Close relationships, quality assurance boost sales

Lakeside Greenhouses in Laurel, Del., grows and sells plants in an area that’s enjoyed a healthy dose of economic growth in the last few years. Despite the current economic setbacks, the company is expanding its retail operation.

“Up until last year, there was an explosion of homebuilding in the area,” said Craig Rice, vice president of Lakeside Greenhouses. “There are some garden centers in this area, but not enough to meet the demand. And we’ve been doing retail for 30-plus years, so it’s the right direction for us to go.”

Lakeside operates two other garden centers in Lewes, Del., and Rehoboth Beach, Del., and grows primarily for its own retail sales. The Laurel location serves as a production and retail site.

“There are a lot of retirees moving to this area from the Washington, D.C., and Annapolis [ Md.] areas. There’s a lot of money in this area,” he said.

Tourism also brings in customers to Lakeside.

“Having two stores on the beach extends our selling season by about a month,” he said.

Lakeside grows flowering pot crops, bedding plants, blooming and foliage hanging baskets, fall pansies and mums, ornamental cabbage and kale and poinsettias.

Consumer communication

Lakeside’s retail operations provide a clear communication channel between the company and its end consumers.

“We have a slight advantage over some wholesalers because we keep such a close eye on what the public wants,” Rice said. “We have a closer relationship with the end consumer compared to strictly wholesale growers.”

The stores carry up to 600 items from cell packs up to 12-inch pots.

Besides polling consumers and tracking retail sales, Lakeside employees visit the Penn State University field trials and trade shows.

“The Penn State trial garden is one of the best around,” Rice said. “I can’t rely on how a plant works in Southern California. I need to know how it works in Laurel.”

Lakeside tests a few new varieties every year, and gauges sales for up to three years before keeping it in production or dropping it from its mix.

“We don’t go hog wild and buy thousands of something just because it’s new,” Rice said. “If a new variety sells well the first year, we’ll increase production a bit more. If at the end of three years it’s not a strong seller, it’s gone from production.”

Lakeside added succulents to its lineup in 2007, which were well-received by customers.

“Succulents are interesting, they look good in mixed containers, and they’re good for indoor and outdoor use,” Rice said.

Quality choice

Lakeside sells wholesale to golf courses, independent garden centers, landscapers and area municipalities. Golf courses and municipalities buy primarily spring annuals, especially 4 1/2-inch and 6-inch containers.

“Our market pack sales have decreased the last 15 years. Most of our customers prefer larger material,” Rice said.

Lakeside propagates zonal geraniums, and the rest of the crops are bought in as liners, plugs or unrooted material.

Rice and his father-in-law Jay Windsor, the founder and president of Lakeside Greenhouses, have talked about creating a mission statement that reflects the company’s philosophy.

 “We haven’t come up with a statement yet, but the word that always comes up is “quality”. Our specialty is quality-grown plants that are interesting and work well in this area,” Rice said.

A long history of combos

Consumers are wild about mixed containers, and Lakeside Greenhouses has been growing and selling combos for 20 years.

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“Mixed containers are a huge market for us,” said Craig Rice, company vice president.

Lakeside develops its own recipes and tweaks them each year based on color trends or species availability. Lakeside also provides custom combinations for its retail customers.

For more: Lakeside Greenhouses, (302) 875-2457; craigrice43@aol.com.

Lakeside Greenhouses

Founded: In 1972 by Jay and Janet Windsor.

Locations: Laurel, Lewes and Rehoboth Beach, Del.

Crops: Flowering pot crops, bedding plants, blooming and foliage hanging baskets, fall pansies and mums, ornamental cabbage and kale and poinsettias.

Market: Retail and wholesale.

Production and sales space: Almost 70,000 square feet.

Employees: Up to 25 for all locations. Craig Rice, Lakeside Greenhouses vice president, married Jill, the Windsor’s daughter. Jill’s brother James and sister Jennifer also work in the family business.

- Kelli Rodda

May 2008