Front Cover
        Front cover
    Abstract
        Abstract
    Acknowledgement
        Page i
    Table of Contents
        Page ii
        Page iii
    Main
        Page 1
        Page 2
        Page 3
        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
        Page 21

'n L. Gunter


Business Analysis of Foliage


Nurseries


in Central Florida,


1977


od and Resource Economics Department
ricultural Experiment Stations and
Operative Extension Service
ititute of Food and Agricultural Sciences
diversity of Florida, Gainesville 32611


November 1978


Ecoi
















ABSTRACT

This publication presents average costs and returns information for
15 foliage nurseries in central 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 15 nurseries
averaged $543,959, resulting in a return to capital of $71,674 which is a
17.37 percent return. The sales per square foot of bed and bench space
averaged $4.08 in 1977 while the costs averaged $4.02.

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

















ACKNOWLEDGMENTS


This report was made possible by the foliage nurserymen who partici-

pated in the nursery business analysis program and made their accounting

and production records available on a confidential basis. Appreciation is

expressed to Bruce Barmby and Larry Sistrunk, county extension agents of

Orange and Lake counties, respectively, for their assistance with the data

collection. The tabulations for this report were enthusiastically completed

by Carolyn Almeter. Ramona Rochester and Mary Griffith typed this report.

As always any errors in content or interpretation of the data remain the

responsibility of the author.









TABLE OF CONTENTS


Page

ACKNOWLEDGMENTS . . . . . . i

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, four large and eleven smaller volume foliage
plant and potted flowering plant nurseries in central Florida,
1977 . . . . . . . 5

2 Rates of production, four large and eleven smaller volume foliage
plant and potted flowering plant nurseries in central Florida,
1977 . . . . . . . 6

3 Labor efficiency, four large and eleven smaller volume foliage
plant and potted flowering plant nurseries in central Florida,
1977 . . . . . . . 7

4 The use of space, four large and eleven smaller volume foliage
plant and potted flowering plant nurseries in central Florida,
1977 . . . . . . . 8

5 Efficiency in use of capital, four large and eleven smaller
volume foliage plant and potted flowering plant nurseries in
central Florida, 1977 . . . . ... . 9

6 Average costs per nursery for various categories of expense, four
large and eleven smaller volume foliage plant and potted flower-
ing plant nurseries in central Florida, 1977. . . ... 10






List of Tables (Continued)


Table Page

7 Percent of total costs for various categories of expense, four
large and eleven smaller volume foliage plant and potted flower-
ing plant nurseries in central Florida, 1977 . ... 11

8 Average costs per square foot of total bed and bench space, four
large and eleven smaller volume foliage plant and potted flower-
ing plant nurseries in central Florida, 1977 . ... 12

9 Average costs per square foot of propagating and finishing bed
and bench space, four large and eleven smaller volume foliage
plant and potted flowering plant nurseries in central Florida,
1977 . . . . . . .. 13

10 Average costs per dollar of sales with sales adjusted for plant
inventory change, four large and eleven smaller volume foliage
plant and potted flowering plant nurseries in central Florida,
1977 . . . . . . . .. 14

11 Average cost per dollar of sales without sales adjusted for
plant inventory change, four large and eleven smaller volume
foliage and potted flowering plant nurseries in central Florida,
1977 . . . . . . . 15

12 Income summary, four large and eleven smaller volume foliage
plant and potted flowering plant nurseries in central Florida,
1977 . . . . .. .. . .16

13 Seven factors associated with level of profit, seven high profit
and eight lower profit foliage plant and potted flowering plant
nurseries in central Florida, 1977 . . ...... 17

14 Degree of association between cost and efficiency factors and
level of profit, 15 foliage plant and potted flowering plant
nurseries in central Florida, 1977 . . ... 18

15 Range of figures on profit and seven cost and efficiency factors
associated with profit, 15 foliage plant and potted flowering
plant nurseries in central Florida, 1977 . . ... 19

16 Comparative business analysis for the same eight foliage plant
growers in central Florida who furnished figures for the years
1970, 1971, 1972, 1973, 1974, 1975, 1976 and 1977. . .. 20











BUSINESS ANALYSIS OF FOLIAGE NURSERIES IN CENTRAL 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 central Florida. A companion publication presents similar information
for south 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 nur-
serymen various physical and economic measures that may be used in evaluating
the efficiency of individual foliage nurseries; (2) to supply cooperating
nurserymen 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 15 nurserymen. The nurseries supplying information are located
in Lake and Orange counties. The nurserymen provided the data voluntarily
and do not represent a statistically selected sample. However, the foliage
nurserymen participating in the business analysis program are thought to
represent some of the more efficient nurseries in the state.
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

DAN L. GUNTER is an extension production economist.




2


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 15 nurseries, four largeg
nurseries and eleven "smaller" nurseries. For this report, smaller nurseries
are those that have plant sales of less than $700,000, while large nurseries
are defined as those with a value of plant sales greater than $700,000.

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 dividin
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.
Total gain.--This value represents total nursery income from 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. Table 16 denotes profit indicators for
nurseries which have been included in the study since 1970. 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 15 participating nurseries had an average gross revenue,
value of own plants sold, of $543,959 ($569,086 after adjusting for inventory
change) (Table 1). The nurseries averaged 133,273 square feet of bed and bench
space of which 84,455 square feet were for growing purposes and 48,818 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 26 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 $412,685. This amount reflects the
depreciated book value of the buildings, improvements, and machinery and
equipment. Growing plant inventory accounted for $180,021 of the $412,685
capital investment, and investment in land accounted for $11,634. 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. The land is valued at the
original purchase price.







Capital managed averaged $531,493. 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 $4.08 ($4.27 after adjusting for inventory changes) (Table 2).
On the basis of propagating and finishing spqce, the value of own.plants
sold averaged $6.70 for the large nurseries and $6.13 for the smaller nur-
series. The cost per square foot of bed and bench space used for propagating
and finishing (Table 9) averaged just over $6.87 for the large and just over
$5.70 for the smaller nurseries. Labor accounted for almost $2.42 of the
cost per square foot in the large nurseries and $1.58 per square foot in the
smaller nurseries. Labor is the single largest cost item for the foliage
nurseries representing 35 percent of the total cost of the large operations
and 28 percent of the costs of the smaller nurseries (Table 7).
Examination of information in Table 11 shows that the smaller nurseries
incurred a cost per dollar of sales of just over $.93 while the larger nur-
series had a cost of about $1.03. Thus, the larger nurseries lost three cents
on each dollar of sales while the smaller nurseries earned about seven cents.
Excluding depreciation and interest cost, the cost per dollar of sales was
about $.82 and $.92 for the smaller and larger nurseries, respectively.

Income Summary

Omitting an interest cost on the capital investment the 15 nurseries
averaged a return to capital of $71,674 which was just over 17 percent of
the capital owned in 1977. The smaller nurseries averaged 23.53 percent
return to capital while the large nurseries earned 11.92 percent (Table 12).

Comparisons of Efficiency and Profit Over Time

Information in Table 16 is of particular significance. The value
of own plants sold for the eight nurseries which have been participating in
the business analysis continuously since 1970 was 3.4 percent higher in 1977







than in 1976 and 411 percent higher than in 1970. The percent return to
capital was 15.75 percent in 1977, down from the 1976 level of 22.06 percent.
The value of own plants sold per employee was $19,481 in 1977, down from
the 1976 high level of $20,724. Sales and plant inventory value increased
by an average of $43,588, the smallest increase since 1970. In general,
increasing costs in the eight continuing nurseries apparently contributed
to a poorer financial performance in 1977 than in 1976.


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 l.--Size of business, four large and eleven smaller volume foliage
plant and potted flowering plant nurseries in central Florida,
1977

Average Average Average
Item Unit all 15 4 large 11 smaller Your.
nurseries nurseries nurseries nursery

The one best measure
Value of own plants sold $ 543,959 1,158,216 320,592

Other useful indicators
Value of own plants sold
adjusted for plant in-
ventory change $ 569,086 1,201,966 338,947
Total bed & bench space Sq.ft. 133,273 308,240 69,649
Bed & bench space for
propagating & finishing Sq.ft. 84,455 172,815 52,324
Bed & bench space for
stock plants Sq.ft. 48,818 135,425 17,325
Acre equiv. of prod.
bldgs. & other areas Acres 3.06 7.08 1.60
Employees during year
(full-time equiv.) No. 26.24 67.04 11.40

Capital owned:
Growing plants $ 180,021 341,125 121,438
Bldgs. & improvements $ 136,356 215,143 107,706
Machinery & equipment $ 46,469 128,080 16,792
Land $ 11,634 15,809 10,115
Supplies $ 38,206 121,550 7,899
Total owned $ 412,685 821,706 263,950

Capital managed:
Growing plants $ 180,021 341,125 121,438
Bldgs. & improvements $ 235,862 433,543 163,978
Machinery & equipment $ 46,469 128,080 16,792
Land $ 30,935 35,809 29,162
Supplies $ 38,206 121,550 7,899
Total managed $ 531,493 1,060,106 339,270

aThe four large volume nurseries had annual sales of own plants exceeding
$700,000.







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

Average Average Average
Item all 15 4 large 11 smaller Your
nurseries nurseries nurseries nursery
------------------Dollars-----------------

The one best measure
Value of own plants sold
per sq. ft. total bed &
bench space 4.08 3.76 4.60

Other useful indicators
Value own plants sold
adjusted for plant in-
ventory change per sq.
ft. total bed & bench
space 4.27 3.90 4.87
Value own plants sold per
sq.ft. of bed and bench
space used for propagating
& finishing 6.44 6.70 6.13
Value own plants sold
adjusted for plant in-
ventory change per sq.
ft. of propagating &
finishing bed & bench
space 6.74 6.96 6.48
Value own plants sold per
acre in production 177,792 163,677 200,507
Value own plants sold
adjusted for plant in-
ventory change per acre
in production 186,005 169,860 211,986


aNurseries with annual sales exceeding $700,000.







Table 3.--Labor efficiency, four largea and eleven smaller volume foliage
plant and potted flowering plant nurseries in central Florida, 1977

Average Average Average
Item Unit all 15 4 large 11 smaller Your
nurseries nurseries nurseries nursery

The, one best measure
Value of own plants sold
per employee $ 20,730 17,276 28,122
Other useful indicators
Value of own plants sold
adjusted for plant in-
ventory change per
employee $ 21,688 17,929 29,732
Total bed & bench space
per employee Sq.ft. 5,079 4,598 6,110
Propagating & finishing
bed & bench space per
employee Sq.ft. 3,219 2,578 4,590


aNurseries with annual sales exceeding $700,000.







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

Average Average Average
Item Unit all 15 4 large 11 smaller Your
nurseries nurseries nurseries nursery

Best measures

For intensity in use of
space
Plant inventory value
sold annually % 302. 340. 264

For efficiency in use of
space
Bed & bench space which
was vacant % 3.30 2.56 4.48

Other useful indicators
Area total bed & bench
space Sq.ft. 133,273 308,240 69,649
Area of bed & bench
space used for propa-
gating & finishing Sq.ft. 84,455 172,815 52,324
Bed & bench space used
for propagating &
finishing % 63.37 56.06 75.13
Area bed & bench
space used for stock
plants Sq.ft. 48,818 135,425 17,325
Bed & bench space
used for stock
plants % 36.63 43.94 24.87
Area of bed & bench
space vacant Sq.ft. 4,394 7,903 3,118

aNurseries with annual sales exceeding $700,000.







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


largea and eleven smaller volume
plant nurseries in central Florida


Average Average Average
Item Unit all 15 4 large 11 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


Total


131.81


102.35


15,727
134,885

20,255
173,718


$
$
$


6,861
8,989
1,771
1,179


58,840
77,091
15,188
10,111


33.87
44.38
8.74
5.82
7.19


% 100.00


140.95


109.25


12,257
116,122

15,813
149,813


5,088
6,467
1,911
534


48,207
61,268
18,100
5,060


32.18
40.90
12.08
3.38
11.47

100.00


121.46


94.49


23,154
165,081

29,761
212,188


10,652
14,384
1,473
2,558


75,950
102,556
10,502
18,239


35.79
48.33
4.96
8.60
2.33

100.00


aNurseries with annual sales exceeding $700,000.


~




11


Table 6.--Average costs per nursery for various categories of expense, four
largea and eleven smaller volume foliage plant and potted flowering
plant nurseries in central Florida, 1977

Average Average Average
Item all 15 4 large 11 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


22,398
172,109
77,495
42,297
21,653

12,243
4,202
5,233
13,220
17,734

14,464
4,791
2,287
11,355
4,920

6,768
3,295
1,789
18,026
19,585
475,864


11,325
15,405
0
33,015
59,745

535,609


28,799
417,874
121,249
119,875
,40,013

28,343
10,394
14,262
23,949
44,530

37,641
10,416
5,369
25,369
9,469

14,398
7,002
4,681
46,401
53,073
1,063,104


29,578
29,391
0
65,736
124,706

1,187,809


20,070
82,740
61,585
14,087
14,977

6,389
1,950
1,950
9,318
7,990

6,036
2,745
1,166
6,259
3,266

3,994
1,947
738
7,708
7,408
262,323


4,687
10,319
0
21,116
36,123

298,445


aNurseries with annual sales exceeding $700,000.







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

Average Average Average
Item all 15 4 large 11 smaller Your
nurseries nurseries nurseries nursery
----------------Percent-----------------

Cash costs
Operator's salary 4.18 2.42 6.72
Other wages & salaries 32.13 35.18 27.72
Plants & seeds to grow on 14.47 10.21 20.64
Pots, growing containers 7.90 10.09 4.72
Fuel oil for prod. heat 4.04 3.37 5.02

Peat, soil, shavings, etc. 2.29 2.39 2.14
Fertilizer & lime .78 .88 .65
Pesticides & other chem. .98 1.20 .65
Packing boxes & supplies 2.47 2.02 3.12
Other prod. supplies 3.31 3.75 2.68

Repairs & maintenance 2.70 3.17 2.02
Equipment operating cost .89 .88 .92
Travel & entertainment .43 .45 .39
Insurance 2.12 2.14 2.10
Telephone .92 .80 1.09

Electricity 1.26 1.21 1.34
Taxes, licenses, bonds .62 .59 .65
Advertising .33 .39 .25
Rent; land and/or bldgs. 3.37 3.91 2.58
Other cash expenses 3.66 4.47 2.48
Total cash costs 88.85 89.50 87.90

Non-cash costs
Depreciation mach. & equipment 2.11 2.49 1.57
Depreciation bldgs., etc. 2.88 2.47 3.46
Inventory decreases, sup. 0 0 0
Interest on capital @ 8% 6.16 5.53 7.08
Total non-cash costs 11.15 10.50 12.10

Total all costs 100.00 100.00 100.00


aNurseries with annual sales exceeding $700,000.







Table 8.--Average costs per square foot of total bed and bench space, four
large and eleven smaller volume foliage plant and potted flowering
plant nurseries in central Flprida, 1977

Costs per sq. ft.
Item of total bed & bench space
All 15 4 large 11 smaller Your
nurseries nurseries nurseries nursery
------------------Cents------------- -- -

Cash costs
Operator's salary 16.81 9.34 28.82
Other wages & salaries 129.14 135.57 118.80
Plants & seeds to grow on 58.15 39.34 88.42
Pots, growing containers 31.74 38.89 20.23
Fuel oil for prod. heat 16.25 12.98 21.50

Peat, soil, shavings, etc. 9.19 9.19 9.17
Fertilizer & lime 3.15 3.37 2.80
Pesticides & other chem. 3.93 4.63 2.80
Packing boxes & supplies 9.92 7.77 13.38
Other production supplies 13.31 14.45 11.47

Repairs & maintenance 10.85 12.21 8.67
Equipment operating costs 3.59 3.38 3.94
Travel & entertainment 1.72 1.74 1.67
Insurance 8.52 8.23 8.99
Telephone 3.69 3.07 4.69

Electricity 5.08 4.67 5.73
Taxes, licenses, bonds 2.47 2.27 2.80
Advertising 1.34 1.52 1.06
Rent; land and/or bldgs. 13.53 15.05 11.07
Other cash expenses 14.70 17.22 10.64
Total cash costs 357.06 344.90 376.64

Non-cash costs
Depreciation machinery &
equipment 8.50 9.60 6.73
Depreciation bldgs., etc. 11.56 9.54 14.82
Inventory decreases, supplies 0 0 0
Interest on capital @ 8% 24.77 21.33 30.32
Total non-cash costs 44.83 40.46 51.86

Total all costs 401.89 385.35 428.50


aNurseries with annual sales exceeding $700,000.







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

Costs per sq. ft. of propagating
Item & finishing bed & bench space
All 15 4 large 1.1 smaller Your
nurseries nurseries nurseries Nurser
------------------Cents------------------

Cash costs
Operator's salary 26.52 16.66 38.36
Other wages & salaries 203.79 241.80 158.13
Plants & seeds to grow on 91.76 70.16 117.70
Pots, growing containers 50.08 69.37 26.92
Fuel oil for prod. heat 25.64 23.15 28.62

Peat, soil, shavings, etc. 14.50 16.40 12.21
Fertilizer & lime 4.98 6.01 3.73
Pesticides & other chem. 6.20 8.25 3.73
Packing boxes & supplies 15.65 13.86 17.81
Other prod. supplies 21.00 25.77 15.27

Repairs & maintenance 17.13 21.78 11.54
Equipment operating costs 5.67 6.03 5.25
Travel & entertainment 2.71 3.11 2.23
Insurance 13.45 14.68 11.96
Telephone 5.83 5.48 6.24

Electricity 8.01 8.33 7.63
Taxes, licenses, bonds 3.90 4.05 3.72
Advertising 2.12 2.71 1.41
Rent; land and/or bldgs. 21.34 26.85 14.73
Other cash expenses 23.19 30.71 14.16
Total cash costs 563.46 615.17 501.34

Non-cash costs
Depreciation machinery &
equipment 13.41 17.12 8.96
Depreciation bldgs., etc. 18.24 17.01 19.72
Inventory decrease, supplies 0 0 0
Interest on capital @ 8% 39.09 38.04 40.36
Total non-cash costs 70.74 72.16 69.04

Total all costs 634.20 687.33 570.38


aNurseries with annual sales exceeding $700,000.







Table 10.--Average costs per dollar of sales with sales adjusted for plant
inventory change, four large8 and eleven smaller volume foliage
plant and potted flowering plant nurseries in central Florida, 1977

Costs per dollar of sales with sales
Item adjusted for plant inventory change
All 15 4 large 11 smaller Your
nurseries nurseries nurseries nursery
--------------------Cents-----------------

Cash costs
Operator's salary 3.94 2.40 5.92
Other wages and salaries 30.24 34.77 24.41
Plants & seeds to grow on 13.62 10.09 18.17
Pots, growing containers 7.43 9.97 4.16
Fuel oil for prod. heat 3.80 3.33 4.42

Peat, soil, shavings, etc. 2.15 2.36 1.88
Fertilizer & lime .74 .86 .58
Pesticides & other chem. .92 1.19 .58
Packing boxes & supplies 2.32 1.99 2.75
Other prod. supplies 3.12 3.70 2.36

Repairs & maintenance 2.54 3.13 1.78
Equipment operating costs .84 .87 .81
Travel & entertainment .40 .45 .34
Insurance 2.00 2.11 1.85
Telephone .86 .79 .96

Electricity 1.19 1.20 1.18
Taxes, licenses, bonds .58 .58 .57
Advertising .31 .39 .22
Rent; land and/or bldgs. 3.17 3.86 2.27
Other cash expenses 3.44 4.42 2.19
Total cash costs 83.62 88.45 77.39

Non-cash costs
Depreciation machinery &
equipment 1.99 2.46 1.38
Depreciation bldgs., etc. 2.71 2.45 3.04
Inventory decreases, supplies 0 0 0
Interest on capital @ 8% 5.80 5.47 6.23
Total non-cash costs 10.50 10.38 10.66

Total all costs 94.12 98.82 88.05


aNurseries with annual sales exceeding $700,000.







Table 11.--Average cost per dollar of Sales without sales adjusted for plant
inventory change, four largqa and eleven smaller volume foliage
and potted flowering plant nurseries in central Florida, 1977

Costs per dollar of sales without sales
Item adjusted for plant inventory change
All 15 4 large 11 smaller Your
nurseries nurseries nurseries nursery
-------------------Cents-- ---------------

Cash costs
Operator's salary 4.12 2.49 6.26
Other wages & salaries 31.64 36.08 25.81
Plants & seeds to grow on 14.25 10.47 19.21
Pots, growing containers 7.78 10.35 4.39
Fuel oil for prod. heat 3.98 3.45 4.67

Peat, soil, shavings, etc. 2.25 2.45 1.99
Fertilizer & lime .77 .90 .61
Pesticides & other chem. .96 1.23 .61
Packing boxes & supplies 2.43 2.07 2.91
Other prod. supplies 3.26 3.84 2.49

Repair's & maintenance 2.66 3.25 1.88
Equipment operating costs .88 .90 .86
Travel & entertainment .42 .46 .36
Insurance 2.09 2.19 1.95
Telephone .90 .82 1.02

Electricity 1.24 1.24 1.25
Taxes, licenses, bonds .61 .60 .61
Advertising .33 .40 .23
Rent; land and/or bldgs. 3.31 4.01 2.40
Other cash expenses 3.60 4.58 2.31
Total cash costs 87.48 91.79 81.82

Non-cash costs
Depreciation machinery &
equipment 2.08 2.55 1.46
Depreciation bldgs., etc. 2.83 2.54 3.22
Inventory decreases, supplies 0 0 0
Interest on capital @ 8% 6.07 5.68 6.59
Total non-cash costs 10.98 10.77 11.27 _

Total all costs 98.47 102.56 93.09


aNurseries with annual sales exceeding $700,000.







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


large and eleven smaller volume foliage plant
plant nurseries in central Florida, 1977


Average Average Average
Item Unit all 15 4 large 11 smaller Your
nurseries nurseries nurseries nursery

Value of production &
other gain
Value of own plants sold $ 543,959 1,158,216 320,592
Inventory change, own
plants $ 25,127 43,750 18,355
Inventory change for
supplies $ 3,410 12,500 104
Miscellaneous cash income $ 1,773 5,576 390
Total gain $ 574,268 1,220,042 339,442

Cash costs less operator's
salary $ 453,466 1,034,305 242,252
Non-cash costs less
interest cost @ 8% $ 26,730 58,970 15,007
Total gross costs less
operator's salary and
interest costs @ 8% $ 480,196 1,093,275 257,259

Net nursery income $ 94,072 126,768 82,183
Value of operator's
salary $ 22,398 28,799 20,070
Return to capital $ 71,674 97,969 62,112
Return to capital % 17.37 11.92 23.53


aNurseries with annual sales exceeding $700,000.







Table 13.--Seven factors associated with level of profit, seven high profit
and eight lower profit foliage plant and potted flowering plant
nurseries in central Florida, 1977

Average Average 7 Average 8
Factor Unit all 15 high profit lower profit Your
nurseries nurseries nurseries nurser


Level of profit
Net nursery income


$ 94,072


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


543,959


$ 94.12



% 302



$ 4.08


$ 20,730



% 131.81


816,478


91.64



307



4.34


20,473



133.81


$ 29,578 66,279


305,504


100.42



291



3.58


21,349



127.36


-2,534


163,677


33,167







Table 14.--Degree of association between cost and efficiency factors and
level of profit, 15 foliage plant and potted flowering plant
nurseries in central Florida, 1977

Number & percent of the 7
Factor highest profit nurseries
which were in the top 7 for
each factor

Number Percent

Level of profit
Net nursery income 7 100

Seven factors associated with
profit

Size of business
Value of own plants sold 5 71

Level of costs
Costs per $ sales plus plant
inventory change 4 57

Intensity in use of space
Percent of plant inventory
value turnover annually 3 43

Production rate
Value of own plants sold per
sq. ft. total bed & bench
space 5 71

Labor efficiency
Value of own plants sold
per employee 4 57

Efficiency in use of capital
Owned capital turnover annually' 4 57

Growth in sales and inventory
Amount of increase in sales
and plant inventory value
from previous year 3 43






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 $ 198,585 -19,949

Seven factors associ-
ated with profit

Size of business
Value of own plants
sold $ 1,306,924 68,818

Level of costs
Cost per $ sales
plus inventory
value change 77.16 128.95

Intensity in the use
of space
Plant inventory
value turnover
annually % 605 151

Production rate
Value of own plants
sold per sq.ft. of
total bed & bench
space $ 8.34 2.41

Labor efficiency
Value of own plants
sold per employee $ 41,164 11,516

Efficiency in use of
capital
Owned capital turn-
over annually % 219.67 66.71

Growth in sales and
inventory
Amount of increase
in sales & plant
inventory $ 177,771 -68,161




furnished figures for the years 17 7 ,17,

Average for the same 8 nurseries in
Factor Unit 1970 1971 1972 1973 1974 1975 1976 1977


Profit
Net nursery income
Percent return to capital

Size of business
Value of own plants sold

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

Intensity in use of space
Plant inventory value
turnover annually

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


31,696 54,177 73,973 117,989 118,850 83,414 137,355 103,321
14.01 24.53 30.18 37.14 24.57 12.39 22.06 15.75


$ 170,833 202,100 254,889 341,852 485,378 620,818


96.69 88.99 86.87


1.21


187



1.29


201



1.58


88.43 93.06 97.34


236



2.09


289



2.82


364



4.25


679,543 702,496


93.67 96.21


404



3.96


382


4.05


Labor efficiency
Own plants sold per employee $

Efficiency in use of capital
Owned capital turnover
annually %


Growth in sales and inventory
Increase in sales & plant
inventory value from
previous year


9,350 10,338 11,779 14,262 16,877 18,604 20,724 19,481


127.31 121.66 130.87 136.13 138.88 156.94 151.75 145.95


$ 17,520 53,682 49,804 98,083 143,512 96,924 82,737 43,588


sq.ft. 141,322 157,230 161,120 163,341 171,964 145,968 171,617 173,572
% 3.35 2.79 2.98 2.96 2.92 3.58 3.76 3.52


Efficiency in use of space
Bed & bench space in use
Bed & bench space vacant