How much credit should my nursery give me?

15 years ago

Hey everyone,

Not really sure where to post this so I am taking a stab in here. One of our local nurseries wants to buy 4 of my adult english boxwoods. They are in excellent condition and are probably 4.5 feet tall and very full. I actually called another nursery and they are selling these in a fifteen gallon size for $125 per plant. The nursery offered a $300 credit but that seems to low. I do want a credit versus cash because we are doing some landscape renovation, however I want to maximize my credit while understanding they want to make a profit. Anyone have any thoughts on this?

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Comments (5)

nancyofnc
15 years ago
I guess not since your question has been on the forum for awhile. It is really very specific and we probably don't have like experience. Go with your gut. If you don't like the deal, go look somewhere else or wait awhile. If you give in to too low a reasonable credit now, you will be marked. Think about it.

Nancy
redneck_grower
15 years ago
Sounds to me like you're getting a pretty good deal. Assuming the nursery can get $125 for your plants, and they are paying you $75 per plant, this amounts to a less-than-100% markup. Browse around wholesale nursery websites, and you'll see just how inexpensive it is to buy container plants. 10-gal boxwoods can be had for $25; 1-gal for $2. It is not a stretch to imagine marking the 10-gal up to $50, and the 1-gal to $5. They will be doubling their money, or more. In your case, they will less-than-double their money.

Just my 2-cents.

Cheers!
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valleyrimgirl
15 years ago
When a local nursery here wanted 10 of my Royalty Raspberries they gave me an $8 credit each. They sold them each for $10 and made $100 cash.

The credit I was given I used to buy plants at their nursery. They got $10 each in real money for the raspberries but when I went to use my credit...the plants that I got from them, didn't cost them the same amount that they were marked as, because they would have purchased those plants at wholesale prices, so, maybe only $20 for an $80 marked up price. So if my $80 credit is only in reality costing them $20 then they just made a profit of $80 on my raspberries ($100 to sell the raspberries for minus the real cost of the plants that I bought with my $80 credit note.) Make sense?

So, what I am saying is that if they offer you a credit of $300 it does seem low, because they will sell each of them for $125. They make $500 cash on the bushes. Then, your credit of $300 only costs them maybe...$50 'cause they will have purchased the plants you are interested in at wholesale prices. So, sale of your bushes at their nursery ($500) minus the real cost of your credit ($50) is $450 clear in their books. Not bad for them, assuming that they can sell them, which is a chance that they will be taking.

On the other hand, these trees that you have that are available to be sold, as I am assuming that you don't need them in your own landscaping projects. If you can get a $300 credit for them that is better then them just sitting around not being properly used in your landscaping. Why not go for it? Get other plants that you can use. Or, get hardscaping items or chemicals (which will actually cost them more than the plant material cause they won't have as much markup.)

If you think $300 is not enough, then negotiate. You know that they will make $500. Ask for a $350 or $400 credit and see what they say. Be open and maybe???

What do you think?

Brenda
redneck_grower
15 years ago
valleyrimgirl,

Your logic does make sense; good points. I'd be interested to know if the nursery has thought it through that completely.
dangould
15 years ago
They should bring the best price in the spring. as the summer moves along the prices of plants go down. Not sure you can still get the same offer from them. But if you offer them in the early spring next year you might get a much better offer.

Retail customers buy more plants in the early spring. That is when you want to sell.

Let us not forget that the nursery has to dig them up and keep them alive to sell them. of course they have the equipment to do the job. But it is an expense for them. They have to send over a truck and a couple of people to get the trees. that cost money.

How much credit should my nursery give me?

Comments (5)

nancyofnc

redneck_grower

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valleyrimgirl

redneck_grower

dangould

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