What should I ask a nursery about its garden centre walk-in customers versus wholesale?
Ask how sales split between the garden centre and wholesale, how each has moved over recent seasons, and which accounts or product lines drive each side. Then ask how the two compete for the same plants, staff and growing space.
Retail and wholesale are different businesses sharing a greenhouse. Start by asking for sales by channel over several seasons, along with the margin on each. Retail walk-in trade tends to rise and fall with weather and spring timing, while wholesale depends on a smaller number of accounts that order in volume. Ask which is growing and which is shrinking, and why.
For the garden centre, ask about the location, parking, seasonal peaks, loyalty among regular customers and what happens on a wet weekend. For wholesale, ask who the accounts are, how long they have bought, what they order and how they pay. Ask whether any customer takes a large share, and whether any plants are grown specifically for them.
Then ask how the two sides compete. When plants are scarce, which channel gets them? Do the same staff serve both? Does a plant sold wholesale leave the shelves bare? Ask about inventory that goes unsold at season’s end and how it is handled. Finally, if the nursery ships plants outside its area, ask what paperwork it needs for that, and who handles it. Ask also how the nursery tracks returns and plant losses after sale, since those differ between the two channels.
Key takeaways
- Get sales and margin by channel for several seasons.
- Ask which wholesale accounts carry the most volume.
- Find out which side gets the stock when plants are short.
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Selling
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentWhat is inventory
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