TEXAS GOING TO THE SQUARE FOOT

            Texas sod producers appear to be joining the majority of U.S. sod producers by selling by the square foot instead of the square yard.  Aland Wittig of Wittig Grass Sales says it makes a lot of sense to do so.

            “Studies have shown that states selling by the square foot tend to get higher prices for their grass than those who sell by the yard,” he stated.  He noted that Texas tried the change to selling by the foot several years ago but the effort failed because the industry did not stick together on the concept.

            Now he feels that high fuel and fertilizer prices have forced producers to find a way to help offset those costs.  “I’ve spent more time talking to other producers in the last few weeks than I have in my entire career in the business.  I am encouraged that the vast majority of them feel now is the time to make the change.” Wittig said.

            Growers in other states who are selling by the foot say that they would not go back to selling by the yard.  Paul Grose, General Manager of King Ranch in Florida, says “There is something psychological about pricing by the square foot.  Raising your prices a penny a square foot doesn’t seem as bad as raising it a nickel a square yard.”

            Wittig points out that Wittig Grass Sales has also switched from putting 50 square yards on a pallet to 500 square feet which provides the end user easier calculations and estimation.  He feels the net result of two less pallets per load is helpful in the field, in transit and on the job-site.  Not only will he save the cost of those pallets, he can distribute the load better on the trailer eliminating over-axle problems on trucks carrying forklifts. Plus there are simply two less pallets to deal with.

            Growers have been careful to explain the changeover to their customers.  Some are quoting spring prices in both square foot and square yard figures to make the transition easier.  Most also plan to increase prices this spring and are explaining the need for these increases due to higher fuel and fertilizer prices. 

            So far, resistance to the changes has been relatively light.  One grower said a customer told him they knew he was going to raise prices, but just didn’t know when.  Others have said they have seen some resistance to the change in pallet sizes and that if one grower changed then every one needs to change to keep a level playing field.  While most growers say they intend to try to go to a standard 500 square foot pallet, they intend to give the customer what they want as long as the customers are willing to pay for it.