2011 - a new year, new business challenges and the need for wellbeing - Forum

There's no doubt that 2010 was a difficult year for many people and I think, if we are honest with ourselves, 2011 is likely to be just as challenging but perhaps the challenges will be a different set? With a collective spirit and a continued sharing of information and support amongst our membership, I think there's so much more to be positive about than negative.
VAT rises to 20% on 4 January 2011

VAT changes on the 4th January will have a slow but real effect on spending habits and I'm sure will bring the added pressure from clients who want to settle their accounts in cash - quite frankly, I would not be judge nor jury, nor surprised for that matter, should there be an upsurge in black market activity and I'd like to see us have an open and honest conversation at some point about cash payments and their likely impact on the horticulture industry. The black market is good for economies in the sense that it creates liquidity and keeps much needed money in circulation eventually being cleansed through facilities such as supermarkets - although the Inland Revenue is deprived on the interim transactions. Here in France, on attendance of government or departmental run Stage where you are prepared for running an enterprise, officials openly encourage attendees to deal in cash and are told how essential it is not to declare all of their income. It sounds absurd but it is a fact of life here - is this an sensible approach? The rise in tax duty isn't the only obstacle; record fuel prices will also hamper business owners - both in terms of what is added to their own transport costs but also what is loaded on to the delivery of materials. As a business owner, you may be faced with a decision of discounting your price so that you remain competitive in the marketplace (regardless of the origin of the market pressure or their rights or wrongs). The dilemma, do you stay loyal to your duty or do you make decisions based on a need to survive? Building 'wellbeing' into garden design It could be argued that there is a desire, every time, to create a sense of wellbeing for a client when a garden space is designed. That intention however, is often lost in translation or in an act of self-indulgence on the designer's part. Not all gardens we create can be stand alone works of art and let's face it, not a great many potential clients will now consider having a garden built based purely on its aesthetic charm nor will consider its expense to be something justifiable: there will be exceptions however. Will 2011 see an even greater shift towards a life-centric space rather than a lifestyle-centric one? As landscapers and garden designers, are we geared up to cater for this: is our mindset right and to a degree, have we been indoctrinated to turn out the same-old same-old and are we capable of wholesale change? My feelings are that we will see:

A greater use of natural resources such as wood from local sustainable sources - think not only about the aesthetic of the material such as hazel hurdles within a garden but consider how it will help resurrect ancient practices such as woodland management and the revival of skills that do not rely heavily on mechanisation. Re-use of materials such as brick and paving (and even concrete). Before we consider new materials, is there a possibility of re-using some of what is already in situ by incorporating it in to a fresh design - in a garden it's not always that we require something new, it's merely just a change that refreshes us. A wider use of plants that will attract birds and insects and a move a way from formality (again there will be exceptions and quite rightly so). I can also envisage garden owners - those with the space at least - creating natural spaces as habitat for wild species and less importance placed on rigid maintenance.

There will be a greater emphasis on 'local'. I also think that by providing 'wellbeing' for our clients, we'll naturally succeed in creating a sense of wellbeing for ourselves and that is surely more tangible and important than just making money? What are your thoughts for 2011?

With your point Jane that clients will go to the Wholesale Nursery directly, that may well be the case. However should they come to us, we do not serve them.

Most Wholesale Nurseries are exempt from Business rates as they are deemed to be growing, whilst Garden Centres that sell directly to the public pay Business rates. For those Trade Nurseries, and I know of many, that are happy to take a fast buck by selling to the Retail customers, I feel are biting the hand that feeds them. I know of many Designers and Landscapers that refuse to use certain Nurseries as they have a "sell to all" policy.

Should a retail customer visit us, we suggest a local Landscaper/Designer who they can buy our plants through, thus giving work to one of our customers.

Jane Stewart said:

I too will be pricing as I price now. It is important that designers charge a reasonable and real amount for what we do. Why be cheap? If a client is looking for the cheapest designer, they will also penny pinch all the way through the project. In my experience, that client will go onto contacting your wholesale plant suppliers directly etc and you end up making less for your time on that project than a person sitting at home on unemployment benefits. Value your time. It is a finite resource.

laara copley-smith said:
I agree quality & value are the way to go , I personnally always aim to be flexible . I will be pricing as I price now , not offering discounts to `buy` work , I certainly would not want to lower the `value ` of what we do as proffessionals ...in time this just affects everyone & the view of the proffessional service we provide. There will always be companies buying work whatever one chooses to do.

I also feel people/ potential clients/ from all walks of life are in a process of re-evaluating what is important ...closer to home is now becoming more important, potentially potential clients will be spending less on ` possessions ` that do not serve long term or may even be throw away & placing attention / investment on the space around them ....what affects them on a day to day basis Ie : home & garden. The home they live in now as opposed to moving to something bigger / better.

For me the Client leads the way & their individual brief , at the end of the day it is not my garden ... creating a cohesive home & garden space which fullfils the clients life style/aspirations/aims/ challenges/money available & works with the existing/in the existing space/site are essential. Flexibitlity here are essential...it is great to create ` works of Art` ..yet it really is not about the designer , it is much bigger than this.

resourses / wildlife/ utilising existing plant material / I welcome this , I would certainly like to be involved in more naturalistic spaces. Luckily I am often ( not always) involved with perennial planting , which gives freedom to include flower/grasses etc for birds/insects/pollinators ...yet I will embrace a wider market that this is important too . As a passionate Kitchen garden gardener I will also embrace being involved with clients who want a vegetable space or garden.

Replies

Fenlandphil January 1, 2011 at 2:10pm

It I think will be a challenging year, I hope it will turn out better than it looks from here. Costs and inflation are likely to be big challenges together with the danger of falling demand as money is pulled out of the economy through increased taxation and a reduction in government spending.
I hope we can read the market effectively and are agile enough to respond to the way it is likely to change. Quality and value for money are likely to be the best way forward.
laara copley-smith January 1, 2011 at 3:44pm

I agree quality & value are the way to go , I personnally always aim to be flexible . I will be pricing as I price now , not offering discounts to `buy` work , I certainly would not want to lower the `value ` of what we do as proffessionals ...in time this just affects everyone & the view of the proffessional service we provide. There will always be companies buying work whatever one chooses to do.

I also feel people/ potential clients/ from all walks of life are in a process of re-evaluating what is important ...closer to home is now becoming more important, potentially potential clients will be spending less on ` possessions ` that do not serve long term or may even be throw away & placing attention / investment on the space around them ....what affects them on a day to day basis Ie : home & garden. The home they live in now as opposed to moving to something bigger / better.

For me the Client leads the way & their individual brief , at the end of the day it is not my garden ... creating a cohesive home & garden space which fullfils the clients life style/aspirations/aims/ challenges/money available & works with the existing/in the existing space/site are essential. Flexibitlity here are essential...it is great to create ` works of Art` ..yet it really is not about the designer , it is much bigger than this.

resourses / wildlife/ utilising existing plant material / I welcome this , I would certainly like to be involved in more naturalistic spaces. Luckily I am often ( not always) involved with perennial planting , which gives freedom to include flower/grasses etc for birds/insects/pollinators ...yet I will embrace a wider market that this is important too . As a passionate Kitchen garden gardener I will also embrace being involved with clients who want a vegetable space or garden.
Richard Boyd January 1, 2011 at 8:39pm

We thought that 2010 would be a quiet year but had a stupidly busy time so even if 2011 is only as busy as 2010 will be forced into exhaustion or forced to expand. Or I might take 3 months off and go travelling, no point in killingyourself to feed the State.

"The black market is good for economies in the sense that it creates liquidity and keeps much needed money in circulation eventually being cleansed through facilities such as supermarkets - although the InlandRevenue is deprived on the interim transactions."

The VAT increase will not affect us too dramatically as 95% of our clients are corporations so they have to spend but may cut back on what we offer. However personally I hope that the black market in the UK surges and HMRC lose huge amounts as a result, the Tax Payer being penalised in order to bailout a badly performing financial sector is repugnant beyond belief and just shows how corrupt our political system is.
PRO

Phil Voice January 1, 2011 at 9:33pm

"Dan said: Interesting point Phil about not declaring everything you earn in France."

I'd like to clarify, I am not suggesting nor encouraging a black market economy but it is a fact of life that in times of hardship, black economies flourish: it's a natural self-preserving process.

It's also difficult to hold a conversation about cash payments but I feel it's important we try to discuss the implications of competing in a less than equal environment and also how to tackle how best to respond when faced with with being placed in a difficult situation.
Richard Boyd January 2, 2011 at 3:13am

I'm not sure if that article is meant as a criticism or vis-à-vis a proactive thought to my reply but I will state that I am not a supporter of big government. Big government and legislation is the road to ruin for any/every country throughout the world and has been documented as such. Small government with small legislation is the key to prosperity for any country.

If you want proof that any successful business
moves to a favourable off shore location and pays less tax as a result that
is exactly what your link says. And why not? Without businesses any country
is dead in the water and would be a complete basket case, business people work
far harder and take far greater risks than people in the public sector, why should they be penalised to the same rate as people that take the easy option?

John www.acegardenservices.co.uk said:

A report from 2009 by the Guardian about tax avoidance by big business,

I don't think a lot has changed since then.

http://www.guardian.co.uk/business/2009/feb/02/tax-gap-avoidance

We thought that 2010 would be a quiet year but had a stupidly busy time so even if 2011 is only as busy as 2010 will be forced into exhaustion or forced to expand. Or I might take 3 months off and go travelling, no point in killing yourself to feed the State.

"The black market is good for economies in the sense that it creates liquidity and keeps much needed money in circulation eventually being cleansed through facilities such as supermarkets - although the Inland Revenue is deprived on the interim transactions."

The VAT increase will not affect us too dramatically as 95% of our clients are corporations so they have to spend but may cut back on what we offer. However personally I hope that the black market in the UK surges and HMRC lose huge amounts as a result, the Tax Payer being penalised in order to bailout a badly performing financial sector is repugnant beyond belief and just shows how corrupt our political system is.
Jane Stewart January 2, 2011 at 8:47am

I too will be pricing as I price now. It is important that designers charge a reasonable and real amount for what we do. Why be cheap? If a client is looking for the cheapest designer, they will also penny pinch all the way through the project. In my experience, that client will go onto contacting your wholesale plant suppliers directly etc and you end up making less for your time on that project than a person sitting at home on unemployment benefits. Value your time. It is a finite resource.

laara copley-smith said:

I agree quality & value are the way to go , I personnally always aim to be flexible . I will be pricing as I price now , not offering discounts to `buy` work , I certainly would not want to lower the `value ` of what we do as proffessionals ...in time this just affects everyone & the view of the proffessional service we provide. There will always be companies buying work whatever one chooses to do.

I also feel people/ potential clients/ from all walks of life are in a process of re-evaluating what is important ...closer to home is now becoming more important, potentially potential clients will be spending less on ` possessions ` that do not serve long term or may even be throw away & placing attention / investment on the space around them ....what affects them on a day to day basis Ie : home & garden. The home they live in now as opposed to moving to something bigger / better.

For me the Client leads the way & their individual brief , at the end of the day it is not my garden ... creating a cohesive home & garden space which fullfils the clients life style/aspirations/aims/ challenges/money available & works with the existing/in the existing space/site are essential. Flexibitlity here are essential...it is great to create ` works of Art` ..yet it really is not about the designer , it is much bigger than this.

resourses / wildlife/ utilising existing plant material / I welcome this , I would certainly like to be involved in more naturalistic spaces. Luckily I am often ( not always) involved with perennial planting , which gives freedom to include flower/grasses etc for birds/insects/pollinators ...yet I will embrace a wider market that this is important too . As a passionate Kitchen garden gardener I will also embrace being involved with clients who want a vegetable space or garden.
PRO

Busy Bee Garden Services Limited January 2, 2011 at 9:31am

I agree I went into business to make a living and we price ourselves according to the knowledge that we have within the organisation, if people want the cheapest price it wont be us as we are not a tesco value product!

Jane Stewart said:
I too will be pricing as I price now. It is important that designers charge a reasonable and real amount for what we do. Why be cheap? If a client is looking for the cheapest designer, they will also penny pinch all the way through the project. In my experience, that client will go onto contacting your wholesale plant suppliers directly etc and you end up making less for your time on that project than a person sitting at home on unemployment benefits. Value your time. It is a finite resource.

laara copley-smith said:
I agree quality & value are the way to go , I personnally always aim to be flexible . I will be pricing as I price now , not offering discounts to `buy` work , I certainly would not want to lower the `value ` of what we do as proffessionals ...in time this just affects everyone & the view of the proffessional service we provide. There will always be companies buying work whatever one chooses to do.

I also feel people/ potential clients/ from all walks of life are in a process of re-evaluating what is important ...closer to home is now becoming more important, potentially potential clients will be spending less on ` possessions ` that do not serve long term or may even be throw away & placing attention / investment on the space around them ....what affects them on a day to day basis Ie : home & garden. The home they live in now as opposed to moving to something bigger / better.

For me the Client leads the way & their individual brief , at the end of the day it is not my garden ... creating a cohesive home & garden space which fullfils the clients life style/aspirations/aims/ challenges/money available & works with the existing/in the existing space/site are essential. Flexibitlity here are essential...it is great to create ` works of Art` ..yet it really is not about the designer , it is much bigger than this.

resourses / wildlife/ utilising existing plant material / I welcome this , I would certainly like to be involved in more naturalistic spaces. Luckily I am often ( not always) involved with perennial planting , which gives freedom to include flower/grasses etc for birds/insects/pollinators ...yet I will embrace a wider market that this is important too . As a passionate Kitchen garden gardener I will also embrace being involved with clients who want a vegetable space or garden.
T & S Plants January 2, 2011 at 10:23am

With your point Jane that clients will go to the Wholesale Nursery directly, that may well be the case. However should they come to us, we do not serve them.

Most Wholesale Nurseries are exempt from Business rates as they are deemed to be growing, whilst Garden Centres that sell directly to the public pay Business rates. For those Trade Nurseries, and I know of many, that are happy to take a fast buck by selling to the Retail customers, I feel are biting the hand that feeds them. I know of many Designers and Landscapers that refuse to use certain Nurseries as they have a "sell to all" policy.

Should a retail customer visit us, we suggest a local Landscaper/Designer who they can buy our plants through, thus giving work to one of our customers.

Jane Stewart said:

I too will be pricing as I price now. It is important that designers charge a reasonable and real amount for what we do. Why be cheap? If a client is looking for the cheapest designer, they will also penny pinch all the way through the project. In my experience, that client will go onto contacting your wholesale plant suppliers directly etc and you end up making less for your time on that project than a person sitting at home on unemployment benefits. Value your time. It is a finite resource.

laara copley-smith said:
I agree quality & value are the way to go , I personnally always aim to be flexible . I will be pricing as I price now , not offering discounts to `buy` work , I certainly would not want to lower the `value ` of what we do as proffessionals ...in time this just affects everyone & the view of the proffessional service we provide. There will always be companies buying work whatever one chooses to do.

I also feel people/ potential clients/ from all walks of life are in a process of re-evaluating what is important ...closer to home is now becoming more important, potentially potential clients will be spending less on ` possessions ` that do not serve long term or may even be throw away & placing attention / investment on the space around them ....what affects them on a day to day basis Ie : home & garden. The home they live in now as opposed to moving to something bigger / better.

For me the Client leads the way & their individual brief , at the end of the day it is not my garden ... creating a cohesive home & garden space which fullfils the clients life style/aspirations/aims/ challenges/money available & works with the existing/in the existing space/site are essential. Flexibitlity here are essential...it is great to create ` works of Art` ..yet it really is not about the designer , it is much bigger than this.

resourses / wildlife/ utilising existing plant material / I welcome this , I would certainly like to be involved in more naturalistic spaces. Luckily I am often ( not always) involved with perennial planting , which gives freedom to include flower/grasses etc for birds/insects/pollinators ...yet I will embrace a wider market that this is important too . As a passionate Kitchen garden gardener I will also embrace being involved with clients who want a vegetable space or garden.
T & S Plants January 2, 2011 at 1:40pm

So undeclared cash sales.

A former employer of mine took tens of thousands of pounds in such sales, so much so, they boasted about having bin liners full of cash from such sales hidden around their house. Indeed as an employee I witnessed such sales.

The question then came, what do you do with the cash. You can't put it into the business as there is no written record of any sales. So my employer created ficticious invoices with ficticious Landscape companies to put some of the cash back into the business. In doing they lost the VAT, so took a 15% loss. Why then not give a 15% discount to your customers in the first place, and put everything through the books?

Well, saying books, we had three invoice books. One Despatch Book for plants taken on for account customers, one for invoicing on the day, and the third for cash sales in which vat was not added. When complete the "third book" was put on the fire.

The remaining cash was used for my employers personal shopping, so wages, so not only not paying VAT but not paying income tax either!

I was sickened by the whole thing, and felt like it was not a proper business.

Philip Voice said:

"Dan said: Interesting point Phil about not declaring everything you earn in France."

I'd like to clarify, I am not suggesting nor encouraging a black market economy but it is a fact of life that in times of hardship, black economies flourish: it's a natural self-preserving process.

It's also difficult to hold a conversation about cash payments but I feel it's important we try to discuss the implications of competing in a less than equal environment and also how to tackle how best to respond when faced with with being placed in a difficult situation.
John Honeyman January 4, 2011 at 10:40am

T & S Plants said:
So undeclared cash sales.

A former employer of mine took tens of thousands of pounds in such sales, so much so, they boasted about having bin liners full of cash from such sales hidden around their house. Indeed as an employee I witnessed such sales.

The question then came, what do you do with the cash. You can't put it into the business as there is no written record of any sales. So my employer created ficticious invoices with ficticious Landscape companies to put some of the cash back into the business. In doing they lost the VAT, so took a 15% loss. Why then not give a 15% discount to your customers in the first place, and put everything through the books?

Well, saying books, we had three invoice books. One Despatch Book for plants taken on for account customers, one for invoicing on the day, and the third for cash sales in which vat was not added. When complete the "third book" was put on the fire.

The remaining cash was used for my employers personal shopping, so wages, so not only not paying VAT but not paying income tax either!

I was sickened by the whole thing, and felt like it was not a proper business.

Philip Voice said:

"Dan said: Interesting point Phil about not declaring everything you earn in France."

I'd like to clarify, I am not suggesting nor encouraging a black market economy but it is a fact of life that in times of hardship, black economies flourish: it's a natural self-preserving process.

It's also difficult to hold a conversation about cash payments but I feel it's important we try to discuss the implications of competing in a less than equal environment and also how to tackle how best to respond when faced with with being placed in a difficult situation.