Plant Materials Center Update: August 4, 2022
Here are 5 things that you should know about the PMC for August 4, 2022:
Sales remain strong. As of 7/31/22, the PMC has booked $780,096 in sales for the upcoming season. Sales on 8/2/21 were $516,554 which is a 51% increase from this time last year. On 8/11/20 sales were $338,564 which is a 130% increase over 2 years. They have a word for these kinds of increases: AMAZING!
Sales Manager Jacquie has been busy keeping up, along with Admin Assistant Lori who has been keeping the invoicing and deposits organized. It currently looks like this pace will continue, at least until we begin to run out of plants. Some species have sold out but there are still a lot that remain available, so far.
Lori has completed the financial reports for July 2022. Since this represents the first month of the fiscal year there is not a lot to report on. There has not been any revenue to speak of and expenses are only a small part of the annual budget.
Several expense items for the month are over what they were last July. Seasonal labor is at $15,328 compared to $12,194 and the increase can be largely attributed to the increase in the minimum wage last January. Staff wages are also up some due to the Cost-of-Living Adjustment. Overall, things are on budget and on track so far.
Looking back through recent PMC updates it appears that the June financial reports have not been covered. It is important to take a moment to review them since the June report also serves as a financial report for the entire fiscal year, being the last month of the fiscal year.
The Total Operating Revenues for the last fiscal year ending 6/30/22 were $1,636,609 which is a 34% increase for the year. It was an amazing and challenging year with COVID, seasonal ag labor shortages, inflation, supply chain issues, and shipping delays due to driver shortages.
As the old saying goes, “It takes money to make money” and that was no exception with this year’s revenue increase. It came with increases in some expenses. Total expenses for the year were $1,301,331 which is a 9.5% increase from fiscal year 2021-22. Some of the increased expenses were credit card fees, brokered stock (which is offset by an increase in revenue for brokered stock), repair and maintenance equipment, employee medical benefits, and seasonal labor. Seasonal labor increased due to an increase in the minimum wage and a longer harvest.
Fortunately, the increased revenue more than offset the increased expenses which resulted in a 20% return on investment for the fiscal year.
Keeping up with sales will continue to be a priority and a major time commitment. Seed collection will continue until winter as will irrigation and root pruning. August brings the beginning of ground prep for fall seed planting which will kick off with working the barley cover crop into the ground.
I hope this helps. Please let me know if you have any questions.
Director of Nursery Operations