BUSINESS MANAGEMENT American Sod Producers Association June/July, 1994 ISSUE HIGHLIGHTS SOD FARMS LOSE CHEMICALS as companies choose not to include WPS statements on farm labels. (P. 1) CONVENTION INTRODUCTIONS interest expands as convention time approaches (July 27-29) (P. 1) CREDIT CHECKING EASIER with D&B or TRW services (P. 2) REPRINTS TO HELP MEMBERS share information about turfgrass and sod, at affordable cost. (P. 2) GIVING PRODUCTS NAMES help increase sales & company image. (P.2) COMMUNICATIONS ASSISTANT joins ASPA staff for PR program (P. 2) ‘JOBS IN HORT.’ NEWSLETTER serves employees/employers (P. 3) TAKING CARE OF BUSINESS fo­ cuses on benefits of pros. (P. 3) RETAIN-REGAIN CUSTOMERS with ideas from new book. (P. 3) CIBA TO RAISE FUNDS for ASPA program support, thru members. (P. 4) 94-95 RECORD MEMBERSHIP now a realistic target for ASPA. (P. 4) ASPA ACTIONS focus on federal is­ sues, summer convention, interna­ tional breakfast. (P.4) AVOID SKIN CANCERS At least 90% of all skin cancers are caused by long-term, unprotected ex­ posure to the sun, according the the Mayo Clinic. By the very nature of sod farm work, long days in the sun are unavoidable, but skin cancers can be avoided. The Mayo Clinic’s recommendations for avoiding skin problems include: 1. Wear protective clothing; 2. Wear a broad-brimmed hat; 3. Use sunscreen with a sun protec­ tion (SPF) of at least 15. Companies Withdraw Some Sod Chemicals Implementation of the Environ­ mental Protection Agency’s (EPA), Worker Protection Standards is creating confusion, if not nightmares for some U.S. turfgrass sod producers. Chemicals they have used for years are being re-labeled by the end-use manu­ facturer to comply with the EPA’s WPS standards that require distinctions in la­ beling between farm and non-farm use. As a result, some chemical companies are choosing not to include WPS infor­ mation on their labels, thus effectively removing those chemicals from sod farms. Every company must make a determi­ nation for every product whether or not to include WPS information. Especially confusing in this matter is the fact that a particular chemical may be labeled for use on golf courses or home lawns, but, because the end-use chemical manufac­ turer chooses not to include the neces­ sary WPS information, it cannot be used on a sod farm. As of this writing, some chemical companies have chosen to in­ clude WPS information on all of their products, others have chosen to exclude this information from some or all of their products, while still other companies are reconsidering their previous decisions. Adding to the confusion is the fact that any supplies of a chemical previously ap­ proved for sod farm use can be purchased and/or used until October, 1995, even if more recently produced chemicals do not have sod farm labels. Before purchasing any chemicals, sod producers are advised to review the com­ plete end-use product label to ensure that sod farm use is permitted. Because the decision whether or not to include the WPS information is being made company-by-company, ASPA members are being encouraged to send a letter to the ASPA office stating their concerns about the absence of a particu­ lar product, the quantities they would normally purchase and use each year, and the particular product/manufacturer this concerns. ASPA will assemble this information and relay it to the appropri­ ate companies so they are aware of the problems this is creating and the poten­ tial market they are losing. NEWPORT, RHODE ISLAND... July 27-29 Convention Intros New Items, Offers Buyers In-Field Demos All of the latest equipment, products and services for turfgrass sod farming will be on display or demonstrated during ASPA’s July 27-29 Summer Convention and Field Days in Newport, RI. With a strengthening economy, exhibitors are showing high levels of interest in the show, with several first-time firms al­ ready contracted. Members from throughout the world are pre-registering in large numbers, of­ fering indications that the New England location is being considered a very at­ tractive site for the annual summer con­ vention. Highlights of the three-day gathering will include a exhibit opening on Wednesday, July 27, followed by a clam bake style banquet on the Sodco Turf Farm. This will be followed Thursday by a day-long field demonstration of equip­ ment used in sod fanning and static dis­ plays of many other items. Friday will be devoted to touring the University of RI and two area sod farms. For details call ASPA - 800/405-TURF. 2 firms offer quick Credit check service TRW and Dun & Bradstreet now offer fast, and relatively inexpensive small business credit checking services according to an article appearing the May issue of "CFO" a new publication for chief financial officers. With an IBM compatible computer and modem, turfgrass sod producers could dial-up TRW’s Small Business Intelliscore service, and for a fee ranging from $15.95 to $18.25 receive a credit report that integrates the history of the business and the owner. Call 800/520- 1221 for further information. Dim & Bradstreet’s Small Business Services division, at a cost of $60 (less for repeat users), offers a personalized summary via phone and one-page follow­ up letter describing credit history, bank and loan balances and even IRS tax liens. A call to 800/544-DUNS will yield more details. Members are also reminded that when customers fail to pay, despite proper credit checks, Milliken & Michaels, a collection service identified by ASP A, is available to them at favorable rates by calling account representaive Jill Dill at 800/745-6007. Reprints of select articles from “Turf News” magazine will now be available to ASPA members approximately four- times a year. Recommended by the orga­ nization’s Marketing Sub-Committee, the reprints are seen as a means of ex­ panding the information members can use in their local market areas, in a timely and cost-effective manner. Erosion control cost comparisons, a fea­ ture article in the May/June issue of the magazine, was recently sent to all ASPA members as a sample reprint, along with an order form to obtain additional copies. In future issues of the magazine, a special order form will indicate the availability of reprints of a select article. Members will be encouraged to immediately order the quantities they desire as some limits will be necessary for cost controls. All of the reprints will feature the maga­ zine’s four-color cover, followed by the full text of the original article. If less than three pages are necessary, an attrac­ tive four-color advertisement on the ben­ efits of turfgrass will be on the fourth page. Upon receipt of their copies of the reprint, members will be able to locally imprint company contact information so Kallal becomes communication asst. On May 16, Lisa Kallal joined the ASPA staff as the new communications assistant. She will become an integral part of ASPA’s additional public relation and educational activities. Lisa holds a bachelors degree in Agri­ culture Economics from the University of Illinois with an emphasis in marketing. She joins ASPA after working as an eco­ nomic reporter specializing in the auto­ motive and trucking industries for a com­ munications firm in downtown Chicago. Lisa has also co-produced a radio agri- markting program for a station in Ur­ bana, Illinois. Kallal was raised on a grain and hog farm in central Illinois where she also gained valuable horticultural experience through various 4-H projects.. SEND MEDIA INFO TO ASPA All ASPA members are asked to send any articles or information they may see related to turfgrass or the environment to the organization’s office in Rolling Meadows. As part of ASPA’s new pub­ lic relations and education initative, the organization will review this information and determine what actions may be called for. Include the complete text of the article, as well as contact information about the publication in which it appeared, i.e., fullname, address, phone, fax, etc. PR/EDUCATION PROGRAM 'Turf News' reprints expand Information tools for members readers will know who provided them the information. The variety of articles to be reprinted during the year will ensure that some top­ ics will be of interest to many members and address issues of importance in their individual markets. Product names help Marketing program Giving special names to every product and service help customers feel thay are buying something special according to author, John R. Graham, Graham Com­ munications. He recommends names that help define the exclusive, innovative or unique aspects of an item and adds that this technique encourages the pre­ ception among customers that the com­ pany is an industry leader. Applying this to turfgrass sod could help to develop product differentiation that is usually lacking in a price- competitive marketplace. For example, rather than simply saying you have a Kentucky bluegrass-perennial ryegrass sod mixture, (just like every other sod farm in your market) you might call yours “KenRye,” or “Real Blue.” This name could be used for several years, even if you choose to change the specifics of the mixture from time-to- time. Avoiding adjectives or adverbs, purely discriptive terms such as “Superior,” “Finest,” “Excell,” is usually recommended because they do not have any particular basis for the customer to relate to in that product. As with the turfgrass sod itself, other aspects of the farm’s operations or ser­ vices could also be given unique names. “Landmaster,” might work for landscap­ ing services, or “Turf-Time” for installa­ tion services. One note of caution, be certain you are not infringing on a firm’s existing name before choosing your own. ASPA Summer Convention & Field Days Newport, Rhode Island July 27-29, 1994 Your 1994 ASPA Summer Convention & Field Days is coming next month to Legendary Newport, Rhode Island, July 27-29. A city rich in history and tradition, Newport has been known as “the nation’s premier seaside resort town” for over 350 years. Sodco, Incorporated, located in nearby Slocum, Rhode Island, will host the Demonstration-Day portion of ASPA July show which will be highlighted by equipment demonstrations, exhibit displays and the third-annual ASPA seed test plots. July is perhaps the best time of year to visit Newport, when you can enjoy a stroll along its cobblestone streets or ocean front walks; revel in the magnificence of its world famous turn-of-the-century mansions; feast on its fine cuisine; and savor the hospitality of its people. The Newport Islander Doubletree Hotel will be the headquarters for the Summer Convention. And, while the Newport Islander Double­ tree will house most ASPA attendees, we have arranged for additional accomodations at the Newport Harbor Hotel & Marina as well. Each of these hotels offers all the amenities and tradition that New England has to offer and they are located within easy walking distance of one another. Tours will play a major role in next month’s Summer Convention and both ASPA-member farms and the University of Rhode Island (URI) Agricultural Experiment Station will be featured in this day-long event. At URI alone, you’ll see National Turfgrass Cultivar Evaluations for high and low-maintenance Kentucky Bluegrass, Perennial Ryegrass, Tall Fescue, Fine Fescue and Bentgrass. The ASPA-member farms featured on Tour-Day are Tuckahoe Turf Farms and Washington County Turf Farms. Next month, ASPA is bringing your Summer Convention and Field Days to scenic Newport, Rhode Island where history and tradition combine to provide you with a trip to remember! Newport Islander Doubletree Hotel Located on Goat Island in picturesque Newport Harbor, The Newport Islander Doubletree is an elegantly appointed hotel connected to Newport by causeway. The Doubletree is just a short walk from the excitement and charm of historic Newport and offers all the amenities you would expect to find in this fabled playground of high society. The Doubletree offers you: * Indoor and Outdoor pools * Health club facilities * Sauna Room * Jacuzzi tubs * Tennis and Racqetball courts The Doubletree Hotel will house most ASPA attendees, however, additional accomodations have been arranged at the Newport Harbor Hotel and Marina. All reservations should be made through the Doubletree Hotel, and as they reach capacity, reservations will be forwarded to the Newport Harbor Hotel. Room Rates: Doubletree: $167.00 single/double Newport Harbor: $175.00 single/double Phone: 401/849-2600 Fax: 401/846-7210 Getting to Newport is as easy as 1, 2, 3! 1. Fly into T.F. Green State Airport, Providence, Rl. 2. Arrange for transportation from T.F. Green to Newport. The New England Sod Producers Association will be providing transportation free of charge to attendees on Tuesday afternoon, July 26th and Wednesday morning, July 27th. If you are arriving at another time, or require shuttle service back to the airport, contact: Cozy Cab, Inc.: 401/846-1500 or 401/846-2500. Taxi service is also available, pricing varies. 3. Enjoy the trip! If you are driving to Newport: Newport is within a 1 hour drive of metropolitan Boston, 3 1/2 hours from New York City, and 35 minutes from Providence. Route 138 off Interstate 95 takes you into Newport from the South and West. After crossing the Newport Bridge into Newport, take the Scenic Newport Exit, at the second stop light, turn right on to America’s Cup Avenue, then turn right at first light to the Doubletree. Route 24 via Fall River takes you to Newport from Boston. Get There For Less ...Use Conventions In America! To make reservations, call Conventions In America, at 1-800/929-4242, use Group #457. Lowest fares on any airline guaranteed at time of booking. Plus, you will receive free flight insurance of $100,000, and become eligible to win two round-trip tickets on American’s systemwide route (drawings held bi-monthly.) If you call American directly at 1-800/433-1790, ask for Index Number “S7113,” and Starfile Number “S0174T4.” Phone: 1-800/929-4242 FAX: 619/544-0215-Group #457 Reservation Hours: 6:30 am - 5:00 pm, Pacific Time 24-hour toll free message center 909 W. Laurel St., San Diego, CA 92101-1224 Registration Package Your “Complete Registration” package includes name badge, admission to Wednesday’s Educa­ tional Session, Annual Business Meeting and New England Clam Bake; admission to Thursday’s Demonstration Day; and admission to Friday’s Tour Day activities. Single event tickets are available for Wednesday’s New England Clam Bake and Thursday’s Demonstration Day activities. Tickets for Wednesday’s New England Clam Bake are $75.00 if purchased individually, and only $55.00 if purchased by a firm having at least one (1) attendee with a “complete registration.” Tickets for Thursday’s Demon­ stration Day activities are $50.00 if purchased individually, and only $30.00 if purchased by a firm having at least one (1) attendee with a “complete registration.” Tour Day admission is only available as part of a “complete registration” package, and not as a single-event. Please contact Thos. Ford, ASPA Meetings Administrator for more details, or answers to any questions you may have. Please direct inquiries to: American Sod Producers Assn. 1994 Summer Convention 1855-A Hicks Road Rolling Meadows, IL 60008 Telephone: 708/705-9898 FAX: 708/705-8347 AMERICAN SOD PRODUCERS ASSOCIATION July 27-29,1994 Summer Convention & Field Days THE NEWPORT ISLANDER DOUBLETREE HOTEL NEWPORT, RHODE ISLAND OFFICIAL REGISTRATION FORM FOR ASPA USE ONLY Rec’d Amt. $ Due ASPA Ack Refunds Notes FIRM ADDRESS CITY STATE/PROV PHONE ZIP Check if you are a new member since July, 1993, or if this is your first ASPA Conference : *Includes name badge and admission tickets to Education session, Wednesday Welcoming Banquet and exhibits, Thursday Demonstration Day, and Friday Farm Tours. *COMPLETE REGISTRATION FEE STRUCTURE $ 200.00 - First ASPA Member Company Rep. $ 150.00 - Addt'l ASPA Member Company Rep. $ 100.00 - ASPA Member Spouse $ 75.00 - Youth (Ages 7-14) * Non-members ADD $50.00 per person. AFTER JUNE 15,1994, ADD $25.00 PER ATTENDEE. FIRST NAME/NICKNAME FULL NAME Fees ASPA Use Only 1. 2. 3. 4. 5. 6. TOUR-DAY TICKETS Are Only Available With a “Complete Registration” Package SUBTOTAL SINGLE EVENT TICKETS Good ONLY for admission to the event purchased. NOTE: The Complete Registration Package shown above includes: education session, banquet, demo­ day and tour-day. SingleTour-Day passes are not available. To Order: 1. Indicate the number of tickets for each event. 2. Show the total of all tickets ordered. 3. Non-ASPA members add 25% to Single-Event Ticket Subtotal 4. Enclose proper payment and return to ASPA. * Discounted Single-Day Passes are available to those firms having at least 1 fully registered adult With a “CompleteRegistration” Without a “Complete Registration” New England Clambake Banquet Wednesday, $55.00 per person Quantity Cost New England Clambake Banquet Wednesday, $75.00 per person Quantity Cost Demonstration Day Pass Thursday, $30.00 per person Quantity Cost Demonstration Day Pass Thursday, $50.00 per person Quantity Cost SUBTOTAL TOTAL SUBTOTAL TOTAL RETURN WITH PAYMENT (In U.S. Funds) to: AMERICAN SOD PRODUCERS ASSOCIATION 1855-A HICKS ROAD ROLLING MEADOWS, IL 60008 708/705-9898 FAX 708/705-8347 Visa MC AmX Account Number Expiration Date 'Turning Lost Customers Into Gold' New book reveals ways to Retain, regain buyers New 'Jobs in Hort' Newsletter helps Employee/Employer “Jobs In Horticulture,” a relatively new semi-monthly (twice a month) newletter may prove to be a valuable publication to both employers and employees in this very specialized industry. Published by Jack Ferrell, 154 East Chapel Ave., Carlisle, PA 17013, the 8 1/2 by 11-inch, multi-page publication charges $14.95 per listing, for either situation available or wanted ads of 75 words in length for two consecutive issues. Subscriptions to the publication cost individuals $69 for a year (24 issues) or $36 for 6 months. Job listings are divided by various horticulture specialities, with each having a notation to indicate if it is a first-time or updated listing. In addition to separate categories for positions available and situations wanted, the Newsletter also lists business opportunities. Additonal details about the newsletter and possible price change information can be obtained by calling the company at 800/428-2474 or faxing requests to 800/884-5198. While most businesses lose 20 percent of its customers each year, studies and experiences have shown that more net income is derived from a single customer who stays loyal for 10 years than it will from 10 customers who purchases for only a single year. John Koob Cannie’s new book, “Turning Customers Into Lost Gold,” describes some techniques that all businesses, even turfgrass sod producers, can implement to increase customer loyality and hold onto to greater numbers of buyers every year. Talk to ‘defectors’ Cannie’s first rule to retain and regain customers is to make it an active company policy to talk to anyone who stops doing business with your firm. He recommends an interview/discussion with the customer that will probe why the defection took place, once you have established that the customer has in fact stopped doing business with your firm. Try to have at least 10 solid questions ready that get to the point, such as: it is a question of price or poor quality? was our service less than what you required? did we make promises we didn’t keep? what is your new supplier providing that we didn’t? were we responsive to your questions and concerns? etc. Try to get information that you can put to use in your company, and be honestly ready to make changes. For example, if the customer had delivery or quality problems, what are you prepared to do, on a regular and company-wide basis, to ensure the same problem is not repeated? Also, Cannie says that the business owner has to be ready to accept responsiblity for past short-comings and let the customer know they will be fixed. Retain current customers While these efforts will help you restore relationships with former “defectors,” they will also help you strengthen the overall company and assist in retaining current customers, but you may want to make it a point to inform your customers of improvements you are making. Cannie’s last suggestion: establish a goal for improvement. Shoot for 100% Taking Care Of Business By Ben Copeland, Super Sod Lakeland, Georgia PROFESSIONAL ADVICE: Is it Worth theCost? No one knows how to produce, harvest and market turfgrass sod from your farm better than you. These things are what you do best and perhaps you have enough expertise to do your own accounting, tax returns and know enough about State and Federal Law that you do not need outside advice. If that is the case you are probably wasting time Reading the remainder of this article. Mowever, if you are not confident about your abilities to accomplish all of the above, perhaps your should consider engaging an outside professional. Certified Public Accountants (CPAs) and attorneys are the most commonly used outside professionals although the list could include consulting agronomists, crop advisors, human relations consultants and others. Due to the increase in complexities of tax laws most businesses now use either a CPA or accountant for preparation and filing of tax returns. However in addition to helping you stay within legal boundaries, having an outside professional such as a CPA look at your operation can provide a fresh, objective viewpoint that can be invaluable when making major decisions such as equipment purchases, expansions or corporate changes. If you are concerned that an outside professional such as a CPA might cost too much, consider the case cited in the 1994 January issue of “Progressive Farmer”. The magazine told of a taxpayer who, following the advice of his tax professional, omitted a $50,000 item from his taxable income. The Tax Court ruled that even though the omission was incorrect, he did not have to pay a negligence penalty because he was relying on advice of professional counsel. In effect, the Tax Court said that seeking professional assistance with tax concerns is a sign of prudence not of negligence even when the advice is later shown to be wrong. Ciba Turf & Ornamental Set-Up Funding Program Purchases of Ciba Turf & Ornamental Products by sod producers will now generate funds to help support ASPA’s public relations and research programs. Ciba’s donations through their “On The Green” program to ASPA will be based on member purchases. Product prices will not be affected by this program. Specific details and forms will be sent to all ASPA members in the near future. 1994-95 Membership Could Break Records Enthusiasm for ASPA’s aggressive new public relations and education ini­ tiative, strong member benefit pro­ grams and an improving economy could combine to create a larger-than- ever ASPA membership for 1994-95. Class A (sod producers) and Class B (manufacturers) in the U.S. who are re­ quired to include a mandatory assess­ ment, along with their dues payments are renewing at a positive rate. Other classes of members, who were invited to voluntarily contribute additional sup­ port for the PR/education initiative are also renewing at a strong rate. Reminder renewal notices will be sent to all members in the coming week, with the new membership year starting July 1. ASPA Action FEDERAL U.S. ISSUES OF IMPORTANCE TO SOD PRODUCERS: 1. Definition of “Farming” in wetlands regulations—ASPA has been given assurances that Senate and House bills now being considered as part of the Clean Water Act, will include sod farming as a form of agriculture. This would exempt sod farms from some of the more onerous sections of the regulations. 2. Federal Crop Insurance — moving away from ad hoc disaster assis­ tance programs, toward a comprehensive crop insurance program, legislation in the House, would include turfgrass sod as a covered crop. 3. Adams Fruit-Workers’ Comp Case — ASPA remains a member of the Workers’ Compensation Integrity, Stability and Equity (WISE) Coalition, dedicated to reversing a Supreme Court decision that struck-down workers’ comp as the ex­ clusive remedy for on-the-job injured employees. Negotiations have been stalled for some months; however, political pressure on so called worker advocates may cause some favorable movement. 4. Department of Labor - ’Glassboro’ Employee Relocation Expense —ASPA, working with the National Council of Agricultural Employers, is vigor­ ously protesting the DOL’s attempt to require agricultural employers to pay a work­ ers’ relocation travel expenses (to and from his home), whenever such costs would place the employee’s first or last week’s pay below the minimum wage level. SUMMER CONVENTION COMMITTEE MEETINGS: All ASPA members are invited and encouraged to participate in any of the following committee meetings that will be held in Newport, RI during the Summer Convention. Contact the chairman for additional details. Wednesday, July 27 — Business Management, Chairman Wayne Thorson - 402/624-6385 Legal & Taxation, Chairman Ben Copeland - 912/482-3131 Marketing, Chairman David Doguet - 512/328-0884 Conference & Convention, Chairman Louis Brooking - 804/883-6338 Friday, July 29 — Magazine Advisory, Chairman Ed Zuckerman INTERNATIONAL MEMBER BREAKFAST SET FOR JULY 27: A special breakfast meeting for all International ASPA members will be con­ ducted by Chairman Bryan Wood, 7 - 8:30 am, Thursday, July 27. An RSVP to ASPA would be appreciated to determine numbers. BUSINESS MANAGEMENT American Sod Producers Association 1855-A Hicks Road, Rolling Meadows, IL 60008 FIRST CLASS MAIL U.S. POSTAGE PAID Rolling Meadows, Il 60008 Permit No. 662