Possibilities for Business Expansion:

Interior Landscaping
(Article 1 of a series)

By: Walter F.W. Campbell, President
Grundys I.L., Inc.
Serving the Philadelphia Marketplace 1977-present

Our merger with the Mid-Atlantic Interior Landscaping Conference, formally Penn State’s Conference, brings with it significant importance not only to the Interior Landscaping segment but to all segments of the Pennsylvania Floral Industry Association. Knowledge will be the common bond between all our segments. The understanding of that knowledge will bring each segment new possibilities. Our members and the rest of the horticultural industry might consider these possibilities in the future!

The horticultural industry has always contemplated the expansion of business into one another’s market segments. This has been driven by our clients’ requests or personal desires to obtain numerous services at one location. A florist may consider interior landscaping, interior landscaping firms may consider exterior landscaping and exterior landscaping firms might consider the reverse. Any combination is possible depending upon the examination of one’s own market area and knowledge of the other segments of our industry.

In this regard, I will offer in a series, the examination of a typical model for a “Guaranteed” weekly service contract for the Interior Landscaping Industry. This series will be submitted within the Bulletin over the following year and will be as comprehensive a model as possible. The purpose is to give the floral industry strong basic information to consider when adding the interior landscaping segment into your market area. It may encourage the florist or exterior landscaper to consider this segment of the industry or dissuade them from venturing into this area unprepared. Remember, this is only a basic starting point. You might contemplate entering this segment of the horticultural industry. Accordingly, consult your business professionals and industry consultants to develop a successful business plan.

In any model, the first premise is why you would want to expand your market potential and whether that market fits. Interior landscaping can be a natural fit for both the floral and exterior landscaping segments, if managed properly. Management requires depth of knowledge. The series will cover the following salient points:

1. Basic terms and conditions within a legal contract
2. Basic elements within a lease document (A Broad View)
3. Breakdown of the elements within the pricing of a service contract
4. Average or statistical chart of life expectancy for tropical plants
5. Profit and Loss form for a typical service contract
6. Site location examination form: Information needed to price a contract

The first “Golden Rule” that must be understood is that most interior landscaping service contracts are “guaranteed”. This means that if the plants serviced die while you are responsible for that contract, they must be replaced FREE…again, FREE. While this fact can be unsettling, if the correct knowledge is possessed, service can be guaranteed with reasonable confidence. It is the industry standard and this principle must be accepted before you enter the interior landscaping market segment. Do we really replace plants free? “NO”. A properly constructed service contract will build in the loss of these plants based on a statistical loss ratio model.

A “guaranteed” service contract is also a legal service contract with clauses and responsibilities for the vendor, as well as the client. It is the written document referred to for clarity of responsibilities and elimination of misconceptions on both parties’ parts. This valuable tool must be strongly written with the knowledge of an industry professional along with attorneys who will iron plate the document. You cannot venture down this path without this document or the future will be exposed to misunderstanding and the unsettled feelings for both you and the client. Preparation is the best virtue in any business plan.

In the next segment, the written legal contract and lease document will be examined. These two basic instruments of interior landscaping industry are essential as the first steps. I look forward to presenting this series to the floricultural segment of our industry.

Mr. Campbell serves as the 2002 Chairman of the Mid-Atlantic Interior Landscape Conference Committee, as a PFIA Board Member, and was a key team leader in the interior landscaping segment’s affiliation with PFIA.