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 Photo: Manor View FarmIn this economy, everyone is struggling, and landscapers are serious about finding ways to save a buck.
For many, that has meant trying to save on shipping costs. Small and even mid-sized contractors simply can’t afford to buy an entire semi truck-full of supplies. Fortunately, the re-wholesalers and nurseries say you don’t have to.
One option that many are considering is sharing a truck with others in their area. “We definitely have some customers who have friendly competitors around them and they do talk to each other and try to purchase their materials around the same time,” says Rodney Streeter, sales manager of Millican Nurseries, in Chichester, N.H. “Being able to share that freight cost can really help.”
Steve Taber, owner and operator of Carrollton, Texas-based Southwest Wholesale Nursery, says that combining orders is something his company is always looking to do for the customer to help keep their costs down. He says it often means to-the-wire planning, but can really pay off. “Every morning at 5:30 a.m. we start putting the schedule together with our traffic guy,” says Taber. “He’s been doing this for 25 years so he has it down pat. The key is to be flexible enough to make last minute changes. We also keep a multitude of different trucks and trailers. Each day a new schedule has to be arranged to ensure we’re always being as efficient as possible.”
Streeter says as soon as he gets a small order going somewhere, he starts calling people in the area that have future orders on file to let them know there’s more space on the truck. “If they’re willing to take their delivery a little early, I’ll give them a good discount,” says Streeter.
“Sometimes that persuasion can help. If the truck still isn’t full, I’ll even make blind cold calls, offering cheaper freight if they place an order.”
While some landscapers are doing more of this on their own, Matt Edmundson says there are opportunities being missed. With so many compnaies fighting for so few projects, the competition has lead to landscapers feeling like they have to be independent, says Edmundson, the president of Arbor Valley Nursery in Brighton, Colo.
Edmundson also says that the execution of shipping multiple orders in one truck, especially for contractors who don’t work together, can sometimes be a challenge as their items can end up mixed together.
Think ahead
To save money, Edmundson suggests landscapers make an effort to become more organized. “The more you plan ahead, the more you can save,” he says. “The small- to medium-sized guys can save money by looking at their design process and trying to make some changes by looking ahead. Look at your projects and what core items you use on every single job. If you can identify a palette trend, and use that as a foundation to place your orders – saying you’re going to always order X number of some specific items – the supplier can offer you a better price. It’s like buying at Costco versus the grocery store. If you’re willing to buy in bulk, you’ll get a better price.”
Many landscapers balk at buying bulk because they think it’s detrimental to their customized designs. But Edmundson says jobs can still be original.
“If you could say you’re going to use the same three ornamental grasses on each and every job, you can buy that in bulk, but still customize the rest of the job,” he says. “You’ll definitely be able to save money that way.”
Dale Pierson, president of Pierson Nurseries in Biddeford, Maine, agrees that thinking ahead can help landscapers save on shipping rates.
“If you plan ahead and get some advanced knowledge of what you’re doing on the job, you can direct-ship to the site and eliminate the handling in your yard,” he says. “Any added time that you can give the supplier is beneficial and can lead to potential cost savings.”
Streeter says that it also pays to put some thought into what you’re putting on the truck.
“We encourage our customers to order wisely,” he says. “For example, we can put a seven-inch caliper tree on a truck that costs $5,000, and that’s all we’re going to fit. That same truck could hold $15,000 of smaller materials. Both ways you’re going to pay the same freight costs, but you’re getting a lot more with the second order.”
Weighing the options
Landscapers who are having issues paying for freight may also consider picking the materials up themselves. Streeter says Millican encourages its customers to send their own truck, if they don’t want to pay for freight. However, a lot of times after weighing the options and calculating the costs, they decide that delivery is still the best option.
Damon Nock, sales manager, Manor View Farm, in Monkton, Md., says that some of their customers have actually said that the delivery service has allowed them to eliminate an entire position in the company.
“If you have us deliver the product, you don’t have to pay someone to go pick it up for you,” he adds. “Sometimes that can cost more with having to pay for the person’s salary and benefits, as well as the truck.”
It also keeps an extra truck available for use, and perhaps may even cut down on liability by keeping a company employee from having to make a long-distance trip.
Alan Jones, Manor View’s president, says that ever since fuel costs began rising, their shipping service has increased. “Landscapers can no longer justify having two or three of their own trucks on the road just to go pick up material,” he says. “They’ve found it’s actually more cost-effective to have it shipped.”
Of course there are still those who are finding pick-up to be their better option – particularly landscapers that live close to their supplier or who are only picking up a very small amount of supplies at a time. Greg Ammon, president of Ammon Wholesale Nursery, in Burlington, Ken., says he’s actually seen an increase in the number of people who want to pick up their own supplies.
“I think it’s because people just aren’t stocking up on extra stuff like they used to,” he says. “They’re getting just what they need for a job, going and installing it, and then coming back when they have the next job.”
Time is money
Shipping may be pricey, but thinking ahead and working with your supplier can help you get the best deal possible. Anything you can do to help the supplier save on time, will keep costs down for both of you.
“We calculate shipping costs based on time, not mileage,” Streeter says. “It comes down to how long that truck and driver are going to be out on the road.
“If a customer can be flexible – such as taking their order early in the morning or late in the morning, not at peak rush hour when the truck will just be sitting in traffic – then they are going to save money.”
The author is a frequent contributor to Lawn & Landscape.
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