Reevaluating Pricing

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Reevaluating Pricing

For florists, any day that someone falls in love, graduates to the next level, or needs to say “I’m sorry” can be a day for flowers. Still, there are certain occasions that all of these emotions, and more, are expressed en masse, and it’s those times when you should consider reevaluating your pricing. Otherwise, when the rush is on you could wind up selling more–but making less.

So, what do you do?

The first step is always keeping in mind your product and labor costs. Those are the basis for any pricing that you are going to do. In case you’ve not done that yet, here is a good, simple (but not perfect) formula for doing so (I explain more about how to do this here):

Product + Labor + Expenses + Profit = your wholesale cost
Multiply wholesale cost x 2 to arrive at your retail price

Here’s the thing: many of these calculations are likely to change during high-volume sales seasons. You’ll probably order more product and, since flowers are perishable items, may have more loss, so you need to account for that.

And what about labor?

No matter how you look at it, unless you are doing cookie-cutter arrangements (and who does that?) your labor hours are likely to increase during holiday seasons.

Things to consider when reevaluating your prices:

  • Longer hours
  • Increased expenses
  • How much profit you need to make

Remember that as floral designers, people are not only paying for a flower, they are paying for your artistry. If they just want a flower they can go down to the grocery store; if they want an astonishingly beautiful arrangement, they come to you. That value, that special something that only you can add to the product, is part of the price they are paying. Keep this in mind during your price evaluations. Here, again, is where a tiered pricing strategy can offer your customers a wide variety of choice, and leave no one going home without something worthwhile.

Bloom-Tip

  • Be sensible about reevaluating prices. Don’t be tempted to offer product at wholesale costs just to get the sale–that can backfire quickly. If you price at wholesale or just above and there is a hickup in your supply chain, you’ve just lost yourself a lot of money. Offer value instead, and remember your worth as an artist, which is one of the things BloomNation.com emphasizes to customers. People expect to pay a little more for artistry than they do for just run-of-the-mill product.
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