THE NATIONAL NURSERYMAN 
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our selling prices to a great extent on information which we 
gather at the Nurserymen’s Convention each season, and 
might say, therefore, in answer to your question No. 4 that 
we are influenced by the prices of other concerns. We could 
not name any items which we are selling below eost. It cer¬ 
tainly seems to us that a complete cost accounting system 
should be used. It is more or less conjecture or estimate as 
to what stock really does cost to produce. We have taken 
this matter up with some of our foremen at different times 
and they hesitate to tackle the job. It certainly would 
appear that it would be a comi:)lex affair.” 
No. 5 
‘‘We do not maintain a cost department, and as we do not 
do this, of course, we cannot base our price on cost of produc¬ 
tion, and have to go somewhat by the other fellow’s list. We 
think perhaps field-grown Roses are sold below cost, at least, 
pretty nearly at cost of production.” 
No. 6 
‘‘This is a question which has had the attention of many 
members of the American Association for the past ten years. 
Papers have been presented before the annual meetings on 
this question, but as yet no practical plan has been suggested 
by which the cost of different blocks could be detennined. 
‘‘We, of course, keep a ‘Nursery Account’ charging to the 
nursery all expenditures made in the planting, cultivation, 
care, digging and handling the stock and at the same time 
crediting the Nursery Account with everything received from 
the plant at prevailing wholesale prices. By this method we 
are enabled to determine what our stock as a whole costs us, 
but as for being able to ascertain the cost of any individual 
block, would state that we have been unable to devise any 
plan that is at all satisfactory. 
‘‘Men and teams frequently work part of the day in one 
block of trees, the remainder of the day in another and so on 
tliroughout the entire season. It would require the entire 
attention of a vigilant time-keeper to keep track of these 
movements in a large plant, but it would not possibly be a 
very severe task in keeping track of it on our place. 
‘‘The cost of production does not affect the selling price at 
which our stock is placed on the market in either wholesale 
or retail trade. The demand, supply and prevailing price‘of 
leading nurserymen is usually taken into consideration in this 
respect. The facts are, if we were to undertake to sell some 
classes of stock at a reasonable profit above cost of produc¬ 
tion, it would likely have to be consigned to the brush pile at 
the end of the season. 
‘‘The catalogue price of other nurserymen and personal 
quotations from them, enter very largely into the price asked 
by us for stock which we offer to the trade or to the planter. 
‘‘Replying to your inquiry No. 5, would state that quota¬ 
tions in nursery stock like that of any other commodity, are 
governed largely by the supply and demand. There are 
times of course, when stock is sold below the cost of produc¬ 
tion. We are not in position to give any reliable data on this 
point however, at the present time. 
‘‘We regret exceedingly our inability to give you any 
information of value on the questions propounded, but shall 
take i)leasure at any time in giving you such information as 
we can along our line.” 
No. 7 
‘‘We have at hand your letter of the gth inst., and in reply 
would say that your questions, to which you have asked our 
answers, interest us greatly: First, as we have recently 
installed a system whereby we hope better to detennine the 
cost of production than heretofore; second, wchsivc. divided 
our Nursery into sections of which separate accounts arc 
kept to which all young stock, fertilizer, labor, etc., arc 
charged; third, we find we can arrive at the cost of ]jroduc- 
tion closer by this method, thus making costs figure in. our 
selling prices nearer than heretofore; fourth, no doubt the 
other man’s catalogue has been an important factor in making 
prices. In our own case we do not base our prices on those 
quoted in other catalogues, but rather, as near as possible, 
from the costs of our business; fifth concerning the selling of 
items below cost, we do not know of any at this time. Our 
stock is all sold at a price that cov'^ers as near as can be 
determined all costs. 
‘‘We are pleased at this time that your publication should 
interest itself in this important subject and you may be sure 
that we will follow the different answers closely to sec if we 
can pick up some new ideas. 
‘‘Our system has not had perhaps due time to try itself 
out but to date are very much pleased at the results obtained 
and we feel sure that with, perhaps a few changes it will be 
of a great benefit to us. 
‘‘Thanking you for calling upon us and trusting that 
indeed you may receive replies that will be of general benefit 
not to ourselves alone but to the Nursery business as a whole.” 
No. 8 
‘‘I have no method of determining cost of production. 
The other man’s catalogue price does not influence me. I 
have always thought there were some things choice, slow 
growing for instance, that were sold below cost, but can give 
you nothing definite. However, there is no question but 
that the cost of production has increased materially, also the 
cost of selling. In fact, about every thing in the way of 
material used in the business has increased in price.” 
No. 9 
‘‘We arc glad that The National Nurseryman is taking 
up the subject of ‘Cost Accounting’ for Nurserymen. Our 
experience has been that Nurserymen know v^ery little about 
the detail of their costs. We are not much farther advanced 
in this respect than others. 
‘‘To date our efforts have been confined to some experi¬ 
ments and much thinking, without any adequate solution 
of the problem. We hav'^e looked into several Cost vSystems 
of other businesses and find that all of them arc lacking in 
certain particulars that our business requires. 
‘‘The cost of production is a detennining factor in fixing 
our selling prices, but inasmuch as we only partially know our 
cost as much dependence is not based upon it in fixing our 
selling price as there should be. 
‘‘The other man’s catalog docs not influence us v^ery much 
