Should Growers Be Reading Between the Lines?

[Tom Carlson]

“Hines is one of Home Depot’s major suppliers and it was announced that Hines was pulling out of the Florida market,” Hines is a major grower in Florida.

This is pure speculation on my part, but shouldn't growers be concerned when the Big Box Retailers dictate the Terms of Sale? I think it is well known that Home Depot told all its grower vendors that all plant merchandise purchased from HD will be on the terms of "Scan Pay Invoicing", meaning HD does not pay for plant products until they go through the check out scanners.

If HD does not have to pay for a poinsettia if it is not sold, why would they add labor dollars to water the plants into the cost? If it dies, they don't pay for it.:hammer:

Our son-in-law worked for HD un until a couple months ago and he said we would be surprised how much inventory is sold to HD on the Scan Pay Invoicing. It was a substantial percentage of HD's inventory.

 

[Joe Mioux]

Wal-Mart has been doing this for sometime.

HD is just following the leader.

I know of one top 50 grower, who told his family that he is done with Wal-Mart.

Hopefully, more and more growers will be squeezed enough to say no more of this type of wholesaling.

 

[BOSS]

Pay per scan works great on hard goods....

But the problem arrises when a consumer takes two Petunias from one flat (grower A) and then 6 from another flat (grower B). The clerk scans one of the plants from Grower A, and then hits 8 units on the keyboard, thus paying Grower A for 8 and Grower B for NONE....

I think more and more we'll see fewer and fewer growers dealing with the big boxes, but the ones that do will grow larger based on volume, and not worry about the throw aways...

 

[12BucksFor2Dozon]

I don't think we can ever expect this to end, although I am sure the grumbling from wholesalers won't.

Consider it their industries "discount" business...how many here would line up to become a primary wire filler for one of these chains?

 

[Kristine]

Since the inception of pay per scan in the perrishable (plant) dept I have noticed a large decrease of the variety offerings available. Some growers have gotten wise on the true cost of doing biz with bbs.

I also noticed this spring that the amount of vendors supplying product has decreased to one or two major vendors. ie: one vendor was supplying all spring annuals, bskets etc and one vendor had all the potted trees shrubs etc. You will see one or two major players supplying all materials for specific stores. That is the only way they will get paid for their product and they will be sending their own employees to water and care for the product at the bbs. It will be the only way to make it profitable.

So vendors who are shipping long distance ie foliage etc may pull out of stores if they can find other markets for their product -perhaps more grocery vendors? Also many florida growers are seeing their property worth more for planting houses than plants. If I was close to retirement age and didn't have family to continue the biz I would serious consider selling out for $$$$$$ to a developer.