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Business analysis of container nurseries in Florida
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Permanent Link: http://ufdc.ufl.edu/UF00026136/00001
 Material Information
Title: Business analysis of container nurseries in Florida
Series Title: Economic information report
Portion of title: Container nurseries in Florida
Physical Description: v. : ; 28 cm.
Language: English
Creator: Perkins, George R
Almeter, Carolyn A
Dasse, Frank A ( Frank Arthur ), 1933-
Gunter, Dan L
Strain, J. Robert
University of Florida -- Food and Resource Economics Dept
Publisher: Food and Resource Economics Dept., Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida
Place of Publication: Gainesville Fla
Creation Date: 1973
Publication Date: 1975-
Frequency: annual
regular
 Subjects
Subjects / Keywords: Nurseries (Horticulture) -- Economic aspects -- Periodicals -- Florida   ( lcsh )
Potted plant industry -- Economic aspects -- Periodicals -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
statistics   ( marcgt )
serial   ( sobekcm )
 Notes
Dates or Sequential Designation: 1973-
General Note: Title from cover.
 Record Information
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: aleph - 000408267
oclc - 08153546
notis - ACF4735
System ID: UF00026136:00001

Table of Contents
    Front Cover
        Front Cover
    Acknowledgement
        Page i
    Table of Contents
        Page ii
        Page iii
        Page iv
    Main
        Page 1
        Page 2
        Page 3
    Tables
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
Full Text

3eorge R. Perkins
Carolyn Almeter


Business Analysis


Nurseries in Florida, 1973


Food and Resource Economics Department
Cooperative Extension Service
Institute of Food and Agricultural Sciences
University of Florida, Gainesville 32611


July 1975






























ACKNOWLEDGMENTS


Special appreciation is expressed to the nurseryman who furnished
figures on their business operations on a confidential basis and for
the time they spent explaining them and answering questions. Thanks
are also due to the county extension agents who assisted in collecting
the data. It is hoped that the business analysis will give nurserymen
--those who did not participate in the program as well as those who did
--a useful basis of comparison for appraising their business and making
better management decisions.
















TABLE OF CONTENTS

Page

ACKNOWLEDGMENTS . . . . ... ...... i

LIST OF TABLES . . . . ... ...... ii

LIST OF FIGURES . . . . ... ...... iv

INTRODUCTION . . . . ... ....... 1

DEFINITION OF TERMS . . . . ... . 2

DATA PRESENTATION . . . . ... . 2


LIST OF TABLES

Table

1 Size of business, 10 large volume and seven smaller
volume wholesale ornamental container nurseries in
Florida, 1973 . . . . .. 4

2 Rates of production, 10 large volume and seven
smaller volume wholesale ornamental container
nurseries in Florida, 1973 . . . 5

3 Labor efficiency, 10 large volume and seven smaller
volume wholesale ornamental container nurseries in
Florida, 1973 . . . . ... 5

4 Efficiency in use of capital, 10 large volume and
seven smaller volume wholesale ornamental container
nurseries in Florida, 1973 . . . 6

5 Efficiency in use of space, 10 large volume and
seven smaller volume wholesale ornamental container
nurseries in Florida, 1973 . . . 7

6 Comparison of certain cost and returns measures, 10
large volume and seven smaller volume wholesale
ornamental container nurseries in Florida, 1973 .. 8










LIST OF TABLES (Continued)


Table Page

7 Average dollar costs per nursery for various
categories of expense, 10 large volume and seven
smaller volume wholesale ornamental container
nurseries in Florida, 1973 . . . 9

8 Percent of total costs for various categories of
expense, 10 large volume and seven smaller volume
wholesale ornamental container nurseries in
Florida, 1973 . . . . ... . 10

9 Average costs per square foot of production area,
10 large volume and seven smaller volume wholesale
container nurseries in Florida, 1973 . . .. 11

10 Average costs per square foot of plant sales equiva-
lent, 10 large volume and seven smaller volume whole-
sale ornamental nurseries in Florida, 1973 ...... 12

11 Average costs per dollar of sales with plant inven-
tory increase added to sales, 10 large volume and
seven smaller volume wholesale ornamental container
nurseries in Florida, 1973 . . . ... 13

12 Average costs per dollar of sales without plant
inventory increase added to sales, 10 large volume
and seven smaller volume wholesale ornamental con-
tainer nurseries in Florida, 1973 . . ... 14

13 Income summary, 10 large volume and seven smaller
volume wholesale ornamental container nurseries in
Florida, 1973 . . . . .. 15

14 Factors associated with level of profit, nine high
profit and eight lower profit wholesale ornamental
container nurseries in Florida, 1973 . ... 16

15 Degree of association between certain factors and
level of profit, wholesale ornamental container
nurseries in Florida, 1973 . . . .17

16 Range of profits and eight factors and level of pro-
fits, 17 wholesale container nurseries in Florida, 1973 18

17 Comparison of business analysis factors for six years
of the same 14 wholesale nurseries which furnished
data for 1968, 1969, 1970, 1971, 1972, and 1973 .... .19
















LIST OF FIGURES

Figure Page

1 As the total score on the first eight factors
in Table 15 goes up, the profit usually goes
down, 17 container nurseries in Florida, 1973 ... 20















BUSINESS ANALYSIS OF CONTAINER NURSERIES IN FLORIDA, 1973


George R. Perkins and Carolyn Almeter


INTRODUCTION


Data for this report were collected through personal interviews
with participating nurseries. The cooperating nurseries were not
selected on a statistical sampling basis. Many of the nurseries
joined the survey when it was started several years ago and have con-
tinued to participate. Each year some new nurseries wishing to par-
ticipate are included in the analysis and those desiring to discon-
tinue are eliminated. The data refer to the 1973 tax year which may,
in some instances, not strictly conform to the 1973 calendar year.
In order to assemble the tables which follow in this report, a
set of figures, developed from comparable data from each cooperating
nursery, was generated. Data on those nursery operations having more
than one type of business, i.e., container and field, were allocated
in accordance with the way inputs were used. If a nursery production
operation was a part of a landscape business, the landscape portion
was defined as including the entire operation, i.e., other components
as well as the landscape part--in short, the entire business.
The figures for each type of nursery were classified into two
major sections. The first major section contains averages for nur-
series classified by the level or volume produced. The second sec-
tion classifies nurseries by their profit levels. Within each major
section, the tables were divided into specified information, i.e.,
rate of production, level of profit, etc.


GEORGE R. PERKINS was formerly extension economist and assistant
professor of food and resource economics. CAROLYN ALMETER is a statis-
tical aide in the Food and Resource Economics Department.









Those nurseries having sales in excess of $220,000 were classified
as large volume operations and those having sales less than $200,000
were designated as small volume. Each table has figures selected as
"the one best measure" followed by "other useful indicators" which
may be significant to nurserymen.


DEFINITION OF TERMS


Most of the terms used in the tables are self-explanatory. Those
which may need some explanation are defined below.
Value of own plants sold--Does not include plants purchased for
immediate resale. Plants purchased and used for growing stock are
included.
Percent of capital turnover annually--Calculated by dividing the
value of own plants sold by the total capital.
Labor income--Calculated by subtracting total gross costs from
total gain.
Nursery "farm income"--Labor income plus interest on investment.
This is the return to the operator for his management and capital.
Net return--Labor income minus operator's salary.
Return to capital--Nursery farm income minus operator's salary.
Percent return to capital--Return to capital divided by total capi-
tal owned.
Percent plant turnover--Square feet equivalent of own plants sold
divided by average square feet of own plants in production.


DATA PRESENTATION


The data in Tables 1 through 13 relate to size of business, rates
of production, labor efficiency, efficiency in the use of capital, effi-
ciency in the use of space, costs and returns, income, and other factors
for nurseries classified by size or volume of sales. Various analyses
relating to profit are shown in Tables 14, 15, and 16.
Table 17 denotes profit indicators for nurseries which have been
included in the study since 1968. An almost steady improvement in their
profit picture can be seen. Most nurseries cooperating in the program





3



made modest but constant progress; a few reported losses while still
others progressed a great deal. It is not claimed that the progress
made is due to their participation in this business analysis program.
Actually, more than half of all the nurseries surveyed showed improve-
ments in earnings. The study does, however, show each cooperating
nursery how it compares with respect to each factor in the analysis.
In Figure 1 each nursery is ranked by nursery farm income and a
summary of the factors associated with profit. As the total score
goes up, the total profit goes down. The upward sloping line indi-
cates that those nurseries which score poorly on certain management
factors also rank low on profits.












Table l.--Size of business, 10 large volumea and seven smaller volume
wholesale ornamental container nurseries in Florida, 1973

Average Average Average
Item all 10 large 7 smaller Your
nurseries nurseries nurseries nursery


One best measure
Value of own plants sold

Other useful indicators
Value own plants sold adjusted
for plant inventory change
Sq. ft. equiv. own plants sold
Sq. ft. equiv. own plants sold
adj. for plant inven. change
Average sq. ft. of own plants
in production
Average acres equivalent of own
plants in production
Average number of employees

Capital owned
Growing plants
Land
Machinery & equipment
Bldg., fences, wells, etc.
Supplies
Total owned capital

Capital managed
Growing plants
Land
Machinery & equipment
Bldgs., fences, wells, etc.
Supplies
Total managed capital


$238,390 $333,693 $102,243 $



$239,542 $347,579 $ 85,204 $
189,008 257,849 90,857 sq. ft

190,002 268,580 75,715 ____sq. ft


284,781 358,804 179,033


6.54
12.87


$207,203
9,881
22,753
22,506
7,628


8.24
17.08


$279,580
6,536
33,408
22,925
9,824


4.11
6.86


sq. ft

acres


$103,807
14,660
7,531
21,908
4,490


$269,971 $352,273 $152,396 $


$ 207,203
17,156
23,194
22,981
7.628


$279,580
18,132
33,408
23,733
9,824


278,162 364,677


$103,807
15,761
8,602
21,908
4,490
154,569


$


aNurseries with annual sales of own plants in excess of $220,000.

bNurseries with annual sales of own plants less than $200,000.












Table 2.--Rates of production, 10 large volumea and seven smaller volume
wholesale ornamental container nurseries in Florida, 1973

Average Average Average
Item all 17 10 large 7 smaller Your
nurseries nurseries nurseries nursery


One best measure
Sq. ft. equivalent of own plants
sold per acre in production

Other useful indicators
Value of own plants sold per
acre in production
Value own plants sold adjusted
for plant inventory change per
acre in production


28,923 31,304 22,106 sq. ft.



$ 36,464 $ 40,511 $ 24,877 $


$ 36,640 $ 42,197 $ 20,731 $


Table 3.--Labor efficiency, 10 large volume and seven smaller volume
wholesale ornamental container nurseries in Florida, 1973

Average Average Average
Item all 17 10 large 7 smaller Your
nurseries nurseries nurseries nursery


One best measure
Value of own plants sold
per employee $ 18,523

Other useful indicators
Value own plants sold adjusted for
plant inventory change per
employee $ 18,612
Sq. ft. equivalent of own plants
sold per employee 14,692
Sq. ft. equivalent own plants sold
adjusted for plant inventory
change per employee 14,763
Average sq. ft. in production
per employee 22,127


$ 19,537 $ 14,904 $


$ 20,350 $ 12,420


$


15,097 13,245 sq. ft.


15,725 11,037


sq. ft.


21,007 26,098 sq. ft.


Nurseries with annual sales of own plants in excess of $220,000.

Nurseries with annual sales of own plants less than $200,000.











Table 4.--Efficicncy in use of capital, 10 large volume and seven smaller
volume wholesale ornamental container nurseries in Florida,
1973

Average Average Average
Item all 10 large 7 smaller Your
nurseries nurseries nurseries nursery


One best measure
Percent turnover of owned
capital annually

Other useful indicators
Percent turnover of managed
capital annually

Capital owned
Per employee
Per acre

Capital managed
Per employee
Per acre

Capital managed investment
per employee in
Plants
Land
Machinery & equipment

Capital managed investment
per acre in
Plants
Land
Machinery & equipment

Percent of capital managed in
Plants
Land
Machinery & equipment
Bldgs., wells, fences, etc.
Supplies
Total


88.30% 94.73% 67.09%


85.70% 91.50% 66.15% %


$20,977 $20,625 $22,215 $
41,295 42,767 37,079


$21,613
42,548



$16,100
1,333
1,802



$31,694
2,624
3,548


74.49%
6.17
8.34
8.26
2.74


$21,351
44,273



$16,369
1,062
1,956



$33,942
2,201
4,056


76.67%
4.97
9.16
6.51
2.69


$22,532
37,608



$15,132
2,298
1,254



$25,257
3,835
2,093


67.16%
10.20
5.57
14.17
2.90


$










$


100.00% 100.00% 100.00%


aNurseries with annual sales of own plants exceeding $220,000.

bNurseries with annual sales of own plants less than $200,000.

























Table 5.--Efficiency in use of space, 10 large volume and seven smaller
volume wholesale ornamental container nurseries in Florida,
1973

Average Average Average
Item all 17 10 large 7 smaller Your
nurseries nurseries nurseries nursery


One best measure
Percent of production area (or
plant) turnover annually


66.40% 71.86% 50.75%


Other useful indicators
Sq. ft. equivalent of own plants
sold per acre in production 28,923
Sq. ft. equivalent of own plants
sold adjusted for plant inventory
increase per acre in production 29,063
Average value of plant inventory
per acre in production $31,694


31,304 22,106


sq. ft.


32,606 18,422 sq. ft.


$33,942 $25,257


$


aNurseries with annual sales of own plants exceeding $220,000.

bNurseries with annual sales of own plants less than $200,000.



















Table 6.--Comparison of certain cost an returns measures, 10 large vol-
ume and seven smaller volume wholesale ornamental container
nurseries in Florida, 1973

Average Average Average
Item all 17 10 large 7 smaller Your
nurseries nurseries nurseries nursery

Returns
Value of own plants sold per
sq. ft. of plant sales
equivalent 126.07 129.41 112.53

Costs
Total costs per sq. ft. of
plant sales equivalent 117.07 113.49 131.57

Difference between
Value of own plants sold and
costs per sq. ft. of plant
sales equivalent 9.00 15.92 -19.04

Price goal
Prices per sq. ft. of plant
sales which would have been re-
quired to yield a 15% return on
investment (not including plant
inventory increase as part of
return) 129.92 125.79 146.67 _

aNurseries with annual sales of own plants exceeding $220,000.

bNurseries with annual sales of own plants less than $200,000.












Table 7.--Average dollar costs per nursery for various categories of
expense, 10 large volume and seven smaller volume wholesale
ornamental container nurseries in Florida, 1973

Average Average Average
Item all 17 10 large 7 smaller Your
nurseries nurseries nurseries nursery

---------------Dollars--------------


Cash costs
Operator's salary
Other wages & salaries
Plants & seeds to grow on
Cans & other growing containers
Peat, soil, shavings, etc.
Fertilizer & lime
Pesticides & other chemicals
Other production supplies
Repairs & maintenance
Equipment operating costs
Travel & entertainment
Insurance
Telephone
Electricity
Taxes, licenses & bonds
Advertising
Rent-land and/or buildings
Other cash expenses
Total cash costs

Non-cash costs
Depreciation machinery
& equipment
Depreciation buildings
Inventory decrease on supplies
Interest on capital @ 6%

Total non-cash costs
Total all costs


22,151
68,553
23,445
19,949
7,800
4,627
1,938
8,563
4,575
5,852
1,699
4,359
1,586
1,519
5,368
1,928
2,708
10.121


30,124
94,103
23,089
28,867
11,023
6,778
2,290
11,157
5,867
7,391
2,270
6,102
1,910
1,762
7,335
2,199
3,962
14 047


10,762
32,054
23,953
7,209
3,196
1,554
1,436
4,859
2,730
3,654
883
1,869
1,124
1,172
2,558
1,541
918
4.513


196,743 260,273 105,985



5,685 8,221 2,062
2,741 3,012 2,354
0 0 0
16,198 21,136 9,144
24,624 32,369 13,560
221,367 292,642 119,545


aNurseries with annual sales

Nurseries with annual sales


of own plants exceeding $220,000.

of own plants less than $200,000.












Table 8.--Percent of total costs for various cate ories of expense, 10
large volume and seven smaller volume wholesale ornamental
container nurseries in Florida, 1973


Average Average Average
Items of cost all 17 10 large 7 smaller Your
nurseries nurseries nurseries nursery

---------------Percent--------------


Cash costs
Operator's salary
Other wages & salaries
Plants & seeds to grow on
Cans & other growing containers
Peat, soil, shavings, etc.
Fertilizer & lime
Pesticides & other chemicals
Other production supplies
Repairs & maintenance
Equipment operating costs
Travel & entertainment
Insurance
Telephone
Electricity
Taxes, licenses & bonds
Advertising
Rent-land and/or buildings
Other cash expenses
Total cash cost

Non-cash costs
Depreciation machinery & equipment
Depreciation buildings
Inven. decrease on supplies
Interest on capital @ 6%
Total non-cash costs
Total all costs


10.01
30.97
10.59
9.01
3.52
2.09
.88
3.87
2.07
2.64
.77
1.97
.72
.69
2.42
.87
1.22
A 5;7


10.29
32.16
7.;89
9.86
3.77
2.32
.78
3.81
2.00
2.53
.78
2.09
.65
.60
2.51
.75
1.35
A 8n


9.00
26.81
20.04
6.03
2.67
1.30
1.20
4.06
2.28
3.06
.74
1.56
.94
.98
2.14
1.29
.77
78


88.88 88.94 88.66


2.57 2.81 1.73
1.24 1.03 1.97
0 0 0
7.32 7.22 7.65
11.12 11.06 11.34
100.00 100.00 100.00 100.00


aNurseries with annual sales of own plants exceeding $220,000.

Nurseries with annual sales of own plants less than $200,000.














Table 9.--Average costs per square foot ofbproduction area, 10 large
volumea and seven smaller volume wholesale container nurseries
in Florida, 1973


Average Average Average
Items of cost all 17 10 large 7 smaller Your
nurseries nurseries nurseries nursery

----------------CGents----------------

Cash costs
Operators's salary 7.78 8.40 6.01
Other wages & salaries 24.07 26.23 17.90
Plants & seeds to grow on 8.23 6.43 13.38
Cans & other growing containers 7.01 8.05 4.03
Peat, soil, shavings, etc. 2.74 3.07 1.79
Fertilizer & lime 1.62 1.89 .87
Pesticides & other chemicals .68 .64 .80
Other production supplies 3.01 3.11 2.71
Repairs & maintenance 1.61 1.64 1.52
Equipment operating costs 2.06 2.06 2.04
Travel & entertainment .60 .63 .49
Insurance 1.53 1.70 1.04
Telephone .56 .53 .63
Electricity .53 .49 .65
Taxes, licenses & bonds 1.88 2.04 1.43
Advertising .68 .61 .86
Rent-land and/or buildings .95 1.10 .51
Other cash expenses 3.55 3.91 2.52


Total cash costs

Non-cash costs
Depreciation machinery & equipment
Depreciation buildings
Inventory decrease on supplies
Interest on capital @ 6%
Total non-cash costs
Total all costs


69.09 72.54 59.20


2.00 2.29 1.15
.96 .84 1.31
0 0 0
5.69 5.89 5.11
8.65 9.02 7.57


77.73


81.56


66.77


Nurseries with annual sales of own plants exceeding $220,000.

bNurseries with annual sales of own plants less than $200,000.











Table 10.--Average cost per square foot of plan sales equivalenta, 10
large volume and seven smaller volume wholesale ornamental
nurseries in Florida, 1973

Average costs
Items of cost per sq. ft. plant sales equivalent
All 17 10 large 7 smaller Your
nurseries nurseries nurseries nursery

----------------Cents---------------

Cash costs
Operator's salary 11.66 11.22 14.21
Other wages & salaries 36.08 35.04 42.33
Plants & seeds to grow on 12.34 8.60 31.64
Cans & other growing containers 10.50 10.75 9.52
Peat, soil, shavings, etc. 4.11 4.10 4.22
Fertilizer & lime 2.44 2.52 2.05
Pesticides & other chemicals 1.02 .85 1.90
Other production supplies 4.51 4.15 6.42
Repairs & maintenance 2.41 2.18 3.61
Equipment operating costs 3.08 2.75 4.83
Travel & entertainment .89 .85 1.17
Insurance 2.29 2.27 2.47
Telephone .83 .71 1.48
Electricity .80 .66 1.55
Taxes, licenses & bonds 2.83 2.73 3.38
Advertising 1.01 .82 2.03
Rent--land and/or buildings 1.43 1.48 1.21
Other cash expenses 5.33 5.23 5.96


Total cash cost

Non-cash costs
Depreciation machinery
Depreciation buildings
Inventory decrease on supplies
Interest on capital @ 6%
Total non-cash costs
Total all costs


103.55 96.91 139.98


2.99 3.06 2.72
1.44 1.12 3.11
0 0 0
8.53 7.87 12.08
12.96 12.05 17.91
116.51 108.96 157.89


aIn this case, the square feet equivalent of plant sales are shown
as the fourth item in Table 1. They are not just the portion represented
by the plants actually sold during the year, as in Table 6, but to that
has been added the square feet represented by the plant inventory increase
during the year.
Nurseries with annual sales of own plants exceeding $220,000.

CNurseries with annual sales of own plants less than $200,000.
cNurseries with annual sales of own plants less than $200,000.






13



Table 11.--Average costs per dollar of sales with plant inventory increase
added to sales, 10 large volume and seven smaller volume
wholesale ornamental container nurseries in Florida, 1973

Average costs per $ sales with plant
Items of cost inventory increase added to sales
All 17 10 large 7 smaller Your
nurseries nurseries nurseries nursery

----------------Cents----------------

Cash costs
Operator's salary 9.25 8.67 12.63
Other wages & salaries 28.62 27.07 37.62
Plants & seeds to grow on 9.79 6.64 28.11
Cans & other growing containers 8.33 8.31 8.46
Peat, soil, shavings, etc. 8.26 3.17 3.75
Fertilizer & lime 1.93 1.95 1.82
Pesticides & other chemicals .81 .66 1.69
Other production supplies 3.57 3.21 5.70
Repairs & maintenance 1.91 1.69 3.20
Equipment operating costs 2.44 2.13 4.29
Travel & entertainment .71 .65 1.04
Insurance 1.82 1.76 2.19
Telephone .66 .55 1.32
Electricity .63 .51 1.38
Taxes, licenses & bonds 2.24 2.11 3.00
Advertising .80 .63 1.81
Rent-land and/or buildings 1.13 1.14 1.08
Other cash expenses 4.23 4.04 5.30


Total cash expenses

Nota-cash costs
Depreciation machinery & equip.
Depreciation buildings
Inventory decrease on supplies
Interest on capital @ 6%
Total non-cash costs
Total all costs


82.13 74.88 124.39


2.37 2.37 2.42
1.14 .87 2.76
0 0 0
6.76 6.08 10.73
10.28 9.31 15.92
92,41 84.19 140.30


aNurseries with annual sales of own plants exceeding $220,000.
bNurseries with annual sales of own plants es than $200,000.
Nurseries with annual sales of own plants less than $200,000.










Table 12.--Average costs per dollar of sales without plant inventory in.-
crease added to sales, 10 large volume and seven smaller vol-
ume wholesale ornamental container nurseries in Florida, 1973
4

Average costs per & sales without
Items of cost plant inventory increase added to sales

All 17 10 large 7 smaller Your
nurseries nurseries nurseries nursery

----------------Cents---------------

Cash costs
Operator's salary 9.29 9.03 10.53
Other wages & salaries 28.76 28.20 31.35
Plants & seeds to grow on 9.83 6.92 23.43
Cans & other growing containers 8.37 8.65 7.05
Peat, soil, shavings, etc. 3.27 3.30 3.13
Fettilizer & lime 1.94 2.03 1.52
Pesticides & other chemicals .81 .69 1.40
Other production supplies 3.59 3.34 4.75
Repairs & maintenance 1.92 1.76 2.67
Equipment operating costs 2.45 2.21 3.57
Travel & entertainment .71 .68 .86
Insurance 1.83 1.83 1.83
Telephone .67 .57 1.10
Electricity .64 .53 1.15
Taxes, licenses & bonds 2.25 2.20 2.50
Advertising .81 .66 1.51
Rent-land and/or buildings 1.14 1.19 .90
Other cash expenses 4.25 4.21 4.41


Total cash costs

Non-cash costs
Depreciation machinery
Depreciation buildings
Inventory decrease on supplies
Interest on capital @ 6%
Total non-cash costs
Total all costs


82.53 78.00 103.66


2.38 2.46 2.02
1.15 .90 2.30
0 0 0
6.79 6.33 8.94
10.33 9.70 13.26
92.86 87.70 116.92


aNurseries with annual sales of own plants exceeding $220,000.

Nurseries with annual sales of own plants less than $200,000.











Table 13.--Income summary, 10 large volume and seven smaller volume
wholesale ornamental container nurseries in Florida, 1973

Average Average Average
Item all 17 10 large 7 smaller Your
nurseries nurseries nurseries nursery


Value of production & other grain
Value of own plants sold 238,390 333,693 102,243 $
Inventory change own plants 1,152 13,887 -17,040
Inventory increase for supplies 3,051 2,340 4,069
Miscellaneous cash income 2,077 898 3,762
Total gain 244,671 350,817 93,034 $

Cash costs less operator's salary 174,591 230,150 95,222 $
Non-cash costs (Table 7) 24,624 32,369 131,560 $
Total gross costs 199,216 262,519 108,782 $

Labor income 45,455 88,298 -15,749 $
Interest on investment (Table 7) 16,198 21,136 9,144 $
Nursery "farm income" 61,654 109,435 -6,605 $
Operator's salary (Table 7) 22,151 30,124 10,762 $
Net return 23,304 50,174 -26,511 $
Return to capital 39,502 79,311 -17,367 $
Percent return to capital 14.63% 22.51% -11.40% %

Cents per square foot of production area

Labor income 16 25 -9
Nursery "farm income" 22 30 -4
Net return 8 16 -15
Return to capital 14 22 -10

Cents per square foot of plant sales equivalentc

Labor income 24 33 -21 _
Nursery "farm income" 32 41 -9
Net return 12 22 -35
Return to capital 21 30 -23

aNurseries with annual sales of own plants exceeding $220,000.

bNurseries with annual sales of own plants less than $200,000.

cIn this case, plant sales equivalent is the fourth item shown in
Table 1.












Table 14.--Factors associated with level of profit, nine high profit and
eight lower profit wholesale ornamental container nurseries
in Florida, 1973


7 high 8 lower
Factor profit profit Your
nurseries nurseries nursery

Profit
Nursery farm income $121,171 $ 5,283 $

Size of business
Value of own plants sold $337,230 $127,195 $

Level of cost
Cost per $ of sales and plant
inventory value increase
(last figure in Table 11) 80 -156 __

Labor efficiency
Value of own plants sold
per employee $ 21,608 $ 15,905 $

Sales price level
Difference between sales value
and costs per sq. ft. of plant
sales equivalent (third figure,
Table 6) 21.12 -21.20C _

Sales & inventory gain
Gain in sales & plant inventory
value from previous year (item
2 in Table 1 compared with same
item in the previous year) $ 48,775 $-21,245 $

Production rate
Sq. ft. equivalent own plants
sold per acre in production 41,408 18,774 sq. ft.

Capital use efficiency
Percent of capital turnover 103.94 69.61 %

Space use efficiency
Percent plant turnover 95.06 43.10 %










Table 15.--Degree of association between certain factors and level of
profit, wholesale ornamental container nurseries in Florida,
1973


Number and percent of the Rank of your
Factor 9 highest profit nurseries nursery
which were in the best 9 on each
on each factor factor

Number Percent

Profit
Nursery farm income 9 100


Size of business
Value of own plants sold 7 78

Level of cost
Cost per $ of sales and plant
inventory value increase 7 78

Labor efficiency
Value of own plants
sold per employee 7 78

Sales price level
Diffefence between sales value
and costs per sq. ft. of plant
sales equivalent 8 89

Sales & inventory gain
Gain in sales & plant inventory
value from previous year 6 67

Production rate
Sq. ft. equivalent own plants
sold per acre in production 7 78

Capital use efficiency
Percent of capital turnover 8 89

Space use efficiency
Percent of plant turnover 7 78
Total score for your nursery
on the above eight factors












table 16.- Range of profits and eight factors associated with profits,
.17 wholesale container nurseries in Florida, 1973


Average figures for the 3 best and
Factor the 3 poorest nurseries on each factor
Average for Average for Your
3 best 3 poorest nursery


Profit
Nursery farm income

Size of business
Value of own plants sold

Level of cost
Cost per $ of sales and plant
inventory value increase

Labor efficiency
Value of own plants sold
per employee

Sales price level
Difference between sales value
and costs per sq. ft. of plant
sales equivalent

Sales & inventory gain
Gain in sales & plant inventory
value from previous year

Production rate
Sq. ft. equivalent own plants
sold per acre in production

Capital use efficiency
Percent of capital turnover

Space use efficiency
Percent plant turnover


$179,099


$504,378



70.



$ 31,530




36.23C


$141,691


55,706


119.70%


127.88%


$ 79,335


$ 44,057


-560.



$ 8,751


$


$


$


-47.62C


$-154,312


$


sq. fi


11,426


49.65%


26.23%







Table 17.--Comparison of business analysis factors for six years of the same 14 wholesale nurseries
nurseries which furnished data for 1968, 1969, 1970, 1971, 1972, and, 1973


Average for the same 14 nurseries in
Unit 1968 1969 1970 1971 1972 1973


Profit
Nursery farm income
Percent return to capital

Size of business
Value of own plants sold

Level of cost
Cost per $ sales and plant
inventory value increase

Labor efficiency
Value of own plants sold
per employee


28,682
15.35


$ 82,382


$ 11,786


36,546
18.29


43,241
18.13


47,176
14.92


57,620
17.76


81,749
21.49


102,137, 117,072 139,915 190,891 246,047


12,320 13,410


12,072


15,174


18,682


Sales price level
Difference between sales value
and costs per sq. ft. of plant
sales equivalent $

Sales & inventory gain
Gain in sales & plant inven-
tory value from previous year $


3.73


15,145


Production rate
Sq. ft. eqiuvalent own plants
sold per acre in production sq.ft.16,079


Capital use efficiency
Percent of capital turnover

Space use efficiency
Percent plant turnover


% 60.94


1.86


1.41


24,959 18,096



17,650 19,438


70.78


69.04


% 36.91 40.52 44.62


-4.56


27,518



20,271


69.58


-4.37


43,226



25,176


78.69


14.25


28,586



27,831


88.60


46.54 57.80 63.89


































20


] 2 3 4 5 6 7 8 9 10 11


17
17


High L

Rank in level of profit



F:' :',--As the total score on the first eight factors in Table 15 goes up,
the ...--fit usually goes down, 17 container nurseries in Florida,
1973


120


110

100

90

80


70


50


eS


3W