How do I judge a garden centre’s plant loss and shrink from heat or frost?
Ask for a written record of plants thrown out, marked down or written off each season, then compare it with purchases and sales. Walk the benches and cold areas to see how plants are protected. Heavy loss in a bad year is not the same as steady loss every year.
Plant loss is stock that cannot be sold. Ask how the seller records it: a waste log, a markdown report, or nothing. If loss is not tracked, the profit figures may be overstated. Compare purchases with sales and write-offs to see if the numbers add up.
Look at the site. Are tender plants kept under cover on cold nights? Is there shade cloth, misting or fans for heat? Does staff know when to move stock in? Ask the seller about the worst weather event in memory and what it cost, then ask what they changed afterward. Separate one-off events from routine patterns. A single bad frost is a story; a regular loss on the same product line points to a planning problem, such as buying too early or ordering too much. Ask about supplier credits and guarantees on dead stock, and about any plants held for export that need inspection paperwork. Your accountant can show you how losses are reflected in the books. Ask the seller to walk you through the last two bad weather seasons. Walk the site on a hot afternoon if you can, and watch how quickly staff respond to wilting stock, because habits in the moment explain more than any report.
Key takeaways
- Ask for a waste or markdown log, not just a verbal estimate.
- Separate one bad event from a pattern of loss.
- Check supplier credits for dead or damaged plants.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat is inventory
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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