Historic note
        Historic note
    Front Cover
        Front Cover
    Acknowledgement
        Page i
    Abstract
        Page ii
    Table of Contents
        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

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






in L. Gunter


Economic Information


Report 60







Business Analysis of Foliage
Nurseriesin Florida, 1975


and Resource Economics Department
erative Extension Service
itute of Food and Agriculturci Sciences
versity of Florida, Gainesville 32611


September 1976


^^,












ACKNOWLEDGMENTS

Appreciation is expressed to the foliage nurserymen who partici-
pated in the nursery business analysis program and made their accounting
and production records available on a confidential basis. Additionally,
appreciation is expressed to Bruce Barmby and Louis Daigle, county
extension agents of Orange and Dade Counties, respectively, for their
assistance with the data collection. The tabulations for this report
were enthusiastically completed by Carolyn Almeter. Millie Pfeifler
typed this report. As always, any errors in content or interpretation
of the data remain the responsibility of the author.
















ABSTRACT


This publication presents average costs and returns information
fir" 15 foliage nurseries in Florida for the 1975 tax year. The value
o' own plants sold averaged $573,926, resulting ir a nursery farm income
o' $124,630. The sales per square foot in production averaged $3.15 in
1375, while the costs averaged $3.01.

Key words: foliage plant nurseries, cash costs, non-cash costs,
rnd nursery farm income.












TABLE OF CONTENTS

Pag4
ACKNOWLEDGMENTS .. .. . . ... i

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

INTRODUCTION. . . . . . 1

PROCEDURE . .. .... . .. . .1

DEFINITIONS . . . . . .. 2

RESULTS AND DATA PRESENTATION . . 2


LIST OF TABLES


Table
1 Size of business, six large and nine smaller volume
foliage plant and potted flowering'plant nurseries
in Florida, 1975. . . . . 5

2 Rates of production, six large and nine smaller
volume foliage plant and potted flowering plant nur-
series in Florida, 1975 . . .... .. 6

3 Labor efficiency, six large and nine smaller volume
foliage plant and potted flowering plant nurseries in
Florida, 1975 . . . .... 7

4 The use of space, six large and nine smaller volume
foliage plant and potted flowering plant nurseries
in Florida, 1975 . . .. .. . 8

5 Efficiency in use of capital, six large and nine
smaller volume foliage plant and potted flowering
plant nurseries in Florida, 1975 . .... 9

6 Average costs per nursery for various categories of
expense, six large and nine smaller volume foliage
plant and potted flowering plant nurseries in Florida,
1975 . . . . . 10


_






LIST OF TABLES (Continued)


Table Page
7 Percent of total costs for various categories of ex-
pense, six large and nine smaller volume foliage
plant and potted flowering plant nurseries in Florida,
1975 . . . . . .. 11

8 Average costs per square foot of total bed and bench
space, six large and nine smaller volume foliage plant
and potted flowering plant nurseries in Florida, 1975 12

9. Average costs per square foot of propagating and
finishing and bench space, six large and nine smaller
volume foliage plant and potted flowering plant nur-
series in Florida, 1975. . ... .... 13

10 Average costs per dollar of sales with sales adjusted
for plant inventory change, six large and nine smaller
volume foliage plant and potted flowering plant nur-
series in Florida, 1975. . . 14

11 Average costs per dollar of sales without sales ad-
justed for plant inventory change, six large and nine
smaller volume foliage and potted flowering plant nur-
series in Florida, 1975 .... . . .. 15

12 JIncome summary, six large and nine smaller volume
foliage plant and potted flowering plant nurseries in
Florida, 1975 . . . . . 16

13 Seven factors associated with level of profit, sixhigh
profit and nine lower profit foliage plant and potted
flowering plant nurseries in Florida, 1975. . ... 17

14 Degree of association between cost and efficiency
factors and level of profit, 15 foliage plant and potted
flowering plant nurseries in Florida, 1975. . 18

15 Range of figures on profit and the seven cost and ef-
ficiency factors associated with profit, 15 foliage
plant and potted flowering plant nurseries in Florida,
1975 . . . . . ... 19

16 Comparison of business analysis factors for the same
11 foliage plant growers in Florida who furnished
figures for the years 1970, 1971, 1972, 1973, 1974,
and 1975. . . . .... ...... 20











BUSINESS ANALYSIS OF FOLIAGE NURSERIES IN FLORIDA, 1975


Dan L. Gunter

INTRODUCTION


This publication is a continuation of the nursery business analysis
series initiated in the late 1960s, This business analysis report pre-
sents information on sales, costs, and production efficiency aspects of
foliage nurseries in Florida for 1975.
The purpose of the business analysis report is: (1) to furnish
nurserymen various economic measures that may be used in evaluating the
efficiency of individual foliage nurseries; (2) to supply cooperating
nurserymen data so that they may make more informed management decisions;
(3) to provide individuals considering entering the wholesale foliage
production business an estimate of input requirements and revenue; and
(4) to provide the Florida extension personnel data which can be used in
educational programs with nurserymen.

PROCEDURE

The information presented in this report is based on data collected
from the accounting and production records of 15 nurserymen. The nursery-
men provided the data voluntarily and do not represent a statistically
selected sample. However, the foliage nurserymen participating in the
business analysis program are thought to represent some of the more
efficient nurseries in the state. The data pertain to the individual


DAN L. GUNTER is an extension production economist.




2


growers' 1975 tax year which, in some cases, does not conform to the 1975
calendar year.
The data from individual nurseries are averaged and presented in a
tabular form. The tables depict average values for all 15 nurseries,
six "large" nurseries and nine "smaller" nurseries. For this report,
smaller nurseries are those that have plant sales of less than $500,000,
while large nurseries are defined as those with a value of plant sales
greater than $500,000.

DEFINITIONS

Most of the terms used in the tables are self-explanatory. Defini-
tions of terms used in this report, which may be less familiar, are as
follows:
Value of own plants sold.--Represents the total plant sales minus
the cost of plants purchased for immediate resale. Plants purchased 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. Gains are calculated as plant sales plus
inventory value changes and miscellaneous income.
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.

RESULTS AND DATA PRESENTATION

During 1975, the 15 nurseries that participated in the nursery
business analysis program enjoyed an average.nursery "farm income" of








$124,630 on a total gain (made up of plant sales, inventory value in-
creases, and miscellaneous income) of $603,064. There was a return to
capital of $88,798, which was 20.72 percent of capital owned in 1975.
However, the return to capital of 33.50 percent for the smaller nurseries
was more than double that of 14.59 percent for the larger operations.
Part of the difference in the return to capital is because large nur-
series had a higher operator's salary as a percentage of nursery "farm
income" than did the smaller nurseries.
Other differences between the large and smaller nurseries can be
seen by examination of the various efficiency parameters presented in
the tables.
The data in Tables 1 through 12 relate to the size of the business,
rates of production, labor efficiency, capital efficiency, space effi-
ciency, costs and returns, and other efficiency factors. Analyses re-
lating to profitability are shown in Tables 13, 14, and 15. .Tables 16
denotes profit indicators for 11 nurseries which have been included in
the study since 1970. Where the information in the tables is rounded to
the nearest whole number, addition errors due to rounding may be noted.
The information in Table 16 is of particular significance. The
gross income from the sale of plant material for the 11 nurseries which have
been continuously participating in the program was up 28 percent in 1975
compared with 1974 andwas 400 percent higher than the 1970 level. The
continuing nurseries increased their bed and bench space by only 45 per-
cent during the 1970-75 period.
Since details on the quantity and prices of the plant material sold
are not collected, the precise level of demand for foliage material can-
not be assessed. However, the increases in gross income of the contin-
uing nurseries indicates that the demand remains strong.
Another significant force affecting the sales of individual foliage
nurseries is the increasing supply of foliage plants reaching the market.
As foliage plant production increases 'from new nurseries entering the
industry and established nurserymen expanding, the industry could reach
a condition of excess supply. However, statistical or economic infor-
mation is not available to validate this opinion.




4


Employing the definitions provided above, nursery managers can
utilize this report by completing the column--"Your nursery." By doing
so, managers may be able to locate areas in their own operation where
production efficiency may be improved.








.Table l.--Size of business, six large and
plant and potted flowering plant


nine smaller
nurseries in


volume foliage
Florida, 1975


Average Average Average
Item Unit all 15 6 large 9 smaller Your
nurseries nurseries nurseries nursery


The one best measure..,
Value of own plants sold
Other useful indicators
Value of own plants sold
adjusted for plant in-
ventory change
Total bed & bench space
Bed & bench space for
propagating & finishing
Bed & bench space for
stock plants
Total area in prod. bldg.
& other prod. areas
Acre equiv. of prod.
bldgs.. & other prod.
areas
Employees during
year
Capital owned:
Growing plants
Bldgs: & improvements
Machinery & .equipment
Land
Supplies
Total owned
Capital managed:
Growing plants
Bldgs. & improvements
Machinery & equipment
Land
Supplies
Total managed


573,926 },007,148


Sq. Jf.

Sq. ft.


602,230 1,005,574
182,395 348,.285


117,786


Sq. ftP 64,609

Sq. ft. 217,239


Acres

No.


4,99
29.55


169,460
132,275
76,088
12,376
38,270


213,646

134,639

397,018



56.00

281,881
20Q,535
151,606
7,018
82,673


285,112



333,334
71,801

53,879

17,923.

97,386

2.24

11.92

94,512
86,768
25,742
15,949
8,668


428,469 723,713 231,639

169,460 281,881 94,512
180,275 320,535 86,768
76,088 151,606 25,742
19,423 24,435 16,082
38,270 82,673 8,668
483,516 '861,130 231,772


aThe six large volume
ceeding $500,000.


nurseries had annual sales of own plants ex-








Table 2.--Rates of production, six largea and nine smaller volume foliage
plant and potted flowering plant nurseries in Florida, 1975


Average Average Average
Item all 15 6 large 9 smaller Your
nurseries nurseries nurseries nursery

S' - Dollars - - -

The one best measure
Value of own plants sold
per sq. ft. total bed &
bench space 3.15 2.89 3.97

Other useful indicators
Value own plants sold
adjusted for plant in-
ventory change per sq.
ft. total bed & bench
space .3.30 2.89 4.64
Value own plants sold per
sq. ft. of bed & bench
space used for propagat-
ing & finishing 4.87 4.71 5.29
Value own plants sold
adjusted for plant in-
ventory change per sq.
ft. of propagating &
finishing bed & bench
space 5.11 4.71 6.19
Value own plants sold per
acre in production 115,082 110,502 127,528
Value own plants sold
adjusted for plant in-
ventory change per
acre in production 120,757 110,330 149,097



aNurseries with annual sales exceeding $500,000.


f *


'' :r








Table 3.--Labor efficiency, six largea and nine smaller
plant and potted flowering plant nurseries in


volume foliage
Florida, 1975


Average Average Average
Item Unit all 15 6 large 9 smaller Your
nurseries nurseries nurseries nursery

The one best measure
Value of own plants sold
per employee $ 19,422 17,985 23,919
Other useful indicators
Value of own plants sold
.adjusted for plant in-
ventory change per
employee $ 20,380 17,957 27,964
Total bed & bench space
per employee Sq. ft. 6,172 6,219 6,024
Propagating & finishing
bed & .bench space per
employee Sq. ft.. 3,986 3,815 4,520
Total prod. space per
employee Sq. ft. 7,352. 7,090 8,170


aNurseries with annual sales exceeding $500,000.







Table 4.--The use of space, six largea and nine smaller
plant and potted flowering plant nurseries in


volume foliage
Florida, 1975


Average Average Average
Item Unit all 15 6 large 9 smaller Your
nurseries nurseries nurseries nursery


Best measures

For intensity in use of
space
Plant intentory value
sold annually

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

Other useful indicators
Area in production bldgs.
& other production areas
Area total bed & bench
space
Production bldgs. & ;
other production areas
in bed & bench
space
Area of bed & bench
space used for propa-
gatirg & finishing
Bed & bench space
used for propagating
& finishing
Area bed & bench
space used for stock
plants
Bed & bench space
used for stock
plants
Area of bed & bench
space vacant


2.65


Sq. ft.


217,239


357



2.03


397,018


Sq. ft. 182,395 348,285


% 83,96 87.73


Sq. ft. 117,786 213,646


% 64.58 61.34

Sq. ft. 64,609 134,639


% 35.42 38.66

Sq. ft. 4,830 7,066


aNurseries with annual sales exceeding $500,000.


302



4.65


97,386

71,801


73.73


53,879


75.04


17,923


24.96

3,339









Table 5.--Efficiency in use of capital, six
foliage plant and potted flowering
1975


largea and nine smaller volume
plant nurseries in Florida,


Average Average Average
Item Unit all 15 6 large 9 smaller Your
nurseries nurseries nurseries nursery


The one best measure
Owned capital turnover
annually
Other useful indicators
Managed capital turn-
over annually
Capital owned:
Per employee
Per acre
Capital managed:
*Per employee
Per acre
Managed capital per em-
ployee in:
Growing plants
Bldgs. & improvements
Machinery & equipment
Land,
Managed capital per acre
in:
Growing plants
Bldgs. & improvements
Machinery & equipment
Land
Percent of capital man-
aged in:
Growing plants
Bldgs. & improvements
Machinery & equipment
Land
Supplies
Total


%. 133.95


% 118.70


14,500
85,915

16,363
96,953


5,735
6,101
2,575
657


33,980
36,148
15,257
3,895


35.05
37.28
15.74
4.02
7.91


% 100.00


aNurseries with annual sales exceeding $500,000.


139.16


116.96

12,923
79,404

15,377
94,481


5,034
5,724
2,707
436


30,927
35,168
16,634
2,681


32.73
37.22
17.61
2.84
9.60


100.00


123.08


123.01

19,433
103,610

19,444
103,670


7,929
7,279
2,160
1,349


42,275
38,811
11,514
7,193


40.78
37.44
11.11
6.94
3.74


100.00


--


---








Table 6.--Average costs per nursery for various categories
six large and nine smaller volume foliage plant
flowering plant nurseries in Florida, 1975


of expense,
and potted


Average Average Average
Item all 15 6 large 9 smaller Your
nurseries nurseries nurseries nursery
- - Dollars - - -


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


*Peat, soil, shavings, etc.
Fertilizer and lime
Pesticides & other chem.
Packing boxes & supplies
Other prod. supplies
Repairs & maintenance
Equipment operating costs
Travel & entertainment
Insurance
Telephone
Electricity
Taxes, licenses, bonds
Advertising
Rent; land and/or bldgs.
Other cash expenses
Total cash costs

Non-cash costs
S Depreciation mach. & equip.
Depreciation bldqs., etc.
Inventory decreases, supplies
Interest on capital @ 8%
Total non-cash costs
Total all costs


4 35,832
167,065
61,342
36,245
12,032


12,066
4,764'
5,741
26,038
21,153
19,727
5,077
2,634
10,644
3,967
5,218
5,678
1,298
7,108
32,710
476,338


16,696
13,686
7,546
34,278
72,205


548,544


.56,369
314,065
80,287
63,969
20,256
23,988
9,853
6,819
51,139
45,782
37,273
7,284
5,317
20,272
7,629
8,733
9,630
2,748
16,453
45,114
832,979


31,829
22,149
14,694
57,897
126,568
959,548


22,141
69,064
48,711
17,762
6,549
4,118
S1,371
5,022
9,304
4,734
8,030
3,606
846
4,225
1,526
2,875
3,043
331
878
24,441
238,578


6,607
8,045
2,781
18,531
35,963
274,541


aNurseries with annual sales exceeding $500,000.


--




11


Table 7.--Percent of total costs for various categories of expense, six
large and nine smaller volume foliage plant and potted
flowering plant nurseries in Florida, 1975


Average Average Average
Item all 15 6 large 9 smaller Your
nurseries nurseries nurseries nursery
- - Percent - - -


Cash costs
Operator's salary
Other wages & salaries
Plants & seeds to grow
on
Pots, growing containers
Fuel oil for prod. heat
Peat, soil, shavings,
etc.
Fertilizer & lime
Pesticides & other chem.
Packing boxes & supplies
Other prod. supplies
Repairs & maintenance
Equipment operating cost
Travel & entertainment
Insurance
Telephone
Electricity
Taxes, licenses, bonds
Advertising
Rent; land and/or bldgs.
Other cash expenses
Total cash costs
Non-cash costs
Depreciation mach. &
equipment
Depreciation bldgs., etc.
Inventory decreases, sup.
Interest on capital @ 8%
Total non-cash costs
Total all costs 1


6.53
30.46

11.18
6.61
2.19

2.20
.87
1.05
4.75
3.86
3.60
.93
.48
1.94
.72
.95
1.04
.24
1.30
5.96
86.84


3.04
2.50
1.38
6.25
13.16
00.00


5.87
32.73

8.37
6.67
2.11

2.50
1.03
.71
5.33
4.77
3.88
.76
.55
2.11
.80
.91
1.00
.29
1.71
4.70
86.81


3.32
2.31
1.53
6.03
13.19
100.00


8.06
25.16

17.74
6.47
2.39

1.50
.50
1.83
3.39
1.72
2.92
1.31
.31
1.54
.56
1.05
1.11
.12
..32
8.90
86.90


2.41
2.93
1.01
6.75
13.10
100.00


aNurseries with annual sales exceeding $500,000.








Table 8.--Avera e costs per square foot of total bed and bench space, six
large and nine smaller volume foliage plant and potted flowering
plant nurseries in Florida, 1975


Costs per sq. ft.
of total bed & bench space

m All 15 6 large. 9 smaller Your
nurseries nurseries nurseries nursery
nurseries nurseries nurseries nursery


Cash costs
Operator's salary
Other wages & salaries
Plants & seeds to grow on
Pots, growing containers
Fuel oil for prod. heat
Peat, soil, shavings, .etc.
Fertilizer & lime
Pesticides & other chem.
Packing boxes & supplies
Other production supplies
Repairs & maintenance
Equipment operating costs
Travel & entertainment
Insurance
Telephone
Electricity
Taxes, licenses, bonds
Advertising
Rent; land and/or bldgs.
Other cash.expenses
Total cash costs

Non-cash costs
Depreciation machinery &
equipment
Depreciation bldgs., etc.
Inventory decreases, sup-
plies
Interest on capital @ 8%
Total non-cash costs


Total all costs


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


19.65
91.60
33.63
19.87
6.60
6.62
2.61
3.15
.14.28
11.60
10.82
2.78
1.44
5.84
2.18
2.86
3.11
.71
3.90
17.93


16.18
90.17
S23.05
18.37
5.82
6.89
2.83
1.96
14.68
13.15
10.70
2.09
1.53
5.82
2.19
2.51
2.77
.79
4.72
12.95


30.84
96.19
67.84
24.74
9.12
5.73
1.91
6.99
12.96
S6.59
11.18
5.02
1.18
5.88
2.12
4.00
4.24
.46
1.22
34.04


261.16 239.17 332.28



9.15 9.14 9.20
7.50 6.36 11.20

4.14 4.22 3.87
18.79 16.62 25.81
39.59 36.34 50.09


300.75


275.51


382.36


aNurseries with annual sales exceeding $500,000.








Table 9.--Average costs per square foot of propagating and finishing and
bench space, six large and nine smaller volume foliage plant
and potted flowering plant nurseries in Florida, 1975


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

Im All 15 6 large 9 smaller Your
Itemnurseries nurseries nurseries nursery
nurseries nurseries: nurseries nursery


- Cents -- -


Cash costs
Operator's salary
Other wages & salaries
Plants & seeds to grow on
Pots, growing containers
Fuel oil for prod. heat
Peat, soil, shavings, etc.
Fertilizer & lime
Pesticides & other chem.
Packing boxes & supplies
Other prod. supplies
Repairs & maintenance
Equipment operating costs
Travel & entertainment
Insurance
Telephone
Electricity
Taxes, licenses, bonds
Advertising
Rent; land and/or bldgs.
Other cash expenses
Total cash costs
Non-cash costs
Depreciation machinery &
equipment
Depreciation bldgs., etc.
Inventory decrease, sup-
plies
Interest on capital @ 8%
Total non-cash costs


Total all costs


30.42
141.84
52.08
30.77
10.21
10.24
4.04
4.87
22.11
17.96
16.75
4.31
2.24
9.04
3.37
4.43
4.82
1.10
6.03
27.77


26.38
147.00
37.58
29.94
9.48
11.23
4.61
3.19
23.94
21.43
17.45
3.41
2.49
9.49
3.57
4.09
4.51
1.29
7.70
21.12


41.09
128.19
90.41
32.97
12.15
7.64
2.55
9.32
17.27
8.79
14.90
6.69
1.57
7.84
2.83
5.34
5.65
.61
1.63
45.36


404.41 389.89 442.81


14.17 14.90 12.26
11.62 10.37 14.93

6.41 6.88 5.16
29.10 27.10 34.39
61.30 59.24 66.75


465.71


449.13


509.56


aNurseries with annual


sales exceeding $500,000.








Table 10.--Average costs per dollar of sales with sales adjusted for plant
inventory change, six large and nine smaller volume foliage
plant and potted flowering plant nurseries in Florida, 1975


Costs per dollar sales with sales
adjusted for plant inventory change

All 15 6 large 9 smaller Your
tem nurseries nurseries nurseries nursery


- --- - - Cents -


Cash costs
Operator's salary
Other wages & salaries
Plants & seeds to grow on
Pots, growing containers
Fuel oil for prod. heat
Peat, soil, shavings, etc.
Fertilizer & lime
Pesticides & other chem.
Packing boxes & supplies
Other prod. supplies
Repairs & maintenance
*Equipment operating costs
Travel & entertainment
.Insurance
Telephone
Electricity
Taxes, licenses, bonds
Advertising
Rent; land and/or bldgs.
Other cash expenses
Total cash costs

Non-cash costs
Depreciation machinery &
equipment
Depreciation bldgs,, etc.
Inventory decreases, sup-
plies
Interest on capital @ 8%
Total non-cash costs

Total all costs


5.95
27.74..
10.19
6.02
2.00
2.00
.79
.95
4.32
3.51
3.28
.84
.44
1.77
.66
.87
.94
.22
1.18
5.43


5.61
31.23
7.98
6.36
2.01
2.39
.98
.68
5.09
4.55
3.71
.72
.53
2.02
.76
.87
.96
.27
1.64
4.49


6.64
20.72
. 14.61
5.33
1.96
1.24
.41
1.51
2.79.
1.42
2.41
1.08
.25
1.27
.46
.86
.91
.10
.26
7.33


79.10 82.84 71.57



2.77 3.17 1.98
2.27 2.20 2.41

1.25 1.46 .83
5.69 5.76 5.56
11.99 12.59 10.79


91.09


95.42


82.36


aNurseries with annual sales exceeding $500,000.







Table ll.--Average costs per dollar of sales without sales adjusted for
plant inventory change, six large and nine smaller volume
foliage and potted flowering plant nurseries in Florida,
1975


Costs per dollar sales without sales
adjusted for plant inventory change

Item All 15 6 large 9 smaller Your
nurseries nurseries nurseries nursery


- - - Cents -


Cash costs
Operator's salary
Other wages & salaries
Plants & seeds to grow on
Pots, growing containers
Fuel oil for prod. heat
Peat, soil, shavings, etc.
Fertilizer & lime
Pesticides & other chem.
Packing boxes & supplies
Other prod. supplies
Repairs & maintenance
.Equipment operating costs
.Travel & entertainment
Insurance
Telephone
Electricity
Taxes, licenses, bonds
Advertising
Rent; land and/or bldgs.
Other cash expenses
Total cash costs

Non-cash costs
Depreciation machinery &
equipment
Depreciation bldgs., etc.
Inventory decreases, sup-
plies
Interest on capital @ 8%
Total non-cash costs


Total all costs


6.24
29.11
10.69
6.32
2.10
2.10
.83
1.00
4.54
3.69
3.44
.88
.46
1.85
.69
.91
.99
.23
1.24


5.60
31.18-
7.97
6.35
2.01
2.38
.98
.68
5.08
4.55
3.70
.72
.53
2.01
.76
.87
.96
.27
1.63


7.77
24.22
17.09
6.23
2.30
1.44
.48
1.76
3.26
1.66
2.82
1.26
.30
1.48
.54
1.01
1.07
.12
.31


5.70 4.48 8.57
83.00 82.71 83.68



2.91 3.16 2.32
2.38 2.20 2.82

I1.31 1.46 .98
5.97 5.75 6.50
12.58 12.57 12.61


95.58


95.27


aNurseries with annual sales exceeding $500,000.








Table 12.--Income summary, six large
and potted flowering plant


and nine smaller volume foliage plant
nurseries in Florida, 1975


Average Average Average
Item. Unit all 15 6 large 9 smaller Your
nurseries nurseries nurseries nursery

Value of production &
other gain
Value of own plants sold $. 573,926 1,007,148 285,112
Inventory change, own
plants $ 28,304 -1,574 48,222
Inventory change for
supplies $ 0 0 0
Miscellaneous cash in-
come $ 834 1,669 278
Total gain $ 603,064 1,007,243 333,612

Cash costs less
operator's salary $ 440,506 776,611 216,437
Non-cash costs $ 72,205 126,568 35,963
Total gross costs $ 512,712 903,179 252,400

Labor income $ 90,353 104,064 81,211
Interest on investment
@ 8% $ 34,278 57,897 18,531
Nursery "farm income"b $ 124,630 161,961 99,743
Value of operator's
salary $ 35,832 56,369 22,141
Net return $ 54,520 47,696 59,070
Return to capital $ 88,798 105,593 77,602
Return to capital % 20.72 14.59 33.50


aNurseries with annual sales exceeding $500,000.


bNursery "farm income"
salary)] + [Capital owned X


= [Total gain (total gross costs operator's
desired return on investment]








Table 13.--Seven factors associated with
and nine lower profit foliage
nurseries in Florida, 1975


level of profit, six high profit
plant and potted flowering plant


Average Average 6 Average 9
Factor Unit all 15 high profit lower profit Your
nurseries nurseries nurseries nursery


Level of profit
Nursery "farm income"
Seven factors associ-.
ated with profit
Size of business
Value of own plants
sold
Level of costs
Cost per.$ sales plus
plant inventory
value change
Intensity in use of
space
Plant inventory
value turnover
annually
Production rate
Value own plants sold
per sq.-ft. total
bed & bench space
Labor efficiency
Value of own plants
sold per employee
Efficiency in use of
capital
Owned capital turn-
over annually
Growth in sales and
inventory
Amount of increase
in sales & plants
inventory value
from previous year


$ 124,630 247,530


$ 573,926


91.09




339



3.15


$' 19,422



% 133.95


766,458


82.83




334



3.15


21,799



133.33


42,697


445,572


102.86




344



3.15


17,264



134.66


$ 136,892 223,029


79,468




18



Table 14.--Degree of association between cost and efficiency factors
and level of profit, 15 foliage plant and potted flowering
plant nurseries in Florida, 1975


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

Number Percent

Level of profit
Nursery "farm income" 6 100

Seven factors associated with
profit
Size of business
Value of own plants sold 4 67
Level of costs
Costs per $ sales plus plant
inventory change
Intensity in use of space
Percent of plant inventory
value turnover annually 4 67
Production rate
Value of own plants sold per
sq. ft. total bed & bench
space 1 17
Labor efficiency
Value of own plants sold
per employee 2 33
Efficiency in use of capital
Owned capital turnover
annually 4 67
Growth in sales and inventory
Amount of increase in sales
and plant inventory value
from previous year 4 67








Table 15.--Ranoe of figures on profit and the seven cost and efficiency
factors associated with profit, 15 foliage plant and potted
flowering plant nurseries in Florida, 1975

Figures for the 3 best and
the 3 poorest nurseries on
each factor

Factr Ut Average for Average for Your
actor U 3 best 3 poorest nursery

Level of profit
Nursery "farm income" $ 333,661 -44,725
Seven factors associ-
ated with profit
Size of business
Value of own plants
sold $ 1,292,523 118,037
Level of costs
Cost per $ sales
plus inventory
value change 72.73 112.24
Intensity in the use
of space
Plant inventory
value turnover
annually 512 181
Production rate
Value of own plants
sold per sq. ft. of
total bed & bench
space $ 7.46 1.90
Labor efficiency
Value of own plants
sold per employee $ 38,393 12,543
Efficiency in use of
capital
Owned capital turn-
over annually % 232.56 67.21
Growth in sales and
inventory
Amount of increase
in sales & plant
inventory $ 405,870 -8,331












Table 16.--Conparison of business analysis factors for the same 11 foliage plant growers in Florida who
furnished figures for the years 1970, 1971, 1972, 1973, 1974, and 1975

Average for the same 11 nurseries in
Factor Unit 1970- 1971 1972 1973 1974 1975

Profit
ursiry "farm income" $ 43,657 53,054 81,437 133,585 152,323 138,055
Percent return to capital % 20.46 20.63 30.10 36.92 26.98 18.82
Size of business
Value of own plants sold $ 179,758 220,974 284,850 410,468 561,774 '719,569
Level of costs
Costs per sales plus
plant inventory value
change 92.26 91.46 86.84 87.22 90.61 92.78
Intensity in use of space
Plant inventory value
turnover annually % 203 213 230 283 327 368
Production rate
Value of own plants sold
per sq. ft. total bed &
'bench space $ 1.11 1.32 1.73 2.42 3.09 3.07
Labor efficiency
Own plants sold per employee $ 9,888 11,038 12,406 14,981 17,817 19,214
Efficiency in use of capital
Owned capital turnover
annually % 128.91 120.25 133.40 143.52 131.50 144.78
Growth in sales and inventory
Increase in sales & plant
inventory value from
previous year $ 25,258 55,001 67,305 131,416 167,149 127,711
Efficiency in use of space
Bed & bench space in use sq. ft. 161,858 166,802 164,371 169,395 182,089 234,713
Bed & bench space vacant % 4.24 4.44 4.75 3.40 3.29 2.67