Nursery Costing Model

Every nursery, at some time or other, is going to have to be able to answer the question: how much do my plants cost?

The first part of the answer's easy - add up the costs of pot, media, label … But, then it gets tougher - just how do we apportion admin costs, the power bill, rates, insurance, 4 weeks holiday pay, the new tractor or sales van, and many other non-productive expenses across the plants we're growing? And then, what happens if we use a larger pot, pot it on, grow an established grade …?

Without this information it becomes difficult to run a nursery in an informed and confident manner. Given escalating cost pressures, the need for timely and accurate information and a method to keep our costings up to date is more important than ever right now.

John Liddle and KingGrapes can assit you through the process of:

  • Understanding the principles of nursery product costing and the establishment of a simple paper-based process.
  • Establishing the set up requirements of the Computer Nursery Costing Model in order to create a working costing tool for your individual nursery.
  • Working individually on your own copy of the Costing Model - new copy or upgrade provided.

Armed with this information you will be able to:

  • Determine whether your plants are being sold at a profit or a loss.
  • Determine which plants generate the most profit.
  • Determine the price your plants should be sold at in order to generate a minimum and pre-determined profit.
  • Confidently negotiate sales knowing what the actual profit margins are, and how much you can afford to move in your pricing.

We've got a worksheet to guide you in collecting necessary nursery and business data so that you can develop a fruitful and accurate working model.

Ensure your business has the margins that will see you in business for the long term ... contact us today.



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