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Discussion in 'Christmas Trees & Seasonal' started by CNYScapes, Jan 17, 2009.
Like I said, the growers can make it in the tree biz.
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.
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.
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?
Here are some rough numbers for you.
1000 trees = $15,000
Rental Area = $3,000
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.
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.