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Business analysis of foliage nurseries in Florida
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Permanent Link: http://ufdc.ufl.edu/UF00026340/00001
 Material Information
Title: Business analysis of foliage nurseries in Florida
Series Title: Economic information report
Portion of title: Foliage nurseries in Florida
Physical Description: 4 v. : ; 27 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 Fla
Creation Date: 1973
Publication Date: 1975-1977
Frequency: annual
regular
 Subjects
Subjects / Keywords: Nurseries (Horticulture) -- Economic aspects -- Periodicals -- Florida   ( lcsh )
Foliage plant industry -- Economic aspects -- Periodicals -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
statistics   ( marcgt )
serial   ( sobekcm )
 Notes
Dates or Sequential Designation: 1973-1976.
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 - 000408266
oclc - 08153514
notis - ACF4734
System ID: UF00026340:00001
 Related Items
Succeeded by: Business analysis of foliage nurseries in central Florida
Succeeded by: Business analysis of foliage nurseries in south Florida

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





HISTORIC NOTE


The publications in this collection do
not reflect current scientific knowledge
or recommendations. These texts
represent the historic publishing
record of the Institute for Food and
Agricultural Sciences and should be
used only to trace the historic work of
the Institute and its staff. Current IFAS
research may be found on the
Electronic Data Information Source
(EDIS)

site maintained by the Florida
Cooperative Extension Service.






Copyright 2005, Board of Trustees, University
of Florida





George R. Perkins
Carolyn Almeter


Information


Report 35
-.-:-i'


4O1"6


Business Analysis of Foatige


Nurseries


in Florida, 1973


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


August 1975


Economic




























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. .... . . . . .... 3


LIST OF TABLES


Table
1 Size of business, five large volume and six smaller volume
foliage plant and potted flowering plant nurseries in
Florida, 1973 . . * * 4

2 Rates of production, five large volume and six smaller
volume foliage plant and potted flowering plant nurseries
in Florida, 1973 ..... ... . . . 5

3 Labor efficiency, five large volume and six smaller volume
foliage plant and potted flowering plant nurseries in
Florida, 1973 . . . . ... .. 6

4 The use of space, five large volume and six smaller volume
folia2e plant and potted flowering plant nurseries in
Florida, 1973 ....... . ............... 7

5 Efficiency in use of capital, five large volume and six
smaller volume foliage plant and potted flowering plant
nurseries in Florida, 1973. ... . . .... 8

6 Average costs per nursery for various categories of expense,
five large volume and six smaller volume foliage plant and
potted flowering plant nurseries in Florida, 1973 .. 9








LIST OF TABLES (Continued)


Table Page
7 Percent of total costs for various categories of expense,
five large volume and six smaller volume foliage plant and
potted flowering plant nurseries in Florida, 1973. ... .10

8 Average costs per square foot of total bed and bench space,
five large volume and six smaller volume foliage plant and
potted flowering plant nurseries in Florida, 1973. 11

9 Average costs per square foot of propagating and finishing
and bench space, five large volume and six smaller volume
foliage plant and potted flowering plant nurseries in Flor-
ida, 1973 ... ... . . . 12

10 Average costs per dollar of sales with sales adjusted for
plant inventory change, five large volume and six smaller
volume foliage plant and potted flowering plant nurseries
in Florida, 1973 . .. . ... . 13

11 Average costs per dollar of sales without sales adjusted
for plant inventory change, five large volume and six
smaller volume wholesale foliage plant and potted flowering
plant nurseries in Florida, 1973 . . .... 14

12 Income summary, five large volume and six smaller volume
foliage plant and potted flowering plant nurseries in
Florida, 1973 . . . .... ..... 15

13 Seven factors associated with level of profit, five high
profit and six lower profit foliage plant and potted
flowering plant nurseries in Florida, 1973 . ... 16

14 Degree of association between certain factors and level of
profit, 11 foliage plant and potted flowering plant nur-
series in Florida, 1973. . . ... .. 17

15 Range of figures on profit and seven factors associated,
11 foliage plant and potted flowering plant nurseries in
Florida, 1973. . . . ... ..... 18

16 Comparison of business analysis factors for the same
Florida foliage plant growers who furnished figures for
the years 1968, 1969, 1970, 1971, 1972, and 1973 .... .19









LIST OF FIGURES


Figure PM
1 As the total score on the first seven factors in Table 14
goes up, the profit usually goes down, 11 foliage nurseries,
Florida, 1973 ................... 20















BUSINESS ANALYSIS OF FOLIAGE NURSERIES IN FLORIDA, 1973


George R. Pcr'kins and CaroJya AlMeter


IN REDUCTION


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. Ea:h year some new nurseries wishing to par-
ticipate are included in the analysis and those desiring to discontinue
are eliminated. The data refer to the 1973 tax year which may, in some
instances, not strictly conf.,rm to the 1973 calander 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. The figures were classified into two major
sections. The first major section contains averages for nurseries
by the level or volume produced. The second section 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.
Those nurseries having sales in excess of $355,000 were classified
as large volume operations and those having sales less than $286,000
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.


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.









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.


DATA PRESENTATION



The data in Tables 1 through 12 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 13, 14, and 15.
Table 16 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
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 the analysis.





3


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 indicates
that those nurseries which score poorly on certain management factor
also rank Inw on profits.










Table L--Size of
foliage


business, five large volume and six smaller volume
plant and potted flowering plant nurseries in


Florida, 1973


Average Average Average
Item all 11 5 large 6 smaller Your
nurseries nurseries nurseries nursery


The one best measure
Value of own plants sold

Other useful indicators
Value own plants sold adjusted
for plant inventory change
Total sq. ft. bed & bench
space
Sq. ft. bed & bench space for
propagating & finishing
Sq. ft. of bed & bench space
for stock plants


$373,530 $606,448 $179,432 $



$388,520 $630,233 $187,092 $

157,962 263,341 70,146 sq. f

76,836 112,138 47,418 sq. f


81,126 151,203


Total sq. ft. in production buildings
& other production areas 226,658
Average acres equivalent production
buildings & other production areas 5.20
Average number of employees during
year 23.70


Capital owned
Growing plants
Bldgs., wells, improvements
Machinery & equipment
Land
Supplies
Total owned

Capital managed
Growing plants
Bldgs., wells, improvements
Machinery & equipment
Land
Supplies
Total managed


$129,865
68,700
28,300
13,052
10, 085
$250,003


$129,865
74,853
28,934
17,297
10,086


375,839

8.63

38.63


$208,744
103,489
41,869
9,661
13,161
$376,924


$208,744
114,714
41,869
18,761
13,161


22,728 sq. f

102,341 sq. f


2.35

11.26


$ 64,133
39,709
16,992
15,878
7,524
$144,235


$ 64,133
41,636
18,154
16,078
7,524


acres


$


$


$


$261,036 $397,249 $147,526 $


aThe five large volume nurseries each had annual sales of own plants
exceeding $355,000.

bThe six smaller vol.uie nurseries each had annual sales of own plants
below $286,000.


--











Table 2.--Rates of production, five large volume and six smaller volume
foliage plant and potted flowering plant nurseries in Florida,
1973


Average Average Average
Item all 11 5 large 6 smaller Your
nurseries nurseries nurseries nursery

One best measure ---------------Dollars---------------
One best measure
Value own plants sold per sq.
ft. total bed & bench space 2.36 2.30 2.56 $

Other useful indicators
Value own plants sold adjusted
for plant inventory change per
sq. ft. total bed & bench space 2.46 2.39 2.67 $
Value own plants sold per sq. ft.
of bed & bench space used for
propagating & finishing 4.86 5.41 3.78 $
Value own plants sold adjusted
for plant inventory change per
sq. ft. of propagating & finishing
bed & bench space 5.06 5.62 3.95 $
Value own plants sold per acre
in production 71,786 70,288 76,373 $
Value own plants sold adjusted
for plant inventory change per
acre in production 74,667 73,044 79,633 $


Nurseries with annual sales exceeding $355,000.
b
Nurseries with annual sales less than $286,000.











Table 3.--Labor efficiency, five large volume and six smaller volume
foliage plant and potted flowering plant nurseries in
Florida, 1973


Average Average Average
Item all 11 5 large 6 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 inven-
tory change per employee
Sq. ft. of total bed &
bench space per employee
Sq. ft. of propagating &
finishing bed space per
employee
Total sq. ft. in production
bldgs. & other production
areas per employee


$15,761 $15,699 $15,935 $


$16,393 $16,315


6,665


3,242


9,564


6,817


2,093


9,729


$16,616 $

6,230 sq.


4,211


9,089


aNurseries with annual sales exceeding $355,000.

Nurseries with annual sales less than $286,000.












Table 4.--The use of space, five large volumea and six smaller volumeb
foliage plant and potted flowering plant nurseries in Florida,
1973


Average Average Average
all 11 5 large 6 smaller Your
nurseries nurseries nurseries nursery


The one best measure ;

For intensity in use of space
Percent of plant inventory
value sold annually

For efficiency in use of space
Percent of bed & bench
space which was vacant

Other useful indicators
Sq. ft. in production bldgs.
& other production areas
Sq. ft. total bed & bench
space
Percent of production bldgs. &
other production areas in bed
R bench space
Sq. ft. of bed & bench
space used for propaga-
ting and finishing
Percent of bed & bench space
used for propagating &
finishing
Sq. ft. bed & bench space
used for stock plants
Percent bed & bench space
used.for stock plants
Sq. ft. of bed & bench
space which was vacant


288.%


3.12%


291.%


280.%


1.98%


6.68% %


226,658 375,839 102,341 sq. ft.


157,962 263,341


69.69


70.07


76,836 112,138


48.64


42.58


81,126 151,203


51.36

4,928


57.42

5,216


a
Nurseries with annual sales exceeding $355,000.

bNurseries with annual sales less than $286,000.


70,146


68.54


47,418


67.60

22,728


___sq. ft.


sq. ft.


sq. ft.


32.40 %

4,688 sq. ft.











a
Table 5.--Effici ncy in use of capital, five large volume and six smaller
volume foliage plant and potted flowering plant nurseries in
Florida, 1973


Average
all 11
nurseries


Average
5 large
nurseries


Average
6 smaller Your
nurseries nurrery


One best measure
Percent of owned capital
turnover annually

Other useful indicators
Percent of managed capital
turnover annually

Capital owned
Per employee
Per acre

Capital managed
Per employee
Per acre

Managed capital per
employee in
Plants
Bldgs., wells, improvements
Machinery & equipment
Land

Managed capital per acre in
Plants
Bldgs., wells, improvements
Machinery & equipment
Land

Percent of capital managed in
Plants
Bldgs., wells, improvements
Machinery & equipment
Land
Supplies
Total


149.41% 160.89% 124.40%



143.4% 152.66% 121.63%


$10,549
48,046


$ 9,757
43,686


$12,810
61,392


$
$


$11,014. $10,283 '$13,102 $
50,167 46,041 62,792 $.


$ 5,480
3,158
1,221
730


$24,958
14,386
5,561
3,324


49.75%
28.68
11.08
6.63
3.86


$ 5,404
2,970
1,084
486


$24,194
13,295
4,853
2,174


52.55%
28.88
10.54
4.72
3.31


$ 5,696
3,698
1,612
1,428


$27,297
17,722
7,727
6,843


43.47%
28.22
12.31
10.90
5.10


$



$
$/


100.00% 100,00% 100.00%


"Nurseries with annual sales exceeding $355,000.

Nurseries with annual sales less than $286,000.


Item


_ I__1~


_______ ____ I I_ _


--











Table 6.--Average costs per nursery for various categories of expense,
five large volume and six smaller volume foliage plant and
potted flowering plant nurseries in Florida, 1973


Average Average Average
Items of cost all 11 5 large 6 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 producing heat
Peat? soil, shavings, etc.
Fertilizer & limei;;.
Pesticides & other chemicals
Packing boxes & supplies
Other production supplies
Repairs & maintenance
Equipment operating costs
Travel & entertainment
Insurance
Telephone
Electricity
Taxes, licenses & bonds
AdverLising
Rent--lnd 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%


Tqtal non-cash costs
Total all costs


26,488 40,662 14,677 $
109,472 181,939 49,083
34,807 57,986 15,492
20,944 32,417 11,384
7,666 10,945 4,935__
7,561 13,206 2,857
2,367 3,867 1,117
3,220 4,498 2,155
20,257 32,279 10,239
5,734 7,911 3,919
13,011 17,835 8,991
2,090 2,021 2,148
1,865 3,047 879
7,121 10,331 4,447
3,066 5,493 1,044
2,733 3,807 1,839
13,820 28,159 1,870
1,021 2,048 165
4,356 8,283 1,083
11,936 21,844 3,679
299,535 488,578 141,998 $


7,420
7,822
0
15,000


10,152
10,898
0
22,615


5,143
5,259
0
8,65A


$


30,242 43,666 19,056 S
329,777 532,244 161,055 $


a
Nurseries with annual sales exceeding $355,000.
b
Nurseries with annual sales less than $286,000.






10





Table 7.--Percent of total costs for various categories of expense,
five large volumea and six smaller volume foliage plant and
potted flowering plant nurseries in Florida, 1973


Items of cost


Average
all 11
nurseries


Average
5 large
nurseries


Average
6 smaller Your
nurseries nursery


---------------Percent.------------


Cash costs
Operator's salary
Other wages & salaries
Plants & seeds to grow on
Pots, growing containers
Fuel oil for producing heat
Peat, soil, shavings, etc.
Fertilizer & lime
Pesticides & other chemicals
Packing joxes & supplies
Other prod. supplies
Repairs & maintenance
Equipment oper. cost
Travel & entertainment.
Insurance
Telephone
Electricity
Taxes, licenses, bonds
Advertising
Pent--land ard/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


2.25 1.91 3.19
2.37 2.05 3.27
0 0 0
4.55 4.25 5.37
9.1.7 8.20 11.83
100.00 100.00 100.00


aNurseries with annual sales exceeding $355,000.

Nurseries with annual sales less than $286,000.


8.03
33.20
10.55
6.35
2.32
2.29
.72
.98
6.14
1.74
3.95
.63
.57
2.16
.93
.83
4.19
.31
1.32
3.62


90.83


7.64
34.18
10.89
6.09
2.06
2.48
.73
.85
6.06
1.49
3.35
.38
.57
1.94
1.03
.72
5.29
.38
1.56
4.10
91.80


9.11
30.48
9.62
7.07
3.06
1.77
.69
1.34
6.36
2.43
5.58
1.33
.55
2.76
.65
1.14.
1.16
.10
.67
2.28
88.17


- :"


---


--- ----------e -











Table 8.--Average costs per square foot of total be! and bench space,
five large volume and six smaller volume' foliage plant and
potted flowering plant nurseries in Florida, 1973


Costs per sq. ft.
of total bed & bench space
Items f cot All 11 5 large 6 smaller Your
nurseries nurseries nurseries nursery

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

Cash costs
Operator's salary 16.77 15.44 20.92 C
Other wages & salaries 69.30 69.09 69.97
Plants & seeds to grow on 22.04 22.02 22.08
Pots, growing containers 13.26 12.31 16.23
Fuel oil for producing heat 4.85 4.16 7.03
Peat, soil, shavings, etc. 4.79 5.01 4.07
Fertilizer & lime 1.50 1.47 1.59
Pesticides & other chemicals 2.04 1.71 3.07
Packing boxes, supplies 12.82 12.26 14.60
Other production supplies 3.63 3.00 5.59
Repairs & maintenance 8.24 6.77 12.82
Equipment operating costs 1.32 .77 3.06
Travel & entertainment 1.18 1.16 1.25
Insurance 4.51 3.92 6.34
Telephone 1.94 2.09 1.49
Electricity 1.73 1.45 2.62
Taxes, licenses, bonds 8.75 10.69 2.67
Advertising .65 .78 .23
Eent--iand and/or buildings 2.76 3.15 1.54
Other cash expenses 7.56 8.30 5.24
To"al cash costs 189.62 185.53 202.43

Non-cash costs
Depreciation machinery & equipment 4.70 3.86 7.33
Depreciation buildings 4.95 4.14 7.50
Inventory decrease supplies 0 0 0
Interest on capital @ 6% 9.50 8.59 12.34
Total non-cash costs 19.15 16.58 27.17
Total all costs 208.77 202.11 229.60

Nurseries with annual sales exceeding $355,000.

Nu-series with annual sales less than $286,000.











Table 9.--Average costs per square foot of propagating and finishing and
a b
bench space, five large volume and six smaller volume foliage
plant and potted flowering plant nurseries in Florida, 1973


Costs per sq. ft.
Sof prop. & fin. bed & bench space
All 11 5 large 6 smaller Your
nurseries nurseries nurseries nursery

-.--------------- Cents--------------

Cash costs
Operator's salary 34.47 36.26 30.95 C
Other wages & salaries 142.A7 162.25 103,51
Plants & seeds to grow on 45.30 51.71 32.67
Pots, growing containers 27.26 28.91 24.01
Fuel oil for producing heat 9.98 9.76 10.41
Peat, soil, shavings, etc. 9.84 11.78 6.02
Fertilizer & lime 3.08 3.45 2.35
Pesticides & other chemicals 4.19 4.01 4.54
Packing boxes & supplies 26.36 28.79 21.59
Other production supplies 7.46 7.05 8.27
Repairs & maintenance 16.93 15.90 18.96
Equipment operating costs 2.72 1.80 4.53
STravel & entertainment 2.43 2.72 1.85
Insurance 9.27 9.21 9.38
T -i ophin, 3.99 4.90 2.20
Electricity 3.56 3.39 3.88
Taxes, licenses, bonds 17.99 25.11 3.94
Advertising 1.33 1.83 .35
Rent--land and/or buildings 5.67 7.39 2.28
Other cash expenses 15.53 19.48 7.76
Totol cash costs 389.84 435.69 299.46

Non-cash costs
Depreciation machinery & equipment 9.66 9.05 10.85
Depreciation buildings 10.18 9.72 11.09 __
Inventory decrease on supplies 0 0 0 __
Interest on capital @ 6% 19.52 20.17 18.25


Total non-cash costs
Total all costs

a


39.36 38.94 40.19
429.19 474.63 339.65 C


Nurseries with annual sales exceeding $355,U00.

bNurseries with annual sales less than $286,000.













Table 10.--Average costs per dollar of sales with sales adjusted for
plant inventory change, five large volume and six smaller
volume foliage plant and potted flowering plant nurseries in
Florida, 1973
Costs per $ sales with sales
Items of cost adjusted for plant inventory change

All 11 5 large 6 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 producing heat
Peat, soil, shavings, etc.
Fertilizer & lime
Pesticides & other chemicals
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 buildings
Inventory decrease on supplies
Interest on capital @ 6%

Total non-cash costs
Total all costs


6.82
28.18
8.96
5.39
1.97
1.95
.61
.83
5.21
1.48
3.35
.54
.48
1.83
.79
.70
3.56
.26
1.12
3.07


6.45
28.87
9.20
5.14
1.74
2.10
.61
.71
5.12
1.26
2.83
.32
.48
1.64
.87
.60
4.47
.33
1.31
3.47


7.84
26.23
8.28
6.08
2.64
1.53
.60
1.15
5.47
2.09
4.81
1.15
.47
2.38
.56
.98
1.00
.09
.58
1.97


77.10 77.52 75.90


1.91 1.61 2.75
2.01 1.73 2.81
0 0 0 __
3.86 3.59 4.63


7.78
84.88


6.93
84.45


10.19
86.08


Nurseries with annual sales exceeding $355,000.

Nurseries with annual sales less than $286,000.


--


---~









~---c




---*e











Table 11,--Average costs per dollar of sales without sales adjusted for
plant inventory change, five large volume and six smaller vonure.
wholesale foliage plant and potted flowering plant nurseries
in Florida, 1973


Costs per $ sales without sales
Items of cost adjusted for plant inventory change
All 11 5 large 6 smaller
nurseries nurseries nurseries nursery

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

Cash costs
Operator's salary 7.09 6.70 8.18
Other wages & salaries 29.31 30.00 27.35
Plants & seeds to grow on 9.32 9.56 8.63
Pots, growing containers 5.61 5.35 6.34
Fuel oil for producing heat 2.05 1.80 2.75
Peat, soil, shavings, etc. 2.02 2.18 1.59
Fertilizer & lime .63 .64 .62
Pesticides & other chemicals .86 .74 1.20
Packing boxes & supplies 5,42 5.32 5.71
Other production supplies 1.54 1.30 2.18
Repairs & maintenance 3.48 2.94 5.01
Equipment operating costs .56 .33 1'.20
Travel & entertainment .50 .50 .49 __
Insurance 1.91 1.70 2.48
Telephone .82 .91 .58
Electricity .73 .63 1.02 _
Taxes, licenses, bonds 3.70 4.64 1.04
Advertising .27 .34 .09
Rent--land and/or buildings' 1.17 1.37 .60
Other cash expenses 3.20 3.60 2.05
Total cash costs 80.19 80.56 79.14

Non-cash costs
Depreciation machinery & equipment 1.99 1.67 2.87
Depreciation buildings 2.09 1.80 2.93
Inventory decrease on supplies 0 0 0
Interest on capital @ 6% 4.02 3.73 4.82
Total non-cash costs 8.10 7.20 10.62
Total all costs 88.29 87.76 89./6

aNurseries with annual sales exceeding $355,000.

bNurseries with annual sales less than $286,000.












Table 12.--Income summary, five large volumea and six smaller volumeb foliage
plant and potted flowering plant nurseries in Florida, 1973

Average Average Average
Item all 11 5 large 6 smaller Your
nurseries nurseries nurseries nursery

Value of production & other gain
Value of own plants sold 373,530 606,448 179,432 $
Inventory change, own plants 14,989 23,785 7,660
Inventory change for supplies 7,198 8,828 5,840
Miscellaneous cash income 1,893 3,471 579
Total gain 397,611 642,532 193,511 $

Cash costs less operator's
salaries 273,046 447,916 127,322 $
Non-cash costs 30,242 43,666 19,056
Total gross costs 303,289 491,582 146,378 $

Labor income 94,323 150,950 47,133 $
Interest on investment 15,000 22,615 8,654
Nursery "Farm income" 109,323 173,565 55,787
Value of operator's salaries 26,488 40,662 14,677
Net return 67,834 110,288 32,456
Return to capital 82,834 132,903 41,111
Percent return to capital 33.13% 35.26% 28.50% %

Cents per square foot of total bed and bench space

Labor income 60 57 67 0
Nursery "Farm income" 69 66 80 __
Net return 43 42 46 __
Return to capital 52 50 59 C

Cents per dollar of plant sales

Labor income 25 25 26
Nursery "Farm income" 29 29 31 ___
Net return 18 18 18 C
Return to capital 22 22 23 C

aTurseries with annual sales exceeding $355,000.

Nurseries with annual sales less than $286,000.

CPlant sales in this case does not include plant inventory increases.










Table 13.--Seven factors associated with level of profit, five high
profit and six lower profit foliage plant and potted flowering
plant nurseries in Florida, 1973


Average Average Average
Factor all 11 high profit low profit Your
nurseries nurseries nurseries nursery
Lee of profit--


Level of profit
Nursery "Farm income"a

Seven factors associated


$109,323 $178,906 $ 51,336 $


Size of business
Value of own plants sold

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

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

Production rate
Value own plants sold per
square foot total bed &
bench space

Labor efficiency
Value of own plants sold
per employee

Efficiency in use of capital
Owned capital turnover
annually

Growth in sales and inventory
Amount of change in sales &
plant inventory value from
Spreviousyear


$373,530 $525,054 $247,261 $



84.88W 79.47C 90.21p


288%


$ 1 2.36 $


330%


288%


3.49 $ 2.64 $


$ 15,761 $ 19,229 $ 14,220


149.41% 166.34%


123,68%


$115,513 $179,721 $ 62,006


aThis is the return to the
other words, operators! salaries
eluded in cost when this measure
included as one of seven factors


the measure used for level of profit.


operator for his time and his capital, in
and interest on investment are not in-
of profit is calculated. It is not
associated with level of profit. It is


$


$











Table 14,-Degree of association
of profit, 11 foliage
nurseries in Florida,


between certain factors and level
plant and potted flowering plant
1973


Number and percent of the Rank of
Factor 5 highest profit nurseries your nursery
which were in the top 5 on each
for each factor factor

Number Percent

Level of profit
Nursery "farm income" 5 100


Seven factors associated


Size of business
Value of own plants sold

Level of costs
Costs per dollar sales plus
plant inventory change

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

Production rate
Value of own plants sold per
square foot total bed and
bench space

Labor efficiency
Value of plants sold per man

Efficiency in use of capital
Owned capital turnover annually

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


Your-total score for the
last seven factors


- --










Table 15.--Range of figures on profit and the seven factors associated,
11 foliage plant and potted flowering plant nurseries in
Florida, 1973


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

Level of profit
Nursery "farm income" $221,577 $ 25,851 $


Seven factors associated

Size of business
Value of own plants sold $757,336 $122,353 $

Level of costs
Cost per dollar sales plus
plant inventory value change 75.30 97.320 ___

Intensity in the use,,of space
Percent of plant inventory.
value turnover annually 422% 190%' %

Production rate
Value of own plants sold per
square foot of total bed &
bench space $ 5.45 ( 1.66 $

Labor efficiency
Value of own plants sold
per employee $ 22,512 $ 11,664 $

Efficiency in use of capital
Owned capital turnover annually 182.23% 92.21% %

Growth in sales and inventory
Amount of change in sales and
plant inventory value from
previous year $271,451 $ 21,644 $





Table 16.--Comparison of business analysis factors for the same Florida foliage plant growers
who furnished figures for the years 1968, 1969, 1970, 1971, 1972, and 1973

Average for the same 11 nurseries in
Factor Unit 1968 1969 1970 1971 1972 1973


Profit
Nursery "Farm 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
Percent plant inventory value
turnover annually

Production rate
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


32,929
20.35


$ 122,858


C 89.10



% 163



S .93


$ 7,556


$ 108.56


28,781
12.54


45,875
23.09


57,794
25.19


74,533 116,591
27.87 34.86


142,664 173,951 207,607 266,162 364,672


95.72



174



.98


8,115


101.26


88.10



189



1.15


9,940


128.36


86.96



192



1.26


11,314


118.87


85.04


213


1.72


12,602


131.62


Growth in sales and inventory
Change in sales & plant inventory
value from previous year $

Efficiency in use of space
Percent bed & bench space vacant %


8,494


30,347


18,164


53,000


51,438 105,829


7.44 5.60 5.85 5.44 6.26 3.67


83.31


264


2.38


15,883


142.97


5.44 6.26 3.67


7.44 5.60 5.85








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1 2 3 4 5 6 7 8 9 10 11


Rank in level of profit


Figure l.--As the total score on the first seven factors in Table 14

goes up, the profit usually goes down, 11 foliage nurseries

Florida, 1973


Sa0


0

High