Chapter 1: Which Herbs to Sell
“Hot lavender, mints, savory, marjoram; The marigold, that goes to bed wi’ the sun, and with him rise weeping.”
-The Winter’s Tale by William Shakespeare
The heart of your business is the herbs, which means one of the first decisions to make in establishing your business is to decide which herbs to sell. There are several ways you can decide which herbs to grow and distribute in your shop. For one, think about the herbs you already grow. Think about the herbs you use in your own kitchen when putting together recipes. If you use herbs medicinally, then include these on your list as well. You can also turn to resources such as the Park Seed Company (www.parkseed.com), which publishes a list of the ten most popular herbs on the market.
Another great source for identifying potential herb products is to review the products your competition is selling. Not only do you want to find out which herbs they are selling, but also find out in which forms they are selling the herbs. For example, are your competitors selling plants, seeds, dried, or cut herbs? Although big box stores and grocery stores are not your direct competition, observing the herbs these stores sell and how the herbs are sold, seed, potted plants, or in bulk, provides a great source of information on hot selling products in your area.
If your focus is medicinal herbs, in addition to looking at big box stores, visit local natural food stores to see what other herbal health and food aids are sold in those outlets. Many types of herbal supplements are not marketed as drugs but are used as over the counter treatments for simple ailments ranging from seasickness to insomnia.
Survey Potential Customers
Beyond observing what is already in existence, the best way to find out what your potential customers want to buy is to ask them. Conduct an informal survey of your friends, family members, co-workers, and other people you know. Ask them about their herb purchasing habits. Also, find out what they would be interested in purchasing, even if it is not currently an available product. When you talk to people, it is an amazing way for you to gather information that can lead to creating the products and services your potential customers are seeking. If you have been involved in the herb business as an employee or you have access to a list of your potential customers, you can also perform a more formal survey. Type up a short survey of ten to 12 questions, multiple choice and free response. You can also use a free online survey option, such as Survey Monkey (www.surveymonkey.com) if your list is made up of e-mail addresses. Although you may think you know what the popular herbs are, finding out straight from the consumers who may be buying from you is the best way to find out what will actually sell.
List of Plants to Sell
Because herb seeds are small and easy to store, it is possible to carry a wide variety of herb seeds from the start of your business. What may prohibit you from doing this is the cost to purchase the seeds. The good news is if you do invest money in seeds that do not sell, you can use the seeds in other ways, such as planting them in your own herb garden, as prize giveaways for a contest, or as a birthday gift for a regular customer.
If you are considering selling plants in addition to or in place of selling seeds, then there are different factors to consider. Plants are more time intensive because you have to water, fertilize, and pot plants. Plants also take up more space than seeds and require growing lights or sunlight. This is where your survey results come in handy because it allows you to carry plants your customers have expressed an interest in purchasing. The herbs listed below include many herbs recommended by gardeners and companies such as Park Seed (www.parkseed.com) as the top-selling seeds in the industry. Other wholesalers will be glad to share with you their top sellers for your area.
Starting small, with about a dozen plants, allows you to learn about and become an expert in the herbs you have chosen. Starting small and growing into a larger herb business is perfectly acceptable and has worked for herb businesses that have come before you. Margaret Shelton, owner of Shelton Herb Farm in Leland, North Carolina, said, “I started with about a dozen herbs in my first year of business and expanded to 36 kinds in the second year.” After more than 20 years in business, her 5-acre herb farm grows hundreds of herb varieties, including many lesser-known varieties of more common herbs such as basil.
Here is a suggested list to use to choose your first herb offerings:
|
Plant Type |
Used For |
Special Notes |
|
Aloe Vera |
House Plant |
Aloe Barbadensis, A succulent perennial |
|
Large Leaf Italian Basil |
Cooking |
Ocimum basilicum, also known as sweet basil, annual, most popular variety of basil, grows to 30 inches |
|
Thai Basil |
Cooking fish |
Ocimum basilicum, annual, very spicy, grows to 36 inches |
|
Lemon Basil |
Cooking — often used with fish recipes |
Ocimum citriodorum, an annual with mild lemon flavor, grows to 12 inches |
|
Chives |
Cooking |
Allium schoenoprasum, a perennial. Pluck the stems for use. Do not let it flower until you are finished harvesting |
|
Cilantro |
Cooking |
Coriandrum sativum, seeds are known as coriander and leaves as cilantro or Chinese parsley. Used mostly in Latin cooking |
|
Catnip |
Treat for cats |
Nepeta cataria, dried leaves loved by cats, annual |
|
Marjoram |
Cooking |
Origanum marjorana, sometimes confused with oregano but has a sweeter flavor, annual |
|
Mint, spearmint |
Recipes |
Mentha spicata, perennial but spreads and reseeds itself. Plant in pot |
|
Mint, peppermint |
Recipes |
Mentha x piperita, perennial but it spreads, plant in pot, likes a little shade |
|
Oregano |
Cooking |
Origanum vulgare, Can overwinter in mild climates, propagates by cuttings, sometimes called wild marjoram |
|
Curly parsley |
Food garnish |
Curly petroselinum crispum, hardy biennial, prefers moist, sandy soil |
|
Parsley |
Cooking |
Flat-leafed petroselinum, biennial, prefers sandy soil |
|
Rosemary |
Cooking |
Rosemarinus officinalis, perennial bush, an evergreen shrub. If you are in a cold climate, keep in pot indoors. Best harvested in July or August but can be harvested year round |
|
Sage |
Cooking |
Salvia officinalis, long silver leaves, also makes a nice evergreen bush in warmer climates |
|
Thyme |
Cooking |
Thymus vulgaris, perennial used in many foods, including stuffing and soups. This one and its lemon cousin like dry soil and warm sun. A common variant is Lemon thyme — thymus crossed with citriodorus. This is the most common variant. Great with fish |
|
Tarragon |
Cooking |
Artemesia dracunculus or French tarragon Artemesia drancunculus saliva, this perennial is a great flavoring for mustard, and egg dishes. Likes to grow tall in warm, dry soil |
Additional varieties, seasonal offerings, and herb specialization
Open up an herb catalog, such as Richters Herbs (www.richters.com) and you will see three pages devoted to basil. Each type of basil has its own growing peculiarities and use. When you are just starting out in the herb business, however, it is sufficient to carry two types of basil, chosen according to the types that grow and sell the best in your area. Choose your variety according to the climate of the area your customers will be in. For example, the medinette variety bolts more slowly than most in hot climates, so it may be better to sell in the South. Bolting is when a plant flowers rapidly in response to a stressor. Also consider the needs of your customers. For example, if your customers are avid cooks of Italian food, stick with the Genovese or Napolitano varieties as your basis.
Seasonals
Seasonal herbs grow in popularity during certain times of the year. Generally, the popularity growth is because the herb is used in holiday recipes or as houseplants during certain seasons. For example, potted rosemary plants are often pruned into the shape of a small Christmas tree, which provides an aromatic houseplant during the holidays or makes a nice addition to an outdoor garden in warmer climates.
Easter lamb recipes call for marjoram, thyme, mint, and rosemary. Some stews also call for bay leaf. In order to prepare your herb inventory to accommodate these and other season needs, be sure to have herb plants ready at least three weeks before the date of the holiday or season.
Specialization
Another option is to specialize in a particular herb your business then becomes known for producing and selling. For example, some herb farms develop a specialty crop in lavender. Specialties are not necessarily a way to start your business out, but it may be something that molds and transforms as your business changes and grows. Generally, a specialization is something identified because of the great demand in the area for the herb or the ability for the herb to grow because your climate or soil conditions are ideal for the plant. Even when an herb farm or business decides to specialize, it still tends to offer a limited amount of herb seeds and plants of other varieties. Your own herb business may start out offering a variety of herbs, but as your business transforms, it may be more profitable and prudent to specialize in the best sellers. Make sure you are selling products that complement each other. When specialty farms offer complementary products such as seeds and small potted herbs, it is similar to impulse buys set up at the checkout lane of the grocery store. Because the customer is already shopping at the herb farm, it is likely he or she will be interested in other herb-related products. Selling complementary items boosts the average transaction amount up, the amount each person spends when they visit the business, without having to try to convince the customer to take more of the single herb they came to buy instead.
Culinary herbs
Although specialization for your herb business may be selling one herb, another way to specialize is to sell the herbs that cater to a specific need. Because culinary herbs is a popular category, you may decide to focus your business on growing and selling herbs used in cooking. Herbs add their own flavor to foods but also bring out the natural flavors of meats and vegetables. Attract business by growing herbs often paired together. For example, a Mediterranean herb palate consists of herbs such as flat parsley, oregano, basil, mint, garlic, and rosemary. Others often included are thyme, marjoram, sage, bay leaf, and fennel, also called anise. A potential customer may not know how to use an herb until you promote its uses, which can be another aspect of your business — education. For example, because dill is an essential ingredient in pickling, share pickling recipes with customers, which can directly drive up your dill sales. It is worth noting that dill requires a lot of space for growing and may be one to tackle in a second year of business rather than in the startup year. Mexican and Thai recipes can promote sales of cilantro and Thai basil.
Selling potted herbs for cooking ingredients is only one culinary sales tool. You can choose to sell freshly cut herbs or dried herbs. In fact, preparing dried herb packets you were not able to sell fresh is a good way to re-purpose an oversupply of inventory at the end of the growing season. Dried herbs can also be made into packets for teas and infusions to flavor oils and vinegars. These make wonderful gifts at the holidays for you to sell and for customers to make, possibly after you have given a class or sold your customers books on the topic, along with the basic materials customers need to make the products on their own.
For example, Michael Chiarello, a well-known Food Network chef, has written several excellent books on how to prepare infusions. See the Resources section for the latest of his efforts. You can sell books on this topic, along with the herb plants to create the infusions, as you start out in business. Eventually, you may branch out into selling the glass bottles for preparing the infusions, and if you obtain proper licensing, perhaps sell your own infusions or give classes on the process.
Pots, Plugs, Seeds, and Other Supplies You’ll Need
Although you will sell potted plants and seeds to customers, you need to decide whether you will primarily grow your own or purchase pre-potted plants or starters. The basic decision on growing or purchasing potted plants will depend on the cost of obtaining a potted product versus the length of time it takes to germinate a product from seed to a commercially viable plant — one large enough to sell for at least $1 to $2.
From one pack of seeds, even purchased at retail, you can grow many seedlings, either in flats or in cups. You should be able to sell each one at about $1, which should net you a profit even after accounting for the cost of supplies. When calculating the cost of the seeds to plant, do not forget to include the cost of soil, water, plant trays, and electricity for grow lights or the cost of a greenhouse, labor, and the containers to sell the plants. An herb specialty business can sell plants directly to the public at an earlier stage than those seen in large stores. Because no shipping is involved, you do not have to worry about the fragility of the plant as it is transported from your store to its place of sale, which is the case when a wholesaler ships plants for sale to a storefront. In addition, small plants that do not sell grow into large plants you can sell for more money, which equals more profit for your business.
Surviving the Winter and Inventory Concerns
The growing seasons for the herbs you intend on stocking are important because they dictate the climate control and inventory needs of the business. Most herbs are annuals, plants that only live for one growing season. A few common herbs are biennials, which live for two growing seasons and need replacing every two years. Other herbs are perennials, which means they bloom year after year if grown in the right conditions. Sometimes, annual herbs seed themselves and grow again, which makes them seem like perennials. Where winters are harsh, perennial herbs typically last only one growing season.
Even in year-round growing climates, the pace of planting often slows in winter. This is true even when seasons and holidays create an increased demand for certain herbs used for recipes, traditional holiday dishes, or as décor. In general, herb businesses report a decrease in business during the winter months, so offering services such as classes on herb gardening and culinary uses of herbs can supplement income during the slower times of your season. Your business can also sponsor lectures from medicinal-herb experts, herb-related craft classes, and art sessions. These are not only potential sources of revenue, but they are also an opportunity to advertise your herb products for free. Even something as small as offering the local school children tours of your business is potential for sales and expanding your customer base. In addition, providing out-of-the-box services differentiates your business from the other sources of herbs in the area and improves your brand identity in the community. Because most of these services require little or no additional money, with the only cost being your time, it can be a cost effective way to bring in some extra money during slow sales times. More information about how to set these up will be included in Chapter 8.
In areas where winter brings freezing temperatures, customers may be sparse, and it may be advantageous to close the store to walk-in retail business during this time. This cuts down on overhead and provides a time to check over all aspects of the plant inventory to ensure plants are healthy and growing well. Winter is also a good time to review your company finances, perhaps expand your own education on herbs, get your marketing and business plan in order for the next business year, and to speak and write about herbs in order to expand your reach in the community. Marketing has neither seasonal nor climate concerns, which will be discussed in Chapter 8.
Wholesale sources for plants and equipment
In order to make a profit, it is necessary to obtain the best-quality plants, soil, and other equipment, such as potting tools, pots, and watering equipment, at the lowest possible price. If you do indoor seed starters or other indoor growing, you may want to consider growing lights as well. Greenhouse construction costs and costs for building plant shelving should be considered in equipment costs.
In addition to plant-related equipment, it is important to have the proper office and record-keeping equipment and supplies. You will need office space, a computer, and software to manage the business, track inventory, handle paperwork, file your business taxes, and more. Even if you choose to have an accountant, having a computer, a computerized register if you are going to make retail sales from the business, and software that lets you track expenses such as QuickBooks can help you track the business budget and cash flow. You may already have a computer and Internet service you can use for the business, but be sure you have a dedicated business computer rather than one shared by the rest of the family. This allows you to fully separate your business and personal files, including your finances.
When it comes to buying the plants, seeds, and inventory you need for the business, this is typically done on a wholesale basis. Wholesale is purchasing in bulk from a dealer and is how businesses obtain the items needed to run the business or stock inventory in large quantities. With an herb business, the largest expense is buying the herbs. Wholesalers can be found through herb organizations and by simply searching various online directories. A good wholesaler in the same general climate as your herb business may be able to offer good advice on growing, planting herbs, and keeping plants alive and healthy during your cold season. These wholesalers may also offer advice on watering and dealing with pests. In the Resources section of this book, find a listing of several wholesale sources for plants and garden supplies. Although this list is not a comprehensive list of suppliers, it does give you a starting point in finding and establishing relationships with wholesalers. A wholesale herb company typically offers a wide variety of options to choose from when it comes to the herbs and the supplies and equipment you need to run your business. Even browsing through or reading the seed catalog of a wholesale company can be a rich source of information, including the type of equipment and supplies you may need. To help ensure you are purchasing the right item for your business, there is a checklist below of questions to ask yourself before you talk to the wholesale company.
Another way to find wholesale companies is to look at the inventory of your competition. For example, the label on a potted plant sold at a big box store includes the wholesale company name and sometimes the contact information. Use this information to do an online search for the company and find out more about buying plants, seeds, or other inventory. If you are buying your plants, seeds, and supplies in bulk from a retail store or chain store, ask for a volume discount. The worst that could happen is the store manager or owner says no and the best that could happen is they say yes. Even if you want to grow your own stock, a good relationship with a wholesaler and other herb businesses can be helpful. For example, if one of your customers wants an herb or product you do not have, you can put in a special order for it to come quickly and easily from one of your contacts. This is especially important in the early stages of your business while you are offering a more limited selection of herb plants. Eventually, your business may become a resource for other herb businesses.
Follow this same procedure to find wholesale sources for the other herb-related or herb-based products you might want to sell. Also note which tea, medicine, and organic food products your competitors sell in case you desire to expand your business in that direction. Many types of herbal supplements are marketed as over-the-counter treatments for ailments ranging from seasickness to insomnia. Be aware, though, that when you are looking for licenses and permits for your business, the more types of products you sell, especially food related and medicinal products, the more types of licenses and permits you may need. The different licenses and permits you will need to operate your herb business will be discussed in Chapter 5.
Case Study: Country Folks Grower
Joan Kark-Wren
Managing editor, Country Folks Grower
Lee Publications
6113 State Highway #5
PO Box 121
Palatine Bridge, NY 13428
1-800-218-5586
Country Folks Grower is a trade newspaper in three editions that covers monthly topics for greenhouses, nurseries, fruit and vegetable growers,direct marketers, and gardening centers. The monthly newsprint publication offers new subscribers a fee subscription for the first year, usually for the entire first year, and costs $22 per year after that. Country Folks Grower is one of the several monthly newspapers put out by Lee Publications. Founded in 1965, Lee Publications, Inc. publishes trade publications for the agricultural, heavy construction, solid waste, aggregate, and commercial horticulture industries. Lee Publications has what it calls “close ties” with many trade associations in the construction and agricultural areas and is the official publication of more than 40 trade associations. The advertisements and articles are a good way to keep up with trends in the larger field of agriculture. Monthly topics include trade shows, fruit and vegetable equipment, direct marketing, irrigation, pest control, packaging, new products and supplies, structures and storage buildings, specialty crops, greenhouses, and products.
Country Folks Grower Editor Joan Kark-Wren talked about the value a general agricultural publication such as hers would have for someone starting an herb business. The Country Folks Grower's 36,000 subscribers receive educational information on growing and marketing their herb businesses. In addition, the paper publishes information on regional events. Articles cover topics for beginners and expert growers. Readers can also find a wide range of advertisements for products and services needed and a farmer-to-farmer section.
Country Folks Grower has three regional editions: East, Midwest, and West. Combined, these three regions cover roughly the northern two-thirds of the country. It is a monthly publication to the horticulture industry. Because it reaches segments of horticulture — nursery, greenhouse, fruits, and vegetables — readers find much of the information crosses over and can be used or adapted for their situations. In addition to the paper version, Country Folks Grower offers archived online articles and information on upcoming trade shows.
Meeting and Beating the Competition
Because large businesses receive discounts from herb wholesalers, they may able to offer their plants at cheaper prices than your business. You will be competing not just on price but also on service, knowledge about how to grow, and using plants you offer for sale. So, to find out what the competition offers, visit competing stores with a notebook in hand so you can write down seed and plant offerings, as well as prices. To make sure you have all of the information on the types and sizes of plants offered, talk with the store manager. Find out if what you see is the same inventory the store carries throughout the year or if it changes. If the inventory changes, find out what causes the change. Is it the growing season of the herb or is it customer demand? Although your herb business is yours and will possess its own attributes and customers, knowing your competition is a pivotal part of fully understanding the herb business in your area. Identifying this information is a critical part in writing the business plan, which details your competition and helps you to state your unique selling proposition (USP), what makes your business different from the rest of the herb businesses. This will be discussed further in Chapter 6.
Even when your sales price is equal to that of the local big box store or supermarket, a large store cannot likely match your service and attention to detail. These two components are added values that give your business a competitive advantage. Customers tend to return to stores that offer excellent customer service and are resources of useful information. Another added value for your business is you most likely offer a wider variety of herbs than big box stores or supermarkets. In addition, you have a hands-on role in caring for your plants, which tends to create healthier plants as well.
You are also able to offer more information on how to grow a plant beyond the tags that come on the plants from the store. Tags of this nature tend to be general, and you can provide specific details on soil, climate, and watering conditions as they apply to your local area. For example, when checking out a customer buying parsley seeds, remind them to soak the seeds overnight before planting. Take it a step further by sharing information on how to keep the plant alive through its two growing seasons. You can also provide information sheets that tell customers how long they should wait before re-potting the plant and if and when it can go onto the ground in your area of the country. This is a service your customers are unlikely to find from the grocery store or home-and-garden department manager of a store.
Bear in mind, as a specialty store, you can offer a personal relationship with the customer. Keep a file of index cards with each customer’s name, phone number, mailing address, and e-mail address. Also on this card, note the customers’ interests in herbs, and each time a new customer comes into the store, ask if they would like to sign up for your e-mail newsletter for notices of future sales. The old-fashioned file card will offer a quick reference on a customer’s likes and dislikes when they come into the store. Put the customer’s birthday on the card, and send him or her an invitation to come in for a free plant on his or her birthday. Recording this information will help you know which customers to contact when you have new products or services. For example, notify a customer noted as interested in Thai cooking if you start carrying lemongrass and Kaffir lime along with your Thai basil, and this person might also be interested in a Thai cooking class if you were to hold one. You can also use contact management software programs on your computer, some that even link with your inventory tracking system, to gather and maintain the same information. Once you go to a computerized system, this can speed up the time it takes for you do direct mailings and e-mail blasts to your customers. This will be covered more in the marketing chapter of this book, Chapter 8.
Most customers will respond positively when asked this information. Use your newsletters to inform customers of new promotions; e-mail is a quick and inexpensive way to reach out to customers. Of course, you must promise not to sell customer information and must keep that promise. Aside from the low expense, e-mail is a great way to advertise new promotions and offer knowledge in the form of growing tips, recipes, and book recommendations that will create a closer relationship with customers. These efforts will translate into more business and happier patrons.