REQUIREMENTS AND COSTS OF ESTABLISHING AND OPERATING A GARDEN CENTER

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  • 1 Department of Plant and Soil Sciences, University of Delaware, Newark DE 19717-1303.

The objective of this project is to estimate establishment and operating costs for garden centers at two levels of sales and to specify the general set of financial, marketing and business principles that should be available to the owner/manager of a garden center.

After surveying 25 garden centers across the United States, two models were derived. A large garden center with annual sales of $1,000,000 is described. A smaller garden center with annual sales of $350,000 is described. Capital budgets, including investment and operations costs for each firm have been developed.

Each firm is evaluated based on standard business indicators. A merchandising program composed of layout, pricing, advertising, cost structure and diversification is outlined.

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