‘New direction brings stability and focus’
By Ank van Lier
bloemisterij@hortipoint.nl
In 2013, after a few difficult years, Will Lamb of Baginton Nurseries had to make a choice: give up or change course. The grower of potted plants and bedding plants chose the latter and decided to fully concentrate on contract growing. It turned out to be a good move. “I now have a guarantee my products will be sold. That’s a big difference.”
Baginton is a small village in the English West Midlands region. Will Lamb (60) was born and raised in this place, just outside the city of Coventry. His father had a dairy farm, but Lamb was more interested in plants. ,,After my horticultural studies, I wanted to have my own nursery. My father lent me the money to make a start. That’s 35 years ago now”, says Lamb.
Wide range
The Englishman began with a wide range of potted plants, bedding plants and hanging baskets, which he supplied to garden centres, companies, local authorities, etc. He was doing well for a long time, but 2010 marked the beginning of a few hard years.
According to lamb it wasn’t necessarily because of the recession. The main problem was that in those days, he used to produce lots of stock for the garden centres. But the sales of potted plants and bedding plants is very weather dependent.
”A few bad spring seasons, in combination with a market characterised by overproduction, meant that a large part of our plants wasn’t sold. This happened several years in a row. On top of that, the products that did sell, were sold at very low prices. At some stage, we were left with very little leeway. That’s when I realised: we had to either choose a different path, or shut down the company.”
Deliver on demand
Lamb chose to hold on to the nursery, but change the business model, so he would be less dependent on external factors. “I decided to fully concentrate on contract growing. At our 2.4-ha company, we now only grow plants that have already been sold beforehand. We used to trade around forty percent of our potted plants and bedding plants like this already, so we were familiar with the concept.”
The choice for contract growing meant that Lamb didn’t need as many employees any more, especially with regards to office staff.
“I used to employ a sales manager and a few administrative employees. These days, my production manager Jack and myself can handle everything together, with the help of some seasonal workers during the season. It was difficult to say goodbye to our employees, that was hard. But the result was a huge reduction in our costs, which enabled us to offer competitive prices in the contract negotiations with (potential) customers.”
Baginton Nurseries’ (polytunnel) greenhouses are filled from mid-February and the first potted plants and bedding plants are supplied from mid-May. “This goes on until the end of June”, says Lamb.
“We mostly grow well-known species: petunias, geraniums, marigolds, etc. In autumn, our assortment includes violas, myosotis palustris (water forget-me-not) and primulas. And sometimes, when customers ask for them, we grow more unusual plants as well. That’s never a problem for us, even if it concerns small quantities. We really do deliver on demand.”
Focus on details
The entrepreneur managed to build up a new customer base pretty quickly. Local authorities, garden and landscape architects, gardeners, hospitals, companies, hotels and restaurants are Baginton Nurseries’ most important customers now.
“This is a market with customers looking for a no-trouble guarantee: they want to be sure that they’ll get the right amount of potted plants and bedding plants at the right moment, and that they’re of optimum quality. That’s our strength: our nursery is relatively small, so we can focus on the details and make sure that everything is correct. In this respect, we have built up a good reputation and customers know where to find us. In addition, we participate in tenders. And the fact that we’re accredited by The British Ornamental Plant Producers also helps; customers value this kind of thing.”
Lamb says that their pricing is hardly an issue. “We propose a realistic price, not outrageously high, but high enough to make some money. And as I said earlier: because our costs are relatively low, we can be competitive. But price isn’t the most important aspect for our customers; the main thing is the convenience. Nowadays, our polytunnels and greenhouses are filled for 90-100 percent in spring and summer and for around 70 percent in winter. We’re not getting everything out of it yet, but all our activities are making money. That really makes a difference.”
Better return
All in all, Lamb doesn’t regret the switch. “Back then, it was a difficult decision and uncertain whether the new business model would work out. But the return has clearly improved and it has also created more stability. The months of October, November and December – the period during which contracts are negotiated – are always a little more stressful of course. But having products ready for delivery and no buyers, is a lot worse. Once the contracts are signed, we can focus on what matters most: the cultivation of a quality product. The new direction has brought stability and focus.”
‘Consequences Brexit are manageable’
At the end of June, when it became clear that the United Kingdom would leave the EU, Will Lamb initially felt very upset. “I feared the worst for my company”, he admits.
“In the meantime, I’ve become more relaxed about it and I think that the negative consequences for us will be limited. Some colleagues are afraid that it’s going to be difficult to get Eastern European workers to England, but we have a fixed group of temporary workers from our own region. That’s an advantage.”
Because of the depreciation of the British pound, Lamb, just like other British entrepreneurs, now pays 15-20 percent more for the things that he imports. “Seed, some of our young plants and the plastic pots for example, are from abroad. But these numbers and amounts are manageable.”
The grower of potted plants and bedding plants thinks that Brexit may offer opportunities to increase sales within Great Britain. “Because plants from abroad are getting more expensive and prices will go up even further when import duties and so on are going to be added. This may create opportunities for British growers. And the group of consumers who prefer British products was already growing anyway.”
Will Lamb: ”We have built up a good reputation and customers know where to find us.”
