7 
1 
THE NATIONAL NURSERYMAN 
Total disbursements to date. $ 6,175.14 
Balance in Treasury to date. 17,752.37 
$23,927.51 
This date we have 346 members, as against 311 mem¬ 
bers same time last year. Two new applications just re¬ 
ceived. Recently, we mailed each membership several 
application blanks and from reports reaching the secre¬ 
tary's oflice the indications are that from the member¬ 
ship drive now being made by the president, executive 
committee, and in fact all of the membership, we believe 
quite a few new members will be secured. Let’s make it 
500 members by the next convention. 
Charles Sizemore, 
Secretary and Traffic Manager. 
Future Notes on the Development of the Retail Nursery Trade 
By X 
In last month’s issue there were considered a number 
of points of possible developments in the nursery indus¬ 
try. It was concluded that the location' of the retailer 
was all important. That in order to give the maximum 
in sales and service he must be located in or near the 
centre of suburban population. If such were the case 
he could not efficiently be a producer as well as a dis¬ 
tributor. This can be further enlarged upon. 
In the first place what are the main factors that pre¬ 
vent efficiency in production in such case? 
1— High labor cost. 
2— High land values. 
The first is, perhaps, obvious. It might be added, how¬ 
ever, that there is continual complaint of scarcity of 
labor even at very high prices. If the retailer does not 
attempt to grow what he sells it is obvious that he will 
greatly reduce his labor requirements—or, better, re¬ 
lease labor to be utilized in that branch of his business 
which may be termed service; that is, planting, pruning, 
and all other items that make for the proper care and 
development of bis customer’s grounds. Which, inci¬ 
dentally, is paid for on a profitable basis in cash, whereas 
if that labor were used in growing plants the profit if 
any is represented only in increased inventory. 
As to high land values. Is it fully realized what it 
costs to produce any given plant considering land renl 
alone? This is overhead before any other considera¬ 
tion of cost. By “land rent” is meant the interest on 
the value of the land plus taxes. Because conditions in 
various parts of the country are so widely different it 
is hard to take a concrete example, but here is a try to 
illustrate what is meant. 
Assume the value of the land is $1000.00 per acre. 
This gives us interest $60.00, plus say $40.00 taxes, 
which totals $100.00 a year. Plant an acre to Norway 
Maples in 3x6 ft. rows. Five years will be required, 
which at $100.00 per year will total $500.00. There¬ 
fore the 2000 plants raised will cost 25c apiece in land 
rent alone. A very considerable item. 
In this connection it may be added that the prime ne¬ 
cessity in any manufacturing business is an absolute 
knowledge of unit cost. Without this knowledge you 
are always struggling in the dark. Why the nursery 
business has been as profitable as it has is a mystery, 
considering how little attention has been paid to the im¬ 
portant department of accounting. The discontinu¬ 
ance of many lines of growing by the retailer would un¬ 
doubtedly occur had lie more information on this sub¬ 
ject alone. 
If the retailer does not attempt to grow what he sells 
he lias, of course, the one alternative of buying from 
wholesalers for immediate resale. He thus puts him¬ 
self in the same category as any other retailer of any 
given product, and the same rules that govern success 
in all retail establishments hold true. There is, of course, 
the assumption of parallel growth in the wholesale world, 
but there would seem to be little question but what this 
will occur. 
The general course pursued would be that in the sum¬ 
mer the retailer would forecast his needs for the com¬ 
ing season and buy for early Fall delivery all that he 
thinks he might, need. His buyer’s ability will be meas¬ 
ured by his accuracy in correctly forecasting his needs. 
He must reduce to a minimum the sin of underbuying or 
overbuying, which holds true in any retail business. 
To summarize the advantages to be derived from the 
retailer becoming a pure retailer of plants and service, 
rather than both a producer and seller: 
1. His acreage needs become so small that he will be 
able to locate at or near the centre of his demand, which 
will mean greatly increased efficiency in selling. If the 
florist was located, as is the nurseryman, in outlying 
districts, his sales would be all shot to pieces. It is not 
possible to carry the analogy too far on account of the 
difference in products, but it would seem obvious that 
it can be logically carried to point much further ad¬ 
vanced than it is today. An appealing window or grounds 
display will sell more goods than any amount of energy 
displayed in talking. 
2. He gains efficiency by becoming a pure selling or¬ 
ganization. It might be said here that industries have 
always found that a good production man is a poor 
salesman, and vice versa. The two are incompatible. 
What can be said of the man is no less true of his 
busines. 
3. He either reduces his labor requirements or re¬ 
leases labor to be utilized in service. 
4. The inventory bugaboo is practically eliminated, or 
at least put on a par with other retailers. This inventory 
as it operates today would seem to be the worst feature 
of the nursery business. It is almost valueless except 
in the course of continued business, because it cannot be 
liquidated at a price that will in any way approach its 
cost. Where it belongs on a balance sheet is a moot 
question. Certainly not as an inventory as that item is 
