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Turfgrass Producers of Texas

TPT Newsletter

 

COLORADO GROWER SAYS “RAISE THE BAR HIGHER!”

            Randy Graff, a turfgrass producer from Fort Morgan, Colorado, challenged Texas growers to take charge of their marketing during his presentation at the Turfgrass Producers of Texas annual conference.

            He pointed to the successes that the Rocky Mountain Sod Growers have achieved in recent years.  According to Graff, the growers in the northern part of Colorado were facing economic problems just a few years ago.  They decided to get together and do something about it.

            They surveyed the industry as to the number of acres by species, the number of acres sold and the different varieties grown.  From that data they also looked at the demand for their product.  They could then determine if they were overproducing or if there was a shortage of sod.

            They also conducted educational forums with homebuilders, producer meetings on sales tax issues, transportation laws and regulations, chemicals and fertilizers, labor and other issues.  As a result, the growers became more informed and determined to produce a quality product.

            He offered two pieces of advice to growers:  1) All growers must think they are the best, and 2) Leave your farmer hat at home when marketing their product.  Instead of thinking “How cheap do I have to sell to get the job?” Graff says growers must have the attitude of “How much more will my product bring?”

            Graff stated that in the past, the philosophy of many growers has been to lower costs and increase volume.  Growers would be better off, he said, if they worked to raise their prices and lower the volume marketed.  A 3% increase in price produces the same profit on 90% of the same volume.  A 3% cut in prices requires a 13.6% increase in sales to generate the same profit.

            He also said that growers should participate in their association.  The value of the association consists of the combined knowledge, knowing your market and acres, sharing concerns or problems and communication.  In summary, he says it all adds up to higher prices.

 



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