How to Run a Profitable Wholesale Cut Flower Farm
Write a detailed business plan and have it reviewed by at least two other successful growers., Be willing to grow anything that there's a market for., Find a void and fill it., Build a customer base., Know the production cost of every flower that...
Step-by-Step Guide
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Step 1: Write a detailed business plan and have it reviewed by at least two other successful growers.
In the U.S., avoid "commodity crops" like roses, carnations and chrysanthemums, which are grown outside of the country in places with labor and production costs are too low to compete with. , The key is to find a niche market.
One example is flowers that don't ship well (e.g. zinnias, snapdragons) because then you won't compete with wholesalers who bring in flowers from all over the world.
Another example is growing dahlias in greenhouses during the winter, as you may be the only one providing it at that time.
Vicki Stamback, a successful cut flower business owner in Oklahoma, recommends: "The harder a flower is to grow, the more money-making potential it has...If you really want to make a name for yourself in the market, do something no one else is doing."
Look through the phone directory to see which florists have the biggest ads.
Ask them what they have the hardest time getting at a good price.
Farmers' markets are a possibility if the clientele are supportive of local farmers, but not if they attract bargain-basement shoppers. , You will need to have several heated greenhouses and in order to turn a net profit, you need to know exactly how much it's costing you and how the flowers you sell are going to cover that and then some. , How much do you need per square foot to break even? You should be generating at least twice that.
Don't bother trying to undercut the wholesale prices; instead focus on providing a better product.
Consult a publication like the USDA Wholesale Cut Flower Price Reports for reference. , To set yourself apart from the wholesalers, develop strong relationships with your customers.
The key to that is consistency.
Many florists might be skeptical because local growers tend to come and go.
Make your deliveries reliably, get a good reputation, and your business will grow through word of mouth.
Be willing to make emergency trips on the weekends, but only if they buy enough to make it worthwhile.
Return phone calls right away.
Drop customers who don't pay or who don't buy enough. , You will need more employees during peak season than in winter.
Don't try to do it all alone; if you want the business to be profitable, you need to be reliable, and in order to be reliable, you need help. , Use organic methods if you can, but you may decide to use chemical treatment if an issue threatens to ruin an entire crop. -
Step 2: Be willing to grow anything that there's a market for.
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Step 3: Find a void and fill it.
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Step 4: Build a customer base.
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Step 5: Know the production cost of every flower that leaves your farm.
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Step 6: Set your prices.
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Step 7: Put a face to the business.
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Step 8: Hire employees.
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Step 9: Use crop rotation
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Step 10: cover crops and compost to build fertility and break the cycles of pests
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Step 11: diseases and weeds.
Detailed Guide
In the U.S., avoid "commodity crops" like roses, carnations and chrysanthemums, which are grown outside of the country in places with labor and production costs are too low to compete with. , The key is to find a niche market.
One example is flowers that don't ship well (e.g. zinnias, snapdragons) because then you won't compete with wholesalers who bring in flowers from all over the world.
Another example is growing dahlias in greenhouses during the winter, as you may be the only one providing it at that time.
Vicki Stamback, a successful cut flower business owner in Oklahoma, recommends: "The harder a flower is to grow, the more money-making potential it has...If you really want to make a name for yourself in the market, do something no one else is doing."
Look through the phone directory to see which florists have the biggest ads.
Ask them what they have the hardest time getting at a good price.
Farmers' markets are a possibility if the clientele are supportive of local farmers, but not if they attract bargain-basement shoppers. , You will need to have several heated greenhouses and in order to turn a net profit, you need to know exactly how much it's costing you and how the flowers you sell are going to cover that and then some. , How much do you need per square foot to break even? You should be generating at least twice that.
Don't bother trying to undercut the wholesale prices; instead focus on providing a better product.
Consult a publication like the USDA Wholesale Cut Flower Price Reports for reference. , To set yourself apart from the wholesalers, develop strong relationships with your customers.
The key to that is consistency.
Many florists might be skeptical because local growers tend to come and go.
Make your deliveries reliably, get a good reputation, and your business will grow through word of mouth.
Be willing to make emergency trips on the weekends, but only if they buy enough to make it worthwhile.
Return phone calls right away.
Drop customers who don't pay or who don't buy enough. , You will need more employees during peak season than in winter.
Don't try to do it all alone; if you want the business to be profitable, you need to be reliable, and in order to be reliable, you need help. , Use organic methods if you can, but you may decide to use chemical treatment if an issue threatens to ruin an entire crop.
About the Author
Olivia Shaw
Enthusiastic about teaching cooking techniques through clear, step-by-step guides.
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