14 
THE NATIONAL NURSERYMAN 
in fixing our own prices. We believe our prices are generally 
higher than those of many of our competitors, so their 
catalogs are of little use to us. We confess, however, to 
consulting them occasionally about some of The Best 
Sellers.’ 
“We can not name any articles that are being sold below 
cost by all nurserymen. We do know particular instances at 
several nurseries where, if their experience has been the same 
as ours, they are selling below cost, but we are not prepared 
to say that any item is being sold below cost by all of us. 
“In this matter of Cost Accounting we think it probably 
will be easier for the growers of Fruit trees to determine their 
cost than the grower of Ornamentals; as Fruit trees are usual¬ 
ly dug after two seasons’ growth, while Ornamentals extend 
over a period of many years. 
“We will look forward with interest to the article in the 
National Nurseryman that you prepare about this.’’ 
No. lo 
“No. I. Would say in growing a large number of varie¬ 
ties of ornamentals, no fruits, it is not possible or feasible to 
calculate cost on separate items. This being the case, as to 
No. 2, the only way that could be determined satisfactorily is 
by whether receipts are greater than expenditures at the end 
of the year. As to No. 3 the wholesale price is not determined 
in the slightest degree by cost of production. It is purely a 
matter of competition, price going up or down according to 
the supply and demand. (4) When we come into competi¬ 
tion with ‘the other man’ we have to make our priee on that 
basis unless we are growing better stock and it clearly shows 
itself superior. We try to eliminate ‘the other man’s’ price 
in this way. (5) To the best of our knowledge and belief 
much nursery stock is sold below cost when there is an over 
supply or the individual seller is not informed as to the condi¬ 
tions of the market, and he himself is overstocked. For 
instance, Frau Carl Druschki being offered in the open 
market for less than the foreign duty, that is $.04. Such 
instances can be readily found in the auction rooms in New 
York City. Much of this stock is rubbish from the first class 
nurseryman’s view point. Both the domestic and foreign 
nurserymen are to be blamed for this foolish policy.’’ 
No. II. 
“i. I have no present method of determining cost of 
production. I have been considering the matter a long time, 
and in certain investigations I have made it seems to me clear 
that the nurseryman does not figure in overhead charges. 
“3. Yes. I largely figure on what I can estimate the 
cost of production is and make my price accordingly. This 
is generally higher than the same class of stock is quoted 
elsewhere, but I figure on supplying a better grade than is 
usually offered. 
“4. Very little, although of course to some extent, partic¬ 
ularly where there is an overstock of any item, but am not 
usually overstocked in anything. 
“5. I think that 50% of all nursery stock is sold under 
cost, largely on account of not figuring in overhead charges 
as above outlined. 
Besides this, nurserymen so far as I know do not figure in 
interest on much of their investment, depreciation and other 
charges, which the ordinary well conducted business is careful 
to charge up against cost.’’ 
No. 12 
“(i) We have no method of determining cost of produc¬ 
tion. 
“(3) The cost of production is not a factor in our selling 
price. 
“(4) The other man’s price influences our prices. 
“At the present time we think all fruit trees are selling 
at a profit. It seems to us as if the supply and demand 
necessarily makes a price on commodities. Still when stock 
of the different varieties is cleaned up annually it would seem 
as if it should bring a higher price in the market.’’ 
No. 13 
“No. i; Yes, in a general way. 
“No. 2: We take into account the cost of the plants 
themselves; the cost of lining them out; the number of years 
it takes a given plant to become of salable size. Of course 
the cost of maintenance of plants and the capital invested, 
also the use of the land has all to be taken into account. 
“No. 3; Yes. 
“No. 4: In a general way. Of course, we can not be wide 
of the mark, lest our prices appear out of proportion to the 
general valuation when compared with those of other con¬ 
cerns. 
“No. 5: No; unless in the case of some items in which 
there is an overstock, when it is a question of selling it at half 
price or at a reduced price. As a general rule, we prefer to 
bum it up, unless it is to be sold to some other nurseryman, 
rather than sell to the consuming public at a price which is 
one-half of its value.’’ 
No. 14 » 
“We have no way of determining the cost of production 
and would be very glad indeed if we could find someone who 
could tell us how. The cost of production does not enter 
into the selling price. We are obliged to sell for what we 
can get or at the market price. Of course other people’s 
catalogues do influence us more or less but we aim to fix our 
prices at what we think the stock is worth. 
“There are many things sold below what they cost to grow 
by different people, not any particular one, but in some cases 
they are people who are not regularly in the nursery business 
and in other cases, it is where a man is overstocked and rather 
than bum it up, the stock is sold at less than it cost him to 
grow it.’’ 
No. IS 
“Question i: No. 
“Question 2: No. 
“Questions; No. 
“Question 4: No. 
“Question 5: No. 
“In addition, we think it almost impossible to tell the cost 
of any certain item of nursery stock, especially where a 
general line is grown. It would require a great deal of book- 
