Aug./Sept. 2002 TPI ISSUE HIGHLIGHTS PR Insight..............................................Page 2 Editors Like Short Releases Financial Management....................... Page 2 Stop Payment Trap Taking Care of Business.....................Page 2 Seven Ways to Stay Up in Down Times Marketing Tip.......................................Page 3 Now is a Good Time to Review What Works and What Doesn't Shrewder Computing............................Page 3 Web Content—Dos and Don’ts Water Awareness................................Page 4 Best Management Practices (BMP) For Golf Courses TPI Action .............................................Page 4 — Non US Producers can Turn to TPI For Methyl Bromide Assistance — Board Approves Restructuring of TPI — Have You Renewed Your TPI Membership? TPI Midwinter Conference February 26-28, 2003 Birmingham, England Sneak Preview ♦ Educational sessions featuring: —Producers from various global regions will discuss production —Thames Water Pic. rep will address global water issues —Randy Graff will share insight into successful pricing ♦ Two days of exhibits ♦ JCB Factory/Headquarter Tour ♦ ITPF Banquet & Fundraiser in England’s Castles and Gardens ♦ Many Optional Pre- and Post Conference Tours from Eagle Tour Visit www.TurfGrassSod.org for more. BUSINESS MANAGEMENT Turfgrass Producers International TPI Takes Leadership Role: Coalition Acts on Methyl Bromide TPI Executive Director Doug Fender In an unprecedented show of industry unity, TPI is leading a coalition of U.S. state and regional turf producer associa­ tions to complete a nation-wide “Critical Use Exemption For Methyl Bromide” application. Practically all uses of methyl bromide are to be banned after 2005 and only a special United Nations group (the Methyl Bromide Technical Options Committee or MBTOC) has the authority to grant special use exemptions. Recognizing the enormous resources required to complete the USEPA’s 27- page application in a short amount of time, the TPI Board of Trustees agreed to take the lead; helped to create an adviso­ ry group of experts on the subject and began coordinating the nationwide effort. said, “We’re fortunate to have Drs. Haydu, Unhru and Vansickle... all from the University of Florida... and Steve Godbehere from Hendrix and Dail assist­ ing with this process. They are all recog­ nized experts on various aspects of turf and ag economics and agronomics as they relate to methyl bromide’s impor­ tance to this industry. We recognize that even an outstanding application may be rejected by the EPA or MBTOC, because their objective is to ban this chemical. However, if we don’t make the effort we won’t have grounds for any later appeals or other options.” Turf producers from across the U.S. have been asked to submit highly confi­ dential data to TPI for inclusion in the application. No farm’s data will be exposed to scrutiny or used for any pur­ poses other than completing this applica­ tion. When Customers Say “No,” Don’t Quit TPI President Stan Gardner said, “It’s great to be addressing what is basically a warm-season growers’ concern. In the past, TPI has been criticized for focusing almost exclusively on cool-season con­ cerns. We have and will continue to put TPI’s resources on those issues where they are needed, regardless of whether it’s warm- or cool-season grasses.” Although the goal of every sales call is to “close” (confirm an order), to expect that to happen every time would be unrealistic. However, to simply quit after the customer says, “No” to your sales pitch closes the door to potential sales. Keep the door open by trying to close something—anything—to keep the sales process alive. Reason: Closing on something height­ ens commitment and increases the prospects’ motivation to buy later. Learn to recognize and welcome “intermediate” closes, including gaining the prospect’s promise to: ♦ Meet again at a convenient time ♦ Review your product literature ♦ Accept a bid or proposal ♦ Visit your farm and experience first­ hand your crops and test plots ♦ Visit and talk with others who use your products and services ♦ Use your products or services on a trial basis Be sure to follow up each sales call with a personalized letter of appreciation, reaffirming highlights of the conversa­ tion, including an invitation to contact you for additional information. Member Benefits for Non-Renewals to Stop As of September 1, farms and firms who have not renewed their TPI mem­ bership for 2002-2003 will stop receiving member benefits, such as this newsletter, Turf News and a wide range of other valuable services. If your renewal notice has been mis­ placed or lost, or you’re not sure whether you renewed, contact the TPI office right away at 800/405-8873 or 847/705-9898. Taking Care of Business By Dave Anderson www.LearnToLead.com Los Altos, CA Seven Ways to Stay Up in Down Times Business-as-usual doesn’t cut it when markets, consumers or other conditions beyond your control turn against you. The old saying, ’’What doesn't kill you makes you stronger," is little consolation when business is slow. Here are seven steps to help you stay up in down times: 1. Focus on your core business—and invest in what your business does best. Always assume your core is under per­ forming and you'll be right most of the time. Aggressively market to your cur­ rent customers. In down times one of the best ways to gain market share is to retain the customers you already have and gain their referrals. 2. Don’t "panic-spend" on advertis­ ing—and focus on doing a better job with the customers already coming through the door. With lower traffic counts comes an opportunity to build more rapport, give better presentations and follow up more thoroughly through­ out the sales process—often resulting in more. 3. Don’t kill your capacity to pro­ duce—improve your bottom line by maintaining a tighter inventory, re-focus ad dollars, put vendor products/services up for bid, and improve receivables and other cash flow factors. Resist the short­ sighted strategy of cutting costs that con­ tribute to the development of the your most valuable asset: your people. Training is not a luxury and it's not a cost; it's an investment in sustaining your competitive edge and increasing your production. 4. Reduce entitlements, reward per­ formance, terminate the weakest links—tenure and credentials don't sub­ stitute for results; so, reward and support employees who perform. Otherwise, the weak links in your organization can lower the collective self-esteem of the whole team, compromise your standards and impair your credibility as a leader. Top performers feel cheapened and diminished working in an environment where others don't contribute and can't pull their weight. Use down-times as an opportunity to clean up your roster. 5. Cut once—reducing expenses one month by cutting out free pop, then two weeks later eliminating another benefit (and perhaps an employee or two) and so on, is disruptive and demoralizing. Get it over with by bringing all employees together and explaining what you are about to do, why and then do it. Then reassure your people that everyone and everything that remains has been strengthened by these cuts, and now it’s time to get back to work. 6. Don't develop a loser's limp—an economical down-turn always exposes the sins of the good times, yet many indi­ viduals tend to blame outside conditions in order to escape responsibility of their current business ills. Typical ones PR Insight: Editors Like Short Releases Sending one-page fea­ ture releases can get you on an editor’s must-use list, according to Carole Collins, senior media spe­ cialist at the federal Consumer Information Center. Reasons: • One-pagers offering readers a main point and some usable tips that need little polishing • These briefs feed edi­ tors’ hunger for stories that urge people to act, not ponder Here are some ideas to improve the chances editors will use your releases: • Use lots of "you" copy—information "you" can use, or how "you" can make or save money. Also, try to include the powerful word "FREE." • Put tips in a bulleted list format • Write text that shows how readers can control their lives—"These tech­ niques will increase your property’s value" • Appeal to readers’ fear of losing control— "Are you in danger of losing community pres­ tige?" • Include a statistical chart or a graph. Editors will sometimes run your release just so they can use the chart or graph. • If you send a release electronically—which many editors prefer— include the text of the releases in the e-mail message rather than as attachments. Reason: Some editors have trouble detaching a file because of system differences and might delete it. include poor (or lack of) leadership, hir­ ing standards, performance expectations, accountability, strategy, urgency, people­ development and a growth environment. These are the inside threats a business owner/manager must work on to elimi­ nate day-in and day-out. 7. Stay positive—through honest communications, good coaching leads from the front with plenty of speedy, positive reinforcement for worthy per­ formances. It involves encouragement, motivation and listening. Good coaches also give fast feedback, as well as conse­ quences for deficient performances. Stay focused on the big picture. And remember the best time to fix the roof is when the sun is shining. When better times return it's the best time to train, coach, clean up your roster, set standards that create urgency, make the tough deci­ sions, implement necessary changes, take risks and lead from the front. If these things are done when business is good, people will stay sharp and focused. Let them know there's still room to improve. When business starts to pick up again, develop a mind-set to run up the score rather than sit on the ball, and the next downturn will find you bullet-proof rather then bullet-rid­ dled. The Stop Payment Trap—Although Financial Management banks usually accept verbal stop-pay­ ment requests, they may not accept the responsibility for mistakenly honoring the check. The best defense is to tell the bank representative you will follow up with your request in writing; then put the stop-payment request in writing and fax or deliver it the same day. Gift Tax Trap—According to Bottom Line/Business, putting assets such as real estate into a family limited partnership (LP) and then gifting non-voting shares to heirs is one way to reduce gift and estate taxes. This works best if the assets are put into the LP or LLC before mak­ ing the heirs partners or members. A new Tax Court case says that setting up an entity with all interests in place and then adding assets amounts to making indirect gifts to the beneficiaries, poten- tially with adverse consequences. Marketing Tip Now is A Good Time to Review What Works and What Doesn’t As Charles Dickens began his Tale of By Dave Dymond H&H Sod Co., Inc. Kenansville, FL competition? Two Cities, “It was the best of times. It was the worst of times.” In the sod growing business we have benefited from the “best-of-times” economy this past decade. Marketing or selling our product has been relatively easy. In fact, in our case, we have been challenged more to produce enough, than to sell what we had grown. However, could now be the beginning of those dreaded “worst of times?” We have been called on to shift gears and pay attention to how we can improve the marketing of our crops now that the economy has begun to soften and inven­ tories, as well as competition, have grown. It has been a long time since we were concerned about whether we could move all of our products or maintain profitable volumes. It has become very clear that it is time for us to assess what we have been doing right—in the eyes of our customers—to bring us the success we have enjoyed in the past. It is also time to ask ourselves the following questions: ♦ What else can we do for our cus­ tomers? ♦ How can we help our customers market more of our sod? ♦ Are we giving our customers what they want in the manner they truly want it? ♦ Have we updated our knowledge of the local market/economy? ♦ Is our product as good of a fit for the market today as it was, say, five years ago, three years ago... or even last year? And, more importantly, will it fit for the immediate and future years? ♦ Have we told customers about any new varieties or products we are growing and experimenting with that may be a better fit for them? ♦ Have we invited our customers to the farm to see our operation? ♦ Have we communicated with all of our customers or just our favorites? ♦ Is there any way we make the smaller volume customers into larger volume customers? ♦ Have we become “just order-takers?” ♦ Have we assessed and observed the Shrewder Computing Web Content— Dos and Don’ts A Stanford University study rein­ forced the fact that—unlike newspa­ pers and magazines—the text of a Web news site is the primary focus, the graphics are secondary. Lesson: Although your Website’s appearance is important, its informa­ tional content matters most. The right content influences visitors’ per­ ceptions of your business, generates sales and contributes toward cus­ tomer loyalty. A few suggestions: 1. Reinforce company image—be sure the content is targeted to your audience and conveys your goals 2. Insist on accuracy—spelling, grammatical structure and unbro­ ken links are as important as fac­ tually accurate and complete text 3. Access to your business’ back­ ground—separate any advertis­ ing from the informational con­ tent to avoid comprising your objectivity 4. Include a “Last updated” mes­ sage—better to link pages after completion than to link a partially completed section and apologize with an “Under Construction” sign 5. Monitor popular content—in addition to traditional surveys and focus groups, use Web response forms and tracking services (such as HitBox at www.hitbox.com to determine what works best 6. Remember your neighborhood—although the Web is worldwide, an on-line newsletter publisher (Streetmail) survey revealed that 72% of Web users indicated they were more likely to use content created with­ in their communities than that produced in a remote source 7. Frequently re-evaluate your Website’s content—make sure your site’s information is current, accurate and complete; tests links (internal and external) to insure they’re still working. ♦ Have we lost some of our customers’ business without even knowing it? ♦ Have we added any new customers lately? ♦ When was the last time we “beat the bushes” for new customers? ♦ Is our staff still friendly, helpful and professional? ♦ Is our credit policy too strict or too loose? ♦ Have we just simply asked for more business from our customers? ♦ Have our methods become static or stagnant, no longer dynamic and fresh? ♦ Have our quality, consistency and repu­ tation maintained their high level, or has it fallen in our customers’ eyes. I’m sure each of us can probably add a dozen or more questions to ask our­ selves. But the point is, it’s time for self­ evaluation and re-examination of all that we do, not just a few of the things, but all of them. We must do the same with our relationships with our customers. The benefit of this self-evaluation will be the foundation on which to amend or intensify the direction of our marketing program. It may only need a few minor adjustments—rather than a major over­ haul—to be improved. As another famil­ iar old saying goes, “You don’t need a sledgehammer to kill an ant.” In closing, ask yourself this question, “Have I been too busy chopping wood to sharpen my axe?” If you have, I can assure you that your competition’s axe is extra sharp and ready to cut into your customer list. Looking for More Business Management Ideas? At website www.bizmove.com, you’ll find food for thought about topics rang­ ing from “Sales and Marketing,” “Personnel Management” and “Financial Management,” to “Buying a Business,” “International Trade,” “Internet Business,” “General Management,” “Inspiration Stuff’ and a lot of other usable information. TPI Action Water Awareness All TPI firms who have or are using methyl bromide should immediately Non-US Producers Can Turn To TPI For Methyl Bromide Assistance determine if their country is a signator to the “Montreal Protocol.” This interna­ tional treaty requires developed countries to essentially ban the use of methyl bromide by 2005. At this time, TPI has not been able to obtain a listing of all countries signing the “Montreal Protocol,” and thus is unable to specify which TPI members may be impacted by this process and ultimate ban. In its research of the subject, TPI has learned that Basamid is the only chemi­ cal alternative designated for turfgrass sod production, and is therefore the only product turf producers need to address in their applications for continued use of methyl bromide. Much of the information being assembled by TPI for the U.S. producers’ application may have merit and bearing for the applications of other countries. Board Approves ‘Restructuring’ of TPI Following months of fact-gathering, listening to members and hearing from experts, TPI’s Board of Trustees is embarking on a ‘restructuring’ of the organi­ zation as a means of making it more responsive to member needs. Details will be presented in Turf News and through mailings to the members, but essentially, the Board has chosen to move away from multiple standing committees and will now seek-out member input through twice-annual “Open Forum Round Tables,” focus groups and working groups. In addition, a new group, “Affiliate Representatives” will be developed by area, state, regional and national turf organizations who select a TPI member to serve this working group. They will convene twice a year to address common concerns, share solutions and seek TPI’s involvement or coordination. Have You Renewed Your TPI Membership? To receive additional information on any of these items, Contact the TPI Office Tel: 800/405-8873 or 847/705-9898 Fax; 847/705-8347 e-mail: info@TurfGrassSod.org Website: http://www.TurfGrassSod.org Business Management Turfgrass Producers International 1855-A Hicks Road, Rolling Meadows, IL 60008 e-mail: info@TurfGrassSod.org Best-Management Practices (BMP) for Golf Course Irrigation Golf courses simply cannot afford to waste water. It’s to their advantage to incorporate water conservation through best management practices: proper plant selection and maintenance that provide adequate turf quality while minimizing water use. These include: - Selecting low water-use turfgrasses, groundcovers, shrubs and trees - Providing adequate nutrients to the turf—a balance of potassium and nitrogen, while avoiding excessive nitrogen - Using mulches in shrub and flower beds to reduce water evaporation losses - Adjusting mowing heights to ideal levels, based on seasonal water-use characteristics of species - Using soil cultivation techniques to improve water infiltration and mini­ mize irrigation- or rain-water run-off - Improving drainage to produce healthier turf root systems that draw moisture from a larger soil volume - Limiting cart traffic to paths to mini­ mize turf wear and soil compaction - Cycling irrigation sessions for good infiltration and minimize run-off - Pruning tree roots near turf to prevent competition for moisture and nutri­ ents FIRST CLASS MAIL U.S. POSTAGE PAID Rolling Meadows, IL 60008 Permit No.662