Industry sector:

Turf supplier: Cash sales


'Cash sales' means all income from your main business activity which you receive at the time of sale. While some payments may be made in cash, remember that Cash sales also include:

  • cheques
  • credit and debit card payments
  • bank transfers and electronic payments

To prepare your cash flow, you need to estimate how much income you will receive over the next 12 months, including VAT. To do this you'll need to work out how many square metres (or yards) of turf you are likely to sell and at what price. You will also need to decide on any related services you will offer and what you'll charge for them.

There are a number of things to consider when you make your estimates:

Type of business

  • who will your customers be - domestic households or businesses and organisations like local authorities, or a mixture
  • where will your turf farm be located. You will need well-drained, stone free land, ideally with easy access
  • might you grow at more than one site so that customers can be offered turf grown on different soil types

Type of turf

  • what type of turf will you cultivate. There is a significant difference between the selling price of turf grown for general, domestic applications and the selling price of turf grown for specialist uses, such as tennis courts, golf courses, football or cricket pitches
  • will you strip and sell existing pasture turf
  • where will you source your turfgrass seed from
  • what size of turves will you supply
  • will you also supply artificial turf and turf alternatives like sedum matting

Your services

There are a number of services you might decide to offer your customers:

  • delivery. You may make a charge for this or perhaps offer free delivery on large orders. You'll need to decide how far you will be prepared to travel and whether this will depend on the value of the order
  • site visits to clarify exactly the type and area of turf that your customers need
  • preparation of customers' sites
  • turf installation (laying)

Pricing

  • what will your pricing policy be (don't forget, you must be able to cover your costs, overheads and drawings)
  • how often will you review your prices
  • will you offer different qualities of general lawn turf at different prices as well as turf for specific applications like golf greens, tennis courts and so on
  • will you offer credit terms to business customers
  • what will your policy on discounts be

To help with your decisions, click on the checkpoints for guidance. Once you have worked out a Cash sales figure add it to the relevant field in your cash flow forecast.