Backyard Nursery Profit - How MUCH?? What does it cost to produce plants?

In a backyard nursery, selling plants is not hard to do. But if you sell $100 worth of plants, how much profit do you make on that? In this video, I will give you a look at how much I spend to produce one of our $7 plants.
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#sidehustle
#familyhobby
#familybusiness

[@bri0013]

Sounds like you have some trolls out there. You and family have done an amazing job building what you have. You have very openly and easily explained and pieced together everything for all the lazy ones and procrastinaters. Keep up the great work 👍👍

[@savvydirtfarmer]

thanks so much!

[@garden-queen2393]

I sure understand. You’re a great help. Keep up the good work. 👍

[@Momofcute2]

There is another cost that needs to be factored in which is the Capital cost. Basically all the cost of adding various structures, like shade house, hoop house, watering system, land etc and dividing it with the amount of time the plant stays in the growing stage.

[@lcrread]

Some States, you can actually collect your own rainwater from any of your buildings into a reservoir. A good way to save additional money too!

[@ruthmeow4262]

I would call the time and effort of growing out the plant one or two (or more) seasons The Holding Cost.

[@savvydirtfarmer]

Thanks! I've heard that term... I need to learn about it for sure.

[@teresaholland4790]

You’re very authentic and a great teacher you’re videos are great please keep up the great job 😎👍 thank you so much and have a wonderful day.

[@savvydirtfarmer]

Wow, thank you! I really appreciate the kind words.

[@lindakay8171]

Even though I have no intention of selling plants your videos are very interesting and I've learned a lot since I subscribed to your channel. Hope you continue to have lots of success in your backyard business. Love seeing your family in the videos too.

[@savvydirtfarmer]

thanks for watching!

[@zenrockgardens]

This was a really informative video for me. I had to laugh at the subtle photo bomb that starts at 4:12 as your neighbor waves at you as she walks by. lol Tells you how normal youtube videos are in every day life now.

[@savvydirtfarmer]

That was Mrs. Nancy. She's an absolute treasure!

[@jellyfishgamestudios]

Thanks for another great video! And in case its helpful in future videos, the word your looking for in selling something over a short period of time for less, or a longer period of time for more, would be "opportunity cost". Like what opportunity are you losing in that longer period of time (like could you be growing a more profitable plant in its spot in a shorter time). Which isnt a big deal for commercial growers, but us small growers with small spaces, it matters a bit more. Like you could grow a big ol tree that you can sell for $400 in a huge pot. But maybe it takes 10 years to get to that point and takes up space that you could have sold 500 $6 plants in the same spot over the same time. Thanks again for another awesome video!

[@savvydirtfarmer]

makes sense. thanks for sharing!

[@ticktock2383]

I am closing in a side porch where the sun rises on one side and sets on the other to start a heated greenhouse to start this type of business. Thank you for all the info and encouragement!

[@savvydirtfarmer]

Sounds great! You can definitely make that work

[@savitahassad5448]

Totally enjoyed!

[@deanacanfield200]

Great information. Thank you for sharing your process and cost/profit information.

[@CorneliaBlue]

Just a note for new growers about propagation. Make sure the plant you propagate does not have a current patent on it. There are plenty of patent free varieties BUT if u propagate a variety that holds a patent and sell it, you can get into legal trouble. If u want to propagate patented plants contact the patent holder and sign a contract. You will have to pay royalties on the cuttings but it isnt usually to expensive.

[@savvydirtfarmer]

Absolutely this! I’ve talked about that several times here.

[@Cheriesgardenvegplot]

Your videos are so informative and inspirational. I'm looking forward to putting all I'm learning from you into action next year. Please keep on making great videos.

[@savvydirtfarmer]

Great!

[@beckysmith7142]

Yes, very helpful!!! Love your videos, and watch them over and over, so your great info will stick with me!

[@savvydirtfarmer]

So glad!

[@jkkelley7582]

Just ordered those Corona clippers! Need a good pair for this season! Thanks for the links to find them!

[@sandrayjones22]

That was super helpful! Thank you for these great videos and valuable information!

[@savvydirtfarmer]

Glad it was helpful!

[@erikbutler3450]

Great video as always. I am really appreciate the help and information shared

[@savvydirtfarmer]

Thanks for watching!

[@rickmcmahon2136]

I'm learning a lot by watching your videos and I appreciate you sharing this information right out of your experience.

[@savvydirtfarmer]

Thanks for watching! All I can share is what we've done... I don't really know anything else.

[@charliesomoza5918]

Excellent! And yes you are an intelligent Man! Greatings from Madrid.Thanks!

[@wendycash54]

I use "used" pots. They are free and most people don't care about the pot, as long as its relatively clean. My pots even have old stickers and stuff on them, I just let them know I'm lowering my costs by using used pots. You can find these by contacting landscapers who are usually trying to recycle these pots. Just do not use proprietary pots like Proven Winners or Monrovia. This is illegal. There are other costs that you didn't touch on, at least for me. I use city water which in the summer can be pretty expensive. Traditionally, up to $200 per month. Plus other factors, like shade cloth, tools and labor costs.

[@all_in1_ography104]

Hey! Thank you for the information. Can you please do a video on shade loving plants and what plants are good for sunny days? Thank you 😊

[@richgarden]

Been watching from Australia. Love your channel.

[@savvydirtfarmer]

Thanks for watching!

[@gmaw23beauties37]

EXCELLENT EXCELLENT EXCELLENT Video!!!!!! You are actually doing my dream and it's extremely inspiring! For me,it's not so much about a nursery to sell but to fill my own yard,friends, relatives and if along the way I could profit...Great!

[@savvydirtfarmer]

I just gotta ask... do you have 23 grandkids?

[@gmaw23beauties37]

@@savvydirtfarmer lol,only 3. Grandmaw to 3 beauties 💙💗💙. I have about a half acre to use. I have a big shed with 2 windows that everyone calls the little cabin we built years ago thats insulated well. This is the first year i stored perrenials i was unable to get planted. Bought them in November big box store 80% off. How do you pass that up lol ? All end of summer long made great purchases on clearance and my husband was ready to kill me. I was actually sick of planting as I didn't have time to come up with a precise landscape plan! I hope to have a better plan this year and actually do alot of propagation!!! I also have a finished sunroom that was already here almost 30 years ago. It's poorly insulated and in zone 6 boy does it get cold! Electric heaters are not feasible in this economy but i figure i can at least overwinter some plants in the future. I am wanting to learn more about seed plantings and environment they would need to thrive, temperatures, humidity, lighting, etc. And cheap ways to keep that space warmer for just that! Any links or thoughts you can share would be greatly appreciated. Thank goodness for KZbin though right? I plan to do a binge marathon on your channel asap. I seen your DIY hoop tunnel which was easy enough and to the point as your other videos show and that is much appreciated!

[@josieraimondi6763]

For my smaller hostas, I "brand" them as starter plants. LOVE your content.

[@savvydirtfarmer]

Good idea! Thank you

[@gregboshell977]

Craig, I bought some hostas the other day and they were hybrid hostas so is that what I call them

[@brownthumbnursery]

Great video as always! I wish I was able to find a good source for pots and potting soil in my area!

[@savvydirtfarmer]

Even if you have to drive a way to get it, it's probably worth it.

[@darkangelsoaps8258]

Awesome! I'm in Kentucky about an hour due North of Nashville.

[@mikesnyder4980]

Very interesting and informative!..hope you and your family are well!..from your former neighbor at 507..

[@savvydirtfarmer]

thanks, Mike!

[@davidblackwell6842]

Hi savvy great video good way to cost product biggest mistake most new growers make cost of there time as well all best Dave uk

[@denisebalog994]

Your videos are very inspiring and informational at the same time. I really enjoy listening to you teach and share your experiences. You have an excellent "teaching" voice and manner. I'm planning on retiring in two years and after watching your channel and strongly considering the possibility of a backup nursery. We have the room and put up a small greenhouse this year. After watching, I realize a shade room and fabric tarp is necessary. Question please, when you have a sale, do you sell off your driveway only, or do you allow people to wander about your shade room and growing plants? Thank you for sharing 🌱🌱👍😊

[@savvydirtfarmer]

Usually just in the driveway, but occasionally someone comes around back and looks around.

[@xxpowwowbluexx]

Your cost is never going to be $0.00. It may be minimal, but for accurate bookkeeping, you have to factor in the cost of materials (and also opportunity cost and labor). 1 pot + amount of soil components + amount of fertilizer + water + labor + value of space taken up by 1 plant in each stage of growth + (cost of all lost plants divided by all successful plants sold), etc.

[@savvydirtfarmer]

Yep

[@sferguson3067]

I have watched a lot of your videos. I'm trying to get my own backyard nursery going. I love to garden and have hundreds of plants in my yard. We are in a drought in our area which looks to be permanent, so some of the plants I am considering, which I have in my own yard, are feather reed grass, blue fescue, blue mist, ivory halo dogwood, rose of sharon, sagebrush (which my husband loves), and sedum groundcover.I would also like to possibly do a few magnolia trees and blue atlas cedar, if it works out. We are on half an acre on a corner in a suburb. We get brutal sun in mid-summer, just finishing a string of 100+ degree days. We are putting up a covered gazebo to help manage the amount of sun the plants get and will expand from there. We are in zone 5. Is it too late to take cuttings this year? I know I can do hardwood cuttings, but I have read they don't root as well as softwood. I just watched your don't wait just get started video and wish I had watched it sooner. Thanks in advance for your answer. I greatly appreciate how you share all that you have learned along the way so we don't all have to reinvent the wheel.

[@savvydirtfarmer]

You have nothing to lose by trying softwoods now. Make sure you are taking your cuttings from the newest growth and not from growth that has already hardened off. Worse thing that happens is they don't root. If not, try again late winter/early Spring with hardwoods. Totally depends on the plants whether hardwood or softwoods work better. You can have high success with either.

[@SindySchneck]

This was very helpful. I'm also having a hard time locating pots, so it's reassuring that its not just a "beginner thing" that I'm searching incorrectly. I'm going to try begging for some used ones from the local nurseries..... or maybe even put out a FB request in my neighborhood - I know a lot of people hang on to them because they hate the waste and have them piled up somewhere. We'll see.

[@savvydirtfarmer]

Yes, try those ideas... very hard to find pots right now. Who'd a thunk it??

[@John_GGG]

I’m not sure where you live. Near me some town crews plant along the streets. I’m sure they would be happy to give you their pots at the end of a day of planting. Or large landscapers that plant at commercial locations. Many office buildings, hotels and condo complexes have landscape companies that do multiple plantings per year. I doubt they are reusing their pots?

[@SindySchneck]

@@John_GGG ooh, good ideas! Thanks.

[@schaubw1]

I'm a landscaper and I always have tons of pots around that eventually get recycled. I would visit your local landscapers, they would be happy to give them to you for free!

[@southofthesticks]

•45 c is a good price for that size pot here in Australia. It would be interesting to find someone like a business major and ask them about the 2/3 year, growing, holding, pricing thing. Great videos 👍🌱 thanks again.

[@savvydirtfarmer]

Agree... I really just don't know... need to learn though!

[@trevorjohnson5610]

Opportunity cost is that term Enjoy your content

[@andielliott7721]

Florikan is what I use also.

[@ejfishes7610]

Very nice overview! Thought I’d mention I took your advice of doing Facebook market place and have had great success so thank you! Quick question on the fertilizer, I don’t see that available at the big box stores by me, did you just obtain from online purchase? Have a great weekend! Eric

[@savvydirtfarmer]

I get mine at amleo.com when they are doing a free shipping promo

[@ejfishes7610]

@@savvydirtfarmer thank you sir!

[@marlenemullet]

Thanks for another great video! About the fertilizer, is it slow release? How often do you need to add more to each pot?

[@savvydirtfarmer]

Slow release… lasts all growing season

[@louisfritch7320]

Put a cage out front and ask your customers to return their empty pots. That will reduse your costs. It's free and in some places in the country you cannot recycle pots, they go to the dump. Tom

[@savvydirtfarmer]

Doing it this Soring!

[@dreamasue]

Sounds great ! I want to get a green house & do this !!

[@savvydirtfarmer]

You definitely don't need a greenhouse... that's a big unnecessary expense when starting out.

[@dreamasue]

@@savvydirtfarmer I got to have some kind of building to keep all the stuff in , I just can’t let it sit outside, plus I been wanting a she-shed any ways … lol 😂

[@savvydirtfarmer]

@@dreamasue Good excuse to get one!! 😀

[@jphilfiker]

I am starting. I have a project where I need about 200 Nellie Stevens Holly trees. Its going to be a fun time getting some privacy on this property. This should give me a nice trial run on whether this is something that I would want to do.

[@savvydirtfarmer]

Seems like a good place to start!

[@manelson4338]

Just want to add that I was God Given Driven to you and want to thank you for all your hard work. Would LOVE to come to your Nursery. Where in west Ky? Or Tn are you?

[@savvydirtfarmer]

I'm in far NW Alabama near Florence.

[@gardenextra7415]

🌞🌱 helpful

[@savvydirtfarmer]

Thanks

[@nicomyth]

I suppose if space is limited, that buying the plant for 2 and selling it in one season, could be better. If you have leftovers from the season that you need to hold over, might as well propagate those. I am sure there is an algebra problem in that somewhere😅

[@savvydirtfarmer]

Yep... I'm sure some simple math solves it... I just dont know what it is.

[@garden-queen2393]

Thanks for the amazing tips. Can u please recommend a wholesale for plugs? I live in Houston. Thanks again.

[@savvydirtfarmer]

So many places are in low supply right now, and I'm hesitant to put names of wholesale nurseries I use on here for a variety of reasons. That said, try google searching for "wholesale perennial plugs," "wholesale shrub liners." wholesale perennial nurseries" etc... and you'll likely find what you're looking for. A great nursery in TX that sells tons of small trees is Rennerwood.

[@Sandra-gk3ct]

Then there's the sales tax...And I guess all the customers pay cash, or you can buy a terminal to accept credit cards with a minimal fee per transaction... Great Video, Thanks! You're so right about not feeling too dumb to do it right! I'm going to figure the first year it's okay to make mistakes? And not make too much money! You ought to get your wife to clue us in on the legal stuff (reporting taxes). Thanks again!

[@savvydirtfarmer]

When I made this video, no sales tax. I grow everything myself, so no tax required. That's agriculture law in my state (like a farmer growing hay). Until 2023, I've always been all cash.

[@manelson4338]

Got a question for you. How do you protect your "baby" plants in the winter? For sale after first year of growing?

[@savvydirtfarmer]

Most of them get little or no protection... they just sit out in the weather... rain, cold, warm, snow, whatever.

[@juliknapp9270]

In north missouri i have found no where to source bulk soil like u can.. i have to buy it by the bag or bale.. its really an expense. And a bummer. Ill keep looking though!

[@savvydirtfarmer]

Keep looking! Don't let it stop you. Even if you have to pay more for potting soil, maybe you can make that cost up somewhere else.

[@joelallen9671]

I was wondering were you could get arbor vistia to get started ? When is a good time to start ? I'm in Missouri south central

[@savvydirtfarmer]

The time to start a nursery is now.. any time is the right time. Arborvitaes? Not sure of anywhere right now. They are hard to find this time of year.

[@amberzalky5679]

So my mom is gonna cut down all the arbitrary trees around my grandmother's house and some white pine trees. I want to do clippings, but it's not winter. It's may. What should I do? Should I just do the clubbing as many as I can right now or should I store some of them in the fridge for 45 days and then do them with that messing up? Help me, please by the way they are cutting down the trees tomorrow.5-15-24

[@savvydirtfarmer]

You can do arborvitae cuttings now; especially if they're being cut down, you've got nothing to lose by trying. The 45 days won't do anything but make them cold and dead.

[@percyblok6014]

TIME. Never forget to factor that in. It's a cost that many forget to factor into the product.

[@savvydirtfarmer]

I'm always aware of that, but don't really understand how to account for it. The time spent on plants is time I'm off work, not making money anyway. All I'm attempting to show here is dollars and cents.

[@harveybyars8655]

When , & how often do you fertilize your plants after you pot them up. Do you fertilize them when you pot them up ? Or .....

[@savvydirtfarmer]

I fertilize when I pot. Typically, that's it.

[@gracyd326]

7 dollar plant you are selling is very cheap . It’s a good buy for a buyer. From what state are you from?

[@savvydirtfarmer]

This video was when we lived in TN. Now we live in north AL.

[@danielfowler5940]

Where do u get the hardwood chopped that small?

[@savvydirtfarmer]

Local sawmill

[@freethinkish]

Why do you choose to add the fertilizer to each pot instead of incorporating it into your mix?

[@savvydirtfarmer]

I mix my potting soil willy nilly, so I never really know exactly how much I have in a given batch... I could certainly do better with that. That being said, it's just easier to top dress.. and, it gives my 6 year old something to do... he's obsessed with doing it EXACTLY right. And, I have actually tried pre mixing fertilizer with soil before, and it seems like an awful lot of it ended up just falling its way into the bottom of the pile, and ultimately getting wasted.

[@wagzz3000]

You can actually do the math and figure out which is better, $4 in 2 years, or $6 in 3 years. You can find the net present value for both, and whichever is higher is the better deal. The NPV of $6 in 3 years with an inflation rate of 7% is about $4.90. The NPV of $4 in 2 years with an inflation rate of 7% is about $3.49. Therefore, we would rather wait the additional year. Hopefully my degree paid off for me right there. Someone correct me if im wrong, but im pretty sure I did it correctly lol.

[@savvydirtfarmer]

I have no idea about that math. I know it seems like I'm making more money when I'm propagating more plants. Thanks though - I'm certainly not disputing it.

[@ericadavenport2039]

I'm very interested in trying to sell plants at my new property. My only concern is inflation and the hyper-inflation and the great depression II that's on the horizon. I'd be worried since landscaping is a luxury product. Have you noticed a slowing of sales due to the economy?

[@savvydirtfarmer]

I don’t believe the next “Great Depression” is coming. Yeah, it could, but pertaining to plants , here’s what people would do: start buying fruit trees, berry plants, and other edibles by the truckloads. And, you’d be the person ready to sell them!

[@martinmclean5985]

Plants could be a great inflation hedge. In foresty, they call it holding your investment "on the stump". Inflation only affects fiat currency.

[@John_GGG]

Plant sales went crazy over pandemic. People couldn’t travel so they spent on their homes.

[@mercilessmoose7819]

My man said: "Knock yourself out make your own KZbin video." Seems like a guy I can get behind.

[@savvydirtfarmer]

The KZbin commenting know-it-alls are real.

[@RickysFarmAndHatchery]

I like to correct you on something your plants that you are propagating do not cost you zero. Here's why, you still got to water them or the type of fertilizer that you put in and to keep your plants going. Are you pouring a gallon of water on your plants how much does that add on to your bill? In order to keep my plants up and running to propagate for me what is the cost to maintain that plant? This is referring to the mother plant.

[@savvydirtfarmer]

I talked about most of that in the video. My water bill never goes up.. whether I have plants or not. I included the cost of the pot, potting soil, and fertilizer. Mother plants? I don't know... they're just out in the yard. All I do is occasionally water them if needed, or sometimes I take cuttings from my other smaller plants, not requiring any permanent mother plant at all. So, yeah, you're right. The cost isn't zero, but it's very, very minimal. I mentioned that, as well as a couple of other "x factor" issues that I don't know what they;re called. I;ve since learned. Thanks for the comment - this all helps me learn more.

[@andielliott7721]

"Opportunity costs"

[@chefscircle6133]

I hope your fertiliser cost has come down since you made this video. We pay a lot less down here in Oz, which is odd, since everything here cost more than the US

[@savvydirtfarmer]

I don't know when the cost of anything has gone down. Fertilizer is a fairly inconsequential expense... a few pennies per pot.

[@BENLINUZ]

I am sure I am not the first to ask something like this....if you figure about $6.00 per plant of profit. If you wanted to make something like $50,000 per year which in most places in the USA is considered average to low. You are going to need to sell 8,333 plants. That is without taxes and other misc expenses. I could be completely off base here but how many plants for your first or second year have you sold?

[@savvydirtfarmer]

This is our first year full time, and so far we have sold about 6,000 plants. Not an exact number, but in that area. Hoping to be well over 10,000 plants next year.

[@BENLINUZ]

@@savvydirtfarmer thank you for the response and your openness. I appreciate it.

[@bowler8]

I would love to buy a hydrangea from you

[@savvydirtfarmer]

Should have plenty!

[@bowler8]

@@savvydirtfarmer just let me know

[@dreamasue]

Can I ask a question?? Someone told me it was against the law to propagate flowers and shrubs & sale them …. Is this true ??

[@_VICK_]

If the plant has an active patent on it than yes, it is prohibited from resale other than from the entity that holds the patent. You can check a website online to check patent status.

[@savvydirtfarmer]

That's like saying it's illegal to drive a car. It's illegal to drive a car without a license. It's illegal to drive beyond the speed limit, illegal to DUI, etc. Same with plants. It is NOT illegal to propagate plants. It IS illegal to propagate plants under patent and it is illegal to sell plants under their legally trademarked names, when applicable. Otherwise, propagate all you want, and sell them legally (licensed nursery). ALWAYS know exactly what you are propagating. "White hydrangea" is not good enough. You have to know the botanical name.

[@dreamasue]

@@savvydirtfarmer ok … thank you

[@faindave]

Opportunity cost.

[@savvydirtfarmer]

thanks!

[@natka8181]

I was inspired the whole video until you started talking about water. California drought is a b** and you get fined for overusing water. So sad

[@savvydirtfarmer]

I had to throw that in there... someone made a ridiculous comment here a few weeks ago about how I wasn't figuring in the cost of water and blah blah blah. My response was "this is WHAT I DO." Adapt and adjust the numbers to fit your situation and location. I can't possibly address every person's situation. But, yes, it's sad to be penalized for "overusing" water. I'm sorry you have to deal with that.

[@susaneaglin1252]

I always watch but today you seem so angry.😢

[@savvydirtfarmer]

Old video, but if I seemed angry that day, I probably was. It happens occasionally.

[@susaneaglin1252]

I read people very well, I sold real estate for 37 years in Florida and always listened very carefully, I think that's why I did so well. No disrespect intended, love your show!!