Historic note
        Historic note
    Front Cover
        Front Cover
    Abstract
        Abstract
    Acknowledgement
        Page i
    Main
        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
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        Page 20
        Page 21

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






Frank A.Dasse
Carolyn A. Almeter


Business


Economic Inforrp tion

Repo r 43

,
\ < '* -, '""


Analysis of Foliage


Nurseries in Florida, 1974


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


November 1975




















ABSTRACT


This report presents average costs and returns information for
12 foliage nurseries in Florida for the 1974 tax year. Nursery farm
income averaged $137,103 in 1974, an increase of 25% over 1973.
Plant sales were $443,560 in 1974, an increase of 18%, while total
costs rose 27% over 1973.

Key words: foliage nursery, wholesale, production, profit,
efficiency, costs, return.














ACKNOWLEDGMENTS


Special appreciation is expressed to the foliage nurserymen who
participated in the program by making available data on their business
operations on a confidential basis. Thanks also are due for the time
spent in explaining data relationships when questions arose. Apprecia-
tion is expressed to the county extension agents, principally Bruce
Barmby of Orange County and Louis Daigle of Dade County, for their
assistance during the data gathering stage. It is sincerely 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. . . .... .. . . iv

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

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

OBSERVATIONS AND COMMENTARY. . . . . 2

DATA PRESENTATION. ...... ...... .. . 3


LIST OF TABLES


Table
1 Size of business, six large and six smaller volume foliage
plant and potted flowering plant nurseries in Florida,
1974 . . . . . . 5

2 Rates of production, six large volume and six smaller
volume foliage plant and potted flowering plant nur-
series in Florida, 1974 . . . . 6

3 Labor efficiency, six large volume and six smaller volume
foliage plant and potted flowering plant nurseries in
Florida, 1974 . . . . .. .. 7

4 The use of space, six large volume and six smaller volume
foliage plant and potted flowering plant nurseries in
Florida, 1974 . . .. .. .. 8

5 Efficiency in use of capital, six large volume and six
smaller volume foliage plant and potted flowering plant
nurseries in Florida, 1974. . . . 9

6 Average costs per nursery for various categories of
expense, six large volume and six smaller volume foliage
plant and potted flowering plant nurseries in Florida,
1974. . . . . . . .10








LIST OF TABLES (Continued)


Table Page
7 Percent of total costs for various categories of ex-
pense, six large volume and six smaller volume foliage
plant and potted flowering plant nurseries in Florida,
1974 ... .. ... . . 11

8 Average costs per square foot of total bed and bench
space, six large volume and six smaller volume foliage
plant and potted flowering plant nurseries in Florida,
1974. . . . . ... . 12

9 Average costs per square foot of propagating and
finishing and bench space, six large volume and six
smaller volume foliage plant and potted flowering plant
nurseries in Florida, 1974. ... . . 13

10 Average costs per dollar of sales with sales adjusted
for plant inventory change, six large volume and six
smaller volume foliage plant and potted flowering plant
nurseries in Florida, 1974. . . . ... 14

11 Average costs per dollar of sales without sales adjusted
for plant inventory change, six large volume and six
smaller volume wholesale foliage and potted flowering
plant nurseries in Florida, 1974. . . ... 15

12 Income summary, six large volume and six smaller volume
foliage plant and potted flowering plant nurseries in
Florida, 1974 . . . . .... 16

13 Seven factors associated with level of profit, six high
profit and six lower profit foliage plant and potted
flowering plant nurseries in Florida, 1974. . ... 17

14 Degree of association between certain factors and level
of profit, 12 foliage plant and potted flowering plant
nurseries in Florida, 1974. . . ... .... 18

15 Range of figures on profit and the seven.factors associ-
ated, 12 foliage plant and potted flowering plant nur-
series in Florida, 1974 . . . ... 19

16 Comparison of business analysis factors for the same nine
foliage plant growers in Florida who furnished figures
for the years 1969, 1970, 1971, 1972, 1973, and 1974. 20








LIST OF FIGURES


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


Figure
1*














BUSINESS ANALYSIS OF FOLIAGE 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 purpose
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 operations and compare
with those of their peers; (2) to supply data to all nurserymen in
Florida so that they may make meaningful decisions in their own opera-
tions; and (3) to provide the Extension personnel throughout Florida
data which they can use in farm management educational programs with
nurserymen in their areas.
This is by no means a statistical sample of field nurseries. The
12 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 predetermined minimum number of figures
were sought from the contributing nurserymen. From these data the
tables were constructed. Each table has a "one best measure" which is
followed by a number of "other useful indicators." The tables also
include and depict the averages of "larger" and "smaller" nurseries.
For the purposes of this report; a division was made at $400,000 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.
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.
Labor income.--The residual when total costs less operator's salary
are deducted from total gains.
Nursery "farm income."--Labor income plus the calculated desired
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
During 1974, the 12 nurseries which participated in this analysis
enjoyed an average nursery "farm income" of $137,103 on a total gain,
made up of sales plus inventory change, of $502,493 or a ratio of 27.3
percent. There was a return to capital of $103,949 which was 30.02 per-
cent of capital owned in 1974. These data indicate that the foliage
industry, if these participants represent the industry, continues to
enjoy good times. Interestingly, the large and smaller nursery farm
incomes were essentially identical ratios at 27.3 percent. There is a
slight difference in the return to capital because smaller nurseries
had a slightly larger operator's salary percentage than did the larger
nurseries.
In an examination of the various efficiency parameters presented
in the tables it can be seen that the large and small nurseries are
quite similar. This may indicate that efficiencies of operation may
be achieved with a relatively small operation and that total costs and








returns stay relatively constant over a wide range of operations.
When observing the table presenting the results of nine nurseries
which have been continuously on the program since 1969, it is apparent
that a substantial increase in demand is continuing. The sale of plant
material was up 40 percent in 1974 compared with 1973 and is at a
level of 406 percent of the 1969 level. These nurseries only increased
their bed and bench space by 18 percent over this period. There has
been a switch from beds to raised benches, which may help explain some
of the sharp increases enjoyed in sales.
There has been a substantial buildup in capital held in supplies.
It may be explained by nurserymen investing some of their returns in
and maintaining a large level of supplies for the day when profit levels
may not be as high as they are at present. These supplies represent
deferred income; the average firm of these nine firms is holding 7.6
times as many supplies in inventory as in 1969.
It is hard to determine the increase in amount of plant material
demand since the details were not gathered. If it is assumed that
these nurserymen raised their prices in 1974 by 10 percent over those
in 1973, it can be concluded that the amount demanded and shipped went
up about 27 percent.
Guesses as to the reason for the increase in the demand for foliage
material can only be offered at this point. A study of the elements of
the demand would certainly be in order so that predictions about the
future of this industry might be made. Suffice it to say that, as this
is written in 1975, all evidence indicates that the demand is still
increasing.
DATA PRESENTATION
The data in Tables 1 through 12 relate to the size of the business,
rates of production, labor efficiency, capital efficiency, space efficiency,
costs and returns income and other factors for nurseries classified by
volume of sales. Various analyses relating to profit are shown in Tables
13, 14, and 15; the divisions used in those tables relate to size of
profit.
Table 16 denotes profit indicators for nine nurseries which have
been included in the study since 1969. 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
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 factors
also rank low on profits.







a
Table l.--Size of business, six large and six smaller volume foliage plant
and potted flowering plant nurseries in Florida, 1974


Average Average Average
Item all 12 6 large 6 smaller Your
nurseries nurseries nurseries nursery

The one best measure
Value of own plants sold $442,560 $685,940 $199,181 $


Other useful indicators
Value of own plants sold
adjusted for plant inven-
tory change
Total sq. ft. bed & bench
space
Sq. ft. bed & bench space
for propagating & finish-
ing
Sq. ft. of bed & bench
space for stock plants
Total sq. ft. in prod.
bldgs. & other production
area
Average acres eqiv. prod.
bldgs. & other production
Average employees during
year
Capital owned
Growing plants
Bldgs., wells, improve.
Machinery & equipment
Land
Supplies
Total owned

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


$486,955 $759,626 $214,284


123,622 179,394


69,336

54,286


90,603

88,791


172,310 249,478


3.96

23.89


$131,895
109 ,905
53,822
13,431
37,247


5.73

37.14


$204,042
165,239
88,306
9,310
65,749


$___.


67,850


48,069

19,781


95,142

2.18

10.63


$ 59,747
54,572
19,339
17,553
8,745


$


$346,300 $532,645 $159,956 $

$131,895 $204,042 $ 59,747 $
112,155 167,811 56,500
54,403 88,306 20,501
15,573 13,393 .17,753
37.247 65,749 8,745
$351,274 $539,300 $163,247 $


aThe 6 large volume
$400,000.


all had annual sales of own plants exceeding







Table 2.--Rates of production, six large volumea and six smaller volume
foliage plant and potted flowering plant nurseries in Florida,
1974


Average Average Average
Item all 12 6 large 6 smaller Your
nurseries nurseries nurseries nursery

The one best measure ----------------Dollars-----------------
Value own plants sold per sq.
ft. total bed & bench space 3.58; 3.82 2.94

Other useful indicators
Value own plants sold adjusted
for plant inventory change
per sq. ft. total bed & bench
space 3.94 4.23 3.16
Value own plants sold per sq.
ft. of bed & bench space
used for propagating &
finishing 6.38 7. 57- 4.14
Value own plants sold adjusted
for plant inventory change
per sq. ft. of propagating &
finishing bed & bench space 7.02 8.38 4.46
Value own plants sold per
acre in production 111,879 119,768 91,194
Value own plants sold adjusted
for plant inventory change
per acre in production 123,102 132,634 98,108


Nurseries with annual sales exceeding $400,000.








Table 3.--Labor efficiency, six large volumea and six smaller volume
foliage plant and potted flowering plant nurseries in Florida,
1974

Average Average Average
Item all 12 6 large 6 smaller Your
nurseries nurseries nurseries nursery

The one best measure
Value of own plants sold per
employee $18,525 18,469 18,738 $

Other useful indicators
Value own plants sold adjusted
for plant inventory change
per employee $20,383 20,453 20,158 $
Sq. ft. of total bed &
bench space per employee 5,175 4,830 6,383
Sq. ft. of propagating &
finishing bed space per
employee 2,902 2,439 4,522
Total area in production
bldgs. and other produc-
tion areas per employee 7,213 6,717 8,950


aNurseries with annual sales exceeding $400,000.








Table 4.--The use of space, six large volumea and six smaller volume foliage
plant and potted flowering plant nurseries in Florida, 1974

Average Average Average
Item all 12 6 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
Area in production bldgs.
& other production areas
Area total bed & bench
space
Percent of production
bldgs. & other production
areas in bed & bench
space
Area of bed & bench space
used for propagating &
finishing
Percent of bed & bench
space used for propagating
& finishing
Area bed & bench space
used for stock plants
Percent bed & bench space
used for stock plants
Area of bed & bench space
which was vacant


336




3.67


172,310

123,622



71.74


69,336


56.09

54,286

43.91

4,539


336




2.54


249,478

179,394



71.91


90,603


50.51

88,791

49.49

4,559


333




6.66


95,142

67,850



71.31


48,069


70.85

19,781

29.15

4,518 _


Nurseries with annual sales exceeding $400,000.








Table 5.--Efficiency in use of capital, six large volumea and six smaller
volume foliage plant and potted flowering plant nurseries in
Florida, 1974

Average Average Average
Item all 12 6 large 6 smaller Your
nurseries nurseries nurseries nursery

The one best measure
Percent of owned capital
turnover annually 127.80 128.78 124.52
Other useful indicators
Percent of managed capital
turnover annually 125.99 127.19 122.01
Capital owned
Per employee $14,496 14,342 15,048 $
Per acre $87,545 93,002 73,235 $
Capital managed
Per employee $14,704 14,521 15,357 $
Per acre 1 $88,802 94,164 74,741 $
Managed capital per employee
in
Plants $ 5,521 5,494 5,621 $
Bldgs., wells, improvements $ 4,695 4,518 5,315 $
Machinery & equipment $ 2,277 2,378 1,929 $
Land $ 652 361 1,670 $
Managed capital per acre in
Plants $33,343 35,627 27,355 $
Bldgs., wells, improvements $28,353 29,301 25,868 $
Machinery & equipment $13,753 15,419 9,386 $
Land $ 3,937 2,339 8,128 $
Percent of capital managed in
Plants 37.55 37.83 36.60
Bldgs., wells, improvements 31.93 31.12 34.61
Machinery & equipment 15.49 16.37 12.56
Land 4.43 2.48 10.87
Supplies 10.60 12.19 5.36
Total 100.00 100.00 100.00



aNurseries with annual sales exceeding $400,000.









Table 6.--Average costs per nursery for various categories of expense,
six large volume and six smaller volume foliage plant and
potted flowering plant nurseries in Florida, 1974

Average Average Average
Items of cost all 12 6 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 prod. heat

Peat, soil, shavings, etc.
Fertilizer and lime
Pesticides & other chem.
Packing boxes & supplies
Other prod. supplies

Repairs & maintenance
Equipment oper. cost
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. & equip.
Depreciation buildings
Inventory decreases, supp.
Interest on capital @ 8%
Total non-cash costs
Total all costs


33,154
130,464
40,346
31,623
8,516

8,411
4,452
1,789
22,143
18,470

17,040
3,352
1,973
7,278
3,356

3,556
10,076
1,333
1,390
23.915


47,516
207,114
65,209
50,680
10,357

12,819
7,328
2,361
35,924
33,429

27,225
2,854
3,590
10,010
5,501

4,558
15,986
2,614
1,483
33.347


18,793
53,814
15,482
12,565
6,676

4,002
1,576
1,217
8,362
3,511

6,855
3,850
355
4,547
1,212

2,554
4,167
51
1,297
14.484


372,636 579,903 165,369


10,476 16,388 4,565
15,431 24,086 6,777
0 0 0
27,704 42,612 12,796
53,612 83,085 24,138
426,248 662,988 189,507


aNurseries with annual sales exceeding $400,000


--








Table 7.--Percent of total costs for various categories of expense, six
large volume and six smaller volume foliage plant and potted
flowering plant nurseries in Florida, 1974


Average Average Average
Items of cost all 12 6 large 6 smaller Your
nurseries nurseries nurseries nursery

- - Percent - - -


Cash costs
Operator's salary
Other wages & salaries
Plants & seeds to grow on
Pots, growing containers
Fuel oil for prod. heat

Peat, soil, shavings, etc.
Fertilizer and lime
Pesticides & other chem.
Packing boxes & supplies
Other prod.,supplies

Repairs & maintenance
Equipment operation cost
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. & equip.
Depreciation buildings
Inventory decrease on supp.
Interest on capital @ 8%
Total non-cash costs
Total all costs


7.78
30.61
9.47
7.42
2.00

1.97
1.04
0.42
5.19
4.33

4.00
0.79
0.46
1.71
0.79

0.83
2.36
0.31
0.33
5.61


7.17
31.24
9.84
7.64
1.56

1.93
1.11
0.36
5.42
5.04..

4.11
0.43
0.54
1.51
0.83

0.69
2.41
0.39
0.22
5.03


9.92
28.40
8.17
6.63
3.52

2.11
0.83
0.64
4.41
1.85

3.62
2.03
0.19
2.40
0.64

1.35
2.20
0.03
0.68
7.64


87.42 87.47 87.26


2.46 2.47 2.41
3.62 3.63 3.58
0 0 0
6.50 6.43 6.75
12.58 12.53 12.74
100.00 100.00 100.00


aNurseries with annual sales exceeding $400,000.








Table 8.--Average costs per square foot of total bed and bench space, six
a
large volume and six smaller volume foliage plant and potted
flowering plant nurseries in Florida, 1974


Costs per sq. ft.
of total bed & bench space
All 12 6 large 6 smaller Your
Items of cost
nurseries nurseries nurseries nursery

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


Cash costs
Operator's salary
Other wages & salaries
Plants & seeds to grow on
Pots, growing containers
Fuel oil for prod. heat

Peat, soil, shavings, etc.
Fertilizer and lime
Pstieid. & e other eheam
Packing boxes, supplies
Other prod. 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. & equip.
Depreciation buildings
Inventory decrease supplies
Interest on capital @ 8%
Total non-cash costs
Total all costs


26.82
105.53
32.64
25.58
6.89

6.80
3.60
1.45
17.91
14.94

13.78
2.71
1.60
5.89
2.71

2.88
8.15
1.08
1.12
19.35
301.43


8.47
12.48
0
22.41
43.37
344.80


26.49
115.45
36.35
28.25
5.77

7.15
4.08
1.32
20.03
18.63

15.18
1.59
2.00
5.58
3.07

2.54
8.91
1.46
0.83
18.59
323.26


9.14
13.43
0
23.75
46.31
369.57


27.70
79.31
22.82
18.52
9.84

5.90
2,32
1.79
12.32
5.17

10.10
5.67
0.52
6.70
1.79

3.76
6.14
0.08
1.91
21.35
243.73


6.73
9.99
0
18.86
35.58
279.30


aNurseries with annual sales exceeding $400,000.


------


I


~---


^"*^" "'"~`^~"'








Table 9.--Average costs per square foot of propagating and finishing and
a
bench space, six large volume and six smaller volume foliage
plant and potted flowering plant nurseries in Florida, 1974


Costs per sq. ft. of propagating
& finishing bed & bench space
All 12 6 large 6 smaller Your
Items of cost
nurseries nurseries nurseries nursery

- - Cents - - -
Cash costs
Operator's salary 47.82 52.44 39.10
Other wages & salaries 188.16 228.59 111.95
Plants & seeds to grow on 58.19 71.97 32.21
Pots, growing containers 45.61 55.94 26.14
Fuel oil for prod. heat 12.28 11.43 13.89

Peat, soil, shavings, etc. 12.13 14.15 8.33
Fertilizer and lime 6.42 8.09 3.28
Pesticides & other chem. 2.58 2.61 2.53
Packing boxes & supplies 31.94 39.65 17.40
Other prod. supplies 26.64 36.90 7.30

Repairs & maintenance 24.58 30.05 14.26
Equipment oper. costs 4.83 3.15 8.01
Travel & entertainment 2.85 3.96 .74
Insurance 10.50 11.05 9.46
Telephone 4.84 6.07 2.52

Electricity 5.13 5.03 5.31
Taxes, licences, bonds 14.53 17.64 8.67
Advertising 1.92 2.89 0.11
Rent-land and/or buildings 2.01 1.64 2.70
Other cash expenses 34.49 36.81 30.13


Total cash costs

Non-cash costs
Depreciation mach. & equip.
Depreciation buildings
Inventory decrease on supplies
Interest on capital @ 8%
Total non-cash costs
Total all costs


537.43 640.05 344.02


15.11 18.09 9.50
22.26 26.58 14.10
0 0 -0
39.96 47.03 26.62
77.32 91.70 50.22
614.76 731.75 394.24


aNurseries with annual sales exceeding $400,000.







Table 10.--Average costs per dollar of sales with sales adjusted for plant
a
inventory change, six large volume and six smaller volume
foliage plant and potted flowering plant nurseries in Florida,
1974

Costs per $ sales with sales
adjusted for plant inventory change
Items of cost All 12 6 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 prod. heat

Peat, soil, shavings, etc.
Fertilizer and lime
Pesticides & other chem.
Packing boxes & supplies
Other prod. supplies

Repairs & maintenance
Equipment operating costs
Travel & entertainment
Insurance
Telephone

Electricty
Taxes, licenses, bonds
Advertising
Rent-land and/or bldgs.
Other cash expenses
Total cash costs

Non-cash costs
Depreciation mach. & equip.
Depreciation buildings
Inventory decrease on supp.
Interest on capital @ 8%
Total non-cash costs
Total all costs


6.81
26.79
8.29
6.49
1.75

1.73
0.91
0.37
4.55
3.79


3.50
0.69
0.41
1.49
0.69


0.73
2.07
0.27
0.29
4.91


6.26
27.27
8.58
6.67
1.36

1.69
0.96
0.31
4.73
4.40

3.58
0.38
0.47
1.32
0.72

0.60
2.10
0.34
0.20
4.39


8.77
25.11
7.23
5.86
3.12

1.87
0.74
0.57
3.90
1.64

3.20
1.80
0.17
2.12
0.57

1.19
1.94
0.02
0.61
6.76


76.52 76.34 77.17


2.15 2.16 2.13 __
3.17 3.17 3.16
0 0 0
5.69 5.61 5.97
11.01 10.94 11.26
87.53 87.28 88.44


aNurseries with annual sales exceeding $400,000.


I








Table 11.--Average costs per dollar of sales without sales adjusted for
plant inventory change, six large volume and six smaller
volume wholesale foliage and potted flowering plant nurseries
in Florida, 1974


Costs per $ sales without sales
adjusted for plant inventory change
All 12 6 large 6 smaller Your
nurseries nurseries nurseries nursery


Items of costs


Cash costs
Operator's salary
Other wages & salaries
Plants & seeds to grow on
Pots, growing containers
Fuel oil prod. heat

Peat, soil, shavings, etc.
Fertilizer and lime
Pesticides & other chem.
Packing boxes & supplies
Other prod. supplies

Repairs & maintenance
Equipment operating costs
Travel & entertainment
Insurance
Telephone

Electricity
Taxes, licenses, bonds
Advertising
Rent-land and/or bldgs.
Other cash expenses
Total cash costs

Non-cash costs
Depreciation mach. & equip.
Depreciation buildings
Inventory decrease on supp.
Interest on capital @ 8%

Total non-cash costs
Total all costs


- Cents -


7.49
29.48
9.12
7.15
1.92

1.90
1.01
0.40
5.00
4.17

3.85
0.76
0.45
1.64
0.76

0.80
2.28
0.30
0.31
5.40


6.93
30.19
9.51
7.39
1.51

1.87
1.07
0.34
5.24
4.87

3.97
0.42
0.52
1.46
0.80

0.66
2.33
0.38
0.22
4.86


9.44
27.02
7.77
6.31
3.35

2.01
0.79
0.61
4.20
1.76

3.44
1.93
0.18
2.28
0.61

1.28
2.09
0.03
0.65
7.27


84.20 84.54 83.02


2.37 2.39 2.29
3.49 3.51 3.40
0 0 0
6.26 6.21 6.42

12.11 12.11 12.12
96.31 96.65 95.14


aNurseries with annual sales exceeding $400,000.


'







Table 12.--Income summary, six large volumea and six smaller volume
foliage plant and potted flowering plant nurseries in Florida,
1974

Average Average Average
all 12 6 large 6 smaller Your
Item nurseries nurseries nurseries nursery

Value of production & other
gain
Valueof own plants sold $442,560 685,940 199,181
Inventory change, own plants 44,395 73,686 15,103
Inventory change for supplies 13,404 23,908 2,901
Miscellaneous cash income 2,133 4,240 26
Total gain $502,493 787,775 217,211

Cash costs less operator's
salaries $339,482 532,387 146,576
Non-cash costs 53,612 83,085 24,138
Total gross costs $393,093 615,472 170,714

Labor income $109,399 172,302 46,496
Interest on investment $ 27,704 42,612 12,796
Nursery "farm income" $137,103 214,914 59,293
Value of operator's salaries $ 33,154 47,516 18,793
Net return $ 76,245 124,786 27,703
Return to capital $103,949 167,398 40,500
Percent return to capital 30.02 31.43 25.32

Cents per square foot of total bed and bench space
Labor income 88 96 69
Nursery "farm income" 111 120 87
Net return 62 70 41
Return to capital 84 93 60

Cents per dollar of plant sales
Labor income 25 25 23
Nursery "farm income" 31 31 30
Net return 17 18 .14
Return to capital 23 24 20


a
Nurseries with annual sales exceeding $400,000.

Plant sales in this case do not include plant inventory increases.







Table 13.--Seven factors associated with level of profit, six high profit
and six lower profit foliage plant and potted flowering plant
nurseries in Florida, 1974


Average Average 6 Average 6
Factor all 12 high profit low profit Your
nurseries nurseries nurseries nursery

Level of profit
Nursery "farm income"a $137,103 214,914 59,293

Seven factors associated

Size of business
Value of own plants
sold $442,560 685,940 199,181

Level of costs
Cost per $ sales
plus plant inven-
tory value change 87.53 87.28 88.44

Intensity in use of
space
Percent of plant
inventory value
turnover annually 336. 336. 333.

Production rate
Value own plants sold
per sq. ft. total bed
& bench space 3.58 3.82 2.94

Labor efficiency
Value of own plants
sold per employee $ 18,525 18,469 18,738

Efficiency in use of
capital
Owned capital turn-
over annually 127.80 128.78 124.52

Growth in sales and
inventory
Amount of increases
in sales & plant
inventory value from
previous year $134,743 214,663 54,822

aThis is the return to the operator for his time and his capital. In
other words, operators' salaries and interest on investment are not included
in costs when this measure of profit is calculated. It is not included as
one of seven factors associated with level of profit. It is the measure
used for level of profit.







Table 14.--Degree of association between certain factors and level of
profit, 12 foliage plant and potted flowering plant nurseries
in Florida, 1974


Number & percent of the Rank of
Factor 6 highest profit nur- your nursery
series which were in the on each
top 6 for each factor factor

Number Percent
Level of profit
Nursery "farm income" 6 100

Seven factors associated

Size of business
Value of own plants sold. 6 100

Level of costs
Costs per $ sales p3gs plant


Intensity in use of space
Percent of plant inventory
value turnover annually 3 50

Production rate
Value of own plants sold per
sq. ft. total bed & bench space 4 67

Labor efficiency
Value of plants sold per man 3 50

Efficiency in use of capital
Owned capital turnover annually 3 50

Growth in sales and inventory
Amount of increase in sales and
plant inventory value from pre-
vious year 5 83

Your total score on factors 1
through 7 above







Table 15.--Range of figures on profit and the seven factors associated, 12
foliage plant and potted flowering plant nurseries in Florida,
1974


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

Level of profit
Nursery "farm income" $282,766 32,948
Seven factors associated

Size of business
Value of own plants sold $928,421 87,017

Level of costs
Cost per $ sales plus
plant inventory change 76.08 104.84

Intensity in the use of space
Percent of plant inventory
value turnover annually 469 187

Production rate
Value of own plants sold per
sq. ft. of total bed & bench
space $ 6.01 1.85

Labor efficiency
Value of own plants sold per
employee $ 25,827 11,450

Efficiency in use of capital
Owned capital turnover
annually 215.79 70.65

Growth in sales and inventory
Amount of increase in sales
& plant $290,369 -975







Table 16.--Comparison of business analysis factors for the same nine foliage plant growers in Florida
who furnished figures for the years 1969, 1970, 1971, 1972, 1973 and 1974.

Average for the same 9 nurseries in
Factor Unit 1969 1970 1971 1972 1973 1974


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
employees
Efficiency in use of capital
Owned capital turnover
annually
Growth in sales and inventory
Increase in sales & plant in-
ventory value from.previous
year
Efficiency in use of space
Percent bed & bench space
vacant


20,206
7.53


44,219
24.77


$ 115,985 150,692


102.81



193




1.17


89.36



225




1.51


8,767 11,494



110.82 132.12


23,088 25,186


49,701
23.55

181,435



90.02



229




1.76



12,444



125.95


44,753


85,421
38.30

239,319



82.70



246




2.28



13,318



136.20


59,115


139,010 148,866
43.52 30.84

337,549 471,437



83.69 87.07


285




3.13


325




4.03


15,759 18,459



132.15 131.59


104,571 151,245


% 6.99 6.79 7.22


7.61 5.03


4.83



















a)
0

7 _70






S 55 _





040
0


S40

0

0
Or




NI I t I ; I I I I I !
d 025
0


0 1 2 3 4 5 6 7 8 9 10 11 12

High Low
Rank in level of profit

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