Category: Business

Chri$tma$ Tree$

Oh, Christmas tree: The economics of the US holiday tree industry

Published: December 6, 2023 2:41pm EST

Authors

  1. Jay L. ZagorskyClinical Associate Professor of Markets, Public Policy and Law, Boston University
  2. Patrick AbouchalacheLecturer in Strategy and Innovation, Boston Univ

Christmas today is a big business, and one part of that is the multibillion-dollar business of selling Christmas trees. The U.S. Christmas tree industry is so large, it even has two dueling trade groups: one that supports natural trees and the other, artificial.

We are two business school professors whose students asked us to explain the economic impact of the winter holidays. In the holiday spirit of sharing, we’re giving you some facts to discuss while trimming your tree.

Where to buy a natural Christmas tree – or chop one down yourself

There are three different ways to get a natural Christmas tree.

First, you can go into a national forest and chop down your own. Relatively few Americans do this, even though a permit costs $10 or less, because government rules require that the tree you chop must be more than 200 feet from any road, campground or recreation area. Since dragging a tree destroys its branches and needles, the 200-foot rule means that large, heavy trees have to be carried a fair distance through often snowy woods.

Your second option is to buy or chop down a tree at a local Christmas tree farm. Christmas tree farms got a big promotional boost when Taylor Swift revealed she grew up on one, but she’s hardly alone: There are nearly 3,000 Christmas tree farms across the U.S., according to the Department of Agriculture’s most recent figures. These farms sell around 12 million trees a year.

While being a Christmas tree farmer sounds idyllic, it isn’t very profitable, since Christmas trees take over a decade to grow large enough to sell. Long lead times combined with changing and unpredictable weather have pushed many of these farms out of business. Almost 500 U.S. Christmas tree farms shuttered between 2014 and 2019, the USDA found.

The third way to buy a tree is from a local retailer that imports trees. In 2022, the U.S. imported almost 3 million natural Christmas trees, primarily from Canada. Imports have been growing steadily: In 2014, the U.S. imported only half as many trees.

Together, this means that in 2022, roughly 15 million locally grown or imported natural trees were sold in the country.

Some people like to buy their trees from a nonprofit, like the Boy Scouts. These fundraisers are also supplied from local Christmas tree farms or imports.

An artificial tree’s journey from China to your living room

Artificial trees are popular with people who don’t like the mess and fuss of natural trees. Replica trees primarily come from China, and most are made in the Chinese city of Yiwu. The U.S. imported over 20 million artificial trees in 2022 alone.

And they’re becoming increasingly common. In 2014, the U.S. imported 11 million artificial trees and sold almost 22 million natural trees. This means that back in 2014, almost two real trees were purchased for every artificial one. A decade later, natural tree sales had fallen to around 15 million, but over 20 million artificial trees were imported.

One result of the shift to replica trees is a reduction in house fires. Natural trees that aren’t watered dry out and sometimes catch on fire. In 1980, the U.S. saw about 850 Christmas tree fires that caused 80 people to be injured. Four decades later, the number of annual fires fell to 180, with only eight injuries.

In a store, a sign in the shape of a Christmas tree ornament reads 'All trees on sale.'
Welcome news for shoppers. Patrick Abouchalache

Why Christmas trees are so expensive

Some people get sticker shock when they see how much Christmas trees cost. Those shocking prices don’t come from the wholesale level. Last year, wholesalers importing entire shipping containers paid $22 for each artificial tree, on average, according to U.S. government statistics. Importers of natural trees paid roughly the same price. Together, artificial and natural importers paid over a half billion dollars for trees to sell in 2022.

Unfortunately, there are no official statistics on how much Americans pay for Christmas trees at the retail level. There’s a general consensus that artificial trees cost more than natural trees, but the extra money may be worth it because they last more than one season.

Consumer surveys by the two competing trade groups suggest that people paid in the range of $80 to $100 for their trees in 2022. This means the markup on Christmas trees is around 400% to 500%. That’s about the same as a pair of designer jeans or a drink from a hotel minibar.

Multiplying the $80 to $100 price by the 15 million natural trees and 20 million artificial trees sold in 2022 means Christmas trees are roughly a $3 billion business annually — without including any extra money spent on the decorations.

So, with so many options, how do you settle on which sort of tree to buy? Price, environmental factors, convenience and even allergies are all important factors to consider. There’s no easy answer. One of us can’t decide and has multiple trees, ranging from a 12-inch artificial tree handed down from his grandmother to a 7-foot-tall natural Fraser fir purchased at his local Christmas tree farm.

Whatever you decide – natural, artificial, both or no tree at all – just remember to add a dash of cheer to your winter celebration. After all, the best things about the season are free.

How I try to stay informed…

Terryorisms Menu >

Since the news business has changed from reporting to profits, keeping eyeballs is what it is all about. 

Fox found this out after they accurately reported that Trump was projected to lose Arizona. Tucker Carlson then ranted about how their viewership was going down, along with the stock price with which he was richly compensated. He understood that their viewers were  there to hear what they need to believe. And if they didn’t get it, they would move to Newsmax, Onan and other alternative news sources that would feed the beast.

Rush Limbaugh always understood that and bragged that he was an Entertainer. Are you entertained?

For any democracy to it operate efficiently, it needs an informed electorate. So how do you sort out the news from the fire hose of information flow these days?

1)Realize that your. 00001 experience of the world contributes to 80% of your worldview. Approach your understanding with a scientist skepticism that he’s always willing to accept that he could be wrong.

 2)Intentionally expose yourself to opposing views. We don’t like to do this because it makes us uncomfortable. Over the years I have developed a diversity of writers that I follow on the hellscape that is Twitter. Most of us don’t have a luxury of time to do that. It’s not easy being free, when you don’t have an emperor to make all the decisions for you.

3) Turn off the Crisis News networks . If there isn’t good video footage, or if the victim isn’t attractive, you won’t hear about it . Just like the print media, television is all about eyeballs. Now there are live news events that television coverage excels at. Television Studios nowadays don’t need to wait for their cameras to warm up to go live. Walter Cronkite had to wait to give the world the shocking news about Kennedy being shot in Dallas.

CBS News anchor Walter Cronkite reports that President John F. Kennedy was assassinated in Dallas on Nov. 22, 1963. Credit CBS via Landov

4) Read some news sources from outside the United States bubble. Here are some free websites that also have free apps for your handhelds. 

A good one to see the southeast Asian perspective on the world is the Asia Times  https://asiatimes.com/

Also, try the Arab news source https://www.aljazeera.com/

France 24 for another perspective https://www.france24.com/en/live-news/

The Guardian is one of the few British rags that isn’t just a tabloid http://thrguardian.com/

If you can afford subscription the Financial Times, The Week, The Economist, Wall Street Journal and NY Times will cover a lot of area.

A great little tool that I use is an aggregator that ranks stories by their number of hits in real time. Bookmark this handy page

https://www.memeorandum.com

5) Last, but not least, Social Media is just that and not a source of verifiable information. Outrage and anger build engagement. Realize that you are being baited with these emotions to click on their stories.

Chinese Debt Problem Worse Than US

It’s fascinating to see everyone focusing on how bad the #Real_Estate market will get the #US but completely ignoring the real estate situation in #China, which is by a magnitude much worse. 

You think the #FED will print and “dilute” the #USD? Wait till you see the #PBOC

Here are some numbers to put things into perspective 👇

#US:

#GDP: $25 trillion

#Money_Supply (M2): $21 trillion

#FX_Reserves: It has the USD

#Banking_Assets: $24 trillion

#Non_Performing_Loans (Dec 2022): $143 billion

#Real_Estate: Represents 36% of Americans household wealth

#China:

#GDP: #Officially: $18 trillion

#GDP: Unofficially: $14 trillion (shorturl.at/deMU8)

#Money_Supply (M2): $40 trillion

#FX_Reserves: Total: $3.1 trillion

#FX_Reserves: Liquid: $900 billion

#Banking_Assets: $55 trillion

#Non_Performing_Loans: ??

#Real_Estate: Represents 62% of Chinese household wealth


Here… https://t.co/qixr0vKKgP
(https://twitter.com/mnicoletos/status/1645717845144219648?t=-wQsTKoPUOeYkSEzj69hTQ&s=03) 

A century ago, progressives were the ones shouting ‘fake news’

No matter how often radical periodicals denounced fake news published by their competitors, they found it difficult to suppress false information spread by powerful newswire companies like Hearst’s International News Service, the United Press Associations and the Associated Press.

These outlets fed articles to local papers, which reprinted them, fake or otherwise. Because people trusted their local newspapers, the veracity of the articles went unchallenged. It’s similar to what happens today on social media: People tend to reflexively believe what their friends post and share.

According to muckraker Upton Sinclair, syndicated “news” banked on this and knowingly spread fake news on behalf of the powerful interests that bought ads in their periodicals. Fake news was not only a sin of commission, but also one of omission: For-profit wire services would refuse to cover social issues, from labor protests to tainted meat, in ways that would depict their powerful patrons in a negative light.

History of Fake News

Honey Boo Boo vs. Duck Dynasty

While Conservatives bemoan the crudeness of popular culture, there are 12 million viewers tuning in to watch the Season Premiere of the comparatively-positive  White Trash role model  “Duck Dynasty”.  The largest audience ever for a reality show on cable. They’re even releasing a Holiday record “Duck the Halls”. Now those rich rednecks know how to market themselves.
As reality’s first family, the Kardashians, have seen their ratings steadily decline over the past several years, shows like “Pawn Stars,” “American Restoration” and “Duck Dynasty” have risen to dominate basic cable.

Reality Cable StarsLast year, “Here Comes Honey Boo Boo,” which features a cornucopia of social ills, was TLC’s highest-rated show, attracting more cable viewers than the Republican National Convention, which had the misfortune to share the time slot with the charmers from Georgia. The show’s matriarch, June Shannon, has four daughters by four men, one of whose names she can’t recall.

Students of Arnold Toynbee, the English historian, will recognize what is going on here. In a chapter of his “A Study of History” entitled “Schism in the Soul,” Toynbee argued that it is a sign that a society is disintegrating when it takes its cues for manners and customs from the underclass. He describes such societies as being “truant” to their own values.

Toynbee is the guide to what we see all around us today.

We modern philistines tell ourselves that rejecting the customs and conventions of a stuffy, old elite will release creativity and bring about a renaissance. Nothing could be further from the truth. According to Toynbee, self-expression replaces creativity when disintegrating societies look downward.

Aspiration is replaced by complacency. Shame vanishes. Any criticism becomes “haters gonna hate,” or the White Trash motto: “It don’t make no difference.”

White Trash signifiers have changed of course — the foreclosed McMansion with the mosquito-infested swimming pool has replaced the rusting tractor permanently bivouacked on cement blocks in the front yard. But it’s the same general idea.

Obesity, the product of a lack of discipline, sloppy dressing, loud and intimate cellphone chats broadcast to a captive audience and foul language nonchalantly uttered in the ATM line are all forms of this “self-expression.”

Pre-White Trash, physical intimacy was reserved to private places. Now it’s reserved for the subway. You no longer have to live in a one-room shack to learn the facts of life early. Just walk down the toy aisle at Toys “R” Us for a sexpot Bratz Doll.

Children who see daytime television, broadcast in public areas, are inevitably treated to Jerry Springer reruns. How do you explain “Honey, I’m a Ho,” or “Transsexuals Attack” to a tot? Oh, wait, the tot explains it to you.

Tattoos are form of self-expression that have moved from gangs and prisons to the mainstream.

via When did white trash become normal? | New York Post.

“Fake” Fancy Wine Widespread

Counterfeit wine accounts for some 20 per cent of international sales, according to unofficial wine industry estimates published in yesterday’s regional French newspaper, Sud Ouest. Investigators said the design on bottles were “near perfect” and that many customers were clearly fooled.

 

This month, Laurent Ponsot, a Burgundy winemaker and famed forgery hunter, estimated that 80 per cent of auctioned wines allegedly coming from Burgundy’s most prestigious domains, including his own, are fakes.

 

Mr Ponsot famously unmasked Rudy Kurniawan, an Indonesian collector said to possess “arguably the greatest cellar on Earth” as an alleged wine fraudster, after Mr Kurniawan tried to auction Ponsot’s Clos-St-Denis vintages dating back decades before the domain started producing them. Decanter said the scale of alleged forgeries found when the FBI raided Kurniawan’s premises last year may “ultimately go down as the wine crime of the century”

via Fifth of wine sold worldwide is ‘fake’ – Telegraph.

What Happens in an Internet Minute?

Do you know what happens in one minute on the Internet? In just one minute, more than 204 million emails are sent. Amazon rings up about $83,000 in sales. Around 20 million photos are viewed and 3,000 uploaded on Flickr. At least 6 million Facebook pages are viewed around the world. And more than 61,000 hours of music are played on Pandora while more than 1.3 million video clips are watched on YouTube.

internetminuteToday, the number of networked devices equals the world’s population. By 2015, the number of networked devices is expected to be double the world’s population. And by the time we reach 2015, it would take five years to view all the video content crossing IP networks each second. Click Infrograph to expand.

via What Happens in an Internet Minute?.

You Would Probably Blow An Inheritance

According to the Boston College Center for Retirement Research, two-thirds of baby boomers will inherit family money over their lifetime—most during their later middle-age years—to the collective tune of some $7.6 trillion. Add in the many postwar babies who receive a significant financial gift or two from Mom and Dad while the latter are still alive, and the asset shift jumps even more. Not bad, experts say, considering that Americans’ total household wealth at the end of 2012 was $64.8 trillion. “There’s a lot on the line,” says John Davis, faculty chair of the Families in Business program at Harvard Business School.

mrmoneybagsBut if the past is any prelude, inheritors, especially those who are new to the family-windfall phenomenon, face an unpleasant reality: They’re likely to blow it. Although it’s not widely discussed, financial advisers say that new riches prove particularly hard to hold onto—and even harder to patiently nurture and grow. Indeed, research shows that family money rarely survives the transfer for long, with 70 percent evaporated by the end of the second generation. By the end of the third? Ninety percent. Hence the old saw, “Shirtsleeves to shirtsleeves in three generations.”

The most obvious reason, of course, is that money gets spread thinly over fast-growing family trees. But wealth managers also say many people are simply inexperienced at handling large piles of dough in any disciplined way—think of the so-called sudden-wealth syndrome experienced by lottery winners and many professional athletes. Another common trend advisers see?

A belief among some inheritors that, hey, it’s permanent vacation time, and there’s no need to create any new income streams.

via Lost Inheritances – Studies Show Americans Blow Through Family Fortunes at a Remarkable Rate |.

Would you rather be Right or Happy?

When you argue and win, your brain floods with different hormones: adrenaline and dopamine, which makes you feel good, dominant, even invincible. It’s a the feeling any of us would want to replicate. So the next time we’re in a tense situation, we fight again. We get addicted to being right.

lionHenpeckedI’ve coached dozens of incredibly successful leaders who suffer from this addiction. They are extremely good at fighting for their point of view (which is indeed often right) yet they are completely unaware of the dampening impact that behavior has on the people around them. If one person is getting high off his or her dominance, others are being drummed into submission, experiencing the fight, flight, freeze or appease response I described before, which diminishes their collaborative impulses.

Luckily, there’s another hormone that can feel just as good as adrenaline: oxytocin. It’s activated by human connection and it opens up the networks in our executive brain, or prefrontal cortex, further increasing our ability to trust and open ourselves to sharing. Your goal as a leader should be to spur the production of oxytocin in yourself and others, while avoiding (at least in the context of communication) those spikes of cortisol and adrenaline.

Continue reading “Would you rather be Right or Happy?”

Europe Most Generous, Asia Stingiest For Paid Days Off

  • Workers in UK and Poland have most generous statutory employee holiday entitlements
  • Employees in the USA, Canada, Philippines, China and Thailand have the least generous
  • Colombia has greatest number of public holidays; Mexico the least
  • UK employees have access to a highest amount of potential holiday (36 days per year) but in reality fare worse than other European employees

According to Mercer Consulting, holiday entitlement is often more complex since actual holiday provisions often depends on company contracts and the number and treatment of public holidays. In the UK, for example, employees are entitled to 28 days holiday. With the UK also holding 8 public holidays each year, this suggests that employees in the UK could be on holiday for 36 days, or 10%, of each year. This would be one of the highest entitlements of all 62 countries. The reality is that companies are allowed to include the 8 public holidays as part of the 28 day entitlement so UK employees actually have fewer days’ holidays than their peers in the rest of Europe where, in general, the practice is for European employees to take public holidays in addition to their statutory entitlement. Employees in the Asia-Pac region have comparatively low levels of statutory entitlement but public holidays are taken in addition to this rather than as part of it. However, the levels of holiday entitlement in Asia-Pac are still below those of Western Europe.     Employee holiday entitlements around the world.