Saturday, August 7, 2010

Why Bigger is not always Cheaper

Recently we traveled a bit on a rare day off together, my hubby and I, to a daylily farm in another state. Not only is it just the sort of thing for a daylily obsessive like me, but it’s also part of our continuing effort to observe how other farms and nurseries go about the business of growing and selling daylilies and other perennials. And walking amongst six acres in bloom is like being in heaven.

We had been to this place a few years ago, and had been a bit startled at how relatively high their prices were. This time we looked at the situation in a more analytical way, comparing it to our much-smaller operation.

Overhead is much higher for them, clearly. They have thousands of varieties, and numerous employees; they’re open seven days a week in peak season. Wages, Social Security, FICA, unemployment and worker’s compensation insurance – all that is considerable, and probably their biggest expense. A simple but spacious custom-built outbuilding/office/store, specialized software for the cash register that spits out a receipt telling you exactly what you’ve bought and the statistics on those varieties, several large greenhouses, and a large hybridizing program all cost plenty. There are mowers, tillers, assorted specialized tools and equipment to maintain so many beds and grassy paths; irrigation systems, and the gas and electricity to power it all. There’s a mail-order department with phones and computers, advertising, a beautiful printed full-color catalog, and no doubt more that we’re not even realizing. Whew. No wonder their prices are higher!

And I don’t begrudge them that at all. A farm/nursery like theirs is a “destination” as well, a place of real beauty out in the country where you can spend hours strolling, enjoying the flowers, sitting at any of the many tables and benches shaded by umbrellas. I, for one, have to be nearly physically dragged away when it’s time to go.

As for Dhabi’s, though, I don’t have any desire to grow my business even half as large as that. The “vision” here is to perhaps double in size from where we are now, to perhaps 350-400 different daylily cultivars, and to keep it a small, friendly, family-run nursery with low overhead and correspondingly lower prices. Keeping it simple – yeah.

But, of course, I reserve the right to change my mind at any time ;-).

Here's a few photos of some of the new ones we picked up:

Dottie Warwick

Obsidian

1 comment:

  1. Went to Heritage Gardens today and thought of you. Just about all the daylilies were gone by, though.

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