Price increases not the complete answer

Plant prices have featured strongly in discussions and industry news this year. Consensus would have it that we under value our product, that we must increase prices and work harder to raise the perceived value of plants, add value to our offer and recognize that price is not always the determining factor in consumer purchasing decisions. Improving the top half of the income statement will go a long way towards generating real returns and much needed reinvestment.

But take care; price movement is not the panacea for improving industry health. It’s just part of what we need to do. We must also lift the bar across the board – marketing and promotion, fresh ideas, efficiency, staff skills and knowledge, innovation, product development, presentation and merchandising, business management, environmental awareness, crop hygiene, logistics and infrastructure, and … that’s a long list, and it will no doubt take a day or three!

Earlier this year, Tariana Turia spoke about the foolishness of keeping on doing the same thing and expecting different results. While you are working on prices, look hard at other areas whereby you can grow the appeal of your offer and improve the bottom line, and … change something today.

John Liddle