PDA

View Full Version : is there money to be made on christmas trees?


CNYScapes
01-17-2009, 03:29 PM
I have never sold christmas trees. Now that we have the garden center open, this is something I am strongly thinking about for next year. I would have to purchase the cut trees from a grower and resell them. What kind of margins can I expect on them? Also what other items could I sell with them?

turf hokie
01-18-2009, 01:57 PM
I dont know the margins since I have never owned a tree stand but I have worked at them and know that rule of thumb I was told is you need to sell half the trees to cover direct costs. Overhead and profit comes out of the second half

As far as addons
Wreaths decorated and undecorated
grave blankets same as above
tree stands
tree bags
delivery (especially if you bring in bigger trees 10+feet)

Good luck

Springmeadows
01-18-2009, 05:33 PM
We did christmas trees this past year. I was not impressed with our numbers. I don't think we will be handling them next year. Most people waited until last minute to buy them.

turf hokie
01-18-2009, 07:33 PM
We did christmas trees this past year. I was not impressed with our numbers. I don't think we will be handling them next year. Most people waited until last minute to buy them.

Consider the economy when noting sales from this past season. Some of the stand that usually sell out by the second week of December were chipping trees this year. And people waited until the last minute for Crhistmas lights too, just one of those years.

David Gretzmier
01-20-2009, 05:51 AM
I think that the only folks who truly do well at Christmas trees are the folks who inherited land debt free from thier family, AND that land is located pretty close to a heavy population center, AND grow the trees that are watered from a well, pond or stream on the property, AND also grow, sell pumpkins at Halloween, AND grow organic strawberrys, blueberrys, veggies etc. These show farms, and the tree mills that grow tens of thousands of trees, are the only places that truly make good money on 35-75 dollar trees.

I figure the average tree lot has what, 400-800 trees? let's say you can make half on what you sell to cover your expenses. even if you make 25 bucks a tree for 400 trees, it's only 10 grand. maybe if you can sell 800, gross profiting 20 grand, it is worth it to staff for 30 days or so, but after your expenses, I think you need to sell alot of trees to make money. If you can use your lot and have the space, and keep your good help another month, and cover all expenses and make a buck or two, maybe it is worth it.

Christmas Creations
02-12-2009, 03:09 PM
Check us out at holidaybrightlights.com. We sell a full line of artificial trees and garland and have been expanding into alot of Garden Centers across the country.

Mike Marlow
National Sales Director
866-932-9363

markam70
02-12-2009, 10:06 PM
this was our first year selling trees and it was definitely worthwhile. the best part was the fact we had only 1 wreath left on dec.26. everything else sold. we probably could have sold another 125 trees if we had them.

LKNBigFish
02-27-2009, 10:50 PM
what was your margin

MMoyer
03-19-2009, 06:26 AM
Your margin should 100%. It depends mostly on your location,. How many guys are selling trees nearby, quality vs quantity, what are you paying for the trees! Basic questions for any retailer. I suggest hooking up with a small, quality grower who will work with you. Dont buy a pile of trees in November and then let them sit on a lot to sell through them. Buy enough to do a decent display (at least 50 trees on display) and then get more delivered every weekend. Spend the money on a driller and use pin stands for display and sell pin stands as an additional item (double what you pay for em again)! Treeteck is an outstanding source for this stuff. Your going to need a baler of some sort too. The first year you cant make money because you need to get set up but, after that your only expense should be the trees and labor. Speaking of labor, educate the guy selling the trees and service the customer.

matt9923
07-20-2009, 11:03 PM
Tree stands are a joke in my book. You get a dryed out tree and no garentee.
We have a pick you own tree farm. People walk around as long as they want and when they fide a tree we come cut it down for them. Thats a fresh tree.
We sell them for $35. That's bout what the local compeditors sell for. But i have seen $40-80 at these tree stands with dried out **** trees.
If a customer comes to us as says soemthing's wrong or some needle's fell off witch happens once in a whiel we give them a new tree, we even diliver it and take the bad one. I have even set it up in their stand. We get a bad one every few year's witch isint to bad. anythign crooked or bad looking we cut and burn.
Matt

David Gretzmier
07-22-2009, 09:00 PM
Like I said, the growers can make it in the tree biz.

stearns_landscaping
10-04-2009, 09:37 PM
Rent a lot, buy from Canada, buy 1000 trees and make an easy $15000 profit. If you wan the numbers send me your email. I have an entire spread sheet and proof. I worked for a company that got 20,000 trees. Over $400,000 profit. To me thats not joke money.

David Gretzmier
10-06-2009, 12:16 AM
making a net profit of 20 bucks a tree? yeah, no one is laughing. Every tree lot in the 4 towns around me had multiple dozens of trees left last year, and most were volunteer lots of kiwanna's, churches, etc. most of them said they would not do it this year, they barely broke even.

Hanau
10-06-2009, 12:23 AM
We have one or two tree lots up here, it's not very popular.

What's popular is buying a Christmas Tree Permit from the forest service for $5 and going in the woods to cut your own.

How would you compete with that?

stearns_landscaping
10-26-2009, 10:08 AM
Here are some rough numbers for you.

1000 trees = $15,000
Rental Area = $3,000
Insurance= $1,000
Pay 2 Workers 10 Hours Day 30 Days = $6000

That is $25,000 and up here most trees go for around $40 on average. This would be a profit of $15,000 for the owner.

You must pay the start up cost of making the steel tree holders, lights, etc. but these products should last many years to come. Especially the steel holders which can easily last you 20 years if stored properly. So say over 20 years you need to pay off $5,000 for the cost of getting all of these made.

Hanau: We do not have anythign liek that up here so I guess this could be a reason your town's places have not done so well.

David Gretzmier
10-27-2009, 09:48 PM
I think all those numbers have the big assumption of selling out of 1000 trees. and not throwing out any. I'll be honest, I think it could be done, but you really need two completely honest guys as this sounds like a cash business, and a large population area and a great location.

stearns_landscaping
11-02-2009, 01:00 PM
I think all those numbers have the big assumption of selling out of 1000 trees. and not throwing out any. I'll be honest, I think it could be done, but you really need two completely honest guys as this sounds like a cash business, and a large population area and a great location.

This is true you would need to sell the full 1000 trees. I would say if you get them from a good grower they are about 95% sellable. You would need to expect around $2000 lost from revenue but it would only be a loss of about $500 from the overhead.

The guys would need to be honest but yopu can get rid of this by having a cashier desk where you would work which is what the business I worked at did.

I am going to sell from a shopping plaza my friends father owns renting it out for the month. He also owns 7 apartment complexes (roughly 80 units each)within 3 miles so i figure advertising to each one of those will sell me about half of the trees. The rest people will easily see from the road or soming out fo the stores.