Business analysis of foliage nurseries in South Florida

:-'10

Dan L. Gunter

Economic Information

Report 104

Business Analysis of Foliage
Nurseries in South Florida, 1977

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

January 1979

c~U~

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ABSTRACT

This publication presents average costs and returns information for
10 foliage nurseries in south Florida for the 1977 tax year. This is the
first year that this information will be published for both central and south
Florida nurseries. In previous years, the information from south and central
Florida was combined. The value of own plants sold by the 10 nurseries
averaged $423,541, resulting in a return to capital of $82,779 which is a
15.09 percent return. The sales per square foot of bed and bench space
averaged 1.22 in 1977 while the costs averaged $1.34.

Key words: south Florida, foliage plant nurseries, value of own
plants sold, cash costs, non-cash costs,.and return to capital.

ACKNOWLEDGEMENTS

This report was made possible by the foliage nurserymen who
participated in the nursery business analysis program and made their
accounting and production records available on a confidential basis.
Appreciation is expressed to Jim Cummings, Lou Daigle, DeArmand Hull,
Marlowe Iverson, and Charlie Lowery, county extension agents, for their
assistance with the data collection. The tabulations for this report
were completed by Carolyn Almeter. Mary Griffith typed this report.
As always any errors in content of interpretation of the data remain
the responsibility of the author.

i

TABLE OF CONTENTS

Page

ACKNOWLEDGEMENTS. . . . . ... . ..

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

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

PROCEDURE . . . ... ... . . .. 1

DEFINITIONS . .. .. . . .. . .... 2

RESULTS AND DATA PRESENTATION . . ........ .. 3

MANAGEMENT APPLICATIONS . . . . .. . 5

LIST OF TABLES

Table
1 Size of business, five large and five smaller volume foliage
plant and potted flowering plant nurseries in south Florida,
1977 . . . . . .... 6

2 Rates of production, five large and five smaller volume foliage
plant and potted flowering plant nurseries in south Florida,
1977 . . . . . . 7

3 Labor efficiency, five large and five smaller volume foliage
plant and potted flowering plant nurseries in south Florida,
1977 . . . . . . .. 8

4 The use of space, five large and five smaller volume foliage
plant and potted flowering plant nurseries in south Florida,
1977 .... . . . . ...... 9

5 Efficiency in use of capital, five large and five smaller
volume foliage plant and potted flowering plant nurseries in
south Florida, 1977 . . . . ... .. 10

6 Average costs per nursery for various categories of expense, five
large and five smaller volume foliage plant and potted flowering
plant nurseries in south Florida, 1977. ... . . 11

ii

--------------------
------

List of Tables (Continued)

Table Page
7 Percent of total costs for various categories of expense,
five large and five smaller volume foliage plant and potted
flowering plant nurseries in south Florida, 1977. . ... 12

8 Average costs per square foot of total bed and bench space,
five large and five smaller volume foliage plant and potted
flowering plant nurseries in south Florida, 1977 ...... .13

9 Average costs per square foot of propagating and finishing bed
and bench space, five large and five smaller volume foliage
plant and potted flowering plant nurseries in south Florida,
1977 .. . . . ... .... 14

10 Average costs per dollar of sales with sales adjusted for
plant inventory change, five large and five smaller volume
foliage plant and potted flowering plant nurseries in south
Florida, 1977 . . . . . 15

11 Average cost per dollar of sales without sales adjusted for
plant inventory change, five large and five smaller volume
foliage and potted flowering plant nurseries in south Florida,
1977. . . . . ... . ..... 16

12 Income summary, five large and five smaller volume foliage
plant and potted flowering plant nurseries in south Florida,
1977 . . . . ... ... . 17

13 Seven factors associated with level of profit, five high
profit and five lower profit foliage plant and potted
flowering plant nurseries in south Florida, 1977 . ... 18

14 Degree of association between cost and efficiency factors
and level of profit, 10 foliage plant and potted flowering
plant nurseries in south Florida, 1977. ... . .... 19

15 Range of figures on profit and seven cost and efficiency
factors associated with profit, 10 foliage plant and potted
flowering plant nurseries in south Florida, 1977. . .. 20
I

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BUSINESS ANALYSIS OF FOLIAGE NURSERIES IN SOUTH FLORIDA, 1977

Dan L. Gunter

INTRODUCTION
This business analysis report presents, for the first time, inform-
ation on sales, costs, and production efficiency aspects of foliage nurseries
in south Florida. A companion publication presents similar information
for central Florida. In previous years, central'Florida data has been combined
with that of south Florida for a state average. For this report, a foliage
nursery is defined as a nursery producing plants primarily for interior or
patio use.
The purpose of the business analysis report is: (1) to furnish nursery-
men various physical and economic measures that may be used in evaluating the
efficiency of individual foliage nurseries; (2) to supple cooperating nur-
serymen data so that they may make more informed management decisions;
(3) to provide individuals considering entering the wholesale foliage pro-
duction business an estimate of input requirements and revenue; and (4) to
provide the Florida extension personnel data which can be used in educational
programs with nurserymen.

PROCEDURE

Data for this report were collected from the accounting and production
records of 10 nurserymen. The nurseries supplying information are located
in several south Florida counties. However, most of the nurseries are in
Dade county. The nurserymen provided the data voluntarily and do not repre-
sent a statistically selected sample. The foliage nurserymen participating
in the business analysis program are thought to represent some of the more
efficient nurseries in the state.

DAN L. GUNTER is an extension production economist.

The data pertain to the individual growers' 1977 tax year which, in some
cases, does not conform to the 1977 calendar year. Data from individual
nurseries are collected in a specified form so that the information is on
a comparable basis. For example, workmen compensation insurance is included
as a labor cost rather than an insurance cost. In those nurseries which do
not pay the operator a salary, an estimate of the value of the operator's
time is collected and used in the analysis. Additionally, an interest cost
of eight percent is charged on the value of the owned capital. Any interest
paid by the individual nurseryman is excluded from the costs shown in this
report.
The data from individual nurseries are averaged and presented in a tab-
ular form. The tables depict average values for all 10 nurseries, five "large"
nurseries and five "smaller" nurseries. For this report, smaller nurseries
are those that have plant sales of less than $300,000, while large nurseries
are defined as those with a value of plant sales greater than $300,000.

DEFINITIONS

Most of the terms used in this report are self-explanatory. Defini-
tions which may be less familiar are as follows:
Value of own plants sold.--This value represents the total plant sales
minus the cost of plants purchased for immediate resale. Plants purchased
for growing-on are not deducted.
Full-time employee equivalent.--This value represents the average number
of full-time employees during the year. A convenient way to calculate the
number of full-time equivalent employees is to divide the total payroll hours
by 2080 (40 hours for 52 weeks) and then add any unpaid family or management
labor.
Value of own plants sold per square foot of bed and bench space.--This
value is derived by dividing the value of own plants sold by the square feet
in bed and bench space.
Value of own plants sold per employee.--This value is derived by dividing
the value of own plants sold by the number of full-time equivalent employees.
Owned capital turnover annually.--A ratio which is derived by dividing
the value of own plants sold by the value of total owned capital.

--- ----------------- ------~1

Total gain.--This value represents total nursery income form plant sales,
value of plant inventory changes, supply inventory increases, and miscellaneous
cash income.
Net nursery income.--The residual when total costs less operator's
salary and interest cost are deducted from total gains.
Return to capital.--Total gain minus cash costs, depreciation costs
and supply inventory value decreases or net nursery income less operator's
salary.
Percent return to capital.--Return to capital divided by total owned
capital.

Results and Data Presentation

The data in Tables 1 through 12 relate to size of the business, rates of
production, labor efficiency, capital efficiency, space efficiency, costs and
returns, and other efficiency factors. Analyses relating to profitability
are shown in Tables 13, 14, and 15. Where information in the tables is
rounded to the nearest whole number, addition errors due to rounding may
be noted.

Size of Business

During 1977, the 10 participating nurseries had an average gross revenue,
value of own plants sold, of $423,541 ($497,861 after adjusting for inventory
change) (Table 1). The nurseries averaged 348,537 square feet of bed and
bench space of which 269,554 square feet were for propagating and finishing
purposes and 78,983 were in stock plants. The square feet in bed and bench
space reflects net growing areas; roads, aisles or other non-productive areas
have been deducted from the gross square footage in the greenhouse or growing
areas. The nurseries averaged just over 17 full-time equivalent employees.
For this report a full-time equivalent represents 2,080 annual manhours. The
employees include the operator and office staff where applicable.
The average capital investment was $548,470. This amount reflects the
depreciated book value of the buildings, improvements, and machinery and
equipment. Growing plant inventory accounted for $215,176 of the capital
investment. Growing plants are usually valued at a price lower than the
wholesale price since not all plants are of salable size. Each nurseryman in
the analysis may value the growing plants differently. However, 50 to 60 percent

of the wholesale price is commonly used to value each plant. Investment in
land accounted for $83,078. Land is valued at the original purchase price
for the acreage used for the nursery operation.
Capital managed averaged $649,170. This value reflects the capital
investment plus the estimated market value of buildings, equipment, or land
rented.

Efficiency Measures
The value of own plants sold per square foot in bed and bench space
averaged $1.22 ($1.43 after adjusting for inventory changes) (Table 2). On
the basis of propagating and finishing space, the valueof own plants sold
averaged $1.77 for the large nurseries and $.78 for the smaller nurseries.
The cost per square foot of bed and bench space used for propagating and
finishing (Table 9) averaged just over $1.93 for the large and almost $.91 for
the smaller nurseries. Labor accounted for about $.56 of the cost per square
foot in the large nurseries and almost $.18 per square foot in the smaller
nurseries. Labor is the single largest cost item for the large foliage nur-
series representing 29 percent of the total cost (Table 7). Plants and seeds t
grow on was the largest expense item for the smaller nurseries accounting for
24 percent of the total cost.
Examination of information in Table 11 shows that the large nurseries
incurred a cost per dollar of sales of just over $1.09 while the smaller nur-
series had a cost of about $1.16. Thus, the larger nurseries lost nine cents
on each dollar of sales while the smaller nurseries lost about $.16. Excluding
depreciation and interest cost, the cost per dollar of sales was about $1.00
and $.93 for the smaller and larger nurseries, respectively.

Income Summary
Omitting an interest cost on the capital investment the 10 nurseries
averaged a return to capital of $82,779 which was just over 15 percent of
the capital owned in 1977. The smaller nurseries averaged .58 percent return
to capital while the large nurseries earned 16.59 percent (Table 12).
v * i = *

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MANAGEMENT APPLICATIONS

Employing the definitions provided above, nursery managers can
utilize this report by completing the column--"Your nursery". By doing
so, managers may be able to locate areas in their own operation where
production efficiency can be improved.

---- -----------~---

Table 1.--Size of business, five largea and five smaller volume foliage
plant and potted flowering plant nurseries in south Florida,
1977

Average Average Average
Item Unit all 10 5 large 5 smaller Your
nurseries nurseries nurseries nursery

The one best measure
Value of own plants sold $ 423,541. 762,494 84,588

Other useful indicators
Value of own plants sold
adjusted for plant in-
ventory change $ 497,861 905,733 89,988
Total bed & bench space Sq.ft. 348,537 530,32'0 166,753
Bed & bench space for
propagating & finishing Sq.ft. 269,554 431,182 107,925
Bed & bench space for
stock plants Sq.ft. 78,983 99,138 58,828
Acre equiv. of prod.
bldgs. & other areas Acres 8.00 12.18 3.83
Employees during year
(full-time equiv.) No. 17.15 29.72 4.57

Capital owned:
Growing plants $ 215,176 386,215 44,136
Bldgs. & improvements $ 174,129 336,256 12,001
Machinery & equipment $ 53,356 100,136 6,576
Land $ 83,078 131,156. 35,000
Supplies $ 22,731 40,883 4,580
Total owned $ 548,470 994,647 102,292

Capital managed:
Growing plants $ 215,176 386,215 41,136
Bldgs. & improvements $ 246,629 379,256 114,001
Machinery & equipment $ 53,356 100,136 6,576
Land $ 111,278 179,156 43,400
Supplies $ 22,731 40,883 4,580
Total managed $ 649,170 1,085,647 212,692

aThe five large volume nurser
exceeding $300,000.

ies had annual sales of own plants

Table 2.--Rates of production, five largea and five smaller volume foliage
plant and potted flowering plant nurseries in south Florida, 1977

Average Average Average
Item all 10 5 large 5 smaller Your
nurseries nurseries nurseries nursery

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

The one best measure
Value of own plants sold
per sq. ft. total bed &
bench space 1.22 1.44 .51

Other useful indicators
Value own plants sold
adjusted for plant in-
ventory change per sq.
ft. total bed & bench
space 1.43 1.71 .54
Value own plants sold per
sq.ft. of bed and bench
space used for propagating
& finishing. 1.57 1.77 .78
Value own plants sold
adjusted for plant in-
ventory change per sq.
ft. of propagating &
finishing bed & bench
space 1.85 2.10 .83
Value own plants sold per
acre in production 52,932 62,628 22,096
Value own plants sold
adjusted for plant in-
ventory change per acre
in production 62,220 74,393 23,507

aNurseries with annual sales exceeding $300,000.

Table 3.--Labor efficiency, five largea and five smaller volume foliage
plant and potted flowering plant nurseries in south Florida, 1977

Average Average Average
Item Unit all 10 5 large 5 smaller Your
nurseries nurseries nurseries nursery

The one best measure
Value of own plants sold
per employee $ 24,696 25,656 18,509

Other useful indicators
Value of own plants sold
adjusted for plant in-
ventory change per
employee $ 29,030 30,476 19,691
Total bed & bench space
per employee Sq.ft. 20,323 17,844 36,489
Propagating & finishing
bed & bench space per
employee Sq.ft. 15,717 14,508 23,616

aNurseries with annual sales exceeding $300,000.

Table 4.--The use of space, five large and five smaller volume foliage
plant and potted flowering plant nurseries in south Florida, 1977

Average Average Average
Item Unit all 10 5 large 5 smaller Your
nurseries nurseries nurseries nursery

Best measures

For intensity in use of
space
Plant inventory value
sold annually % 197. 1.97 1.92

For efficiency in use of
space
Bed & bench space which
was vacant % 8.08 10.60 .07

Other useful indicators
Area total bed & bench
space Sq.ft. 348,537 530,320 166,753
Area of bed & bench
space used for propa-
gating & finishing Sq.ft. 269,554 431,182 107,925
Bed & bench space used
for propagating &
finishing % 77.34 81.31 64.72
Area bed & bench
space used for stock
plants Sq.ft. 78,983 99,138 58,828
Bed & bench space
used for stock
plants % 22.66 18.69 35.28
Area of bed & bench
space vacant Sq.ft. 28,171 56,222 120

aNurseries with annual sales exceeding $300,000.

Table 5.--Efficiency in use of capital, five
foliage plant and potted flowering
1977

a
large and five smaller volume
plant nurseries in south Florida,

Average Average Average
Item Unit all 10 5 large 5 smaller Your
nurseries nurseries nurseries nursery

The one best measure
Owned capital turnover
annually

Other useful indicators
Managed capital turn-
over annually

Capital owned:
Per employee
Per acre

Capital managed:
Per employee
Per acre

Managed capital per em-
ployee in:
Growing plants
Bldgs. & improvements
Machinery & equipment
Land

Managed capital per acre
in:
Growing plants
Bldgs. & improvements
Machinery & equipment
Land

Percent of capital man-
aged in:
Growing plants
Bldgs. & improvements
Machinery & equipment
Land
Supplies

77.22

65.24

31,981
68,545

37,852
81,130

12,547
14,381
3,111
6,489

26,892
30,822
6,668
13,907

33.15
37.99
8.22
17.14
3.50

% 100.00

Total

76.66

70.23

33,467
81,696

36,529
89,170

12,995
12,761
3,369
6,028

31,722
31,150
8,225
14,715

35.57
34.93
9.22
16.50
3.77

100.00

82.69

39.77

22,383
26,721

46,541
55,560

9,658
24,945
1,439
9,497

11,529
29,780
1,718
11,337

20.75
53.60
3.09
20.41
2.15

100.00

aNurseries with annual sales exceeding $300,000.

--- --

11

Table 6.--Average costs per nursery for various categories of expense, five
large' and five smaller volume foliage plant and potted flowering
plant nurseries in south Florida, 1977

Average Average Average
Item all 10 5 large 5 smaller Your
nurseries nurseries nurseries nursery
----------------Dollars-------------------

Cash costs
Operator's salary
Other wages & salaries
Plants & seeds to grow on
Pots, growing containers
Fuel oil for prod. heat

Peat, soil shavings, etc.
Fertilizer and lime
Pesticides & other chem.
Packing boxes & supplies
Other prod. supplies

Repairs & maintenance
Equipment operating costs
Travel & entertainment
Insurance
Telephone

Electricity
Taxes, licenses, bonds
Advertising
Rent; land and/or bldg.
Other cash expenses
Total cash costs

Non-cash costs
Depreciation mach. & equip.
Depreciation bldgs., etc.
Inventory decreases, supplies
Interest on capital @ 8%
Total non-cash costs

Total all costs

22,978
130,523
65,452
29,360
8,400

13,161
5,031
4,969
18,524
10,423

9,064
7,387
7,284
8,737
5,244

3,451
5,402
3,031
2,967
34,712
396,101

9,766
16,799
0
43,878
70,443

466,545

35,309
242,095
107,290
53,416
16-,799

23,479
8,700
8,743
35,795
18,087

16,554
12,453
11,737
15,853
9,429

5,808
10,235
5,371
5,655
64,845
707,652

17,832
29,974
0
79,572
127,378

835,030

10,647
18,950
23,615
5,304
1

2,843
1,362
1,195
1,253
2,760

1,574
2,322
2,830
1,621
1,060

1,094
569
692
279
4,580
84,551

1,701
3,625
120
8,183
13,629
98,180

aNurseries with annual sales exceeding $300,000.

Table 7.--Percent of total costs for various categories of expense, five
large and five smaller volume foliage plant and potted flowering
plant nurseries in south Florida, 1977

Average Average Average
Item all 10 5 large 5 smaller Your
nurseries nurseries nurseries nursery
-----------------Percent-------------------

Cash costs
Operator's salary
Other wages & salaries
Plants & seeds to grow on
Pots, growing containers
Fuel oil for prod. heat

Peat, soil, shavings, etc.
Fertilizer & lime
Pesticides & other chem.
Packing boxes & supplies
Other prod. supplies

Repairs & maintenance
Equipment operating cost
Travel & entertainment
Insurance
Telephone

Electricity
Taxes, licenses, bonds
Advertising
Rent; land and/or bldgs.
Other cash expenses
Total cash costs

Non-cash costs
Depreciation mach. & equipment
Depreciation bldgs., etc.
Inventory decreases, sup.
Interest on capital @ 8%
Total non-cash costs

Total all costs

4.93
27.98
14.03
6.29
1.80

2.82
1.08
1.07
3.97
2.23

1.94
1.58
1.56
1.87
1.12

.74.
1.16
.65
.64
7.44
84.90

2.09
3.60
0
9.40
15.10

100.00

4.23
28.99
12.85
6.40
2.01

2.81
1.04
1.05
4.29
2.17

1.98
1.49
1.41
1.90
1.13

.70
1.23
.64
.68
7.77
84.75

2.14
3.59
0
9.53
15.25

100.00

10.84
19.30
24.05
5.40
0

2.90
1.39
1.22
1.28
2.81

1.60
2.37
2.88
1.65
1.08

1.11
.58
.70
.28
4.66
86.12

1.73
3.69
.12
8.34
13.88

100.00

aNurseries with annual sales exceeding $300,000.

Table 8.--Average costs per square foot of total bed and bench space, five
large and five smaller volume foliage plant and potted flowering
plant nurseries in south Florida, 1977

Costs per sq. ft..
Item of total bed & bench space
All 10 5 large 5 smaller Your
nurseries nurseries nurseries nursery

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

Cash costs
Operator's salary
Other wages & salaries
Plants & seeds to grow on
Pots, growing containers
Fuel oil for prod. heat

Peat, soil, shavings, etc.
Fertilizer & lime
Pesticides & other chem.
Packing boxes & supplies
Other production supplies

Repairs & maintenance
Equipment operating costs
Travel & entertainment
Insurance
Telephone

Electricity
Taxes, licenses, bonds
Advertising
Rent; land and/or bldgs.
Other cash expenses
Total cash costs

Non-cash costs
Depreciation machinery &
equipment
Depreciation bldgs., etc.
.Inventory decreases, supplies
Interest on capital @ 8%
Total non-cash costs

Total all costs

6.59
37.45
18.78
8.42
2.41

3.78
1.44
1.43
5.31
2.99

2.60
2.12
2.09
2.51
1.50

.99
1.55
.87
.85
9.96
113.65

2.80
4.82
0
12.59
20.21

133.86

6.66
45.65
20:23
10.07
3.17

4.43
1.64
1.65
6.75
3.41

3.12
2.35
2.21
2.99
1.78

1.10
1.93
1.01
1.07
12.23
133.44

3.36
5.65
0
15.00
24.02

157.46

6.38
11.36
14.16
3.18
0

1.70
.82
.72
.75
1.66

.94
1.39
1.70
.97
.64

.66
.34
.41
.17
2.75
50.70

1.02
2.17
.07
4.91
8.17

58.88

aNurseries with annual sales exceeding $300,000.

14

Table 9.--Average costs per square foot of propagating and finishing bed and
bench space, five large and five smaller volume foliage plant and
potted flowering plant nurseries in south Florida, 1977

Costs per sq. ft. of propagating
& finishing bed & bench space
All 10 5 large 5 smaller Your
nurseries nurseries nurseries nursery
---------------------Cents----------------

Cash costs
Operator's salary
Other wages & salaries
Plants & seeds to grow on
Pots, growing containers
Fuel oil for prod. heat

Peat, soil, shavings, etc.
Fertilizer & lime
Pesticides & other chem.
Packing boxes & supplies
Other prod. supplies

Repairs & maintenance
Equipment operating costs
Travel & entertainment
Insurance
Telephone

Electricity
Taxes, licenses, bonds
Advertising
Rent;. land and/or bldgs.
Other cash expenses
Total cash costs

Non-cash costs
Depreciation machinery &
equipment
Depreciation bldgs., etc.
Inventory decrease, supplies
Interest on capital @ 8%
Total non-cash costs

Total all costs

8.52
48.42
24.28
10.89
3.12

4.88
1.87
1.84
6.87
3.87

3.36
2.74
2.70
3.24
1.95

1.28
2.00
1.12
1.10
12.88
146.95

3.62
6.23
0
16.28
26.13

173.08

8.19
56.15
24.88
12.39
3.90

5.45
2.02
2.03
8.30
4.19

3.84
2.89
2.72
3.68
2.19

1.35
2.37
1.25
1.31
15.04
164.12

4.14
6.95
0
18.45
29.54

193.66

9.87
17.56
21.88
4.91
0

2.63
1.26
1.11
1.16
2.56

1.46
2.15
2.62
1.50
.98

1.01
.53
.64
.26
4.24
78.34

1.58
3.36
.11
7.58
12.63

90.97

aNurseries with annual sales exceeding $300,000.

--

--

Table 10.--Average costs per dollar of sales with sales adjusted for plant
inventory change, five large and five smaller volume foliage
plant and potted flowering plant nurseries in south Florida, 1977

Costs per dollar of sales with sales
adjusted for plant inventory change

All 10 5 large 5 smaller Your
nurseries nurseries nurseries nursery

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

Cash costs
Operator's salary
Other wages and salaries
Plants & seeds to grow on
Pots, growing containers
Fuel oil for prod. heat

Peat, soil, shavings, etc.
Fertilizer & lime
Pesticides & other chem.
Packing boxes & supplies
Other prod. supplies

Repairs & maintenance
Equipment operating costs
Travel & entertainment
Insurance
Telephone

Electricity
Taxes, licenses, bonds
Advertising
Rent; land and/or bldgs.
Other cash expenses
Total cash costs

Non-cash costs
Depreciation machinery &
equipment
Depreciation bldgs., etc.
Inventory decreases, supplies
Interest on capital @ 8%
Total non-cash costs

Total all costs

4.62
26.22
13.15
5.90
1.69

2.64
1.01
1.00
3.72
2.09

1.82
1.48
1.46
1.75
1.05

.69
1.09
.61
.60
6.97
79.56

1.96
3.37
0
8.81
93.71
93.71

3.90
26.73
11.85
5.90
1.85

2.59
.96
.97
3.95
2.00

1.83
1.37
1.30
1.75
1.04

.64
1.13
.59
.62
7.16
78.13

1.97
3.31
0
8.79
14.06

92.19

11.83
21.06
26.24
5.89
0

3.16
1.51
1.33
1.39
3.07

1.75
2.58
3.14
1.80
1.18

1.22
.63
.77
.31
5.09
93.96

1.89
4.03
.13
9.09
15.14

109.10

aNurseries with annual sales exceeding $300,000.

-

Table 11.--Average cost per dollar of sales without sales adjusted for plant
inventory change, five large and five smaller volume foliage
and potted flowering plant nurseries in south Florida, 1977

Cost per dollar of sales without sales
Item adjusted for plant inventory change
All 10 5 large 5 smaller Your
nurseries nurseries nurseries nursery

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

Cash costs
Operator's salary
Other wages & salaries
Plants & seeds to grow on
Pots, growing containers
Fuel oil for prod. heat

Peat, soil, shavings, etc.
Fertilizer & lime
Pesticides & other chem.
Packing boxes & supplies
Other prod. supplies

Repairs & maintenance
Equipment operating costs
Travel & entertainment
Insurance
Telephone

Electricity
Taxes, licenses, bonds
Advertising
Rent; land and/or bldgs.
Other cash expenses
Total cash costs

Non-cash costs
Depreciation machinery &
equipment
Depreciation bldgs., etc.
Inventory decreases, supplies
Interest on capital @ 8%
Total non-cash costs

Total all costs

5.43
30.82
15.45
6.93
1.98

3.11
1.19
1.17
4.37
2.46

2.14
1.74
1.72
2.06
1.24

.81
1.28
.72
.70
8.20
93.52

2.31
3.97
0
10.36
16.63

110.15

4.36
31.75
14.07
7.01
2.20

3.08
1.14
1.15
4.69
2.37

2.17
1.63
1.54
2.08
1.24

.76
1.34
.70
.74
8.50
92.81

2.34
3.93
0
10.44
16.71

109.51

12.59
22.40
27.92
6.27
0

3.36
1.61
1.4.1
1.48
3.26

1.86
2.75
3.35
1.92
1.25

1.29
.67
.82
.33
5.41
99.96

2.01
4.29
.14
9.67
16.11

116.07

aNurseries with annual sales exceeding $300,000.

i
i
a

;
a
~
B

Table 12.--Income summary, five
and potted flowering

largea and five smaller volume foliage plant
plant nurseries in south Florida, 1977

Average Average Average
Item Unit all 10 5 large 5 smaller Your
nurseries nurseries nurseries nursery

Value of production &
other gain
Value of own plants sold $ 423,541 762,494 84,588
Inventory change, own
plants $ 74,320 143,240 5,400
Inventory change for
supplies $ 5,673 11,466 0 0
Miscellaneous cash income $ 1,913 3;223 602
Total gain $ 505,446 920,422 90,590

Cash costs less operator's
salary $ 373,123 672,343 73,904
Non-cash costs less
interest cost @ 8% $ 26,566 47,806 5,445
Total gross costs less
operator's salary and
interest costs @ 8% $ 399,689 720,149 79,349

Net nursery income $ 105,757 200,273 11,241
Value of operator's
salary $ 22,978 35,309 10,647
Return to capital $ 82,779 164,964 594
Return to capital % 15.09 16.59 .58

aNurseries with annual sales exceeding $300,000.

18

Table 13.--Seven factors associated with level of profit,
and five lower profit foliage plant and potted
nurseries in south Florida, 1977

Average
Unit all 10
nurseries

Level of profit
Net nursery income

Seven factors associated
with profit

Size of business
Value of own plants sold

Level of costs
Cost per $ sales plus
plant inventory value
change

Intensity in use of
space
Plant inventory value
turnover annually
Production rate
Value own plants sold
per sq. ft. total
bed & bench space

Labor efficiency
Value of own plants
sold per employee

Efficiency in use of
capital
Owned capital turnover
annually

Growth in sales and
inventory
Amount of increase in
sales and plants in-
ventory value from
previous year

$ 105,757

$ 423,541

$ 93.71

% 197

$ 1.22

$ 24,696

77.22

$ 15,814

Average
high profit
nurseries

225,822

723,767

87.87

212

five high
flowering

Avera
obwer p
nurseri

-14,30E

123,314

129.04

140

1.43

.65-

25,904

78.49

6,085

19,420

70.52

25,543

Factor

I profit
Plant
i

ge '
profit Your
es. nursery ,

.1
'

'___ I

I'

t4

_.

Table 14.--Degree of association between cost and efficiency factors and
level of profit, 10 foliage plant and potted flowering plant
nurseries in south Florida, 1977

Number & percent of the 5
Factor highest profit nurseries
which were in the top 5 for
each factor

Number Percent

Level of profit
Net nursery income 5 100

Seven factors associated with
profit

Size of business
Value of own plants sold 4 80

Level of costs
Costs per $ sales plus plant
inventory change 4. 80

Intensity in use of space
Percent of plant inventory
value turnover annually- 3 60

Production rate
Value of own plants sold per
sq. ft. total bed & bench
space 3 60

Labor efficiency
Value of own plants sold
per employee 4 80

Efficiency in use of capital
Owned capital turnover annually 4 80

Growth in sales and inventory
Amount of increase in sales
and plant inventory value
from previous year

Table 15.--Range of figures on profit and the seven cost and efficiency
factors associated with profit, 15 foliage plant and potted
flowering plant nurseries in central Florida, 1977

Figures for the 3 best and
the 3 poorest nurseries on
each factor

Average for Average for Your
Factor Unit 3 best 3 poorest nursery

Level of profit
Net nursery income $ 351,995 -33,505

Seven factors associ-
ated with profit

Size of business
Value of own plants
sold $ 1,037,204 56,323

Level of costs
Cost per $ sales
plus inventory
value change 86.75 139.14

Intensity in the use
of space
Plant inventory
value turnover
annually % 402 129

Production rate
Value of own plants
sold per sq.ft. of
total bed & bench
space $ 2.44 .44

Labor efficiency
Value of own plants
sold per employee $ 29,316 13,975

Efficiency in use of
capital
Owned capital turn-
over annually % 168.73 56.77

Growth in sales and
inventory
Amount of increase
in sales & plant
inventory $ 52,714 0

4m -L~

	Front Cover
	Abstract
	Acknowledgement
	Table of Contents
	Main

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