COMPANY SPOTLIGHT BWGS became one of the first full- spectrum suppliers in our industry offering freight incentives on a wide array of products.” without having to pay exuberant amounts of freight—a cost they in turn had to pass along to their customers.” His answer? BWGS, whose extensive inventory now includes thousands of hydroponic and organic products from a wide variety of vendors. “BWGS became one of the first full- spectrum suppliers in our industry offering freight incentives on a wide array of products so that customers could mix and match without having to commit to large volumes from every manufacturer that made up the indoor gardening community,” explains Chris. These days, BWGS carries everything the hobbyist or commercial grower requires, including complete indoor lighting and hydroponic gardening systems, environmental controls, gardening tools, growing media, plant nutrients, natural fertilizers, pest control and soil amendments from some of the biggest names in the game. Not bad for a company that only started out with one brand: Sunleaves Guanos. To accommodate this growth, BWGS has added a dedicated staff of more than 150 people, and in 2012 it became a 100% employee-owned company, marking one of its proudest moments. BWGS has a dedicated staff of more than 150 people.52 July 2015 | Maximum Yield's Industry News
COMPANY SPOTLIGHT Above: BWGS staff at a MaximumYield indoor gardening trade show. Left: BWGS offices in California, Colorado, Indiana, North Carolina and Oregon. Store owners know they can to our company internally as rely on the knowledgeable, well because an educated staff friendly service they receive from is the best way to provide stellar everyone on the BWGS team, and customer service,” notes Chris. they appreciate the organization’s Another leading attribute to multiple, strategic locations in the success behind BWGS is its Indiana, California, North Carolina, extensive product lineup, which Colorado and Oregon that make it outlines each year in a fresh distribution across the country catalog, available both in print fast and reliable thanks to short and online. The BWGS Gardener’s We pride ourselves on the open communication with our customers, and they know we are here to help in whatever ways we can.” shipping lead times. “Our sales Digest features more than 200 reps work closely with their full-color pages that showcase customers to make sure the product images and information. product information they need is Store owners can hand these available. We pride ourselves on out to customers, allowing them the open communication with our to learn about the thousands of customers, and they know we are products available to them. Such here to help in whatever ways we a well-rounded product lineup is can,” says Chris. the result of going with the flow A large portion of these edu- of what growers are looking for. cational efforts is done through “We listen to our customers and the company’s well-trained and try our best to fulfill their needs. experienced sales staff. Sales Like every company, we are always teams, both internal and outside looking ahead and trying to figure traveling representatives, have the out what the future might bring,” customers’ best interests in mind. says Chris. “Forecasting what our Education amongst the team is customers might want or need also an essential piece of the before they ask for it is something puzzle. “Education is important we strive to do.”54 July 2015 | Maximum Yield's Industry News
COMPANY SPOTLIGHT THE GROWTH OF BWGS Throughout its 20 years in the indoor gardening 1995 – BWGS opens its doors in Bloomington, IN.and hydroponics industries, BWGS has witnessed a 1996 – BWGS-IN expands into a larger buildinglot of changes. “The indoor gardening industry haschanged a lot in the last 20 years and the interest in Bloomington, IN.and demand for great products has gone up and 1997 - BWGS begins product development andwith it, the number of retail stores and wholesalers.This has caused a stronger demand for a variety of distribution beyond Sunleaves Guanos.innovative products, which only leads to a stronger 2005 - BWGS launches a new distribution centerindustry,” says Chris. And these types of expansions have not slowed down in Visalia, CA.in 2015, which means BWGS is only going to grow along 2009 - BWGS launches a new distribution centerwith the industry, and plans to celebrate another 20years down the line. “The indoor gardening industry is in Charlotte, NC.becoming more innovative every day and we will con- 2010 - BWGS launches a new distribution centertinue to evolve and adapt to the ever-changing marketwhile staying true to what made us so successful—a in Denver, CO.high level of customer service that our customers have 2010 – BWGS-CA expands into a larger facilitycome to expect from us,” says Chris. “Without our loyalcustomer base, we would not be where we are today. in Visalia, CA.We owe each and every one of them for the 20 years of 2011 - BWGS launches a new distribution centersupport they have provided us.” IN in Portland, OR.Are you an indoor gardening retailer not yet carrying 2012 – BWGS-IN expands into a larger facilityexclusive brands only offered by BWGS? Learn moreabout what BWGS can do for your shop, and apply in Mooresville, IN.online to become a reseller today at bwgs.com. BWGS is 2015 – BWGS continues to expand its employeeproud to be your resource for everything needed to run asuccessful garden supply center. base and product lines.56 July 2015 | Maximum Yield's Industry News
DEVELOPMENTS & DIALOGUE MANUFACTURERS SHARE THEIR LATEST DEVELOPMENTS & DIALOGUE NEWS AND CONVERSE ABOUT THEIR PRODUCTS AND TECHNOLOGIES Illumitex Illumitex specializes in horticultural into a reality. Initially, the company’s LED grow lights for vertical farms, business model was to compete with Address: greenhouses and indoor gardens. the big LED manufacturers by selling Gretchen Heber, the company’s Illumitex LED packages to lighting 6301 E. Stassney Lane content marketing manager, manufacturers. Realizing the enor- Building 6, Suite 400 and Eric Anderson, VP of business mous capital requirements necessary Austin, Texas 78744 development and marketing, explain to compete in this space, Illumitex how the company’s philosophy of made a strategic decision in 2012 to Phone: providing complete lighting solutions focus on light fixture development has led to some exciting and unique using our own technology. 1-512-279-1828 research projects and partnerships, Illumitex’s philosophy is to provide Website: and share what’s next for this customers with complete lighting innovative company. solutions instead of simply selling illumitex.com light fixtures as many others do. We years in business: 8 Illumitex got its start the same way provide growers with plant growth many other companies do—with knowledge from a team of horticul- Motto: a great idea and a few individuals ture scientists, complex lighting who were interested in turning it layouts, on-site assistance and, in Focused Lighting Solutions some cases, installations as well. We are most interested in ensuring our58 customers are achieving the results they desire; the sale of product is always secondary. July 2015 | Maximum Yield's Industry News
DEVELOPMENTS & DIALOGUE Illumitex’s philosophy is to provide customers withPutting together products in the Illumitex warehouse. complete lighting solutions.” The Products Our main focus is horticulture lighting, including solutions for research facilities, universities, vertical farms (plant factories), greenhouses and plant-based pharmaceuticals. The company has radically transformed traditional fixture designs with the creation of an LED that emits a uniform and highly precise beam directly from the source, resulting in more versatile and energy-efficient applications than ever before imagined. The lights are specially tuned to plants’ photosynthetic needs, and are designed to save energy and increase yields. Illumitex’s proprietary and patented optic collects and delivers up to 90% of the lumens from the LED chip to the intended target, whether it is a plant canopy, a manufacturing work space or a building facade. Our products also carry an IP66 (ingress protection) rating, so they are ideal for wet locations. The IP66 rating on our LED packages also allows our products to be designed in the smallest form factor possible by negating the need for bulky external lenses and gasketing. Increase your yield and quality with Neptune’s Harvest Organic Fertilizers Products from the Ocean, to set your plants in motion. Family run from Gloucester, MA since 1965 Come See Us at Booth 532 in L.A. | 800.259.4769 | neptunesharvest.com60 July 2015 | Maximum Yield's Industry News
DEVELOPMENTS & DIALOGUE GROWING UP IN THE CITY: THE FUTURE OF FARMING Every Illumitex fixture, whether commercial or retail, Milan Kluko of Green Spirit Farmsincorporates the same industry-leading optical technologyand benefits. Our NeoSol family of products offers replace- Illumitex is working to change the global foodments for 100-, 600- and 1,000-W HID products at half the crisis by helping innovators around the worldenergy and BTU levels, offering a tremendous cost savings grow more food faster in more places. New indoorwithout jeopardizing light quality or intensity. NeoSol growing methods using Illumitex’s patented LEDproducts come with a 15-ft. power cord, integral drivers, technology can put food right where the peoplepassive cooling (no fans needed), adjustable light spread are, whether they are urbanites looking for freshand our patented F3 spectrum for vegetative through microgreens, or people in Asia needing life-flowering growth. The company’s horticultural lighting saving produce. One indoor farm in Chicago isproducts are available through Hydrofarm, PARsource and using Illumitex lights to grow nutritious and tastyNorth Coast Electric in Seattle, Washington. greens that are available to urban Chicagoans within hours of harvest. Every Illumitex fixture, whether Vertical farms in Michigan and Pennsylvania commercial or retail, incorporates are seeing incredible yields from their operations the same industry-leading optical using Illumitex LED lights. A major player in the technology and benefits.” international vertical gardening research move- ment is using Illumitex grow lights in turnkeySpecial Projects plant production units, which can be set up anywhere in the world where there’s a need forIllumitex has provided lighting fixtures for many unique good food, fast. It is estimated that one 30-storycommercial gardening projects. The list is growing vertical farm can supply more than 50,000 peoplerapidly, but several projects stand out. First is our with a nutritionally sound, 2,000-calorie dietinstallation in Bryan, Texas, at Caliber Biotherapeutics. for an entire year, countering both hunger andCaliber uses more than 17,000 Illumitex Eclipse fixtures the obesity epidemic. And with a rise in worldto produce plant-based vaccines in a dramatically population, and depletion of natural resourcesshorter time frame than with egg-based methods. such as fresh water, arable land and phosphorusWell-known vertical farms such as Green Spirit Farms, (for fertilizing crops), the need for alternativeFarmedHere and Veg-E Systems use Illumitex Eclipse farming methods is dire.fixtures to provide fresh, leafy greens and microgreens July 2015 | Maximum Yield's Industry News62
DEVELOPMENTS & DIALOGUE Illumitex is working to change the global food crisis by helping innovators LIGHT YEARS AHEAD: ILLUMITEX PRODUCTS around the world grow more food faster in more places.” Eclipse to local restaurants and grocery stores. The Eclipse Series of grow lights were developed in Microsoft in Seattle, Washington, has installed collaboration with universities and corporate research Illumitex Stratus fixtures with our X5 spectrum partners to drive global horticulture initiatives. With for their 100-ft.-tall lobby green wall. We have Illumitex’s Surexi LEDs, the Eclipse Series of grow lights also provided our Quantum dynamic spectra are specifically intended for use in vertical farms, growth research fixtures to various research facilities chambers, tissue culture laboratories and greenhouses. and universities worldwide. Eclipse grow lights can alter the photosynthesis and Our list of university partners continues to photomorphogenesis response, allowing for more robust grow as well and includes MIT (CityFARM growth in less time. project), UC Davis, Penn State University, University of Nebraska (Lincoln campus) and Quantum Texas A&M (AgriLife). Our work with these institutions ranges from horticulture research The world’s most advanced plant research tool available, to the lighting of sports complexes. Quantum offers researchers a fine granularity of control—the ability to precisely dial in a specific balance Coming Up of wavelengths to develop a precise spectrum. No other horticulture lighting fixture allows a researcher to account As agriculture continues to move indoors by for the lighting variables as precisely as the Quantum LED necessity, Illumitex will continue to ensure grow light. our customers’ crops receive the most effective light treatment possible for optimal NeoSol DS growth and quality. In the process, you will see more strategic partnerships in food The NeoSol DS grow light is suitable for a wide range production, research and pharmaceutical of horticultural applications, including propagation of and vaccine development. vegetative or flowering plants in grow tents, compact In addition to the continual product enhance- growing areas or large-scale commercial grow operations. ment and cost reduction efforts on our current The NeoSol DS outperforms 1,000-W HID fixtures, giving product lines, Illumitex will be entering the growers more than 50% energy savings and heat reduction. hazardous location market (oil refineries, mines, etc.) as well as the light therapy market NeoSol NS with an over-the-counter device for acne and wrinkle reduction. IN The NeoSol NS LED grow light is designed for hobby growers. The slim fixture design maximizes the area for July 2015 | Maximum Yield's Industry News plant growth and minimizes fixture weight and energy consumption. Replaces a 600-W HID at half the energy. NeoSol LS The Neosol LS is suitable for a wide range of home garden applications, including cultivation of vegetative or flowering plants and herbs. It may be stacked in vertical gardens with two or more layers of grow trays. The NeoSol LS is 50 W. Safari The Safari features Illumitex’s patented Surexi LED technology with customized horticultural spectrum options designed for use where photoperiod and inflorescence management is required.64
GREEN FEAT ECO-MINDED INNOVATORS SHOW US THEIR GREEN PRODUCTSMeet Flora USA, the American company that markets and importsHB-101, an organic plant growth enhancer, from Japan, where it hasFlora USAenjoyed popularity amongst growers for decades. President MasakoYamamoto tells Maximum Yield’s Industry News how HB-101 wasinvented, and why it has quickly been accepted by American growers. At a Glance MasakoYamamoto, president of Flora USA, being interviewed at the 2015 Yard, Garden and Patio Show. BUSINESS Flora USA Inc. ADDRESS 1915 NW AmberGlen Contributing to a Safer & Healthier Environment Parkway, Suite 400 The history of HB-101, which is marketed and sold in the Beaverton, Oregon 97006 United States by Flora USA, goes back almost four decades to when Yoshinari Kawase invented the product, an PHONE 1-855-421-0187 OMRI-listed, liquid plant vitalizer. Yoshinari, from a family WEBSITE hb-101usa.com involved for many generations in the forestry industry in YEARS DOING BUSINESS 3 Japan, studied his family archives—almost 3,000 scrolls written over the course of 400 years of growing and66 maintaining healthy trees—to come up with the winning formula that has become known as HB-101. July 2015 | Maximum Yield's Industry News
Yoshinari founded Flora Co. in Japan and starting selling the product to that What is HB-101?market 37 years ago. Then three years ago, after much success in the originalmarket, Flora USA was established in Oregon by Oregonsha LLC, an international HB-101 is a liquidconsulting firm based in Japan, to bring the product to the American market. “We plant growthdecided to establish Flora USA in Oregon because in this state, products that are enhancer thatorganic, green, sustainable and natural are front and center for people, and we contains extractswanted to spread the word about HB-101 from such a place,” explains Masako. “I of cedars, pines,spent three years in Oregon about 20 years ago when I was completing my master’s cypress trees andin business administration from the University of Oregon and doing some business plantain grasses.consultation work, so I was comfortable to commute to Oregon from Japan.” Cedars, pines and cypresses have powerful deodorizing powers. The saps and secondary metabolites of these trees are responsible for maintaining their health and longevity. Plantain grasses have medicinal qualities and have long been used in various human medications.One challenge was that although HB-101 has a long, HB-101 came to be well-acceptedsuccessful history in Southeast Asia and Japan, the and our product began to beproduct was new to the US, so educating the American recognized as contributing to amarket about the benefits of using HB-101 was firstpriority. “Thanks to the sustainable-living mentality safer and healthier environment.”of growers in the Northwest, HB-101 came to bewell-accepted and our product began to be recognizedas contributing to a safer and healthier environment,”says Masako. HB-101, a plant growth enhancer that is also used as a soil conditioner, has a HB-101 contains purely naturallong track record of effectiveness in Japan, where it has been used for decades. extracts derived from the portion“Flora USA is now working with universities and research institutes in the United of plants that are most importantStates to determine best practices for the application of HB-101 in the American in the development process. Idealenvironment, and we will release those results as soon as they are available,” says for all types of plants, HB-101 isMasako. “We want to let people know that HB-101 is safe and effective to use on a 100% organic product, safe foryour plants, and can be applied in both soil-based and hydroponic gardens.” plants and animals, and designed To request a free sample, go to hb-101usa.com, click on the “Ask for an to benefit the environmentHB-101 Sample” tab and write “Maximum Yield” in the “Where did you while reducing the demand forget to know HB-101” box. IN costly fertilizers. It is formulated and bottled in a ready-to-dilute solution for easy and immediate use. Highly concentrated, it’s a cost-effective way to achieve healthier, more vibrant plants. The easiest way to use it is to mix five drops to a gallon of water and spray on the leaves and soil once a week. HB-101 also works well in hydroponic gardens, and is popular amongst commercial hydroponic growers in the US.Maximum Yield's Industry News | July 2015 67
MOVERS & SHAKERS COMPANIES SHARE HOW THEY’RE EDUCATINGTHE WORLD ON THE BENEFITS OF INDOOR GARDENINGGavita Holland —THERE FOR GROWERS, There for Resellers Five years ago, Gavita Tell us a bit about Holland, sister to Gavita your company. Nederland, was created to provide smaller-scale Gavita Holland, a sister company of growers with Gavita’s Gavita Nederland, was founded in reliable, professional 2010 to provide professional lightinglighting solutions. Gavita Holland’s marketing communications solutions through resellers worldwide.specialist Daan van den Boogaard explains how the company Gavita Nederland provides lightingwent from “never meant to be” to becoming one of the biggest products for greenhouses and re-names in the indoor growing game. search facilities and is part of a group of Gavita companies with enterprises in Norway, The Netherlands, Canada, Russia and Ukraine. Its horticulture68 July 2015 | Maximum Yield's Industry News
MOVERS & SHAKERS business is primarily direct between Why establish a reseller the manufacturer and the client, with division? projects ranging from several thousand to 50,000 commercial-voltage fixtures. Consumers and small business owners have different requirements and The Gavita marketing team. usually buy through reseller channels, so we took our professional designs, re-“WE TOOK OUR PROFESSIONAL DESIGNS, RE- designed them to cater to consumersDESIGNED THEM TO CATER TO CONSUMERS and small business users, and createdAND SMALL BUSINESS USERS, AND CREATED a new company, Gavita Holland.A NEW COMPANY, GAVITA HOLLAND.” What has the road been like so far? Gavita itself has been around for more than 30 years. We are one of the oldest specialized horticultural lighting companies around. Gavita Holland was actually never meant to be. Gavita was asked to develop OEM products for a US brand with a strong European presence, but the sales never came. In those days, it was really difficult to sell something as odd as small, open reflectors. We were convinced there was a market for this, though, so after half a year of no results in the OEM market, we decided to do it ourselves. The rest, as they say, is history.70 July 2015 | Maximum Yield's Industry News
MOVERS & SHAKERS What makes your products so unique? We do not buy existing products and just re-label them; we actually develop fixtures and reflectors for this market and own the designs. There is a huge difference between a marketing company and a horticultural lighting company. We actually know about lighting and are able to give sound advice. We develop lighting plans for our customers and are able to guarantee light levels and uniformity. All our products are developed using the same high standards as the products we develop for the professional horticultural industry. We also introduced the double-ended HPS lamp to this market. It took a bit of time for the market to adopt this technology, but now you see all large facilities using them, and there are many copies on the market—not as good as the real product, of course. “IT IS NEVER JUST ABOUT THE LIGHTING, IT IS ABOUT THE COMPLETE PROCESS.” “WE DEVELOP LIGHTING PLANS FOR OUR CUSTOMERS AND ARE ABLE TO GUARANTEE LIGHT LEVELS AND UNIFORMITY.” What products are you seeing the most demand for? It is all about efficiency, and these days we are seeing a rush of larger installations. There is a big difference, though, between a 20-lamp operation and a large, industrial environ- ment. You cannot just upscale a semi-professional hobby grow, and this is where our knowledge of the professional horticultural industry comes in handy. Few companies can offer the level of consultancy we deliver. It is never just about the lighting, it is about the complete process. We have horticultural specialists who are always available for advice, which is a huge added value.72 July 2015 | Maximum Yield's Industry News
MOVERS & SHAKERS“WE PREFER TO DO THINGS At what point do these need to run several thousandsRIGHT THE FIRST TIME.” you consider a new of hours before you can decide to run product fully- them the full 5,000 hours of the test. tested and ready It can take a really long time to bring to market? something to the market. Companies that do not put their products through Some products take a these rigorous tests can bring their long time to develop products to market faster, but there is and test. For instance, always the risk products will either fail ballasts need to run early, or have bugs that do not show for many months and up in the short term. We prefer to do be switched twice an things right the first time. hour to prove their reliability. They are What types of resources do stress-tested under high you offer retailers? temperatures and are put out in the field at the same time We are almost ready to launch the to get user feedback. Lamps are even Gavita Certified Reseller program, a more difficult. After 2,000-3,000 hours certification program for resellers. In of burning during a test, you can tell the program, resellers are educated if they need improving. So, you start online through a series of courses and testing the new samples again, and when they pass their exam, they get74 July 2015 | Maximum Yield's Industry News
MOVERS & SHAKERS the certified status. They get access to more resources, early product announcements, specials, in-store materials, priority support and custom light calculations for their customers. We expect to start rolling that out in August. Why do you think the interest in indoor gardening continues to grow? There are a lot of market developments—political, social and technological—that drive this industry forward. In the future, I expect we’ll see a transition to more greenhouse cultivation, as indoor cultivation takes up a lot of resources, primarily electricity. Cultivation costs can be brought down a lot by greenhouse cultivation. How do you help growers be successful with your products? We have our own horticultural consultants, and most of our specialists have a background in the profes- sional horticultural industry. We invest a lot of time in educating our resellers, both face-to-face and online. “THERE ARE A LOT OF MARKET DEVELOPMENTS—POLITICAL, SOCIAL AND TECHNOLOGICAL—THAT DRIVE THIS INDUSTRY FORWARD.” For example, before we entered the market, few people knew about PAR lighting, and most lamps were still speci- fied with lumens. Most reflectors were air-cooled, and huge ballasts were all remote. At the earlier trade shows, people could not understand why our reflectors were so small. A double-ended lamp was completely new. We have brought a lot of professionalism and science to this market and we will continue to do so.76 July 2015 | Maximum Yield's Industry News
MOVERS & SHAKERS What are some of your factory, heading to the US, I think back proudest moments so far? to five years ago when people just passed us by at our first Maximum Yield We have gotten a lot of awards, and booth with a funny look on their face. recognition is always nice. The most rewarding moments for me are when What’s coming up next for we finish a project and we exceed Gavita Holland? our customers’ expectations. When I see another four containers leave the This summer, we are introducing two new reflectors: a wide reflector and one“WE HAVE BROUGHT A LOT OF PROFESSIONALISM AND for smaller growrooms. In co-operationSCIENCE TO THIS MARKET AND WE WILL CONTINUE TO DO SO.” with Mammoth Tents, we have also developed two high-end grow tents with optimal dimensions specifically designed for our upcoming Small Room reflector. You will not see a better uniformity and light levels with any tent on the market today. In the meantime, our 277-V professional fixtures have become available through our distribu- tors, Rambridge International and Sunlight Supply. And in Q4, we will launch a few new e-series products, but I have to keep that under the hood for now. I promise you will be the first to know when they become available. IN For more information on Gavita Holland, visit gavita-holland.com.78 July 2015 | Maximum Yield's Industry News
79 July 2015 | Maximum Yield's Industry News
RETAIL SPOTLIGHT AN INSIDE VIEW OF THE RETAIL STORES AND RETAIL SPOTLIGHT STAFF THAT COMPRISE OUR GLOBAL INDUSTRYPhotos by Margie FickettWINNINGEVERY DAYAT GOLDENDALEGARDEN SUPPLYInspired by the gardening passion handed down to themfrom their grandparents, HeatherLipko and Brad Johnston openedGoldendale Garden Supply in thesmall, welcoming community ofGoldendale, Washington, just over ayear ago. It’s been a labor of love since thebeginning, and the couple has been flooredby the response so far. Heather Lipko and Brad Johnson, the owners of Goldendale Garden Supply in Goldendale, Washington, were basically born into this industry. “Both of our grandparents had a big influence on us when it comes to gardening,” Heather shares. “We both spent much of our childhoods playing in plots of food.” After moving to small-town Goldendale shortly after they met—Heather grew up in Pennsylvania and Brad is from Tennessee—the couple found themselves having to drive more than 140 miles round-trip to the nearest gardening store that was aligned with their gardening practices.STORE: Goldendale Garden Supply | OWNERS: Heather Lipko & Brad JohnstonLOCATION: 614 South Columbus Avenue, Suite E, Goldendale, Washington 98620PHONE: 1-509-773-0650 | WEB: goldendalegardensupply.comPHILOSOPHY: Creating a community through sustainable education and culture.80 July 2015 | Maximum Yield's Industry News
81 July 2015 | Maximum Yield's Industry News
RETAIL SPOTLIGHT“Needless to say, this grew old quite quickly,” says Heather. store to the specific needs and wants of the people here. With“We also noticed that outside of the master gardener’s the whole farm-to-table movement that is happening, peopleprogram and the farmers’ market in town, there wasn’t really are hungrier than ever for gardening-related education, and wean open forum to discuss gardening, or a place to take your are more than happy to be able to provide that.”gardening concerns.” Their solution? Open a store with a At first, Heather and Brad only stocked inventory they hadhuge focus on education. “We felt this was a natural fit and used themselves. “We quickly realized this would be closethe obvious way to benefit the local gardening community,” to impossible because of how quickly the market evolvesshares Brad. “We both had a decent amount of know-how and all the new products being released,” explains Heather.and all sorts of tips and tricks learned from our parents “Over the course of the past year, our shelving space hasand grandparents, but this has been our first exposure to doubled with all the new brands we carry.”the retail side of the industry. We found a retail space that Another hurdle for the couple was getting their name outis pretty much split into two large rooms so it has given us there. “We thought it would be easy in a small town to get theplenty of room to grow into as the business grows.” word out about a new store, but even though we run ads in Since opening in April 2014, Heather and Brad say it’s the only newspaper in town, there are still people who walkamazing how much knowledge they have both gained in and say they had no idea we were here,” says Brad. Theand distributed in the community. “The first year was a couple provides a superior experience for customers, creatingtremendous learning experience. We’ve learned to tailor the a word-of-mouth effect that generates loyal customers.82 July 2015 | Maximum Yield's Industry News
\"WITHTHE WHOLE FARM-TO-TABLEMOVEMENTTHAT IS HAPPENING,PEOPLE ARE HUNGRIERTHANEVER FOR GARDENING-RELATED EDUCATION.\"“We live in a close-knit, supportive community, and itseems as though the community is just as excited to haveus here as we are to be here,” shares Heather. Inside Goldendale Garden Supply, customers can findeverything they need for starting and maintaining agarden. They are big on biological controls for pestproblems, and offer beneficial bugs that will fix an issueovernight. They also make their own compost tea, whichis available every Friday. Goldendale also stocks dry amendments from Down ToEarth, and nutrient and fertilizer brands such as CuttingEdge Solutions, CYCO, Nectar For The Gods, GeneralHydroponics and Botanicare. They are looking forwardto bringing in Green Planet and Microbe Life Hydroponicslines as well, and are proud to carry products by DirtHugger, a company that makes locally sourced compostand soil blends. Heather and Brad also offer greenhouseconstruction, design and fabrication.Maximum Yield's Industry News | July 2015 83
RETAIL SPOTLIGHT“AS BUSINESS OWNERS, IT’S IMPORTANTTO GOTO SEMINARS AND LEARNTHENEWTECHNOLOGIES SO WE HAVE AGRASP ONTHEM WHEN CUSTOMERS ASK.” To create even more buzz about their business, Heather and of the Goldendale MainBrad are regular fixtures at local events in their community. Street Association. To stay true to their goal They are both involved of emphasizing the educational with the Community component of gardening, Heather and Brad visit the local of Gardeners, a church and home and garden shows, and host workshops community garden covering topics like beekeeping and edible weeds. “As that gets the entire business owners, it’s important to go to seminars and learn community involved the new technologies so we have a grasp on them when in the garden rather customers ask,” says Heather. than a specific plot. As for what keeps them motivated, Heather says she’s had They also volunteer so many people come up to her and tell her their gardens for the Back Packs For have been taken to another level since her and Brad have Kids organization, help been advising them. “It truly is an honor to hear that,” she support a local radio says. “I feel like every day here is a success. To be able to station and a local own a business that is wanted in your community…You’re food resource center, winning every day!” IN and sit on the board84 July 2015 | Maximum Yield's Industry News
85 July 2015 | Maximum Yield's Industry News
6 BY WILL BROOKS PRACTICAL TIPS for Protecting Profit Margins Keeping an eye on profit margins is top of mind for most business owners. But in a time when competition with lower-priced operations will only continue to increase, how do you maintain those numbers? Will Brooks has some suggestions.86 July 2015 | Maximum Yield's Industry News
Competing with lower-priced competition is a 87 reality that’s only going to become more prevalent as the global marketplace continues to expand. To maintain a healthy profit margin, you must reinforce the importance of value within your sales culture. Ensure your salespeople are equipped to deal with buyers’ attempts to commoditize your products in an effort to get the lowest price possible. Keep in mind these six tips for protecting profit margins.1ONLY HIRE SALESPEOPLE WHO TRULY BELIEVE IN THE VALUE OF YOUR PRODUCT. When a sales rep is genuinely passionate about the product they are selling, it comes through in their presentation. Not only will the salesperson be more convincing, but they will also be better motivated to only sell the product for what it is really worth, avoiding cost-cutting out of passion for and belief in the product. “YOU MUST REINFORCE THE IMPORTANCE OF VALUE WITHIN YOUR SALES C U LT U R E .”2 BUILD A SALES COMPENSATION PLAN THAT FOCUSES ON GROSS MARGIN, NOT VOLUME. Your compensation plan is dependent on several factors, including your sales cycle length, goals and company maturity. But striving towards a profit-based plan that encourages reps to always keep gross margin in mind is one way to ensure salespeople aren’t price-cutting just to meet their quotas.Maximum Yield's Industry News | July 2015
PROTECTING PROFIT MARGINS PROVIDE TRAINING THAT SHOWS REPS HOW TO BUILD VALUE AND NEGOTIATE. Instead of trying to downplay the fact they’re the high-priced provider, train your reps to use price as a competitive advantage. Salespeople who sell at premium prices are3able to use the high price to make a credibility statement. Have reps focus on building value and presenting your product as a quality solution to avoid price-based objections.4 STRONGLY DISCOURAGE PRICE-CUTTING AND PUT IN PLACE MEASURES TO PREVENT IT. Price-cutting not only affects profit margins; it also makes a statement about your product, and the value attributed to it. Profit-based compensation plans are a way to discourage your reps from price-cutting.“SALESPEOPLE WHO SELL AT PREMIUM PRICES ARE ABLE TO USE THE HIGH PRICE TO MAKE ACREDIBILIT Y STATEMENT.”5 SHARE SUCCESS STORIES AMONG THE TEAM OUTLINING THE SPECIFICS WHEN A REP WINS A HIGHLY PROFITABLE DEAL. It’s not unusual for managers to conduct post- mortems to uncover why a sales opportunity was lost, but make sure you are regularly sharing the details of wins as well—especially when they are highly profitable ones. Not only will hearing about the success of their colleagues motivate your competitive-natured sales reps, but the winning techniques can also be replicated to secure more closes just like them.88 July 2015 | Maximum Yield's Industry News
“PRICE-CUT TING NOT ONLY 89 AFFECTS PROFIT MARGINS; IT ALSO MAKES A STATEMENT ABOUT YOUR PRODUCT, AND THE VALUE AT TRIBUTED TO IT.”6TRAIN REPS HOW TO SPOTUNPROFITABLE OPPORTUNITIESEARLY IN THE SALES PROCESSAND HOW TO AVOID THEM.While it may not be the mostpopular activity among yoursales team, prospecting should beallotted a great deal of time andenergy. Effective prospecting isan art, and once it is mastered,closing high-profit-margin dealsisn’t nearly as challenging. Asales rep who has perfected theprocess of identifying high-yieldopportunities early will be able toquickly recognize when a lead isnot worth their time or pursuit. INAbout the Author: Will Brooks is theexecutive vice-president and directorof marketing at The Brooks Group. Heis an avid student of the interactionsbetween buyers and sellers and isa recognized authority on the salesprocess, the science of hiring andretaining top sales performers andoverall sales organization excellence.Will has been a sales and marketingguy for his entire career and couldn’timagine doing anything else.Article Source: brooksgroup.com.Maximum Yield's Industry News | July 2015
PROGTroEw SCmarTt: ING Your Intellectual Property by Jonathan Caplan & Joshua Rittenberg Part II: Protecting Your Rights There are many kinds of intellectual property rights, each providing their own unique privileges and protections. Attorneys Jonathan Caplan and Joshua Rittenberg return with Part II of their series on protecting intellectual property. This time they highlight the different types and outline the right steps to take to secure your assets. After all, it took you years to develop your ideas, so looking into how to keep them entirely yours just makes good business sense.90 July 2015 | Maximum Yield's Industry News
As discussed in our first article in this series, the 91protection of intellectual property assets is vital to thesuccess of both new and established businesses. Once acompany has incorporated intellectual property assetsinto its business plan, the next step is securing them.There are several different kinds of intellectual propertyrights, each providing their own unique privileges andprotections. This article provides a basic overview of thedifferent types of intellectual property rights, the assetsthey protect and the processes for attaining them. “Design patents serve to protect the decorative, non-functional design of a manufactured product.”PatentsA utility patent is granted by the United States PatentOffice and provides an inventor the right to preventothers from making, using, selling, offering for sale orimporting the patented invention for a period of 20 yearsfrom the original filing date. While utility patents arethe most common type of patent, the Patent Office alsogrants design patents and plant patents. Design patentsserve to protect the decorative, non-functional designof a manufactured product. For example, the shape of anutrient bottle or the appearance of a hydroponic system.Design patents are effective for 14 years from the datethe patent is issued. Plant patents provide protections toa person who has invented, or discovered and asexuallyreproduced, a distinctive new plant variety. To be eligible for a utility patent, an invention must benew, useful and non-obvious. This means the inventionhas to be different from what others have already done,and different enough that ways to replicate the inventionare not obvious. The subject matter of a utility patentcan include a process, machine, manufacturing methodor composition of matter. For example, innovativeMaximum Yield's Industry News | July 2015
GROW SMART PART IIhydroponic systems, extraction methods and nutrient Trademarkssolutions might all qualify for utility patent protection. A trademark is a word, phrase, symbol or design that identifiesThe patent application process is often lengthy and and distinguishes the source of the goods of one party fromexpensive. Before investing the resources required to those of another. Trademarks are often synonymous with apursue an application, it is often worthwhile to have an company’s brand. For example, Apple, IBM and Walmart areattorney perform a patentability search for the invention. all instantly recognizable trademarked words. TrademarksA patentability search will provide a broad view of whichaspects of the invention are new, useful and non-obvious. The can add value to a brand, but they also work to protect consumers from imitations and prevent competitors fromsearch will also disclose if there are any other patents that taking advantage of your brand by empowering mark holdersalready cover the proposed invention. to compel infringers to halt their actions.If and when you decide to move forward with filing an Because a trademark can create significant value for aapplication, consulting an attorney can help you with the company and its intellectual property portfolio, it is importantprocess of filing and prosecuting the patent. The applicationprocess can take more than two years from filing to grant, but to select a mark with care. New companies frequently invest significant time and resources in promoting a new trademarka successful grant can provide a business with an invaluable only to find out that another company has the rights to theasset that protects proprietary inventions while also mark, or that the mark is confusingly similar to another mark.increasing the value of the business. In these instances, the infringing company may face serious liability. Therefore, it is advisable to seek the assistance of an attorney to perform a trademark search. Unlike patent rights, trademark rights arise from the use of a mark in commerce. Federal or state registration is not required to protect a mark, but there are significant benefits to obtaining registration through federal or state governments. Registering a mark on the Principal Register of the US Patent and Trademark Office, the primary register of trademarks maintained by the USPTO, serves as nationwide notice of constructive use and should cut off the rights of other users for similar marks. There is the possibility of achieving incontestable status after five years on the Register, reducing the possibility of a lawsuit. A registration on the Supplemental Register, the secondary register of“A successful grant can provide a trademarks maintained by the USPTO, does notbusiness with an invaluable asset provide all the protections of a registration on the Principal Register. For example, the registration cannot be used to stop importation of counterfeitthat protects proprietary inventions products, cannot show a presumption of exclusivity and cannot become incontestable. Awhile also increasing the value of registration on the Supplemental Register grantsthe business.” the mark holder the right to use the registered symbol (®) and blocks later-filed applications for confusingly similar marks for related goods. Generally, there are four different kinds of trademarks: arbitrary, suggestive, merely descriptive and generic (or common). Arbitrary and suggestive marks are given the strongest protections. Generic and descriptive marks are the weakest and are much harder to protect (see chart titled Strength of Trademarks). The strongest trademarks—arbitrary, fanciful and suggestive—qualify for registration on the Principal Register. Weaker, merely descriptive marks may qualify for registration on the Supplemental Register, while common marks do not qualify for registration on either the Principal or Supplemental Register. The filing fees for applying for a trademark with the USPTO can range from $225-$325 per mark. While the trademark registration process can be less costly than applying for a patent, it is still advisable to consult an attorney before applying for a registration.92 July 2015 | Maximum Yield's Industry News
Search
