In Reply to: O/T Christmas Trees posted by 37chief on December 15, 2008 at 08:21:16:
I grow a few trees as a side job. The retail markup is substantial, but as you see, generally equal to the risk. The people I sell to report a 100% markup, with some variation on species, size, etc. Our farm is in a rural area, a couple of 4,000 population towns nearby, and the difference between profit and loss is in the weather. Good weather brings people out to the farm to cut their own, bad weather sends them to the tree lots.
I did the retail thing down outside of Philly one year. My prices were the best in town, with the nicest trees I could grow (comparable or better than competitors) and I lost my shirt. I didn't count on the loyalty factor. People would drive right by to another lot and pay more. Retailers need to work up an established clientele to get into the decent profit size range.
It sure seems like good money, but an awful lot goes into the retail side, including risk - December 26th makes the prices drop considerably!
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