2008 Economic Report on the Plantscape and Christmas Rental Industry

We all have concerns about the economy and gas prices and how this will affect the Plantscape or Christmascape industry this year.

With 800 members worldwide we are able to track with realistic accuracy how the industry has been affected.  We see contracts come across our desk for approval every day from members bidding jobs so we took a survey to confirm what we already suspected.  We compared signed contracts among our group between 2007 and the first 2 quarters of 2008.  The results are as follows:

Green Concepts: The average Plant contract jumped in 2007 from an average of $165 per month to $220 per month in 2008. While the overall quantity of contracts has decreased slightly, the monthly cost per contract has actually increased.

In 2007 the average client signed a minimum 1-year contract, but we have see an increased number of clients locking 2 year contracts in 2008, so their monthly plant rental fee will not be raised. This percentage overall with our membership has risen 11% this year so far in the second quarter.

Even with the gas increases the hourly rate of our members has only decreased slightly.  Our average account generated $75 to $85 per hour in 2007, and now generates $70 to $80 per hour, still making our industries a very viable and profitable one.

Clients now include plant service as part of general costs to operate their facility.  The majority of our newest membership gets a signed contract within the first 2 months of joining while in 2006-2007 the average first contract took 3 to 4 months.

Christmas Concepts: The greatest thing about the Christmas Rental Business is it will never go away and clients cannot afford to eliminate this powerful advertising method in their budget if they want to generate seasonal sales and impress clients.

Companies must provide a festive environment and no one has the time, talent or the ability to find commercial quality decorations. And with square footage being at such a premium, they do not have any excess storage space to spare.

By eliminating their payroll and contracting out these services they can afford to spend more than ever before!  According to research done after each season by the Christmascape industry by written survey, corporations will spend an average of 13% more just for the luxury of contracting this unique service.

The Christmascape Industry has reached an all time 60 million dollars a year in revenues in 2008 alone.

Check out our new websites at: www.green-concepts.com & www.christmasconcepts.com

In conclusion, we are very happy to report that while the economy has hit the residential improvements area, real estate area, and retail division very hard, it does not appear to have affected our industry as much as many had feared.

I’m in the office most afternoons and I would love to hear from you 888-782-0020.