A Possible Tree Sale

Discussion in 'Business Operations' started by brentsawyer, Nov 19, 2003.

  1. brentsawyer

    brentsawyer LawnSite Senior Member
    Posts: 663

    Hey, just wanted to get a few opinions on whether this will work or not.

    I am starting a tree farm for mostly shade and ornamentals that I will start off with 6-8' trees that will hopefully be harvested in two years at 1.75". What I am comtemplating is to order a small percentage of 10-12' trees that I can sell as 1.75" trees next fall and using various media, ie. newspaper, bulletin boards and advertise a super special to the public offering 1.75" trees that are normally $200-250 for wholesale prices and sell them for $100. This money will then be turned around into buying the next years crop thus preserving the first years crop and not requiring me to cough up after tax money for planting and allow me to receive my deduction for this years orders since they have to be capitalized. This will be a one time deal since after next year I will be ready to sell my 6-8' trees and will have steady income from the farm. Just wondering what some thought about running an add to attract sales for approx 100 trees.
     
  2. twins_lawn_care

    twins_lawn_care LawnSite Senior Member
    Posts: 932

    Not too experienced in the tree farm market, but from a general marketing perspective, if you charged me $100 one year for a tree, and then $200 the next year for the same tree, I would say you are ripping me off, and not come back. :gunsfirin This is the thing that would stick out to me. I would consider some sort of discount with your grand opening, but not so drastic that people know what you are paying for the tree, and doubling it to make your profit.
    This is just something that stuck out to me, I am not saying it won't work, but maybe something to think about.
    Good luck with the business.
    Rob
     
  3. brentsawyer

    brentsawyer LawnSite Senior Member
    Posts: 663

    I don't see how I would be ripping anyone off by selling them a 1.75" tree at $200. BTW, what do nurseries in your area usually charge for that size tree. Were talking retail not wholesale also. To add this would be a grand opening sale so to speak since it will be the first time that I'll be selling trees to the public, ie not my landscaping customers
     
  4. twins_lawn_care

    twins_lawn_care LawnSite Senior Member
    Posts: 932

    hey Brent,
    I did not mean that you "would" be ripping them off, as they would be getting a great deal, but they may feel like they are not getting a fair price the "next" time they came in for the same tree is all.
    Like if you go to Burger King, and get a 99 cent whopper, and then you go back the next week and they are $2.50, you wonder how they can sell the same thing for more than twice as much. :confused:
    I do agree with you that you need some sort of great grand opening idea to drum up business, I was just trying to give one possible point of view.
     
  5. zimm4

    zimm4 LawnSite Member
    Posts: 106

    Heres an idea have a buy 2 get one free. You will make an extra 100 dollars and sell 3 treees.


    Then when you raise prices it would be accepted better.

    Kyle
     
  6. ginkgo1

    ginkgo1 LawnSite Member
    from KY
    Posts: 6

    in the bowling green area and just south of louisville a 1.75" tree will retail for around 100 - 125. if you are paying 200 - 250 per 1.75" tree wholesale you are being taken for a ride. i will sell you trees this size all day for 100.
     
  7. brentsawyer

    brentsawyer LawnSite Senior Member
    Posts: 663

    $200 is normal retail, $100 is wholesale. You have to realize that our retail nurseries within citylimits have much higher overhead than Bowling Green area. Not to be rude but I was just trying to see what luck I would have in selling 100 trees nezt year w/ the smallest add budget and which route to go with. Newspaper 'not classifieds, radio or what other ideas some had.
     
  8. ginkgo1

    ginkgo1 LawnSite Member
    from KY
    Posts: 6

    As i see it there are going to be alot of variables. How is your Quality, will you dig them out yourself or hire this out, how far are people going to drive to see them, or will you deliver. warranty for the customer, species offered and so on. People like to find good deals and you may get some bites but i personally know several people that thought about starting in the growing business with little or no luck. I hope you the best in your new venture
     
  9. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

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