Another season’s end is almost in sight for turf and ornamental professionals across the country. The industry has its sights on finishing strong for the 2023 season. While some of the same challenges remained in place, other new challenges surfaced. Supply chain disruptions for the most part eased in our industry, especially into the late spring and onward. This enabled product availability to ramp back up and in certain sectors we even witnessed some price deflation. A glimpse of hope considering the previous year’s disruptions that plagued our industry. However, another challenge has been brewing aside from the recent product, labor, and infrastructure issues that will persist now and into the 2024 season. The headlines around the current financial environment affecting all businesses will be weighing heavy on turf and ornamental business owners and how they operate going forward.
A key challenge is going to be how Cash Flow is managed in this challenging environment. It’s no secret that interest rates have skyrocketed and the cost of borrowing money has gotten much more expensive. These rising interest rates make your business debt more expensive, which means you’ll have to use more cash to cover those borrowing costs. This could ultimately decrease your cash flow stability and eat into profit margins. So, what is one action you can take to manage cash flow? Purchase smarter!
Taking advantage of Early Order Program (EOP’s) is a great example of how you can purchase smarter.
It is imperative that time is allocated for planning and preparing already for the 2024 season. This early preparation can be one key to success in helping to manage your business cash flow. How so you may ask? For golf course superintendents, lawn care operators, and other turf professional business owners the Early Order Programs may seem overwhelming, time consuming, and often difficult to grasp how it fits into the overall picture of your business for next season while just trying to close out and evaluate the current season. However, the value these Early Order Programs can bring include:
- Product Rebates
- Extended Terms
- Cash Discounts
- Bundling Offers
- Product Security
Product Rebates:
Several of the key manufacturers have End User Early Order Programs. These programs offer lucrative rebates on key products you are most likely using in your programs for the upcoming 2024 season. The savings by taking advantage of these manufacturer End User Early Order programs can add a lot of money back into your business especially since you are going to need to purchase your material at some point to service your customers anyway. You might as well commit to it early and earn those rebates. How lucrative are these programs? It depends on the manufacturer, program, and products, but the numbers are showing savings potentials of 5%, 10%, 20%, and even up to 30%+. In fact, FMC is promoting on their detailer “UP TO 41% OFF FMC PRODUCTS”. These are real savings opportunities to take advantage of that can help with cash flow. A few key supplier Early Order Program dates to have on your radar are the following:
A Central Turf and Irrigation representative is available and ready to discuss these savings opportunities offered by our manufacturing partners.
Extended Terms:
Aside from product rebates and probably more valuable in this time of higher borrowing costs and cash flow uncertainties affecting your business is participating in an EOP program that offers Extend Terms. To learn more about Central Turf and Irrigation terms for the 2023/2024 Turf EOP please contact your local representative. What’s the value of these Extended Terms? Your commitment to the product needs for next season now during the EOP period will often earn you the ability to not have to pay until the start of the 2024 season. This is a proactive approach rather than waiting until right before the season begins where you may experience more restrictive terms. Discover what option works best for your business situation, but taking advantage of Extended Terms is a great way to help manage cash flow.
Finally,
Central Turf & Irrigation has their own Turf Early Order Program offering that is currently available. It provides cash discount opportunities and extended payment terms across the products you need for next season such as fertilizers, seed, chemicals, and some equipment tools. Combine this with our key manufacturer end user rebate programs for even more savings. These are all solutions to take advantage of to help manage your cash flow heading into the 2024 season. Remember, it’s all about purchasing smarter! Central Turf & Irrigation is here to help, please Contact your local Central representative to learn more!