• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Christmas Tree Sellers Run Into Surprise COVID-19 Costs

Christmas Tree Sellers Run Into Surprise COVID-19 Costs

Christmas Tree
December 6, 2020
Bloomberg

Christmas tree vendors got a jump on sales this year as buyers looking to chase away pandemic blues started the season early. But all that demand may not necessarily translate into fat profits for sellers of evergreens or the farmers who grow them.

“We typically see a wave of buying towards the second week of December, and the day after Thanksgiving people were already out looking for a tree,” said Mike Cruzado, who runs two Christmas tree stands in Brooklyn, New York. “More people are working from home and looking to decorate their place a little sooner,” he said.

River Ridge Tree Farm in Scottville, North Carolina, a wholesale supplier specializing in Fraser Firs, known as the “Cadillac” of Christmas trees, has already sold out for the season. “Demand for us has been great,” said owner Jessie Davis. “We even had to purchase some trees from Washington State and Wisconsin to fill some of the gaps for our customers.” 

However, just because more people are buying trees doesn’t mean farmers and independent vendors are making a big profit. The surge in online shopping this holiday season has sent freight costs skyrocketing, which in tandem with rising absenteeism tied to the pandemic has meant the tree industry is paying more overhead.

Approximately 25-30 million Christmas trees are sold in the U.S. every year, according to the National Christmas Tree Association. “People started clamoring for trees earlier,” said Doug Hundley, a spokesperson for the group. “By this weekend, the industry could easily satisfy 90% of all sales,” Hundley estimated.  

At River Ridge, however, transportation costs have doubled compared with last year. “It’s absolutely ridiculous. We’re paying close to $10,000 for a truck from Washington state to get to North Carolina,” Davis explained, adding that he’s had to increase his prices as a result. With many orders placed before freight expenses jumped, he found his margins taking a hit.

“I’ve had some trees where I’ve even lost money,” he said.

Overall, his operations “haven’t seen a massive impact” from COVID-19 infections as the company has been diligent with safety precautions, but even the slightest worry of illness makes some employees miss work just to be safe, Davis said. 

In New York City, the pandemic has hindered vendors and seasonal workers from Canada who travel to the U.S. to sell trees during the holidays, said Tew Smith, who helps operate a stand in New York with Wisconsin-based Evergreen East Cooperative. Smith said that the company’s workforce was “cut in half” because of border restrictions. “We went from having 65 stands, now we have 30,” he said. “We’ve had good days of sales, usually 10 to 12 trees, but this is a weird year. We’re not sure how it’s going to turn out.” 

For independent sidewalk vendors who depend on out-of-state Christmas tree exporters, higher costs are taking their toll. Cruzado said his expenses grew 15% due to freight costs, making margins at his stand in the wealthy Cobble Hill neighborhood of Brooklyn razor thin. Even so, he sells a coveted seven-foot Fraser Fir for under $120 —or roughly $15-17 per foot— a “steal” compared with what a rival a block away is charging, he said. 

A Brooklyn native, Cruzado said he’s been selling trees on the same street for 37 years, starting off as “a kid trying to make a buck.” Since then, it’s become about tradition and the spirit of giving, he said.

“This isn’t about the money, especially not this year,” he confides. “It’s been rough for people. A Christmas tree is a little bit of normalcy and hope.”

RELATED CONTENT

RELATED VIDEOS

Logistics LTL/Truckload Services Transportation & Distribution HR & Labor Management Retail
  • Related Articles

    COVID-19 Has Thrust 3-D Printing Into the Spotlight

    Omicron, Climate Change Threaten Christmas Tree Supply

    Hospitals in U.S. South Run Low on Oxygen Amid Covid, Storm

Bloomberg

Volvo May Move Investments to U.S. If Europe’s Green-Tech Push Falls Short

More from this author

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • A HAND TURNS A LARGE, LIGHTED DIAL WITH THE WORD RISK ON IT iStock-NicoElNino-1364371014.jpg

    Measuring KPIs and KRIs for Comprehensive Supplier Performance Management

    Technology
  • A COMPLEX SERIES OF ROADWAYS AND RAMPS, SEEN FROM HIGH ABOVE, IS PARTLY SHROUDED BY CLOUD

    Supply Chain Visibility Isn’t Just a Catchphrase; It’s an Imperative

    Logistics
  • A WOMAN IN HER LIVING ROOM GESTURES IN DISMAY ON THE PHONE OVER AN OPEN SHIPPING BOX

    Retailers – Quit Bellyaching and Differentiate Yourself on Returns

    Reverse Logistics
  • AN INDUSTRIAL CLAW GRABS SCRAP STEEL FROM A GIANT OUTDOOR PILE OF JUNKpg

    How Manufacturing Companies are Using Recycled Materials In Their Processes and What They're Using

    Sustainability & Corporate Social Responsibility
  • A Mid Adult Male Truck Driver Doing Exercises Before Road Trip by the side of a truck

    Podcast | Yoga for Truck Drivers? It’s a Mother Trucker!

    LTL/Truckload Services

Digital Edition

Scb q1 2023 cover

2023 Supply Chain Management Resource Guide: Packing for a Difficult Year

VIEW THE LATEST ISSUE

Case Studies

  • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

  • Convenience Store Client Maximizes Profit and Improves Customer Service

  • A Digitally Native Footwear Brand Finds Rapid Fulfillment

  • Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology

  • How a Global LSP Scaled its Security Program and Won More Business

Visit Our Sponsors

Orderful Yang Ming Alithya
Barcoding Blue Yonder BNSF Logistics
CoEnterprise Data Capture Deposco
E2open GAINSystems Generix
Geodis GEP GreyOrange
Here Honeywell Intelligrated IFM
Infor Inmar Keelvar
Kinaxis Korber Lean Solutions Group 2H
Liberty SBF Locus Robotics Logility
LogistiVIEW Lucas Systems MCA Connect
MPO Nvidia Old Dominion
OpenText ORTEC Overhaul
Parsyl PMMI QIMA
Redwood Logistics Ryder E-commerce by Whiplash Saddle Creek Logistics
Schneider Dedicated Setlog Holding AG Ship4WD
Shipwell Tecsys TGW Systems
Thomson Reuters Tive Trailer Bridge
Vecna Robotics Verity
Verusen
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing