Nursery Cost Analysis

When growers think about "sustainability" usually they are thinking about conservation and environmental consequences. Many producers don't usually think of economic sustainability. Staying in business is a consideration within the realm of sustainability and staying in business means having more money coming out than what you put in.  What if I asked you how much does it cost to produce a finished 1 or 3 gallon of a particular plant your growing?  Would you know the answer to a series of questions such as; How much profit do you make on that plant?  What would it save you if you didn't pot up that plant?  How much profit is in producing that plant?  How much profit would you lose if you had to dump 10% of that crop?  Should you grow more of these plants than those plants?  These are all questions that can be answered by doing cost analysis. Here is an excellent video introduction on what cost analysis is in a nursery. It might surprise you that you can predict financial results on your nursery using this method. It does take some time to do the calculations but the paybacks could be substantial in terms of making real educated guesses on production factors. Just click on this link to view a Floricast video that explains the method   http://tiny.cc/zyyxo

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