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Front Cover Abstract Page i Acknowledgement Page ii Table of Contents Page iii Page iv Main Page 1 Page 2 Page 3 Page 4 Tables 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 |
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ABSTRACT This report presents average sales, costs and returns information for 11 wholesale container nurseries in Florida for the 1976 tax year. The value of plant sales averaged $320,427 and production costs averaged $317,315. After adjusting for inventory value changes and miscellaneous income, return to capital was $46,636 or 11.20 percent. Key words: Container nurseries, value of own plants sold, cash costs, non-cash costs, net nursery income and return to capital. ACKNOWLEDGMENTS This report is made possible by the 11 cooperating container nursery- men who made their production and accounting records available. Addition- ally, Jim Cummings, Louis Daigle, Klaus Geyer, Larry Halsey, DeArmand Hull, Marlow Iverson and Victor Yingst, county extension agents, provided invaluable assistance during the data collection process. Carolyn Almeter tabulated the data for this report, Darlene Hutson and Millie Pfeifler typed this report. As always, any errors in the data or interpretation of the informa- tion remain the responsibility of the author. TABLE OF CONTENTS Page ABSTRACT. . . . . .. .......... i. ACKNOWLEDGMENTS . . . . ... ........ ii LIST OF TABLES. . . . . ... ....... ii INTRODUCTION . . . . . ... 1 PROCEDURE . . . . ... . ... . DEFINITIONS . . . .... . .. 2 RESULTS AND DATA PRESENTATION . . ... .. .. 3 LIST OF TABLES Table 1 Size of business, three large and eight smaller volume wholesale ornamental container nurseries in Florida, 1976 . . . . . . 5 2 Rates of production, three large and eight smaller volume wholesale ornamental container nurseries in Florida, 1976. 6 3 Labor efficiency, three large and eight smaller volume wholesale ornamental container nurseries in Florida, 1976. 7 4 Efficiency in use of capital, three large and eight smaller volume wholesale ornamental container nurseries in Florida, 1976 . . . . ... .. 8 5 Efficiency in use of space, three large and eight smaller volume wholesale ornamental container nurseries in Florida 1976 . . . . . . 9 6 Comparison of certain cost and return measures, three large and eight smaller volume wholesale ornamental con- tainer nurseries in Florida, 1976. . . ... 10 7 Average dollar costs per nursery for various categories of expense, three large and eight smaller volume wholesale ornamental container nurseries in Florida, 1976. .... 11 LIST OF TABLES--Continued Table Page 8 Percent of total costs for various categories of expense, three large and eight smaller volume wholesale ornamental container nurseries in Florida, 1976 . .... .12 9 Average costs per square foot of production area, three large and eight smaller volume wholesale ornamental con- tainer nurseries in Florida, 1976. . . .... .13 10 Average costs per square foot of plant sales equivalent, three large and eight smaller volume wholesale ornamental container nurseries in Florida, 1976 . . .. 14 11 Average costs per dollar of sales with plant inventory in- crease added to sales, three large and eight smaller volume wholesale ornamental container nurseries in Florida, 1976 15 12 Average costs per dollar of sales without plant inventory increase added to sales, three large and eight smaller volume wholesale ornamental container nurseries in Florida, 1976 . . . . . . 16 13 Income summary, three large and eight smaller volume whole- sale ornamental container nurseries in Florida, 1976 17 14 Factors associated with level of profit, three high and eight lower profit wholesale ornamental container nurseries in Florida, 1976 . . . . . 18 15 Range of figures on profits and eight factors associated with profits, wholesale ornamental container nurseries in Florida, 1976 . . . . .. 19 16 Comparative business analysis for the same six Florida wholesale ornamental container nurseries which furnished data for 1970, 1971, 1972, 1973, 1974, 1975 and 1976 20 BUSINESS ANALYSIS OF CONTAINER NURSERIES IN FLORIDA, 1976 Dan L. Gunter INTRODUCTION This business analysis report presents information on sales, costs, returns and production efficiency aspects of container nurseries in Florida for 1976. For this report, a container nursery is defined as a nursery producing primarily woody landscape plants in containers. The purpose of the business analysis report is: (1) to furnish nur- serymen various physical and economic measures that may be used in eval- uating the efficiency of individual: container nurseries; (2) to supply cooperating nurserymen data so that they may make more informed management decisions; (3) to provide individuals considering entering the wholesale container plant production business an estimate of the input requirements and revenue; and (4) to provide the Florida extension personnel data which may be used in educational programs with nurserymen. PROCEDURE Information presented in this report is based on data collected from the accounting and production records of 11 nurserymen. Nurserymen supplying the information are located in north, central and south Florida. They provided the data voluntarily and do not represent a statistically selected sample. However, the container nurserymen participating in the business analysis program are thought to represent some of the more effi- cient nurseries in the state. DAN L. GUNTER is an extension production economist. The data collected pertain to the individual nurseryman's 1976 tax year which, in some cases, does not conform to the 1976 calendar year. In those nurseries which do not pay the operator a salary, an estimate of the value of the operator's time is collected and used in the analysis. To provide an equitable basis for comparisons, any interest paid by the individual nurseryman is excluded from the costs shown in this report. However, an interest cost of 8 percent is charged on the owned capital investment. The owned capital investment reflects the depreciated book value of buildings, improvements and machinery and equipment. The growing plants are usually valued at a price lower than the wholesale price since not all plants are of saleable size. Each nurseryman participating in the analysis may value plants differently. However, a common price used to value each plant is 50 to 60 percent of the wholesale price. The land is valued at the original purchase price. The data from individual nurseries are averaged and presented in tabular form. The tables depict average values for all 11 nurseries, three "large" and eight "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 the terms used in this report, which may be less familiar, are as follows: Value of own plants sold.--This represents the total plant sales minus the cost of plants purchased for immediate resale. Plants pur- chased for growing-on are not deducted. Square foot equivalent of own plants sold.--Each plant sold is taking up a specific amount of land space expressed in square feet. The square feet required for a plant depends upon container size and spacing. For example, gallon containers may be placed on 12 inch centers requiring one square foot. Full-time equivalent employee.--This represent 2,080 annual manhours or 40 hours for 52 weeks. A convenient way to calculate the number of full-time equivalent employees is to divide the total annual payroll hours by 2,080 and then add any unpaid family or management. Percent turnover of capital annually.--A ratio derived by dividing the value of own plants sold by the total capital employed in the enter- prise. Percent of production area turnover annually.--The square foot equiv- alent of own plants sold divided by the total production area of the nursery. Total gain.--Represents total nursery income from plant sales, value of plant inventory changes, supply inventory increases and miscellaneous cash income. Net nursery income.--Total gain less cash cotts (except operator's salary), depreciation costs and value of supply inventory decreases. Return to capital.--Net nursery income less operator's salary. Percent return to capital.--Return to capital divided by total owned capital. RESULTS AND DATA PRESENTATION The data in Tables 1 through 12 relate to the size of the business, rate of production, labor efficiency, capital efficiency, production space efficiency and other efficiency factors. Analyses relating to container nursery profitability are presented in Tables 13, 14 and 15. Table 16 presents information on the efficiency and profitability of six whole- sale container nurseries that have participated in the nursery business analysis program since 1970. Where information in the tables is rounded to the nearest whole number, arithmetic errors due to rounding may be noted. During 1976, the 11 nurseries that participated in the nursery busi- ness analysis program had average plant sales (value of own plants sold) of $320,427 (Table 1). The nurseries had an average of 10.9 acres in production. The production area is net growing space. Roads, aisles and non-productive areas have been excluded. The nurseries had an average of just over 17 full-time employees. The average capital investment for 11 nurseries was $416,550. However, the managed capital averaged $493,375. Managed capital reflects the own capital investment plus the rent value of buildings, equipment or land rented. Production costs averaged $317,315 (Table 7). Labor is the single largest expense for the container nurseries, accounting for 32 percent of the total cost (Table 8). The cost per square foot in production was about 77 cents for the large nurseries and 58 cents for the eight smaller nurseries (Table 9). Return to capital was $46,636 for the 11 nurseries which was slightly over 11 percent of the capital investment. The smaller nurseries averaged 6.81 percent return to capital while the large nurseries earned 16.81 percent (Table 13). Other differences between the large and smaller nurseries can be seen by examination of the various efficiency parameters presented in the tables. Information in Table 16 is of particular significance as it pertains to six nurseries participating in the business analysis program since 1970. Net nursery income averaged $44,561 in 1976, down from $77,036 a year earlier. The return to capital averaged 9.59 percent, down from 22.01 percent in 1975. However, the value of plant sales increased by about 16 percent from $172,315 in 1975 to $199,467 in 1976. 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 effi- ciency can be improved. Table l.--Size of business, three large and eight smaller volume ornamental container nurseries in Florida, 1976 wholesale Average Average Average Item Unit all 11 3 large 8 smaller Your nurseries nurseries nurseries nursery One best measure Value of own plants sold Other useful indi- cators Value of own plants sold adjusted for plant inventory change Sq. ft. equivalent of own plants sold Sq. ft.equivalent of own plants sold adjusted for plant inventory change Average sq. ft. of own plants in pro- duction Average acre equiv- alent of own plants in production Average number of full-time equiv. employees Capital owned: Growing plants Land Machinery & equip. Bldgs., fences, wells, etc. Supplies Total owned cap. Capital managed: Growing plants Land Machinery & equip. Bldgs., fences, wells, etc. Supplies Total managed cap. $ 320,427 670,327 $ 326,592 670,327 Sq.ft. Sq.ft. 173,740 331,124 177,083 331,124 Sq.ft. 475,070 Acre 10.91 17.38 306,733 14,326 33,090 51,285 11,115 811,563 18.63 32.29 505,191 9,665 75,372 60,732 19,062 189,214 197,692 114,721 119,861 348,886 8.01 11.79 232,311 16,074 17,235 47,743 8,135 416,550 670,022 321,497 306,733 505,191 232,311 61,326 173,665 19,199 33,090 75,372 17,235 81,110 167,399 48,752 11,115 19,062 8,135 493,375 940,689 325,632 aNurseries with annual sales of own plants exceeding $500,000. Table 2.--Rates of production, three large and eight smaller volume whole- sale ornamental container nurseries in Florida, 1976 Average Average Average Item Unit all 11 3 large 8 smaller Your nurseries nurseries nurseries nursery One best measure Sq. ft. equivalent of own plants sold per acre in prod. Sq.ft. 15;931 17,773 14,323 Other useful indi- cators Value of own plants sold per acre in production $ 29,380 35,979 23,624 Value of own plants sold adjusted for plant inventory change per acre in production $ 29,946 35,979 24,683 aNurseries with annual sales of own plants exceeding $500,000. Table 3.--Labor efficiency, three large and eight smaller volume ornamental container nurseries in Florida, 1976 wholesale Average Average Average Item Unit all 11 3 large 8 smaller Your nurseries nurseries nurseries nursery One best measure Value of own plants sold per employee Other useful indi- cators 'Value of own plants sold adjusted for plant inventory change per employee Sq. ft. equivalent of own plants sold per employee Sq. ft. equivalent of own plants sold adjusted for plant inventory change per employee Average sq. ft. in production per employee $ 18,437 $ 18,791 Sq.ft. 9,997 Sq.ft. 10,189 Sq.ft. 27,334 aNurseries with annual sales of own plants exceeding $500,000. 20,760 20,760 10,255 10,255 25,134 16,049 16,768 9,730 10,166 29,592 Table 4.--Efficiency in use of wholesale ornamental capital, three large and eight smaller volume container nurseries in Florida, 1976 Average Average Average Item Unit all 11 3 large 8 smaller Your nurseries nurseries nurseries nursery One best measure Percent turnover of owned capital annu- ally Other useful indica- tors Percent turnover of managed capital annually Capital owned: Per employee Per acre Capital managed: Per employee Per acre Capital managed per acre in: Plants Land Machinery & equipment Percent of capital managed in: Plants Land Machinery & equipment Bldgs., wells, fences, etc. Supplies Total 76.92 64.95 23,967 38,194 28,387 45,238 17,649 3,529 1,904 62.17 12.43 6.71 16.44 2.25 $ 100.00 100.05 71.26 20,750 35,963 29,133 50,491 15,645 5,378 2,334 53'. 70 18.46 8.01 17.80 2.03 100.00 :58.85 58.11 27,269 40,140 27,619 40,657 19,704 1,628 1,462 71,34 5.90 5.29 14.97 2.50 100.00 aNurseries with annual sales of own plants exceeding $500,000. -- Table 5.--Efficiency in use of wholesale ornai ental space, three large and. gentainer Ruveri es i.n eight smaller volume Florida, 1976 Average. Average- Average Item Unit all 11 3 large 8 smaller Your nurseries nurseries nurseries nursery ------.-- ---- "i""1 ""i"*"- 1,....., .-------* ~ - One best measure Percent of production area (or plant) turn- .over annually 36.57 40.80 32.88 Other useful indicators Sq. ft. equivalent of own plants sold per acre in production Sq.ft. 15,931 17,773 14,323 Sq. ft. equivalent of own plants sold ad- justed for plant inr ventory change Sq.ft. 16,237 17,773 14,965 Average value of plant inventory per acre in production $ 28,125 27,116 29,005 aNurseries with annual sales of own plants exceeding $500,000. Table 6.--Comparison of certain cost and eight smaller volume wholesale Florida, 1976 return measures, three large and ornamental container nurseries in Average Average Average Item all 11 3 largea 8 smaller Your nurseries nurseries nurseries nursery ,- - -.- Cents - - - Return Value of own plants sold per sq. ft. of plant sales equivalent 184,43 202.44 164.93 Costs Total cost per sq. ft. of plant sales equivalent 182,64 187.87 176.97 Net returns per sq. ft. of plant sales equivalent Value of own plants sold and costs per sq. ft. of plant equivalent 1.79 14.57 -12.04 Price goal Prices per sq. ft. of plant sales equivalent which would have been required toyield a 15% return on investment (not including plant inventory increase as part of return) 199.42 202.04 196.59 aNurseries with annual sales of own plants exceeding $500,000. Table 7.--Average dollar costs per nursery for various categories of expense, three large and eight smaller volume wholesale ornamental container nurseries in Florida, 1976 Average Average Average Item all 11 3 largea 8 smaller Your nurseries nurseries nurseries nursery - - Dollars - Cash costs Operator's salary 23,821 43,538 16,427 Others wages & salaries 100,889 179,986 71,228 Plants & seeds to grow on 29,652 75,730 12,373 Cans & other growing con- tainers 28,161 58,980 16,603 Peat, soil, shavings, etc, 10,589 19,018 7,566 Fertilizer & lime 4,546 6,359 3,866 Pesticides & other chem. 3,374 6,532 2,190 Other production supplies 10,433 21,740 6,194 Repairs & maintenance 10,831 20,094 7,358 Equipment operating costs 6,404 14,603 3,330 Travel & entertainment 2,845 6,763 1,376 Insurance 7,431 15,237 4,504 Telephone 1,842 3,457 1,237 Electricity 3,152 7,284 1,603 Taxes, licenses & bonds 4,821 9,607 3,026 Advertising 1,242 2,125 910 Rent; land and/or buildings 9,519 32,852 906 Other cash expenses 8,802 15,4PPv 6,295 Total cash costs 268,555 539,391 166,992 Non-cash costs Depreciation machinery & equipment 9,956 22,666 5,190 Depreciation buildings 5,479 6,427 5,124 Inventory decrease on supp. 0 0 0 Interest on capital @ 8% 33,324 53,602 25,720 Total non-cash costs 48,T60 82,695 36,034 Total all costs 317,315 622,086 203,026 aNurseries with annual sales of own plants exceeding $500,000. ~----------- Table 8.--Percent of total costs for various categories of expense, three large and eight smaller volume wholesale ornamental container nurseries in Florida, 1976 Average Average Average Item all 11 3 largea 8 smaller Your nurseries nurseries nurseries nursery - - Percent - - - Cash costs Operator's salary Other wages & salaries Plants & seeds to grow on Cans & other growing con- tainers Peat, soil, shavings, etc. Fertilizer & lime Pesticides & other chem. Other production supplies Repairs & maintenance Equipment operating costs Travel & entertainment Insurance Telephone Electricity Taxes, licenses, & bonds Advertising Rent; land and/or buildings Other cash expenses Total cash costs Non-cash costs Depreciation machinery & equipment Depreciation buildings Inventory decrease on supp. Interest on capital @ 8% Total non-cash costs Total all costs 7.51 31.79 9.34 8.87 3.37 1.43 1.06 3.29 3.41 2.02 .90 2.34 .58 .99 1.52 .39 3.03 2.77 7.00 28.93 12:17 9.48 3.06 1.02 1.05 3.49 3.23 2.35 1.09 2.45 .56 1.17 1.54 .34 5.28 2.49 8.09 35.08 6.09 8.18 3.73 1.90 1.08 3.05 3.62 1.64 .68 2.22 .61 .79 1.49 .45 .45 3.10 '84.63 86.71 82.25 3.14 3.64 2.56 1.73 1.03 2.52 0 0 0 10.50 8.62 12.67 15.37 13.29 17.75 100.00 100.00 100.00 aNurseries with annual sales of own plants exceeding $500,000. Table 9.--Average costs per square foot of production area, three large and eight smaller volume wholesale ornamental container nurseries in Florida, 1976 Average Average Average Item all 11 3 large 8 smaller Your nurseries nurseries nurseries nursery -- - Cents - - - Cash costs Operator's salary Other wages & salaries Plants & seeds to grow on Cans & other growing containers Peat, soil, shavings, etc. Fertilizer & lime Pesticides & other chem. Other production supplies Repairs & maintenance Equipment operating costs Travel & entertainment Insurance Telephone Electricity Taxes, licenses, & bonds Advertising Rent; land and/or buildings Other cash expenses Total cash costs Non-cash costs Depreciation machinery & equipment Depreciation buildings Inventory decrease on supp. Interest on capital @ 8% Total non-cash costs Total all costs 5.01 21.24 6.24 5.93 2.25 .96 .71 2.20 2.28 1.35 .60 1.56 .39 .66 1.01 .26 2.02 1.85 5.36 22.18 9.33 7.27 2.34 .78 .80 2.68 2.48 1 .80 .83 1.88 .43 .90 1.18 .26 4.05 1.91 4.71 20.42 3.55 4.76 2.17 1.11 .63 1.78 2.11 .95 3.39 1.29 .35 .46 .87 .26 .26 1.80 56.53 66.46 47.86 - 2.10 2.79 1.49 1.15 .79 1.47 0 0 0 7.01 6.60 7.37 10.26 10.19 10.33 66.79 76.65 58.19 aNurseries with annual sales of own plants eKceeding $500,000. I--- -- -- --- -- Table 10.--Average costs per square foot of plant sales equivalenta, three large and eight smaller volume wholesale ornamental container nurseries in Florida, 1976 Average Average Average Item all. 11 3 large 8 smaller Your nurseries nurseries nurseries nursery - - Cents - - - Cash costs Operator's salary Other wages & salaries Plants & seeds to grow on Cans & other growing con- tainers Peat, soil, shavings, etc. Fertilizer & lime Pesticides & other chem. Other production supplies Repairs & maintenance Equipment operating costs Travel & entertainment Insurance Telephone Electricity Taxes, licenses, & bonds Advertising Rent; land and/or buildings Other cash expenses Total cash cost Non-cash costs Depreciation machinery & equipment Depreciation buildings Inventory decrease on supp. Interest on capital @ 8% Total non-cash costs Total all costs 13.45 56.97 16.74 15.90 6.04 2.57 1.91 5.89 6.12 3.62 1.61 4.20 1.04 1.78 2.72 .70 5.43 4.97 13.15 54.36 22.87 17.81 5.74 1.92 1.97 6.57 6.07 4.41 2.04 4.60 1.04 2.20 2.90 .64 9.92 4.68 13.71 59.43 10.32 13.85 6.31 3.23 1.83 5.17 6.14 2.78 1.15 3.76 1.03 1.34 2.52 .76 .76 5.25 151.66 162.90 139.32 5.62 6.85 4.33 3.09 1.94 4.27 0 0 0 _ 18.82 16.19 21.46 27.53 24.97 30.06 179.19 187.87 169.38 aIn this case, the square item 4 in Table 1. foot equivalent of plant sales is shown as bNurseries with annual sales of own plants exceeding $500,000. "'- Table 11.--Average costs per dollar of sales with plant inventory increase added to sales, three large and eight smaller volume wholesale ornamental container nurseries in Florida, 1976 Average Average Average Item all 11 3 large 8 smaller Your nurseries nurseries nurseries nursery - - Cents - - - Cash costs Operator's salary Other wages & salaries Plants & seeds to grow on Cans & other growing con- tainers Peat, soil, shavings, etc. Fertilizer & lime Pesticides & other chem. Other production supplies Repairs & maintenance Equipment operating costs Travel & equipment Insurance Telephone Electricity Taxes, licenses, & bonds Advertising Rent; land and/or buildings Other cash expenses Total cash costs Non-cash costs Depreciation machinery & equipment Depreciation buildings Inventory decrease on supp. Interest on capital @ 8% Total non-cash costs Total all costs 7.29 30.89 9.08 8.62 3.27 1.39 1.03 3.19 3.32 1.96 .87 2.28 .56 .97 1.48 .38 2.95 2.70 6.50 26.85 11.30 8.80 2.84 .95 .97 3.24 3.00 2.18 1.01 2.27 .52 1.09 1.43 .32 4.90 2.31 8.31 36.03 6.26 8.40 3.83 1.96 1.11 3.13' 3.72 1.68 .70 2.28 .63 .81 1.53 .46 .46 3.18 82.23 80.47 84.47 3.05 3.38 2.63 1.68 .96 2.59 0 0 0 10.20 8.00 13.01 14.93 12.34 18.23 97.16 92.80 102.70 aNurseries with annual sales of own plants exceeding $500,000. Table 12.--Average costs per dollar of sales without plant inventory increase added to sales, three large and eight smaller volume wholesale ornamental container nurseries in Florida, 1976 Average Average Average Item all 11 3 large 8 smaller Your nurseries nurseries nurseries nursery S- - Cents - - - Cash costs Operator's salary Other wages & salaries Plants & seeds to grow on Cans & other growing containers Peat, soil, shavings, etc. Fertilizer & lime Pesticides & other chem. Other production supplies Repairs & maintenance Equipment operating costs Travel & entertainment Insurance Telephone Electricity Taxes, licenses, & bonds Advertising Rent; land and/or buildings Other cash expenses Total cash costs Non-cash costs Depreciation machinery & equip- ment Depreciation buildings Inventory decrease on supp. Interest on capital @ 8% Total non-cash costs Total all costs 7.43 31.49 9.25 8.79 3.34 1.42 1.05 3.26 3.38 2.00 .89 2.32 .57 .98 1.50 .39 3.00 2.75 6.50 26.85 11.30 8.80 2.84 .95 .97 3.24 3.00 2.18 1.01 S2.27 .52 1.09 1.43 .32 4.90 2.31 8.68 37.64 6.54 8.77 4.00 2.04 1.16 3.27 3.89 1.76 .73 2.38 .65 .85 1.60 .48 .48 3.33 83.81 80.47 88.26 3.11 3.38 2.74 1.71 .96 2.71 0 0 0 10.40 8.00 13.59 15.22 12.34 19.04 99.03 92.80 107.30 aNurseries with annual sales of own plants exceeding $500,000. Table 13.--Income summary, three large and eight smaller volume ornamental container nurseries in Florida, 1976 wholesale Average Average Average Item Unit all 11 3 largea 8 smaller Your nurseries nurseries nurseries nursery Value of production & other gain Value of own plants sold Inventory change own plants Inventory increase for supplies Miscellaneous cash income Total gain Cash costs less operator's salary Non-cash costs less interest cost @ 8% Total gross costs less operator's salary & interest cost Net nursery income Operator's salary Return to capital Percent return to capital 320,427 6,165 3,537 670,327 9,956 189,214 8,477 1,130 498 850 366 330,627 681,132 199,188 244,734 495,853 150,565 15,435 29,093 10,314 260,169 70,457 23,821 46,636 11.20 524,946 156,185 43,538 112,647 16.81 160,879 38,309 16,427 21,882 6.81 aNurseries with annual sales of own plants exceeding $500,000. Table 14.--Factors associated with level of profit, three large and eight lower profit wholesale ornamental container nurseries in Florida, 1976 3 high 8 lower Factor Unit profit profit Your nurseries nurseries nursery Profit Net nursery income $ 169,929 33,155 Size of business Value of own plants sold $ 611,588 211,242 Level of cost Cost per $ of sales and plant inventory value increase 88 107 Labor efficiency Value of own plants sold per employee $ 20,231 16,805 Sales price level Difference between sales value and costs per sq. ft. of plant sales equivalent 30.85 -14.59 Sales & inventory gain Gain in sales & plant in- ventory value from previous year (item 2 in Table 1 compared with same item the previous year) $ 53,184 -16,735 Production rate Sq. ft. equivalent own plants sold per acre in production Sq.ft. 15,506 16,180 Capital use efficiency Percent of capital turnover % 115.23 56.52 Space use efficiency Percent plant turnover % 35.60 37.14 Table 15.--Range of figures on profits and eight factors associated with profits, wholesale ornamental container nurseries in Florida, 1976 Average figures for the 3 best and the 3 poorest nur- series on each factor Factor Unit Average for Average for Your 3 best 3 poorest nursery Profit Net nursery income $ 169,929 11,596 Size of business Value of own plants sold $ 670,327 70,314 Level of cost Cost per $ of sales and plant inventory value increase 8] 126 Labor efficiency Value of own plants sold per employee $ 23,553 12,276 Sales price level Difference between sales value and costs per sq. ft. of plant sales equivalent 52.64 -78.02 Sales & inventory gain Gain in sales and plant inventory value from previous year $ 77,984 -81,658 Production rate Sq. ft. equivalent own plants sold per acre in production Sq.ft. 35,398 9,180 Capital use efficiency Percent of capital turnover % 179.40 36.50 Space use efficiency Percent plant turnover % 88.92 21.07 Table 16.-- Comparative business analysis for the sane six Florida wholesale ornamental container nurseries, which furnished data for 1970, 1971, 1972. 1971, 1974, 1975 and 1976 Average for the same six nurseries in Factor Unit 1970 1971 1972 1973 1974 1975 1976 . Profit Net nursery income $ 18,390 10,032 36,045 50,793 46,023 77,036 44,561 Percent return to capital % 8.82 -1.10 20.61 22.82 17.39 22.01 9.59 Size of business Value of own plants sold $ 69,301 68,540 106,564 149,267 174,978 172.315 199.467 Level of cost Cost per sales & plant inventory value increase t 100 116 86 87 91 86 99 Labor efficiency Value of own plants sold per employee $ 9,519 8,238 10,907 13,682 15,922 14,591 15,919 Sales price level Difference between sales & costs per sq. ft. of plant sales equivalent t -13.09 -35.85 .69 3.65 6.88 -29.99 -13.98 Sales & inventory gain Gain in sales & plant inventory value from previous year $ 7,261 619 42,403 36.384 18,266 54,679 -19,250 Production rate Sq. ft. eqiv. own plants sold per acre in production Sq.ft. 20.235 15,955 22,479 21,95S 16,289 13,150 13,624 Capital use efficiency Percent of capital turnover % 65.31 56.66 78.50 88.44 90.39 63.88 62.92 Space use efficiency Percent plant turn- over 46.46 36.63 51.61 50.40 37.39 30.19 31.28 |