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
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        Page 21

bDa
Dan L. Gunter


onlconomic Information
Report 128


Business Analysis of Foliage
Nurseries in Central Florida, 1978


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


February 1980


















ABSTRACT.


This publication presents average costs and returns information for
14 foliage nurseries in central Florida for the 1978 tax year. This is
the second year that this information will be published for both central
and south Florida nurseries. Prior to 1977 the information from south
and central Florida was combined. The value of own plants sold by the
14 nurseries averaged $563,688 resulting in a return to capital of $28,205
which is a 5.78 percent return. The sales per square foot of bed and bench
space averaged $4.14 in 1978 while the costs averaged $4.37.

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. Appreciation is expressed

to Bruce Barmby and Bill Bodnaruk, 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. Mrs. Shirley Harris 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 Page

1 Size of business, five large and nine smaller volume foliage
plant and potted flowering plant nurseries in central Florida,
1978 . . . . ... . . 6

2 Rates of production, five large and nine smaller volume foliage
plant and potted flowering plant nurseries in central Florida,
1978 .. . . . .. 7

3 Labor efficiency, five large and nine smaller volume foliage
plant and potted flowering plant nurseries in central Florida,
1978 . . . .... .. .... .. 8

4 The use of space, five large and nine smaller volume foliage
plant and potted flowering plant nurseries in central Florida,
1978 . . . .. . . . 9

5 Efficiency in use of capital, five large and nine smaller
volume foliage plant and potted flowering plant nurseries
in central Florida, 1978 . . . ... ... 10

6 Average costs per nursery for various categories of expense,
five large and nine smaller volume foliage plant and potted
flowering plant nurseries in central Florida, 1978 ...... 11







LIST OF TABLES--Continued


Table Page

7 Percent of total costs for various categories of expense, five
large and nine smaller volume foliage plant and potted flower-
ing plant nurseries in central Florida, 1978 . .. .. 12

8 Average costs per square foot of total bed and bench space,
five large and nine smaller volume foliage plant and potted
flowering plant nurseries in central Florida, 1978 . 13

9 Average costs per square foot of propagating and finishing bed
and bench space, five large and nine smaller volume foliage
plant and potted flowering plant nurseries in central Florida,
1978 . . . . . . 14

10 Average costs per dollar of sales with sales adjusted for plant
inventory change, five large and nine smaller volume foliage
plant and potted flowering plant nurseries in central Florida,
1978 . . . . . . .. 15

11 Average cost per dollar of sales without sales adjusted for
plant inventory change, five large and nine smaller volume
foliage and potted flowering plant nurseries in central Florida,
1978 . . . . . . . 16

12 Income summary, five large and nine smaller volume foliage
plant and potted flowering plant nurseries in central Florida,
1978 . . . . . . . 17

13 Seven factors associated with level of profit, six high profit
and eight lower profit foliage plant and potted flowering plant
nurseries in central Florida, 1978 . . . .. 18

14 Degree of association between cost and efficiency factors and
level of profit, 14 foliage plant and potted flowering plant
nurseries in central Florida, 1978 . ..... . 19

15 Range of figures on profit and seven cost and efficiency
factors associated with profit, 14 foliage plant and potted
flowering plant nurseries in central Florida, 1978 . 20

16 Comparative business analysis for the same seven foliage plant
growers in central Florida who furnished figures for the years
1970, 1971, 1972, 1973, 1974, 1975, 1976, 1977 and 1978 . 21













BUSINESS ANALYSIS OF FOLIAGE NURSERIES IN CENTRAL FLORIDA, 1978

Dan L. Gunter


INTRODUCTION


This business analysis report presents information on sales, costs,
financial and production efficiency of foliage nurseries in central Florida.
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 14 wholesale nurserymen. The nurseries supplying information are
located in Lake and Orange counties. The nurserymen provided the data vol-
untarily 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' 1978 tax year which, in
some cases, does not conform to the 1978 calendar year. Data from individual
nurseries are collected in a specified form so that the information is on


DAN L. GUNTER is an extension production economist.







a comparable basis. For example, workmen compensation insurance is in-
cluded as a labor cost rather than in 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 cap-
ital. 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
tabular form. The tables depict average values for all 14 nurseries, five
"large" nurseries and nine "smaller" nurseries. For this report, smaller
nurseries are those that have plant sales of less than $600,000, while
large nurseries are defined as those with a value of plant sales greater
than $600,000.


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 calcu-
late 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 div-
iding 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.


I -~~ -- -- --. p- -~








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 mipus 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 pro-
fit 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 1978, the 14 participating nurseries had an average gross
revenue, value of own plants sold, of $563,688 ($573,369 after adjusting
for inventory change) (Table 1). The nurseries averaged 136,004 square
feet of bed and bench space of which 86,173 square feet were for growing
purposes and 49,831 were in stock plants. The square feet in bed and
bench space reflects net growing areas; roads, aisles or other non-pro-
ductive areas have been deducted from the gross square footage in the
greenhouse or growing areas. The nurseries averaged just over 27 full-
time equivalent employees. For this report a full-time equivalent repre-
sents 2,080 annual manhours. The employees include the operator and
office staff where applicable.
The average capital investment was $487,864. This amount reflects
the depreciated book value of the buildings, improvements, and machinery
and equipment. Growing plant inventory accounted for $197,044 of the
$487,864 capital investment, and investment in land accounted for $14,631.







The land is valued at the original purchase price. 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 percent of the wholesale
price is commonly used to value each plant.
Capital managed averaged $603,616. 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 $4.14 ($4.22 after adjusting for inventory changes) (Table 2).
On the basis of propagating and finishing space, the value of own plants
sold averaged $6.06 for the large nurseries and $7.63 for the smaller
nurseries. The cost per square foot of bed and bench space used for pro-
pagating and finishing (Table 9) averaged just over $6.53 for the large
and just over $7.75 for the smaller nurseries. Labor accounted for almost
$2.49 of the cost per square foot in the large nurseries and $2.13 per
square foot in the smaller nurseries. Labor is the single largest cost
item for the foliage nurseries representing 38 percent of the total cost
of the large operations and 27 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 almost $1.02 while the larger nur-
series had a cost of about $1.08. Excluding depreciation and interest cost,
the cost per dollar of sales was about $.88 and $.96 for the smaller and
larger nurseries, respectively.

Income Summary

Omitting an interest cost on the capital investment the 14 nurseries
averaged a return to capital of $28,205 which was 5.8 percent of the
capital owned in 1978. The smaller nurseries averaged 7.18 percent
return to capital while the large nurseries earned 4.93 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 $705,318 in 1978
down from $780,882 reported in 1977. The percent return to capital was
5.86 percent in 1978, down from the 1977 level of 18.93 percent. The
value of own plants sold per employee was $18,899 to 1978, down from the
1977 level of $20,288. Sales and plant inventory value decreased by an
average of $48,053, the first decrease reported since 1970. In general,
increasing costs in the eight continuing nurseries.apparently contributed
to a poorer financial performance in 1978 than in 1977.

MANAGEMENT APPLICATIONS


Employing the definitions provided above, nursery
this report by completing the column--"Your nursery."
compare their own production efficiency with nurseries
the business analysis.


managers can utilize
Managers can then
participating in








Table l.--Size of busir-ss, five large pnd nine smaller volume foliage
plant an- potted flowering plant nurseries in central Florida,
1978

Average Average Average
Item Unit all 14 5 large 9 smaller Your
nurseries nurseries nurseries nursery

The one best measure
Value of own plants sold $ 563,688 1,017,237 311,716

Other useful indicators
Value of own plants sold
adjusted for plant in-
ventory change $ 573,369 1,047,019 310,231
Total bed & bench space Sq.ft. 136,004 277,546 57,369
Bed & bench space for
propagating & finishing Sq.ft. 86,173 167,785 40,833
Bed & bench space for
stock plants Sq.ft. 49,831 109,762 16,536
Acre equiv. of prod.
bldgs. & other areas Acres 3.12 6.37 1.32
Employees during year
(full-time equiv.) No. 27.61 56.75 11.41

Capital owned:
Growing plants $ 197,044 339,291 118,019
Bldgs. & improvements $ 187,958 320,191 114,495
Machinery & equipment $ 41,268 60,651 30,499
Land $ 14,631 12,647 15,733
Supplies $ 46,964 114,343 9,531
Total owned $ 487,864 847,122 288,277

Capital managed:
Growing plants $ 197,044 339,291 118,019
Bldgs. & improvements $ 294,886 514,691 172,772
Machinery & equipment $ 41,268 60,651 30,499
Land $ 23,454 30,150 19,733
Supplies $ 46,964 114,343 9,531
Total managed $ 603,616 1,059,126 350,554


aThe five large volume
$600,000.


nurseries had annual sales of own plants exceeding


-.-1~








Table 2.--Rates of production, five large and nine smaller volume foliage
plant and potted flowering plant nurseries in central Florida, 1978

Average Average Average
Item all 14 5 large 9 smaller Your
nurseries nurseries nurseries nursery
--------------------Dollars---------------

The one best measure
Value of own plants.sold
per sq. ft. total bed &
bench space 4.14 3.67 5.43

Other useful indicators
Value own plants sold
adjusted for plant in-
ventory change per sq.
ft. total bed & bench
space 4.22 3.77 5.41
Value own plants sold per
sq.ft. of bed and bench
space used for propagating
& finishing 6.54 6.06 7.63
Value own plants sold
adjusted for plant in-
ventory change per sq.
ft. of propagating &
finishing bed & bench
space 6.65 6.24 7.60
Value own plants sold per
acre in production 180,541 159,652 236,685
Value own plants sold
adjusted for plant in-
ventory change per acre
in production 183,642 164,326 235,558


aNurseries with annual sales exceeding $600,000.










Table 3.--Labor efficiency, five large and nine smaller volume foliage plant
and potted flowering plant nurseries in central Florida, 1978

Average Average Average
Item Unit all 14 5 large 9 smaller Your
nurseries nurseries nurseries nursery

The one best measure
Value of own plants
sold per employee $ 20,416 17,925 27,320

Other useful indicators
Value of own plants
sold adjusted for
plant inventory
change.per employee $ 20,767 18,450 27,189
Total bed & bench
space per employee Sq.ft. 4,926 4,891 5,028
Propagating & fin-
ishing bed & bench
space per employee Sq.ft. 3,121 2,957 3,579


aNurseries with annual sales exceeding $600,000.


__ __ ___ ------ ---- --usrpr~i;.,,,,i;~,~-~,-tsar~l~bP~









Table 4.--The use of space, five largea and nine smaller volume foliage
plant and potted flowering plant nurseries in central Florida,
1978

Average Average Average
Item Unit all 14 5 large 9 smaller Your
nurseries nurseries nurseries nursery


Best measures

For intensity in use
of space
Plant inventory value
sold annually %286 300 264

For efficiency in use
of space
Bed & bench space
which was vacant % 4.31 4.31 4.28

Other useful indicators
Area total bed &
bench space Sq.ft. 136,004 277,546 57,369
Area of bed & bench
space used for propa-
gating & finishing Sq.ft. 86,173 167,785 40,833
Bed & bench space used
for propagating &
finishing % 63.36 60.45 71.18
Area bed & bench
space used for
stock plants Sq.ft. 49,831 109,762 16,536
Bed & bench space
used for stock
plants % 36.64 39.55 28.82
Area of bed & bench
space vacant Sq.ft. 5,855 11,974 2,456


aNurseries with annual sales exceeding $600,000.








Table 5.--Efficiency in use of capital, five
foliage plant and potted flowering
1978


largea and nine smaller volume
plant nurseries in central Florida,


Average Average Average
Item Unit all 14 5 large 9 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
employee in:
Growing plants
Bldgs. & improvements
Machinery & equipment
Land

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

Percent of capital
managed in:
Growing plants
Bldgs. & improvements
Machinery & equipment
Land
Supplies
Total


% 115.54


% 93.39


17,670
156,256


21,862
193,329


7,137
10,680
1,495
849


63,110
94,448
13,217
7,512


32.64
48.85
6.84
3.89
7.78
100.00


120.08


96.04


14,927
132,953


18,663
166,226


5,979
9,069
1,069
531



53,251
80,779
9,519
4,732


32.03
48.60
5.73
2.85
10.80
100.00


108.13


88.92


25,265
218,888


30,723
266,175


10,343
15,142
2,673
1,729


89,611
131,186
23,158
14,983


33.67
49.29
8.70
5.63
2,72
100.00


aNurseries with annual sales exceeding $600,000.


------------ .- -,-nr~a~rr-n sij*


~-~-- --









Table 6.--Average costs per nursery for various categories of expense, five
large and nine smaller volume foliage plant and potted flowering
plant nurseries in central Florida, 1978

Average Average Average
Item all 14 5 large 9 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


28,220
204,958
69,966
43,155
21,260

12,825
5,129
7,930
20,453
21,625

11,879
6,127
3,408
13,608
5,888

6,958
4,422
3,558
7,865
26,405
525,638


10,355
19,824
0
39,029
69,209


33,240
417,543
109,962
95,506
39,059

25,257
11,366
17,950
35,841
39,021

26,866
7,154
6,481
23,667
9,957

11,759
4,625
5,680
13,172
45,698
979,802


13,341
34,949
0
67,770
116,061


594,847 1,095,862


aNurseries with annual sales exceeding $600,000.


25,431
86,856
47,747
14,071
11,371

5,919
1,664
2,363
11,904
11,960

3,553
5,556
1,701
8,019
3,627

4,291
4,310
2,379
4,917
15,686
273,325


8,696
11,421
0
23,062
43,180

316,505








Table 7.--Percent of total costs for various categories of expense, five
large and nine smaller volume foliage plant and potted flowering
plant nurseries in central Florida, 1978

Average Average Average
Item all 14 5 large 9 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. & equip.
Depreciation bldgs., etc.
Inventory decreases, sup.
Interest on capital @ 8%
Total non-cash costs

Total all costs


4.74
34.46
11.76
7.25
3.57


2.16
.86
1.33
3.44
3.64

2.00
1.03
.57
2.29
.99

1.17
.74
.60
1.32
4.44
50.37


1.74
3.33
0
6.56
TT100.

100.00


3.03
38.10
10.03
8.72
3.56


2.30
1.04
1.64
3.27
3.56

2.45
.65
.59
2.16
.91

1.07
.42
.52
1.20
4.17
9714T


1.22
3.19
0
6.18

100.00


8.04
27.44
15.09
4.45
3.59


1.87
.53
.75
3.76
3.78

1.12
1.76
.54
2.53
1.15

1.36
1.36
.75
1.55
4.96
86.36


2.75
3.61
0
7.29

100.00


aNurseries with annual sales exceeding


$600,000.


- --- ~-


-- ---: --------u-w~--~r4 ~irr---~ -r~l
%








Table 8.--Average costs per square foot of total bed and bench space, five
large" and nine smaller volume foliage plant and potted flowering
plant nurseries in central Florida, 1978

Costs per sq. ft.
I teof total bed & bench space
tem All 14 5 large 9 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


20.75
150.70
51.44
31.73
15.63

9.43
3.77
5.83
15.04
15.90

8.73
4.50
.2.51
10.01
4.33

5.12
3.25
2.62
5.78
19.41
386.49



7.61
14.58
0
28.70
50.89

437.38


11.98
150.44
39.62
34.41
14.07

9.10
4.10
6.47
12.91
14.06

9.68
2.58
2.33
8.53
3.59

4.24
1.67
2.05
4.75
16.46
353.02



4.81
12.59
0
24.42
41.82

394.84


44.33
151.40
83.23
24.53
19.82

10.32
2.90
4.12
20.75
20.85

6.19
9.68
2.96
13.98
6.32

7.48
7.51
4.15
8.57
27.34
476.43



15.16
19.91
0
40.20
75.27

551.70


aNurseries with annual sales exceeding $600,000.


----


-----








Table 9.--Average costs per square foot of propagating and finishing bed and
bench space, five large and nine smaller volume foliage plant and
potted flowering plant nurseries in central Florida, 1978


Costs per sq. ft. of propagating
& finishing bed & bench space


All 14
nurseries


5 large
nurseries


9 smaller
nurseries


Your
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


aNurseries with annual sales exceeding $600,000.


Item


32.75
237.84
81.19
50.08
24.67

14.88
5.95
9.20
23.73
25.09

13.79
7.11
3.95
15.79
6.83

8.07
5.13
4.13
9.13
30.64
609.98


12.02
23.01
0
45.29
80.31

690.29


19.81
248.86
65.54
56.92
23.28

15.05
6.77
10.70
21.36
23.26

16.01
4.26
3.86
14.11
5.93

7.01
2.76
3.39
7.85
27.24
583.96


7.95
20.83
0
40.39
69.17

653.14


62.28
212.71
116.93
34.46
27.85

14.50
4.07
5.79
29.15
29.29

8.70
13.61
4.16
19.64
8.88

10.51
10.56
5.83
12.04
38.42
669.37


21.30
27.97
0
56.48
105.75

775.12


--I -- ci-l -.).~-P~I~-~CrSPIA"CIq









Table 10.--Average costs per dollar of sales with sales adjusted for plant
inventory change, five large and nine smaller volume foliage plant
and potted flowering plant nurseries in central Florida, 1978

Costs per dollar of sales with sales
adjusted for plant inventory change
Item
All 14 5 large 9 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


4.92
35.75
12.20
7.53
3.71

2.24
.89
1.38
3.57
3.77

2.07
.1.07
.59
2.37
1.03

1.21
.77
.62
1.37
4.61
91.68



1.81
3.46
0
6.81
12.07

103.75


3.17
39.88'
10.50
9.12
3.73

2.41
1.09
1.71
3.42
3.73

2.57
.68
.62
2.26
.95

1.12
.44
.54
1.26
4.36
93.58



1.27
3.34
0
6.47
11.08

104.67


8.20
28.00
15.39
4.54
3.67

1.91
.54
.76
3.84
3.86

1.15
1.79
.55
2.58
1.17

1.38
1.39
.77
1.58
5.06
88.10



2.80
3.68
0
7.43
13.92

102.02


aNurseries with annual sales exceeding $600,000.


----e








Table ll.--Average cost per dollar of sales without sales adjusted for plant
inventory change, five large and nine smaller volume foliage and
potted flowering plant nurseries in central Florida, 1978

Costs per dollar of sales without sales
adjusted for plant inventory change
Item
All 14 5 large 9 smaller Your
nurseries nurseries nurseries nursery
----------------Cents----------------


Cash costs
Operator's salary
Other wages & salaries
Plants & seed 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 and 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


5.01
36.36
12.41
7.66
3.77

2.28
.91
1.41
3.63
3.84

2.11
1.09
.60
2.41
1.04

1.23
.78
.63
1.40
4.68
93.25



1.84
3.52
0
6.92


105.53


3.27
41.05
10.81
9.39
3.84

2.48
1.12
1.76
3.52
3.84

2.64
.70
.64
2.33
.98

1.16
.45
.56
1.29
4.49
96.32



1.31
3.44
0
6.66
11.41

107.73


'8.16
27.86
15.32
4.51
3.65

1.90
.53
.76
3.82
3.84

1.14
1.78
.55
2.57
1.16

1.38
1.38
.76
1.58
5.03




2.79
3.66
0
7.40
13.85

101.54


aNurseries with annual sales exceeding $600,000.


--- -


--






17


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


large and nine smaller volume foliage plant
plant nurseries in central Florida, 1978


Average Average Average
Item Unit all 14 5 large 9 smaller Your
nurseries nurseries nurseries nursery

Value of production
& other gain
Value of own plants
sold $ 563,688 1,017,237 311,716
Inventory change,
own plants $ 9,682 29,781 -1,485
Inventory change
for supplies $ 9,337 20,063 3,378
Miscellaneous cash
income $ 1,316 2,732 529
Total gain $ 584,022 1,069,814 314,138

Cash costs less
operator's salary $ 497,418 946,562 247,893
Non-cash costs less
interest cost @ 8% $ 30,180 48,291 20,118
Total gross costs less
operator's salary and
interest costs @ 8% $ 527,597 994,853 268,011

Net nursery income $ 56,425 74,961 46,127
Value of operator's
salary $ 28,220 33,240 25,431
Return to capital $ 28,205 41,721 20,696
Return to capital % 5.78 4.93 7.18


aNurseries with annual sales exceeding $600,000.


.._








Table 13.--Seven factors associated with level of profit, six high profit


and eight lower profit foliage plant and potted
nurseries in central Florida, 1978


flowering plant


Average Average 6 Average 8
Factor Unit all 14 high profit lower profit Your
nurseries nurseries nurseries nursery


Level of profit
Net nursery income

Seven factors asso-
ciated with profit


$ 56,425


Size of business
Value of own plants sold

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

Intensity in use of
space
P iat 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 turn-
over annually


$ 563,688



$ 103.75


286



4.14


$ 20,416


% 115.54


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


$ -23,468


139,259


-5,700


786,935



95.28


331



4.57


23,172


117.08


396,252



116.86


238



3.64


17,349


113.32


15,480


-52,679






19


Table 14.--Degree of association between cost and efficiency factors and
level of profit, 14 foliage plant and potted flowering plant
nurseries in central Florida, 1978

Number & percent of the 6
highest profit nurseries
Factor which were in the top 6
for each factor

Number Percent


Level of profit
Net nursery income 6 100

Seven factors associated with
profit

Size of business
Value of own plants sold 5 83

Level of costs
Costs per $ sales plus
plant inventory change 5 83

Intensity in use of space
Percent of plant inventory
value turnover annually 5 83

Production rate
Value of own plants sold per
sq. ft. total bed & bench
space 3 50

Labor efficiency
Value of own plants sold
per employee 3 50

Efficiency in use of capital
Owned capital turnover annually 3 50

Growth in sales and inventory
Amount of increase in sales
and plant inventory value
from previous year 3 50









Table 15.--Range of figures on profit and the seven cost and efficiency
factors associated with profit, 14 foliage plant and potted
flowering plant nurseries in central Florida, 1978

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 $ 167,024 -55,589

Seven factors associ-
ated with profit

Size of business
Value of own
plants sold $ 1,242,734 110,051

Level of costs
Cost per $ sales
plus inventory
value change 89.10 116.84

Intensity in the use
of space
Plant inventory
value turnover
annually % 552 169

Production rate
Value of own plants
sold per sq.ft. of
total bed & bench
space $ 8.80 2.99

Labor efficiency
Value of own plants
sold per employee $ 31,091 15,000

Efficiency in use of
capital
Owned capital turn-
over annually % 209.00 78.52

Growth in sales and
inventory
Amount of increase
in sales & plant
inventory $ 64,716 -167,847


Y:





16,--Comparative business analysis for
figures for the years 1970, 1971,


the same seven foliage plant growers in central Florida
1972, 1973, 1974, 1975, 1976, 1977 and 1978


who furnished


Factr Ut Average for the same 7 nurseries in
Factor1970 1971 1972 1973 1974 1975 1976 1977 1978


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

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


33,828 60,267 77,154 130,584 134,710 85,654 150,123 129,773
13.95 26.22 30.06 40.19 26.71 11.97 22.98 18.93


$ 186,026 220,744 276,429 370,913 533,555 680,674 739,809


55,696
5.86


780,882 705,318


S 96.88 88.27 87.61 87.85 91.93 97.67 93.30 94.18 104.07


206


$ 1.24


1.31


1.60


244


2.11


297


2.88


373


4.41


420


4.03


399


4.18


331 -


3.90


$ 9,395 10,447 11,733 14,343 17,096 18',987 21,192 20,288 18,899


% 129.70 126.22 136.87 143.12 141.87 160.91 154.07 146.42 131.95


$ 18,361 60,499 48,107 110,481 167,484 95,506 87,006 68,226 -48,053


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


sq.ft. 213,911
% 3.30


240,825 244,901
2.71 2.91
a


248,485 241,223 222,915 209,557 186,617 180,628
2.89 2.85 3.38 3.33 2.48 3.95


Table


-----


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