When it comes to ROI, the manufacturer of the Tower Garden publishes a “yield and profit calculator” tool on their website:
Such a calculator has been programmed to be very “reasonable” with its yield and profit estimations. Such a calculator is also based on the US market. Tower Farms experience much higher profits than the numbers projected by this “yield and profit calculator”. However, the manufacturer wanted to play safe by only providing conservative projections. Of course, such ROI projections vary according to crops, conditions, location, etc.
We do not get further involved with business plans, ROI, capital expenditure, KPI…
We sell fully automated Tower Farms which consist of the towers, the automated irrigation, the nutrient dozing systems, the nutrients and that is all.
We also offer on-site staff training and installation services worldwide.
Aside from that, we can be hired as greenhouse development consultants.
We will not get involved with business projections: it would be too irrational for us to do so. In fact, in some countries, a certain crop can be considered fodder while it is a specialty item in another country. Each country has its own price point for labor, rent, electricity, water… In fact, within the same country, oftentimes, those rates can feature huge gaps….
Many prospective customers without food-growing background get confused and believe that it is our responsibility to help them out with their business plans. We deal with many people who are at the initial stage of pitching the idea of “vertical urban farming” to investors, partners, etc.. We also get approached almost every day by individuals applying for grants…
There are too many variables for us to get involved with helping out our prospective customers to draft a business plan. The most we can offer consists of providing a quote for the equipment, project the number of harvests per square meter depending on the crops being grown. This is what we do. We talk about agriculture, nutrients, planting strategies, project feasibility, greenhouse ramifications: but we will not waste our time trying to help out with business plans. This is just not what we do.
The conditions in which a Tower Farm is being set up whether indoors, outdoors, inside a greenhouse, and depending on the quality of the greenhouse, crop yield can be drastically impacted.
Let’s just take the example of romaine lettuce: when reaching maturity, depending on the variety, a romaine lettuce can range from 80 g to 250 g. However, the variety which weighs 250 g, usually sells for less than the crunchy dwarf varieties which are less than half the weight.
When it comes to strawberries, depending on the variety, they will range from 3 g to 15 g per strawberry. And again, the final weight of the fruit, regardless of the variety, will depend on its growing conditions.
Rather than wasting our time projecting crop yields for fruits or vegetables, we prefer to publish a comparative scientific study which shows that our technology produces over 30% crop yield increase in comparison to conventional soil farming. Science doesn’t lie.
Analogically, a Tower Farm System is the equivalent of a stove in the kitchen of a restaurant. When buying a stove, the restaurant owner does not expect the stove manufacturer to help with their business plan. The stove manufacturer is not responsible for the quality of the meals which will be cooked on that stove. The stove manufacturer can tell the customer about the technical specifications of the stove, but the manufacturer cannot guarantee the quality of the food nor project how many meals will be served.
In our case, it is the same. We know how much a Tower Farm aeroponic system costs, how many farmers are using such technology successfully and profitably, but there are too many financial variables proper to each market for us to get involved with exact crop yields, ROI, capital expenditure, KPI, grants, loan applications, etc.….