Responding to the market with choice in location order

Since the start of the experiment ‘location order’ within central auctioning, plant growers have been able to choose the location where their products will first appear on the clock.    

This is part two in a series of three stories in which growers share their experiences and show how the choice in location order helps them manage sales and revenue more effectively. This week, Hans Hoogendoorn of Hoogendoorn Stephanotis BV shares his experiences.  

Managing where and when you auction  

Hoogendoorn Stephanotis BV is a family business that has been growing plants for almost a hundred years. Hans runs the company together with his sister and brother-in-law. He represents the third generation of growers, while the fourth generation is also working in the business.    

Hans deliberately chooses a strategic approach to auctioning. ‘Our Stephanotis is essentially a cut flower. Due to its ripeness, it requires frequent shipping, so it goes on the clock,’ Hans explains. ‘We used to divide the supply between different locations. We would alternate back and forth between Aalsmeer, Naaldwijk and Aalsmeer again. Since the introduction of central auctioning, it has become more complex to achieve the best pricing. That’s why it is more important than ever to focus on where and when you auction.’

Responding to sales markets    

With the introduction of choice in the location order, Hans has more control over his sales. ‘I now start with a small share in Naaldwijk, where buyers respond quickly because the supply runs out fast, resulting in a good price. After that I switch to Aalsmeer, where demand for my product is higher and prices tend to remain stable for longer. This approach helps me to create a stable market to respond to the different sales markets: France used to buy a lot in Naaldwijk, but nowadays Eastern Europe is a strong market through Aalsmeer. Thanks to the choice in location order, I can now respond much better to my customers' wishes.’    

Results and advice  

Hans is positive about the results: ‘Prices have remained fair and stable. I've also noticed a sharp increase in auction presales; that percentage has risen significantly. Some buyers still need to get used to it, because now the products aren’t always available at the usual locations. The advantage though is that the market is becoming more transparent, and you can respond more quickly to shortages or surpluses.‘    

His advice to other growers is clear: ’Always pay close attention to your customers. The more you manage, the more control you have, the more influence you can exert. For me, being in control is essential, even with the auctioneers' outstanding efforts. If it's not a permanent solution, I'll protest!’ Hans concludes with a wink.   

Would you also like to know how to set your own location order? You can read about it here.