Defensive Actions Recommended 

Apr/May 1997 BUSINESS MANAGEMENT
Turfgrass Producers International
Labor Shortages & Enforcement Advance
Worker shortages and increased enforce­
ment activities by the Department of Labor 
(DOL) and Immigration and Naturalization 
Service (INS), which TPI predicted two 
years ago (April/May, 1995 “Business 
Management” newsletter) are becoming 
realities. Members attending the TPI 
Midwinter Conference in Savannah 
reported more difficulty in recruiting and 
hiring for the coming season, regardless of 
their wage offers. Others expressed concern 
about the increasing number of “raids” and 
other DOL and INS enforcement activities.
TPI continues to work on legislation that 
should help ease worker shortages, through 
its involvement with the National Council 
of Agricultural Employers (NCAE). TPI 
may call on its members to provide testi­
mony or other support for these activities.

claims by asking new hires to determine 
for themselves which verification docu­
ments from the I-9 list they produce. 
7. Update pay records on a regular 
basis, being certain to show accurate 
information for hours worked, wage rates 
and pay received. 

of the pay package, such as season-ending 
bonuses, job rotations, part-pay for rain 
days,etc. 

completing I-9 Forms on all new hires. 
Double-check completeness, dating, etc. 

ISSUE HIGHLIGHTS

5. Ensure absolute accuracy when 

6. Avoid potential discrimination 

8. Post all state and federally required 
notices related to workers’ compensation, 
wage and hour, and health and safety 
issues. 

9. Require that all employees comply 
with regulations specifying safety equip­
ment, clothing, etc. 

10. Insist that you be made aware of 
any on-the-job accidents, no matter how 
seemingly minor, and take steps to ensure 
proper treatment. 

If DOL or INS Calls On You

Contact TPI if either the DOL or INS 
contacts you for an audit, or immediately 
after a “raid.” A telephone survey will be 
completed and the information shared 
with Congressional and federal agencies 
who have asked for impact information.

Take Defensive Measures

As an immediate step, TPI members are 
encouraged to take the following defensive 
measures to reduce the potential impact of 
both labor shortages and DOL/INS raids or 
inspections.

1. Advertise or recruit as far ahead of 

actual labor needs as possible.  

2. Seek-out new labor resources, such as 

football team coaches, teachers, etc.  

3. Anticipate additional training time 

and follow-up efforts for all new hires. 

4. Implement creative incentives as part

Business Briefs 
Page 3 
 Tips for Better Business Operations.

Computer News Briefs 
Tips for Shrewder Computing.

Page 3 

Jest for the Fun of It 
Page 4 
TPI’s “funny business” department.

Labor Forecast 
TPI Members warned of labor  
shortage — regulation enforcement.

Page 1 

Marketing Tip 
“Fighting the Low-Bailer” 
Using your head instead of your  
wallet to combat price-cutters.

Page 2 

Member Benefit Update Page 1  
TPI members receiving discounts  
from Gemplers and complimentary  
copies of “Turf’ magazine.

Taking Care of Business Page 3  
"Seeking Professional Help"  
Selecting a financial consultant.

 TPI Action 
TPI Conference and Convention  
update, Public Relations Campaign  
update... plus more.

Page 4 

Member Price Discounts  

Ag Labor & English/Spanish Books

Discounts of up to 25% are available 
to TPI members on two very practical 
publications distributed by Gempler’s. 
“Ag/Hort Labor Law Handbook,” a
69-page, soft-cover booklet offers in- 
depth background and guidance on 
issues ranging from employment 
standards to civil rights. Normally 
priced at $9.95, it is available to TPI 
members for $7.50. 
“English/Spanish Illustraged 

Agricultrual Dictionary,” a 160-page, 
soft-cover book presents simple illus­
trations of many farm-related tools and

functions. Normally $27.50, it is 
available to TPI members for $23. 
Shipping and handling are included  
in the price of either publication. 

To order, members should call 
Gempler’s at 800/382-8473, or fax 
800-551-1128. Specify Order Code 
TPIM to obtain the discounted price.

TPI members will begin receiving 
“Turf" Magazine, without charge, 
as another membership benefit.

Marketing Tip By Kent Bacon, Twin Firs Turf, Inc.  

Quincy, Washington

Fighting the Low Baller. It seems every 
industry has people that don’t charge 
what they should for their product / 
service. What makes the low-baller - 
price-cutter - fly-by-nighter a low-baller 
- price-cutter - fly-by-nighter? He (or 
she) sometimes doesn’t carry insurance, 
isn’t licensed, has other, better paying 
jobs to subsidize this endeavor, or he 
works out of his house. The one com­
mon denominator is that they don’t 
charge enough for their product. At least 
they don’t charge as much as you. 
The question isn’t how to stop a price- 
cutter, but how to compete against him. 
Lowering your price isn’t the answer in 
competing with someone whose only 
weapon is his low price. In our main 
market (within 75 miles) we have one 
other turf farm. When we change prices, 
within about a month, they change their 
price to be 1 to 2 cents per foot less than 
us. Here are some things we’ve 
done... they may work for you. 
Quality. This starts even before plant­
ing. If you have a weed or bug problem, 
often the best time to get rid of them is 
beforehand. Do you get higher quality 
with a preemptive strike, or can you get 
by with waiting until a problem arises to 
treat it. Do you have uneven fields that 
cause uneven or scalped turf? Either 
spend the time to get rid of ruts before 
planting, or roll before harvest. Which 
is less waste for you and the customer? 
When we started our farm in 1980, we 
converted a grass seed field into a turf 
field. It was uneven, had thin spots and 
was generally low quality. We sold about 
25,000 feet per acre due to scalps, tom 
rolls and harvester problems. Today, a 
bad field has perhaps 3,000 feet of scrap. 
We throw out rolls with bad spots rather 
than selling them to our customers and 
then we sell rejects, 3 pieces for a dollar. 
Does your harvester have auto-steer?
Our competitors doesn’t, and their slabs 
can vary in width by an inch from end to 
end. If you want a hot landscaper, come 
talk to some of their customers when 
they get a load like that! 
Service. Many people feel that the 
easiest way to compete against the price-

cutter is to cut their own price. When 
you do this, you are suggesting to the 
customer that your price was too high in 
the first place. We feel the best way to 
keep a customer is to keep them satisfied. 
How does a prospective customer learn 
about your company? Your phone people 
need to answer calls promptly, and in a 
friendly manner... having a smile on their 
face can be “heard” by callers..this helps. 
Have your delivery drivers be knowl- 
edgable, helpful and friendly. Our main 
competitors do only sidewalk delivery... 
we put the pallet where it is needed. For 
retail customers, we demonstrate how to 
lay the first several rolls to get them 
started. We show them the easiest way to 
do it, and they appreciate our effort. 
Because great service can be more 
expensive, try to itemize your “extras” 
and make sure your client knows what 
they’re getting for their money. 
Education. Inform your customers what 
they are giving up when they pay less. 
Some will always be happy with less, but 
most customers who do a quality job will 
stay with you. We all want our customers 
to stay in business, and their reputation 
rides on their jobs. I talked with one 
builder in order to sell him on our 
company, his response was “Listen, if 
your grass is green and you have the 
lowest price, I’ll buy from you. If you 
don’t have the lowest price -I don’t care 
about your quality - I’m not going to buy 
from you.” 
Now this customer builds a lot of 
houses, but he is not the kind of customer 
we want. The only thing he knows is 
price. He is now out of business. How 
many of his suppliers lost money playing 
his game of low-price? You can also try 
to educate your competitors. You belong 
to TPI for many reasons. These may 
include professionalism, education, 
promoting our industry, conventions, or 
influencing governmental policies. 
Regardless of why you belong to TPI, you 
should encourage your competitors to 
join TPI as well. 

It’s been said that an educated competi­
tor is the best kind of competitor. After 
all, educated competitors are aware of the

inherent dangers of price-cutting; known 
edgable about the positive impact 
turfgrass sod has on our environment; and 
better able to operate in a professional, 
and ultimately more profitable way. 
When all else failed, some local landscap­
ers faced with low-ball competition did 
some investigative work to see if the 
price-cutter was licensed, and turned him 
in to the government. Several agencies 
were interested: labor & industries, 
employment security, licensing and IRS. 
Diversify. What else can your customers 
use? Consider carrying a supply of 
equipment for rent, needed for lawn work. 
Sod cutters, fertilizer spreaders, landscape 
rakes, rollers, thatchers, tractors and 
tillers are some ideas. Consider which of 
these, or others, will bring in or keep 
more customers. In addition, when we 
take orders, we check to see if the cus­
tomer needs fertilizer with their sod. 
Know your margins before lowering 
your price. Here are some figures to  
think about before chopping prices.
Based on a price of $0.175/sq.ft. for 1800 
sq.ft., delivered, and a discount of 10%:
Normal Price
$315.00
$ 250.00
$ 65.00
20.6%
Net profit is reduced 42.7% from a 
discount of only 10%!!! 

Discount Price
$283.50
$250.00
$ 33.50
11.8%

price

 

est. growing cost
gross margin

profit

Price/Value. Low purchase price doesn’t 
always mean the lowest overall cost.
Some people mistakenly believe that low 
price = best value. It’s normally not too 
hard to educate most people that this is 
not the case. Some things to point out: 
How much waste does your competitor 
ship? How much longer does it take to 
install uneven rolls? Do you give good 
installation directions or more accurate 
delivery estimates? Are your people more 
helpful? The right answers to these 
questions can get your customers back 
from a price-chopper, without cutting  
your price. While cutting your price may 
seem to make sense, it usually makes 
more sense to make your farm more 
efficient first!

Seeking Professional Help  

Choosing Financial Consultants

By Mike Ward, Eastgate Sod  
Loveland, Ohio

Shrewder Computing

In today’s business climate, we often find 
ourselves in need of outside expertise. 
While most of us are pretty good at 
growing turfgrass sod, all those financial 
numbers, formulas and ratios can be 
confusing at times. Everyone remembers 
the times when things seemed to be going 
well, only to find out we didn’t make any 
money. The following are examples of 
items a financial consultant could be 
helpful with: 
1)  proper allocation of overhead 
2)  understanding cost, volume and price 
3)  figuring when / when not to discount 
4)  determine effects of price cutting 
5)  tax preparation & retirement planning 
6)  maximizing operational efficiency 
I would recommend taking these steps 
before contacting a financial consultant: 
1. Write down the problems and/or 
questions you need help with, as well as 
the results you would like to see 
2)  Determine the level of expertise you 
need. Sometimes the answer is as close as 
your existing accountant 
3) Seek referrals from others in the 
industry, or other professionals you trust

4)  Look for turfgrass industry experience 
5)  Be wary of cold-calling salesmen 
6)  Talk with consultants you hear at 
conventions. Plan to meet with them 
before they leave town. Usually this 
won’t cost anything, or at most, the cost 
of their dinner. 
I also recommend that you consider the 
following as you contact prospective 
financial consultants: 
1)  Meet with the individual in person. 
You want to walk away with a comfort 
level and a sense that good understanding 
exists between you 
2)  Call references... make sure reference’s 
work was similar enough to be a valid 
check on the consultant’s experience 
3)  Do your homework. Don’t just hire a 
consultant and expect him to solve all of 
your problems for you... often you will be 
given tools, but you will do the real work 
4)  Be willing to pay for expertise. Be 
cautious of those whose fees are based on 
what you buy. You may be “steered” 
toward a product that pays the consultant 
well, or perhaps only gives you short-term 
results for your efforts.

TPI Business Briefs

Prioritize Information Requests.

When requests for price quotes, sod 
specifications, maintenance, installation 
and other information are processed on a 
first-in, first-out basis, the result will be 
periodic disruptive emergencies. 
Trap: Some requests that are more time- 
sensitive than others will be placed at the 
bottom of the pile — then pulled up at the 
last minute in a rush. Better: Have each 
request for information include the date 
(or time) on which it is needed — and tell 
employees they must be honest about this. 
Then sort and process requests by order of 
completion date and time. Result: More 
efficient work flow and fewer crises. 
For lowest airfares: 
Do not call the first airline that 

Announces price cuts. Other airlines 
usually match the cuts within hours or 
days - giving you more choices, and in 
some cases, even lower prices.

The Common Mistakes When Giving
Orders / Instructions to Subordinates 

Giving ambiguous instructions.

Example: Instead of saying “as soon as 
possible,” it’s better to say “by 10 a.m. 
tomorrow.” 
Assuming your instructions are clear.
Ask the other person to repeat them back 
to you to be sure. 
Giving instructions that are too 
detailed to an experienced worker... or 
not detailed enough to a novice. 
Not telling a subordinate why he/she is 
being given an assignment. An explana­
tion gives the employee an incentive to 
perform. 
Giving an order at the wrong time...
such as just before quitting time. 
Giving too many orders at the same 
time... causing confusion. 
Distancing yourself from the 
subordinate... o he can’t ask questions.

Clip-Art for use in your company 
newsletter, marketing or advertising 
efforts can be an inexpensive way to 
dress-up your message and make an 
positive impression. Clip-art soft­
ware packages can be found for 
under $100, some under $50. 

The software package will indicate 
if it is compatible with a Windows 
or MAC environment. The graph­
ics found in this issue of Business 
Management were imported from an 
inexpensive clip-art package. Types 
of images vary both in terms of what 
the images portray, and the file-type.

Images are indexed by categories 
such as business, home and house­
hold, nature, farming, sports, etc. 
Look for a package that contains a 
user’s guide and visual catalog of 
images - this will save a lot of time 
in selecting, and importing images. 
Trial and error in manipulating the 
images will help you determine how 
to best use the clip-art and how well 
they help to convey your message.

Lost Files... 
Okay, my files are gone, what do I 
do now? Whether your files have 
been affected by a virus, software 
malfunction, human error, hardware 
failure or natural disaster, a data- 
recovery service can usually help 
restore your files and your sanity. 

One such firm is Ontrack Data
Recovery. Their services are not 
cheap ($950 or more is possible), 
but less expensive than recreating 
lost files and data, if that is even a 
possibility. 

Ontrack Data Recovery can be 
reached at 800/872-2599; or online 
at http://www.ontrack.com

TPI Action

Look For New TPI Advertisements in up-coming issues of “Landscape Architect 
and Specifier News,” “Grounds Maintenance,” “Erosion Control,” “Golf Course 
Management,” and “Landscape Architecture.” As part of TPI’s public relations and 
education campaign, the ads will boldly feature the word “sod,” in grass form and 
the keyword, “Instant.” 

Member E-mail addresses can be included in the next edition of TPI’s membership 
directory listings. Renewal notices for 1997-98 (to be mailed in early May), will 
invite members to add their electronic mailing “address” to their directory listing. 
This should facilitate members and customers communicating more rapidly. If this 
is successful, consideration will be given to adding Internet website addresses to 
future directories. 

Hawaiian Tour Options are being considered by the TPI Board of Trustees. Under 
study are a one-day tour of Oahu before the February 11-13 Midwinter Conference 
and a multi-day, multi-island cruise after the Conference. In addition, tours on the 
Conference host island of Maui are being developed as part of the programming. 
Complete details of the 1998 Hawaiian Conference will be announced at the 
Summer Convention in Minneapolis, as well as by mail. 

Minneapolis Committee & Open Forum Meetings will offer all TPI members an 
opportunity to provide their input on a variety of important topics, as well as better 
informed themselves. Several members attending their first committee meetings in 
Savannah said they never realized how much good information and new ideas are 
exchanged during these meetings. Although subject to change, the current sched­
ule of meetings open to all TPI members is as follows: 

Thursday July 17: Marketing, Business Management, Legal & Taxation,

Study Tour and Member Recruitment 

Saturday July 19: Conference & Convention, Turf News Magazine 

Call the TPI office for additional details on any Committee & Open Forum Meeting. 

Up-Coming TPI Meeting Dates & Places 

Summer Convention - Minneapolis, Minnesota, July 17-19  
Midwinter Conference - Maui, Hawaii, February 11-13  
Summer Convention - Tysons Corners, Virginia, July 16-18 

BUSINESS MANAGEMENT 
Turfgrass Producers International 
1855-A Hicks Road, Rolling Meadows, IL 60008

New Department: 
Jest For The Fun Of It
You might be a farmer if...

* You’ve ever driven off the road while 

examining your neighbor’s field. 

*  You’ve ever had to wash off in the 
backyard with a garden hose before 
your wife would let you in the house. 

*  You’ve ever fibbed to a mechanic about 

how often you greased a piece of 
equipment before it self-destructed. 
(send in your own suggestions to TPI)

Tractor Ad Translations* 

Tires poor = 1 gone, 1 flat, 2 worn-out  
One owner = At a time  
Has water leak = Block cracked  
Quiet transmission = Gears gone  
Some dings in tinwork = Barn fell on it  
Older restoration = Painted with a broom  
Overhauled = New spark plugs & wires  
Needs seat cushion = Frame gone  
Rare = I’ve never seen one like it, but I’ve 

never been out of the country

Heard any good-ones lately? Mail or 
Fax your jokes, cartoons, or funny stories 
(fact or fiction) to Tom at TPI, for use in 
“Jest for the Fun of It.” 

Fax: 847/705-8347

* reprinted from Polk’s, The Antique Tractor Magazine

FIRST CLASS MAIL  

U.S. POSTAGE 

PAID 

Rolling Meadows, IL 60008  

Permit No. 662