Front Cover
        Front cover
    Acknowledgement
        Page i
    Table of Contents
        Page ii
        Page iii
    Introduction
        Page 1
    Description of terms
        Page 2
    Observations and commentary
        Page 2
        Page 3
    Data presentation
        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
        Page 22

ACKNOWLEDGMENTS


Special appreciation is expressed to the field nurserymen who
participated in the program by making available data on their busi-
ness operations on a confidential basis, Thanks also are due for
the time they spent explaining when questions arose. Appreciation
is expressed to the county agents, Louis Daigle and Jim Cummings
for their assistance during the data gathering stage. It is sin-
cerely hoped that these data will be useful to all nurserymen--
those who participated as well as those who did not--when they
appraise their business as well as when they must make management
decisions.








TABLE OF CONTENTS

Page

ACKNOWLEDGMENTS . . . . ... . i

LIST OF TABLES . . . .. .. ii

LIST OF FIGURES . . . . ... . iii

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

DEFINITION OF TERMS . . . . . 2

OBSERVATIONS AND COMMENTARY . .... . . 2

DATA PRESENTATION . . . . ... . 4


LIST OF TABLES

Table Page

1 Size of business, three large volume and three smaller
volume wholesale ornamental field nurseries in
Florida, 1974 . . . . ... 5
2 Rates of production, three large volume and three smaller
volume wholesale ornamental field nurseries in
Florida, 1974 . . . . ... . 6
3 Labor efficiency, three large volume and three smaller
volume wholesale ornamental field nurseries in
Florida, 1974 . . . . ... 6
4. Efficiency in use of capital, three large volume and
three smaller volume wholesale ornamental field nurseries
in Florida, 1974 . . . . . 7
5 Efficiency in use of space, three large volume and
three smaller volume wholesale ornamental field nurseries
in Florida, 1974 . . . .... 8
6 Comparison of certain cost and returns measures, three
large volume and three smaller volume wholesale ornamental
field nurseries in Florida, 1974 . . . 9
7 Average dollar costs per nursery for various categories
of expense, three large volume and three smaller volume
wholesale ornamental field nurseries in Florida, 1974 10





LIST OF TABLES (Continued)

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, 1974 . .. 11
9 Average costs per square foot of production area, three
large volume and three smaller volume wholesale orna-
mental field nurseries in Florida, 1974 . .... 12
10 Average costs per square foot of plant sales equivalent,
three large volume and three smaller volume wholesale
ornamental field nurseries in Florida, 1974 . ... 13
11 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, 1974 . . . . ... ... 14
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, 1974 . . . . .. .. ... .15
13 Income summary, three large volume and three smaller
volume wholesale ornamental field nurseries in Florida,
1974 . . . . . . 16
14 Eight factors associated with level of profit, three high
profit and three lower profit wholesale ornamental field
nurseries in Florida, 1974 . . . . .17
15 Degree of association between certain factors and level of
profit, six wholesale ornamental field nurseries in
Florida, 1974 . . . . .. .. ... .18
16 Range of figures on profits and eight factors associated
with profits, six wholesale ornamental field nurseries
in Florida, 1974 . . . . ... ... 19
17 Comparison of business analysis factors for five years, same
four wholesale ornamental field nurseries in Florida, which
have furnished data for 1970, 1971, 1972, 1973 and 1974 20

LIST OF FIGURES
Figure Page

1 The relationship of profit to total score on the eight
factors in Table 15 . . . ... 21








BUSINESS ANALYSIS OF FIELD NURSERIES IN FLORIDA: 1974


Frank A. Dasse and Carolyn Almeter


INTRODUCTION


This is another in the line of business analysis reports which
was started by Dr. E. W. "Ned" Cake a number of years ago. The pur-
pose in the beginning was and still is threefold: (1) to furnish
data to the cooperating nurserymen which indicate various economic
or statistical measures that they may use in judging their own opera-
tions and compare with that of their peers; (2) to supply data to all
nurserymen in Florida so that they may make meaningful decisions in
their own operations; and (3) to provide to extension personnel and
other professionals, information which they can use in farm manage-
ment decisions involving nurserymen in their area.
This is by no means a statistical sample of.field nurseries.
The six nurserymen who contributed to this report joined the program
a number of years ago and elected to continue. The data presented
refer to the 1974 tax year, which may not conform in all cases to the
1974 calendar year.
In order to assemble the tabulation of data which are presented
as averages later in this report, a minimum number of figures were
sought from the contributing nurserymen. From these data the tables
were constructed. Each table has an analysis of an important facet
of the field nursery business first shown as the "one best measure"
then followed by a number of "other useful indicators." The tables
also include and depict the averages of "large" and "smaller" nur-
series. For the purposes of this report a division was made at
$250,000 of plant sales for the year.


FRANK A. DASSE was an assistant research scientist in the Food and
Resource Economics Department. CAROLYN ALMETER is a statistical aide in
the Food and Resource Economics Department.







DEFINITION OF TERMS


Most of the terms used in the tables are self-explanatory. They have
been used similarly in past reports. For those who are not familiar with
the terminology a number of definitions are presented.
Value of own plants sold--This represents the total plant sales
minus the cost of plants purchased for immediate resale. Plants pur-
chased for growing-on are not deducted.
Square foot equivalent of own plants sold--Each piece of material
sold is credited with taking up a specific amount of land space expressed
in square feet depending upon field spacing.
Percent turnover of capital annually--A ratio which is derived by
dividing the value of own plants sold by the total capital employed in
the enterprise.
Percent of production area turnover annually--The square foot equiv-
alent of own plants sold divided by the total production area of the
nursery.
Labor income--The residual when total costs less operator's salary
are deducted from total gains.
Nursery "farm income"--This is labor income plus the imputed return on
investment calculated in non-cash costs.
Net return--Labor income less operator's salary or total gain less
total costs.
Return to capital--Nursery farm income less operator's salary.
Percent return to capital--Return to capital divided by total owned
capital.

OBSERVATIONS AND COMMENTARY


The nursery farm income for the "average" field nursery in the 1974
survey was $128,493 generated from sales and inventory changes of
$335,629, a 38.3 percent ratio. The ultimate return to capital for the
average firm was $108,640 or a 22.02 percent return. These are indeed
outstanding results in a year of economic slow down in Florida, as well
as the rest of the country.







DEFINITION OF TERMS


Most of the terms used in the tables are self-explanatory. They have
been used similarly in past reports. For those who are not familiar with
the terminology a number of definitions are presented.
Value of own plants sold--This represents the total plant sales
minus the cost of plants purchased for immediate resale. Plants pur-
chased for growing-on are not deducted.
Square foot equivalent of own plants sold--Each piece of material
sold is credited with taking up a specific amount of land space expressed
in square feet depending upon field spacing.
Percent turnover of capital annually--A ratio which is derived by
dividing the value of own plants sold by the total capital employed in
the enterprise.
Percent of production area turnover annually--The square foot equiv-
alent of own plants sold divided by the total production area of the
nursery.
Labor income--The residual when total costs less operator's salary
are deducted from total gains.
Nursery "farm income"--This is labor income plus the imputed return on
investment calculated in non-cash costs.
Net return--Labor income less operator's salary or total gain less
total costs.
Return to capital--Nursery farm income less operator's salary.
Percent return to capital--Return to capital divided by total owned
capital.

OBSERVATIONS AND COMMENTARY


The nursery farm income for the "average" field nursery in the 1974
survey was $128,493 generated from sales and inventory changes of
$335,629, a 38.3 percent ratio. The ultimate return to capital for the
average firm was $108,640 or a 22.02 percent return. These are indeed
outstanding results in a year of economic slow down in Florida, as well
as the rest of the country.








There are considerable ranges, of course, in the results. The
division of large and smaller nurseries was somewhat arbitrarily set
to allow three nurseries in each category. Anonymity of the indivi-
dual nurseryman could therefore be assured. Even with that division
the nursery farm income percentages were very comparable.
The major difference observed between the two groups was in the
area of efficiency in the use of capital. The larger nurseries had
a capital turnover 2.4 times that of the smaller nurseries. When im-
puting an 8 percent return on capital, which is not a large return to
capital considering the risks involved in nursery operation, a large
part of the difference in costs, between large and small operations
per square foot of production area is accounted for. There were also
differences noted in production area turnover in favor of the larger
nurseries although by no means as large.
The general cash cost picture between the large and smaller
firms is not great. If the smaller firms can squeeze out a better
capital sales ratio it appears that the small nursery is operating
reasonably well in all efficiency measures when compared to the
large operator.
When observing the table presenting the results over five years
from the same four nurseries it is apparent that these field nurseries
were not affected by the economic slow down. Sales by the four
nurseries rose from an average of $350,000 in 1973 to $450,000 in
1974, an increase of 29 percent. Costs per dollar of sales de-
creased from 94 cents to 78 cents. Part of this can be seen in an
improvement of labor efficiency where the value of sales went up
from $16,800 per employee in 1973 to $18,500 in 1974. Space use
efficiency continued to increase as measured by the production area
turnover which rose from 17.7 percent in 1973 to 19.1 percent in
1974.
In almost all discussions of demand for field nursery plant
material, house and building construction activities are considered
important in explaining the amount of plant material actually sold.
Five of these nurseries were located in Broward and Dade counties
which appeared to be as much affected by a slow down in construction








activities as any of the rest of the state. Either the nurseries in this
survey were much more aggressive in their marketing activities and took away
sales from other competing nurseries or there is another important factor
in the demand for field plant material which needs to be recognized. It
appears that some work in the demand analysis is necessary to be able to
do any predictions regarding the future outlook.

DATA PRESENTATION


The data in Tables 1 through 13 relate to the size of the business,
rates of production, labor efficiency, capital efficiency, space effici-
ency, costs and returns, income and other factors for nurseries classi-
fied by volume of sales. Various analyses relating to profit are shown
in Tables 14, 15 and 16 and the divisions used in those tables relate to
size of profit.
Table 17 denotes profit indicators for nurseries which have been
included in the study since 1970. Most nurseries cooperating in the
program made progress. It is not claimed that the progress made is due
to their participation in this business analysis program. The study
does, however, show each cooperating nursery how it compares with respect
to each factor in the analysis.
In Figure 1 each nursery is ranked by nursery farm income and sum-
mary of the factors associated with profit. As the total score goes
up, the total profit goes down. The upward sloping line indicated that
those nurseries which score poorly on certain management factors also
rank low on profits.










Table l.--Size of business, three large volume and three smaller
volume wholesale ornamental field nurseries in Florida, 1974

Average Average Average
Item 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. equiv. own plants sold
Sq. ft. equiv. own plants sold
adj. for plant inven. change
Average sq. ft. of own plants
in production
Average acres equiv. 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, wells,
Supplies


etc.


Total managed capital


$317,611 $536,301 $ 98,921


$335,192
503,091


$571,464
862,086


$ 98,921
144,095


$



$


530,940 918,610 144,095

2,759,994 4,711,188 808,800

63.36 108.15 18.57
17.08 29.24 4.93


$400,972
48,225
30,344
10,730
3.004


$594,777
32,461
40,979
11,803
5.142


$207,167
63,988
19,708
9,658
867


$493,274 $685,162 $301,387 $


$400,972 $594,777 $207,167 $
95,964 127,940 63,988
30,344 40,979 19,708
11,490 13,323 9,658
3,004 5,142 867
$541,774 $782,160 $301,387 $


aNurseries with annual sales of own plants in excess of $250,000.







Table 2.--Rates of production, three large volumea and three smaller
volume wholesale ornamental field nurseries in Florida, 1974

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 prod. 7,940 7,971 7,761

Other useful indicators
Value of own plants sold
per acre in production $5,013 $4,959 $5,328 $
Value own plants sold adj.
for plant inventory change
per acre in production $5,290 $5,284 $5,328 $




Table 3.--Labor efficiency, three large volume and three smaller
volume wholesale ornamental field nurseries in Florida, 1974

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 $ 18,595 $ 18,341 $ 20,065 $

Other useful indicators
Value own plants sold adj.
for plant inven. change
per employee $ 19,625 $ 19,544 $ 20,065 $
Sq. ft. equiv. of own plants
sold per employee 29,455 29,483 29,228
Sq. ft. equiv. own plants
sold adj. for plant inven.
change per employee 31,085 31,416 29,228
Average sq. ft. in pro-
duction per employee 161,592 161,121 164,057

aNurseries with annual sales of own plants in excess of $250,000.









Table 4.--Efficiency in use of capital, three
smaller volume wholesale ornamental
Florida, 1974


large volume and three
field nurseries in


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 of turnover of managed
capital annually
Capital owned:
Per employee
Per acre
Capital managed:
Per employee
Per acre
Capital managed investment
per employee in:
Plants
Land
Machinery & equipment
Capital managed investment
per acre in:
Plants
Land
Machinery & equipment
Percent of capital managed in:
Plants
Land
Machinery & equipment
Bldgs., wells, fences, etc.
Supplies
Total


64.39% 78.27% 32.82%



58.62% 68.57% 32.82%


$28,880
7,785

$31,720
8,551


$23,476
5,619
1,777


$ 6,328
1,515
479

74.01%
17.71
5.60
2.12
0.55


$23,432
6,335

$26,750
7,232


$20,341
4,376
1,401


$ 5,499
1,183
379

76.04%
16.36
5.24
1.70
0.66


$61,133
16,232

$61,133
16,232


$42,022
12,979
3,998


$11,157
3,446
1,061

68.74%
21.23
6.54
3.20
0.29


100.00 100.00 100.00


aNurseries with annual sales of own plants exceeding $250,000


$


$



$



$




















Table 5.--Efficiency in use of space, three large volumea and three
smaller volume wholesale ornamental field nurseries in
Florida, 1974

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 18.23% 18.30% 17.82%

Other useful indicators
Sq. ft. equivalent of own
plants sold per acre in prod. 7,940 7,971 7,761
Sq. ft. equivalent of owii plants
sold adj. for plant inven.
increase per acre in production 8,380 8,494 7,761
Average value of plant inventory
per acre in production $ 6,328 $ 5,499 $11,157 $


aNurseries with annual sales of own plants exceeding $250,000.
















Table 6.--Comparison of certain cost and returns measures, three large
volume and three smaller volume wholesale ornamental field
nurseries in Florida, 1974


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

Returns ----------------Cents---------------
Value of own plants sold per
sq. ft. of plant sales equiv. 63.13 62.21 68.65

Costs
Total costs per sq. ft. of
plant sales equivalent 52.96 50.63 66.94

Difference between
Value own plants sold and
costs per sq. ft. of plant
sales equivalent 10.17 11.58 1.71

Price goal
Prices per sq. ft. of plant
sales equiv. which would have
been required to yield a 15%
return on investment (not including
plant inventory increase as part
of return) 59.83 56.19 81.58

aNurseries with annual sales of own plants exceeding $250,000.










Table 7.--Average dollar costs per nursery for various categories of
expense, three large volume and three smaller volume wholesale
ornamental field nurseries in Florida, 1974


Average Average Average
Items of cost all 6 3 large 3 smaller Your
nurseries nurseries nurseries nursery
------------Dollars-----------------
Cash costs
Operator's salary 19,853 22,483 17,223
Other wages & salaries 87,119 147,108 27,130
Plants & seeds to grow on 8,538 16,765 311
Cans & other growing containers 1,476 2,952 0
Peat, soil, shavings, etc. 1,864 3,728 0
Fertilizer and lime 4,770 8,081 1,458
Pesticides & other chem. 1,480 2,451 508
Other prod. supplies 21,923 42,690 1,157
Repairs & maintenance 12,168 22,468 1,868
Equipment oper. costs 7,372 12,904 1,840
Travel & entertainment 1,831 2,661 1,001
Insurance 7,312 11,796 2,827
Telephone 1,107 1,826 388
Electricity 1,153 1,875 430
Taxes, licenses & bonds 7,919 13,895 1,943
Advertising 1,639 2,888 389
Rent-land and/or building 9,250 16,900 1,600
Other cash expenses 18,951 31,410 6,491
Total cash costs 215,724 364,884 66,564

Non-cash costs
Depreciation mach. & equipment 9,531 14,414 4,648
Depreciation buildings 1,735 2,331 1,139
Inventory decrease on supplies 0 0 0
Interest on capital @8% 39,462 54,813 24,111
Total non-cash costs 50,728 71,557 29,898

Total all costs 266,452 436,441 96,462


aNurseries with annual sales of own plants exceeding


$250,000.





11






Table 8.--Percent of total costs for various categories of expense, three
large volume and three smaller volume wholesale ornamental
field nurseries in Florida, 1974


Average Average Average
Item of cost all 6, 3 large 3 smaller Your
nurseries nurseries nurseries nursery

------------Percent-----------------
Cash costs
Operator's salary 7.45 5.15 17.85
Other wages & salaries 32.70 33.71 28.12
Plants & seeds to grow on 3.20 3.84 0.32
Cans & other growing containers 0.55 0.68 0.00
Peat, soil, shavings, etc. 0.70 0.85 0.00
Fertilizer and lime 1.79 1.85 1.51
Pesticides & other chem. 0.56 0.56 0.53
Other prod. supplies 8.23 9.78 1.20
Repairs & maintenance 4.57 5.15 1.94
Equipment oper. costs 2.77 2.96 1.91
Travel & entertainment 0.69 0.61 1.04
Insurance 2.74 2.70 2.93
Telephone 0.42 0.42 0.40
Electricity 0.43 0.43 0.45
Taxes, licenses & bonds 2.97 3.18 2.01
Advertising 0.61 0.66 0.40
Rent-land and/or building 3.47 3.87 1.66
Other cash expenses 7.11 7.20 6.73
Total cash expenses 80.96 83.60 69.01

Non-cash costs
Depreciation mach. & equipment 3.58 3.30 4.82
Depreciation buildings 0.65 0.53 1.18
Inventory decrease on supplies 0.00 0.00 0.00
Interest on capital @8% 14.81 12.56 25.00
Total non-cash costs 19.04 16.40 30.99

Total all costs 100.00 100.00 100.00

aNurseries with annual sales of own plants exceeding $250,000.













Table 9.--Average costs per square foot of production area, three large
volume and three smaller volume wholesale ornamental field
nurseries in Florida, 1974


Item of cost


Average Average Average
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 and lime
Pesticides & other chemicals
Other production supplies
Repairs & maintenance
Equipment oper. 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 mach. & equipment
Depreciation buildings
Inventory decrease on supplies
Interest on capital @8%
Total non-cash costs

Total all costs


0.72
3.16
0.31
0.05
0.07
0.17
0.05
0.79
0.44
0.27
0.07
0.26
0.04
0.04
0.29
0.06
0.34
0.69
7.82


0.35
0.06
0.00
1.43
1.84

9.65


0.48
3.12
0.36
0.06
0.08
0.17
0.05
0.91
0.48
0.27
0.06
0.25
0.04
0.04
0.29
0.06
0.36
0.67
7.75


0.31
0.05
0.00
1.16
1.52

9.26


2.13
3.35
0.04
0.00
0.00
0.18
0.06
0.14
0.23
0.23
0.12
0.35
0.05
0.05
0.24
0.05
0.20
0.80
8.23


0.57
0.14
0.00
2.98
3.70


11.93


aNurseries with annual sales of own plants exceeding $250,000.


~


---








Table 10.--Average costs per square foot of plant sales equivalent,
three large volume and three smaller volume wholesale
ornamental field nurseries in Florida, 1974

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

----------------Cents-----------------
Cash costs
Operator's salary 3.74 2.45 11.95
Other wages & salaries 16.41 16.01 18.83
Plants & seeds to grow on 1.61 1.83 0.22
Cans & other growing containers 0.28 0.32 0.00
Peat, soil, shavings, etc. 0.35 0.41 0.00
Fertilizer and lime 0.90 0.88 1.01
Pesticides and other chemicals 0.28 0.27 0.35
Other production supplies 4.13 4.65 0.80
Repairs & maintenance 2.29 2.45 1.30
Equipment oper. costs 1.39 1.40 1.28
Travel & entertainment 0.34 0.29 0.69
Insurance 1.38 1.28 1.96
Telephone 0.21 0.20 0.27
Electricity 0.22 0.20 0.30
Taxes, licenses & bonds 1.49 1.51 1.35
Advertising 0.31 0.31 0.27
Rent-land and/or buildings 1.74 1.84 1.11
Other cash expenses 3.57 3.42 4.50
Total cash costs 40.63 39.72 46.19

Non-cash costs
Depreciation mach. equipment 1.80 1.57 3.23
Depreciation buildings 0.33 0.25 0.79
Inventory decrease on supplies 0.00 0.00 0.00
Interest on capital @8% 7.43 5.97 16.73
Total non-cash costs 9.55 7.79 20.75

Total all costs 50.18 47.51 66.94


aln this case, the square foot equivalent of plant sales are shown
as item 4 in Table 1.

bNurseries with annual sales of own plants exceeding $250,000.




14






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, 1974

Average costs per $ sales with plant
Item of cost 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 and 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 mach. & equipment
Depreciation buildings
Inventory decrease on supplies
Interest on capital @8%
Total non-cash costs

Total all costs


5.92
25.99
2.55
0.44
0.56
1.42
0.44
6.54
3.63
2.20
0.55
2.18
0.33
0.34
2.36
0.49
2.76
5.65
64.36


2.84
0.52
0.00
11.77
15.13

79.49


3.93
25.74
2.93
0.52
0.65
1.41
0.43
7.47
3.93
2.26
0.47
2.06
0.32
0.33
2.43
0.51
2.96
5.50
63.85


2.52
0.41
0.00
9.59
12.52

76.37


17.41
27.43
0.31
0.00bo
0.00
1.47
0.51
1.17
1.89
1.86
1.01
2.86
0.39
0.43
1.96
0.39
1.62
6.56
67.29


4.70
1.15
0.00
24.37
30.22

97.51


aNurseries with annual sales of own plants exceeding $250,000.


---











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, 1974


Item of cost


Cash costs
Operator's salary
Other wages & salaries
Plants & seeds to grow on
Cans & other growing containers
Peat, soil, shavings, etc.
Fertilizer and 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 mach. & equipment
Depreciation buildings
Inventory decrease on supplies
Interest on capital @8%
Total non-cash costs


Total all costs


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


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


6.25
27.43
2.69
0.46
0.59
1.50
0.47
6.90
3.83
2.32
0.58
2.30
0.35
0.36
2.49
0.52
2.91
5.97
67.92


3.00
0.55
0.00
12.42
15.97

83.89


4.19
27.43
3.13
0.55
0.70
1.51
0.46
7.96
4.19
2.41
0.50
2.20
0.34
0.35
2.59
0.54
3.15
5.86
68.04


2.69
0.43
0.00
10.22
13.34

81.38


17.41
27.43
0.31
0.00
0.00
1.47
0.51
1.17
1.89
1.86
1.01
2.86
0.39
0.43
1.96
0.39
1.62
6.56
67.29


4.70
1.15
0.00
24.37
30.22

97.51


aNurseries with annual sales of own plants exceeding $250,000.


~


--


--









Table 13.--Income summary, three large volume and three smaller volume
wholesale ornamental field nurseries in Florida, 1974

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 317,611 536,301 98,921 $
Inventory change own plants 17,582 35,163 0
Inventory increase for supplies 242 383 100
Miscellaneous cash income 195 390 0
Total gain 335,629 572,238 99,021 $

Cash costs less operator's salary 195,871 342,400 49,341 $
Non-cash costs 50,728 71,557 29,898
Total gross costs 246,598 413,958 79,239 $

Labor income 89,031 158,280 19,782 $
Interest on investment 39,462 54,813 24,111 $
Nursery "farm income" 128,493 213,093 43,893 $
Operator's salary 19,853 22,483 17,223 $
Net return 69,178 135,797 2,558 $
Return to capital 108,640 190,610 26,669 $
Percent return to capital 22.02% 27.82% 8.85% %

Cents per square foot of production area

Labor income 3 3 2
Nursery "farm income" 5 5 5
Net return 3 3 0
Return to capital 4 4 3

Cents per square foot of plant sales equivalent

Labor income 17 17 14
Nursery "farm income" 24 23 30
Net return 13 15 2
Return to capital 20 21 19

aNurseries with annual sales of own plants exceeding $250,000.

bIn this case, plant sales equivalent is item 4 shown in Table 1.













Table 14.--Eight factors associated with level of profit, three high
profit and three lower profit wholesale ornamental field
nurseries in Florida, 1974

3 High 3 Lower
Factor profit profit Your
nurseries nurseries nursery

Profit
Nursery farm income $216,243 $ 40,742 $
1. Size of business
Value of own plants sold $473,345 $161,877 $
2. Level of cost
Cost per $ of sales and plant
inventory value increase 79 0 ___
3. Labor efficiency
Value of own plants sold
per employee $ 18,621 $ 19,070 $
4. Sales price level
Difference between sales
value and costs per sq. ft.
of plant sales equivalent 14.48t -17.77 _
5. Sales and inventory gain
Gain in sales & plant inven.
value from previous year $170,183 $ 7,899 $
6. Production rate
Sq. ft. equiv. own plants
sold per acre in production 9,470 7,533
7. Capital use efficiency
Percent of capital turnover 80.77% 30.53% %
8. Space use efficiency
Percent plant turnover 21.74% 17.29% %











Table 15.--Degree of association between certain factors and level of
profit, six wholesale ornamental field nurseries in Florida,
1974

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

Number Percent
Profit
Nursery farm income 3 100
start adding here

1. Size of business
Value of own plants sold 2 67

2. Level of cost
Cost per $ of sales and plant
inventory value increase 3 100

3. Labor efficiency
Value of own plants sold
per employee 1 33

4. Sales price level
Difference between sales value
and costs per sq. ft. of
plant sales equivalent 3 100

5. Sales & inventory gain
Gain in sales & plant inven-
tory value from previous year 2 67

6. Production rate
Sq. ft. equivalent own plants
sold per acre in production 1 33

7. Capital use efficiency
Percent of capital turnover 3 100

8. Space use efficiency
Percent of plant turnover 1 33

Total score for your nursery on Factors 1 thru 8





19







Table 16.--Range of figures on profits and eight factors associated
with profits, six wholesale ornamental field nurseries in
Florida, 1974

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

Profit
Nursery farm income $216,243 $ 40,742 $

1. Size of business
Value of own plants sold $536,301 $ 98,921 $

2. Level of cost
Cost per $ of sales & plant
inventory value increase 79t 110t

3. Labor efficiency
Value of own plants sold
per employee $ 23,607 $ 14,084 $

4. Sales price level
Difference between sales
value & costs per sq. ft. of
plant sales equivalent 14.48t -17.77t

5. Sales & inventory gain
Gain in sales & plant inven.
value from previous year $175,551 $ 2,531 $

6. Production rate
Sq. ft. equiv. own plants
sold per acre in production $ 11,500 $ 5,503 $

7. Capital use efficiency
Percent of capital turnover 80.77% 30.53% %

8. Space use efficiency
Percent plant turnover 26.40% 12.63% %




Table 17.--Comparison of business analysis factors for five years, same four wholesale ornamental
nurseries in Florida, which have furnished data for 1970, 1971, 1972, 1973 and 1974


field


Factor Average for the same 4 nurseries in
1970 1971 1972 1973 1974

Profit
Nursery farm income $121,666 $103,269 $207,641 $105,956 $181,302
Percent return to capital 31.14% 20.32% 36.10% 12.54% 25.92%
1. Size of Business
Value of own plants sold $175,410 $213,731 $303,353 $349,769 $450,664
2. Level of cost
Cost per $ sales and plant
inventory value increase 67t 80 63 944 78t
3, Labor efficiency
Value of own plants sold
per employee $ 11,208 $ 11,750 $ 15,610 $ 16,848 $ 18,546
4. Sales price level
Difference between sales value
and costs per sq. ft. of plant
sales equivalent 0.80t 5.82t 8.254 2.914 11.06t
5. Sales & inventory gain
Gain in sales & plant inventory
value from previous year $ 89,533 -$ 15,008 $162,118 -$ 45,653 $125,174
6. Production rate
Sq. ft. equivalent own plants
sold per acre in production 5,853 sq.ft. 4,426 sq.ft. 6,886 sq.ft. 7,715 sq.ft. 8,337 sq.ft.
7. Capital use efficiency
Percent of capital turnover 48.43% 49.11% 57.73% 60.59% 75.13%
8. Space use efficiency
Percent plant turnover 13.44% 10.16% 15.81% 17.71% 19.14%
















.-- 4
C4-
04


--
40 -


35

o




u 25
20

Q.
o -
4--
S 15

3



40 1 2 3 4 5 6

High Low

Rank in level of profit

Figure l.--The relationship of profit to total score on the eight factors
in Table 15.
4- ^




4- ^ ^ ^ 1














in Table 15.