Why Greenhouse Growers Must Know Their Costs to Stay Competitive
How can you profitably price your plants if you don’t know what it costs to produce them? Tom Dudek, Senior Educator at Michigan State University (MSU) Extension, says greenhouse growers should evaluate their production costs to determine if they need to make adjustments to stay competitive.
MSU Extension has developed a free tool to help you evaluate your greenhouse business from a financial perspective. “Estimating the Production Costs of Greenhouse Crops” is a spreadsheet-type of software tool that allows you to use your records to estimate your production costs and explore opportunities for cost savings. The tool allows you to enter current input costs from tax returns, invoices, and quotes to estimate cost of production and project sale prices on a per plant basis for each enterprise. It is designed to provide flexibility to meet the unique needs of individual operations.
You can download the spreadsheet at https://goo.gl/sO1O23, and refer to Tom Dudek’s article “Estimating Production Costs of Greenhouse Crop Tools Available Online” on the MSU Extension website for more tools to help you get a handle on your costs.