better.  And, lastly if your relationship is really strong, ask for a "last look",  That means that if neccesary and allowed you could submit another bid after you find out what the other IP companies are bidding.  This doesn’t happen often, but it does happen.

Meanwhile, it is a New Year.  Curt and I wish everyone a Happy, Healthy, and Prosperous 2008!

The Grandaddy of all Horticulture Shows is the TPIE Show in Ft. Lauderdale, FL starting Thurs, January 17-Sat January 19, 2008.  Presented by FNGLA (Florida Nurseryman and Growers Association), the show and its accompanying Seminar is the place to be if you are a tropical plant person.  With a huge, sold out trade show and seminars of interest to ’scapers, this is the show to attend.  Plus, if you come in a day early you can take a tour of Nurseries on a specially scheduled bus.  They do the driving and you do the Learning.

This Year it is All About Green  
I know we’ve been Green since the Beginning of Time, but in today’s world, Green has a whole other meaning.  To that point, the Seminars all have speakers and topics that will increase your understanding of the new position open for including interiorplants in offices, hotels, and residences.  One of the most popular speakers is Patricia Fripp.  An acknowledged expert in Sales and Marketing, Patricia has received accolades from audiences all over the country.   She will be kicking off Friday’s Program as well as presenting a course especially for interiorscapers, Superstar Sales Presentations: The Inside Secrets.  It is an hour and 15 minutes of inspiration. 

Plus All the Other Stuff  
Along with being able to visit the booths of the Top Growers, Container Manufacturers, and Suppliers, TPIE is a great time.  Spend and share experiences with industry friends, attend the Opening Night Party at Gulfstream Park, and just relax in the Sun.

For Info  
Get all the details by logging on to www.tpie.org or call 800-375-3642.

Come see me in Booth 814.  I have a new revoutionary product (not a container) that will make your life 50% easier and save you money as well. 

You Don’t Know Where You’re Goin’ if You Don’t Know Where You’ve Been  
One of the best things I ever did for my interiorscape company was to develop a Budget for each coming year.  It was amazing.  After a while, I discovered I could predict so many things by doing this and, at the same time,  keep small glitches from turning into bottomless pits.  Keep in mind that I am not nor ever was a Math freak.  In fact, I still haven’t mastered the 7 and 8 Multiplication Tables(my teacher was absent that week back in the 5th grade). 

It all started when at Something Different Interior Plantscaping we finally were able to put numbers into the right "baskets" and print out numbers for the month and for the Year to date.  These "baskets" broke down Income and Expenditures.  For example, I could look and see how much income we received from One time Sales broken down into Plants, Planters, Holiday income, Exterior Sales, Contracted Blooming Programs, Recurring Revenue for Maintenance, Income for the Guarantee portion, Installation and Misc.  Conversely, I could compare the income against the expenditures for each of these categories.  Note that I didn’t lump a bunch of stuff into one category like the dollars we spent for New Plant Material we Sold and Plant Material we purchased for Replacements. just because they were the same type of product and to the same vendors.  This way I was able to see if I was within Budget, over, under and so on.  I was also able to predict how much more I would be spending over the rest of the year and so on. 

It’s All in the History  
If you already have Operating Statements and Financial data from last year or this one to date, you are ready to develop the Budget for 2008. 
Think of the Budget as a road map.  Break it down by month and year to date.  Will you make errors?  Of course.  It is all part of the learning process but you need to start somewhere.

Predicting Growth  
The most important number to track is the dollars you add each month, net to your Recurring Revenue.  For example, let’s say you start the year at $10,000 per month recurring revenue (the $$ you bill for guaranteed maintenance).  And let’s say that in reviewing last year you started out at $7,000/month income from guaranteed maintenance.  That means that after new jobs minus any loss of clients or cutbacks, that between new jobs and additions, you sold on average, $250 per month to add to your recurring revenue base.  OK.  Now given that this is your past history, what would you anticipate you would add to the $10,000 base this coming year?  If all things stay the same and you do not add any new Sales staff, then you can anticipate adding a net of $250  per month this coming year.as well. That means that at the end of the coming year you should be at about $13,000 recurring revenue per month.  In addition, I’ve found that you can probably add 15% to your Holiday Income for each new year and estimate the same gross dollars of Income for Plants and Planter Sales.  See how once you have some "formulas" you can predict the Future?

 But I want to Grow More than That  
Ok.  But by running the numbers it is pretty obvious that unless a new huge job drops on your head, your past performance pretty much spells out your future.  Nope, if you want to grow more than that, a lot more, you will have to take other measures, say hire another Sales Person.  Not a bad plan if your market is large enough etc., but, at the very least, having a Budget, looking at Past Numbers, and formulating a Game Plan, handed you a Map with several options to choose from.

Works to Find Money Pits, Too. 
Here’s one of those AH-Ha moments.  Years ago I didn’t separate the dollars spent for replacement plants and those spent for Plants I bought for New Jobs.  I just lumped them all together under the heading, "Plants".  Without separating the income and comparing it to the costs, I had no clue if I was spending too much on Replacements.  Once I separated out both Income and Costs, I was able to manage ever so much better.  I discovered that we were spending more than we should be on replacement plants and after we set up replacement guidelines, had Linnaea Newman come in and train our techs how to get plants to look better so they could stay on jobs longer, identified several wrong plants in the wrong places, and instituted  a realistic Quality Control Program, we were able to cut our Plant replacements by 37%, a huge savings.  This didn’t happen overnight but without a realistic budget and an ability to compare costs and income, we would never have been pointed in the right direction.

Its A Journey  
Start now, this month to set up your Budget for ‘08.  Keep in mind this is not the be all and final set of numbers.  As you go through the coming months you’ll find that one "basket" is not the best and that some numbers or formulas need to be worked.  That’s OK.  You certainly didn’t know everything you needed to know when you first started in this business, did you?  Of course not, so don’t beat yourself up, just keep refining and adjusting.  Then, one day, you’ll whip out your Budget and it will be everything you need and want it to be. 

Now go out there and get ‘em, Tiger

Can We Talk?
So, what’s your game plan?  How are you going to meet your sales goals, this month?  This year?  Do you have a plan?  Or are you just going to – A) Wait for the phone to ring or B) Sell stuff to an existing client?  Either A or B are legitimate methods but they lack the really important component, C) New jobs.  New jobs are the critical sales component, the important life force for company growth and must be a major part of your plan.  Oh, I know, when you first started in this business, all your jobs were new jobs but, then the years went by and it was just easier to be an order taker not an order creator.  Well, its time to dust off those “new jobs sales skills”.  Get on the phone; ask existing clients to help you find new clients, go to IFMA and BOMA and LEED meetings and follow-up on construction or moving leads.  In short, fill the pipeline with both the easy stuff (the bird in the hand) and the not so easy (the bird in the bush).  Then, a month or six months from now you’ll be so pleased when you see what you’ve accomplished and your confidence will see no bounds.

Now is also th e best time to sell Holiday ‘08.  Yep, while all the stuff is in place for ‘07, now is the time to visit your contact and point out what new can be added for next years display.  A new wreath over the Door, a second tree in the other part of the Lobby or some Props strategically placed.  At the very least, give them a budget number so the dollars will be available.  What dollars to quote?  Give an estimate or a "not to exceed figure".  Come June and July the client will appreciate your forethought.

Now go out there and get‘em Tiger!