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Business analysis of field nurseries in Florida
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 Material Information
Title: Business analysis of field nurseries in Florida
Series Title: Economic information report
Portion of title: Field nurseries in Florida
Physical Description: v. : ; 28 cm.
Language: English
Creator: Perkins, George R
Almeter, Carolyn A
Dasse, Frank A ( Frank Arthur ), 1933-
Gunter, Dan L
University of Florida -- Food and Resource Economics Dept
Publisher: Food and Resource Economics Dept., Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida
Place of Publication: Gainesville
Creation Date: 1973
Publication Date: 1975-
Frequency: annual
regular
 Subjects
Subjects / Keywords: Nurseries (Horticulture) -- Economic aspects -- Periodicals -- Florida   ( lcsh )
Ornamental plant industry -- Economic aspects -- Periodicals -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
statistics   ( marcgt )
serial   ( sobekcm )
 Notes
Dates or Sequential Designation: 1973-
General Note: Title from cover.
 Record Information
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: aleph - 000408265
oclc - 08145302
notis - ACF4733
System ID: UF00026323:00001

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


George R. Perkins
Carolyn Almeter


Economic Information


Report 29


Business Anal


ysis of


Field

Field


Nurseries in Florida, 1973


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


July 1975


/.. .^
, ,<* *


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ACKNOWLEDGMENTS


Special appreciation is expressed to the nurserymen who furnished

figures on their business operations on a confidential basis and for

the time they spent explaining them and answering questions. Thanks

are also due to the county extension agents who assisted in collecting

the data. It is hoped that the business analysis will give nurserymen

--those who did not participate in the program as well as those who did

--a useful basis of comparison for appraising their business and making

better management decisions.















TABLE OF CONTENTS

Page
ACKNOWLEDGMENTS .. . . . . i

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

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

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

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

DATA PRESENTATION... . . . .... .... 2

LIST OF TABLES

Table
1- Size of business, three large volume and three smaller
volume wholesale ornamental field nurseries in Florida,
1973 .. .. . . . .... 4

2 Rates of production, three large volume and three
smaller volume wholesale ornamental field nurseries
in Florida, 1973 . . . .. ... 5

3 Labor efficiency, three large volume and three
smaller volume wholesale ornamental field nurseries
in Florida, 1973 .. . . .. 5

4 Efficiency in use of capital, three large volume and
three smaller volume wholesale ornamental field
nurseries in Florida, 1973 . . . 6

5 Efficiency in use of space, three large volume and
three smaller volume wholesale ornamental field nur-
series in Florida,,1973 . . . ... 7

6 Comparison of certain cost and returns measures, three
large volume and three smaller volume wholesale orna-
mental field nurseries in Florida, 1973 . 8

7 Average dollar costs per nursery for various cate-
gories of expense, three large volume and three
smaller volume wholesale ornamental field nurseries
in Florida, 1973 . . . .. 9









Table Page
8 Percent of total costs for various categories
of expense, three large volume and three smaller
volume wholesale ornamental field nurseries in
Florida, 1973 . ... .. . 10

9 Average costs per square foot of production area,
three large volume and three smaller volume whole-
sale ornamental field nurseries in Florida, 1973 11

10 Average costs per square foot of plant sales
equivalent, three large volume and three smaller
volume wholesale ornamental field nurseries in
Florida, 1973..... .......... ... . 12

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

12 Average costs per dollar of sales without plant
inventory increase added to sales, three large
volume and three smaller volume wholesale ornamental
field nurseries in Florida, 1973 . ... .14

13 Income summary, three large volume and three smaller
volume wholesale ornamental field nurseries in
Florida, 1973 . . . . 15

14 Factors associated with level of profit, three high
profit and three lower profit wholesale ornamental
field nurseries in Florida, 1973 . ... .16

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

16 Range of figures on profits and eight factors associ-
ated with profits, six wholesale field nurseries in
Florida, 1973 . .... . . 18

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









LIST OF FIGURES


Figure
1 As the total score on the first eight factors in
Table 15 goes up, the profit usually goes down, six
field nurseries in Florida, 1973 . . .


Page















BUSINESS ANALYSIS OF FIELD NURSERIES IN FLORIDA, 1973


George R. Perkins and Carolyn Almeter


INTRODUCTION


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


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









Those nurseries having sales in excess of $150,000 were classified
as large volume operations and those having sales less than $60,000
were designated as small volume. Each table has figures selected as
"the one best measure" followed by "other useful indicators" which
may be significant to nurserymen.


DEFINITION OF TERMS


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

DATA PRESENTATION

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







3


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












Table. .-Size of business, three large volume and three smaller
volume wholesale ornamental field nurseries in Florida, 1973


Average Average Average
Items of cost all 6 3 large 3 smaller Your
nurseries nurseries nurseries nursery


One best measure
Value of own plants sold

Other useful indicators
Value own plants sold adjusted
for plant inventory change
Sq. ft. equivalent own
plants sold
Sq. ft. equivalent own
plants sold adjusted for
plant inventory change
Average sq. ft. of own
plants in production 2
Average acres equivalent of
own plants in production
Average number of employees


Capital owned
Growing plants
Land
Machinery & equipment
Bldgs., fences, wells, etc.
Supplies

Total owned capital

Capital managed
Growing plants
Land
Machinery & equipment
Bldgs., fences, well, etc.
Supplies

Total managed capital


$195,918 $335,534 $ 56,302 $



$200,563 $338,325 $ 62,800


397,390 734,664


406,810 740,775


,400,162

55.10
12.39


$287,674
54,364
19,701
4,335
1,880


4,316,932

99.10
21.35


$414,966
46,483
33,660
6,876
2,641


60,116


67,054

483,392

11.10
3.43


$160,382
62,245
5,741
1,794
1,119


$


$367,954 $504,625 $231,282 $


$287,674 $414,966 $160,382 $
97,103 131,962 62,245
19,701 33,660 5,741
5,095 8,396 1,794
1,880 2,641 1,119

$411,453 $591,624 $231,282 $


aNurseries with annual sales of own plants in excess of $150,000.

Nurseries with annual sales of own plants less than $60,000.











a
Table 2.--Rates of production, three large volume and
volume wholesale ornamental field nurseries


three smaller
in Florida, 1973


Average Average Average
Item all 6 3 large 3 smaller Your
nurseries nurseries nurseries nursery


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

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


7,212


7,413


5,417 sq. ft.


$ 3,556 $ 3,386 $ 5,074 $


$ 3,640 $ 3,414 $ 5,659 $


Table 3.--Labor efficiency, three large volume and three smaller volume
wholesale ornamental field nurseries in Florida, 1973


Average Average Average
Item all 6 3 large 3 smaller Your
nurseries nurseries nurseries nursery


One best measure
Value of own plants sold
per employee

Other useful indicators
Value own plants sold adjusted
for plant inventory change
per employee
Sq. ft. equivalent of own
plants sold per employee
Sq. ft. equivalent own plants
sold adjusted for plant
inventory change per
employee
Average sq.-ft. in pro-
duction per employee


$ 15,813 $ 15,716 $ 16,415 $


$ 16,187 $ 15,847 $ 18,309 $


32,073



32,834


34,410



34,697


193,718 202,198 1


17,527 sq. ft.



19,549 sq. ft.

.40,931 sq. ft.


aNurseries with annual sales of own plants in excess of $150,000.

bNurseries with annual sales of own plants less than $60,000.












Table 4.--Efficiency in use ofbcapital, three large volume and
three smaller volume wholesale ornamental field nurseries
in Florida, 1973


Average Average Average
Item all 6 3 large 3 smaller Your
nurseries nurseries nurseries nursery


One best measure
Percent turnover of owned
capital annually

Other useful indicators
Percent turnover of managed
capital annually


53.25



47.62


66.49



56.71


24.34



24.34


Capital owned
Per employee
Per acre

Capital managed
Per employee
Per acre


Capital managed investment
per employee in.
Plants
Land
Machinery & equipment

Capital managed investment
per acre in
Plants
Land
Machinery & equipment

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

Total


$ 29,698
6,678


$ 33,208
7,467


$ 23,218
7,837
1,590



$ 5,221
1,762
358


69.92
23.60
4.79
1.24
.46


100.00


$ 23,636
5,092


$ 27,711
5,970



$ 19,436
6,181
1,577



$ 4,187
1,332
340


70.14
22.30
5.69
1.42
.45


100.00


$ 67,429 $
20,842


$ 67,429 $
20,842


$ 46,759
18,147
1,674



$ 14,453
5,609
517


$





$


69.34
26.91
2.48
.78
.48


100.00 %


aNurseries with annual sales of own plants exceeding $150,000.

bNurseries with annual sales of own plants less than $60,000.

























Table 5.--Efficiency in use of space, three large volumea and three
smaller volume wholesale ornamental field nurseries in
Florida, 1973


Average Average Average
Item all 6 3 large 3 smaller Your
nurseries nurseries nurseries nursery


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

Other useful indicators
Sq. ft. equivalent of own
plants sold per acre in
production
Sq. ft. equivalent of own
plants sold adjusted for
plant inventory increase
per acre in production
Average value of plant
inventory per acre in
production


16.56




7,212



7,383


17.02




7,413



7,475


12,44 %


5,417



6,042


sq. ft.



sq. ft.


$ 5,221 $ 4,187 $ 14,453 $


aNurseries with annual sales of own plants exceeding $150,000.

Nurseries with annual sales of own plants less than $60,000.




















Table 6.--Comparison of certain cost and returns measures, three large
volume and three smaller volume wholesale ornamental field
nurseries in Florida, 1973


Average Average Average
Item all 6 3 large 3 smaller Your
nurseries nurseries nurseries nursery

-----------------Cents--------------
Returns
Value of own plants sold
per sq. ft. of plant sales
equivalent 49.30 45.67 93.66

Costs
Total costs per sq. ft. of
plant sales equivalent 42.07 37.55 97.27

Difference between
Value own plants sold and
costs per sq. ft. of plant
sales equivalent 7.23 8.12 -3.61

Price goal
Prices per sq. ft. of plant
sales equivalent which would
have been required to yield
a 15% return on investment
(not including plant inventory
increase as part of return) 50.40 43.73 131.89


aNurseries with annual sales of own plants exceeding $150,000.

bNurseries with annual sales of own plants less than $60,000.












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


Average Average Average
Items of cost all 6 3 large 3 smaller Your
nurseries nurseries nurseries nursery

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

Cash costs
Operator's salary 17,040 22,666 11,413
Other wages & salaries 57,889 101,803 13,975
Plants & seeds to grow on 2,391 2,279 2,503
Cans & other growing containers 2,009 2,988 1,030
Peat, soil, shavings, etc. 48 0 96
Fertilizer & lime 579 1,063 95
Pesticides & other chemicals 518 864 172
Other production supplies 19,307 37,569 1,045
Repairs & maintenance 7,952 15,396 509
Equipment operating costs 6,358 11,463 1,254
Travel & entainment 1,078 1,264 893
Insurance 5,656 10,318 994
Telephone 440 547 333
Electricity 1,152 2,001 303
Taxes, licenses & bonds 3,901 6,171 1,631
Advertising 731 1,096 367
Rent--land and/or buildings 3,809 6,318 1,300
Other cash expenses 5,048 9,355 742

Total cash costs 135,908 233,160 38,656

Non-cash costs
Depreciation machinery & equipment 6,595 11,299 1,891 _
Depreciation buildings 2,593 1,136 4,050
Inventory decrease on supplies 0 0 0
Interest on capital @ 6% 22,077 30,278 13,877

Total non-cash costs 31,265 42,712 19,818
Tonal all costs 167,173 275,872 58,473


aNurseries with annual sales of own plants exceeding $150,000.

bNurseries with annual sales of own plants less than $60,000.






10




Table 8.--Percent of total costs for various categories of expense,
three large volume and three smaller volume wholesale
ornamental field nurseries in Florida, 1973


Average Average Average
Items of cost all 6 3 large 3 smaller Your
nurseries nurseries nurseries nursery

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

Cash costs
Operator's salary 10.19 8.22 19.52
Other wages & salaries 34.63 36.90 23.90
Plants & seeds to grow on 1.43 0.83 4.28
Cans & other growing containers 1.20 1.08 1.76
Peat, soil, shavings, etc. 0.03 0.0 0.16
Fertilizer & lime .0.35 0.39 0.16
Pesticides & other chemicals 0.31 0.31 0.29
Other production supplies 11.55 13.62 1.79
Repairs & maintenance 4.76 5.58 0.87
Equipment operating costs 3.80 4.16 2.14
Travel & entertainment 0.65 0.46 1.53
Insurance 3.38 3.74 1.70
Telephone 0.26 0.20 0.57
Electricity 0.69 0.73 0.52
Taxes, licenses & bonds 2.33 2.24 2.79
Advertising 0.44 0.40 0.63
Rent--land and/or buildings 2.28 2.29 2.22
Other cash expenses 3.02 3.39 1.27

Total cash cost 81.30 84.52 66.11

Non-cash costs
Depreciation machinery & equipment 3.94 4.10 3.23
Depreciation buildings 1.55 0.41 6.93
Inventory decrease on supplies 0.0 0.0 0.0
Interest on capital @ 6% 13.21 10.98 23.73


Total non-cash costs
Total all costs


18.70 15.48 33.89
100.00 100.00 100.00


aNurseries with annual sales of own plants exceeding $150,000.

bNurseries with annual sales of own plants less than $60,000.












Table 9.--Average costs per square foot ofbproduction area, three large
volume and three smaller volume wholesale field nurseries in
Florida, 1973


Average Average Average
Items of cost all 6 3 large 3 smaller Your
nurseries nurseries nurseries nursery

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

Cash costs
Operator's salary 0.71 0.53 2.36
Other wages & salaries 2.41 2.36 2.89
Plants & seeds to grow on 0.10 0.05 0.52
Cans & other growing containers 0.08 0,07 0.21
Peat, soil, shavings, etc 0.00 0.00 0.02
Fertilizer & lime 0.02 0.02 0.02
Pesticides & other chemicals 0.02 0.02 0.04
Other production supplies 0.80 0.87 0.22
Repairs & maintenance 0.33 0.36 0.11
Equipment operating costs 0.26 0.27 0.26
Travel & entertainment 0.04 0.03 0.18
Insurance 0.24 0.24 0.21
Telephone 0.02 0.01 0.07
Electricity 0.05 0.05 0.06
Taxes, licenses & bonds 0.16 0.14 0.34
Advertising 0.03 0.03 0.08
Rent--land and/or buildings 0.16 0.15 0.27
Other cash expenses 0.21 0.22 0.15


Total cash costs

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

Total non-cash costs
Total all costs


5.66 5.40 8.00


0.27 0.26 0.39
0.11 0.03 0.84
0.0 0.0 0.0
0.92 0.70 2.87

1.3-0 0.99 4.10
6.97 6.39 12.10


aNurseries with annual sales of own plants exceeding $150,000.

bNurseries with annual sales of own plants less than $60,000.













Table 10.--Average costs per square foot
three large volume and three
ornamental field nurseries in


a
of plant sales equivalent ,
smaller volume wholesale
Florida, 1973


Average costs
Items of cost per sq. ft. plant sales equivalent
Items of cost All 6 3 large 3 smaller Your
nurseries nurseries nurseries nursery

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


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

Total cash cost


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


Total non-cash costs
Total all costs


4.19
14.23
0.59
0.49
0.01
0.14
0.13
4.75
1.95
1.56
0.27
1.39
0.11
0.28
0.96
0.18
0.94
1.24


3.06
13.74
0.31
0.40
0.0
0.14
0.12
5.07
2.08
1.55
0.17
1.39
0.07
0.27
0.83
0.15
0.85
1.26


17.02
20.84
3.73
1.54
0.14
0.14
0.26
1.56
0.76
1.87
1.33
1.48
0.50
0.45
,2.43
0.55
1.94
1.11


33.41 31.48 57.65


1.62 1.53 2.82
0.64 0.15 6.04
0.0 0.0 0.0
5.43 4.09 20.70

7.69 5.77 29.55
41.09 37.24 87.20


aIn this case, the square feet equivalent of plant sales is shown as
the fourth item in Table 1. It is not just the portion represented by the
plants actually sold during the year, as in Table 6, but to that has been
added the square feet represented by the plant inventory increase during
the year.

bNurseries with annual sales of own plants exceeding $150,000.

cNurseries with annual sales of own plants less than $60,000.













Table ll.--Average costs per dollar of sales with plant inventory increase
added to sales, three large volume and three smaller volume
wholesale ornamental field nurseries in Florida, 1973


Items of cost


Average costs per $ sales with plant
inventory increase added to sales
All 6 3 large 3 smaller Your
nurseries nurseries nurseries nursery


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


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

Total cash costs

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

Total non-cash costs
Total all costs


8.50
28.86
1.19
1.00
0.02
0.29
0.26
9.63
3.96
3.17
0.54
2.82
0.22
0.57
1.95
0.36
1.90
2.52


6.70
30.09
0.67
0.88
0.0
0.31
0.26
11.10
4.55
3.39
0.37
3.05
0.16
0.59
1.82
0.32
1.87
2.76


18.17
22.25
3.99
1.64
0.15
0.15
0.27
1.66
0.81
2.00
1.42
1.58
0.53
0.48
2.60
0.58
2.07
1.18


67.76 68.92 61.55


3.29 3.34 3.01
1.29 0.34 6.45
0.0 0.0 0.0
11.01 8.95 22.10I

15.59 12.62 31.56
83.35 81.54 93.11


aNurseries with annual sales of own plants exceeding $150,000.

bNurseries with annual sales of own plants less than $60,000.













Table 12.--Average costs per dollar of sales without plant inventory
increase added to sales, three large volume and three
smaller volume wholesale ornamental field nurseries in
Florida, 1973


Items of cost


Average costs per $ sales without plant
inventory increase added to sales
All 6 3 large: 3 smaller Your
nurseries nurseries nurseries nursery


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


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

Total cash costs

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

Total non-cash costs
Total.all costs


8.70
29.55
1.22
1.03
0.02
0.30
0.26
9.85
4.06
3.25
0.55
2.89
0.22
0.59
1.99
0.37
1.94
2.58


6.76
30.34
0.68
0.89
0.0
0.32
0.26
11.20
4.59
3.42
0.38
3.08
0.16
0.60
1.84
0.33
1.88
2.79


20.27
24.82
4.45
1,83
0.17
0.17
0.31
1.86
0.90
2.23
1.59
1.77
0.59
0.54
2.90
0.65
2.31
1.32


69.37 69.49 68.66


3.37 3.37 3.36
1.32 0.34 7.19
0.0 0.0 0.0
11.27 9.02 24.65

15.96 12.73 35.20
85.33 82.22 103.86


aNurseries with annual sales of own plants exceeding $150,000.

bNurseries with annual sales of own plants less than $60,000.











Table 13.--Income summary, three large volumea and three smaller volume
wholesale ornamental field nurseries in Florida, 1973


Average Average Average
Item all 6 3 large 3 smaller Your
nurseries nurseries nurseries nursery

Value of production & other gain
Value of own plants sold $195,918 $335,534- $ 56,302 $
Inventory change own plants 4,644 2,791 6,497
Inventory increase for supplies 581 418 743
Miscellaneous cash income 424 185 662

Total gain $201,567 $338,929 $ 64,205 $

Cash costs less operator's salary $118,868 $210,494 $ 27,242 $
Non-cash costs (Table 7) 31,265 42,712 19,818

Total gross costs $150,133 $253,206 $ 47,060 $

Labor, income $ 51,434 $ 85,723 $ 17,145 $
Interest on investment (Table 7) 22,077 30,278 13,877 $
Nursery "farm income" 73,511 116,001 31,022 $
Operator's salary (Table 7) 17,040 22,666 11,413 $
Net return 34,394 63,057 5,732 $
Return to capital $ 56,472 $ 93,334 $ 19,609 $_
Percent return to capital 15.35% 18.50% 8.48% %


Cents per square foot of production area

Labor income 2 2 4
Nursery "farm income" 3 3 6
Net return 1 1 1
Return to capital 2 2 4


Cents per square foot of plant sales equivalent

Labor income 13 12 26
Nursery "farm income" 18 16 46
Net return 8 9 9
Return to capital 14 13 29

aNurseries with annual sales of own plants exceeding $150,000.
Nurseries with annual sales of own plants exceeding $150,000.
bNurseries with annual sales of own plants less than $60,000.

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












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


3 high 3 lower
Factor profit profit Your
nurseries nurseries nursery

Profit
Nursery farm income $116,001 $ 31,022 $

Size of business
Value of own plants sold $335,534 $ 56,302 $

Level of cost
Cost per dollar of sales and
plant inventory value increase 79 98 ___

Labor efficiency
Value of own plants sold
per employee $ 14,963 $ 16,440

Sales price level
Difference between sales value
and costs per sq. ft. of plant
sales equivalent 7.37 1.47? _

Sales & inventory gain
Gain in sales & plant inventory
value from previous year $ 24,617 $-42,712

Production rate
Sq. ft. equivalent own plants
sold per acre in production 9,505 11,511 sq. ft

Capital use efficiency
Percent of capital turnover 60.94 34.28. %

Space use efficiency
Percent plant turnover 21.82 26.43 %











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


Number and percent of the Rank of your
3 highest profit nurseries nursery
which were in the best 3 on each
on each factor factor

Number Percent
Profit
Nursery farm income 3 100


Size of business
Value of own plants sold 3 100

Level of cost
Cost per dollar of sales and plant
inventory value increase 2 67

Labor efficiency
Value of own plants sold
per employee 1 33

Sales price level
Difference between sales value
and costs per square foot of
plant sales equivalent 2 67

Sales and inventory gain
Gain in sales and plant inventory
value from previous year 2 67

Production rate
Square foot equivalent own plants
sold per acre in production 2 67

Capital use efficiency
Percent of capital turnover 2 67

Space use efficiency
Percent of plant turnover 2 67

Total score for your nursery
above eight factors











Table 16.-Range of figures on profits and eight factors associated
with profits, six wholesale field nurseries in Florida,
1973


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


Profit
Nursery farm income 116,001 31,022 $

Size of business
Value of own plants sold 335,534 56,302 $

Level of cost
Cost per dollar of sales and plant
inventory value increase 74 104 _

Labor efficiency
Value of own plants sold
per employee 18,323 13,080

Sales price level
Difference between sales value
and costs per square foot of
plant sales equivalent 8.72 -2.81 _

Sales & inventory gain
Gain in sales and plant inventory
value from previous year 33,340 -51,435

Production rate
Square foot equivalent own plants
sold per acre in production 16,246 4,770 sq. ft.

Capital use efficiency
Percent of capital turnover 64.19 31.03 %

Space use efficiency
Percent plant turnover 37.30 10.95 %






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


Average for the same nurseries in: .
Factor Unit 1968 1969 1970 1971 1972 1973


Profit
Nursery farm income
Percent return to capital

Size of business
Value of o-wn plants sold

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


27,796
11.59


$ 52,695


33,074
14.46


59,786


36,297
14.37


77,722


34,653
11.73


80,677


58,091
21.04


66,420
18.70


91,133 120,730


Labor efficiency
Value of own plants sold
per employee $

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

Sales & inventory
Gain in sales
value from previous year $

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


Capital use efficiency
Percent of capital turnover

Space use efficiency
Percent plant turnover


5,791




-4.90



8,155


3,349


% 28.52


% 7.69


6,817




-4.38



13,373



4,516


32.12


9,037




2.38



3,643



5,221


37.75


10.37 11.99


9,936




2.63



-2,548



4,139


37.41


9,810




4.47



30,398



5,495


37.37


11,836




4.19



23,574



7,149


45.14


9.50 12.61 16.41










50


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o 3

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40
Ca




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CO
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I 0

m 2 0
0 1

0
U

1I
S10 -

EF II I I I I
0 1 2 3 4 5 6

high low
Rank in level of profit


Figure l.--As the total score on the first eight factors in Table 15 goes
up, the profit usually goes down, six field nurseries in Florida,
1973