Flower & business design insights, inspiration, and advise for the modern day florist (or wannabe florist).
Pricing is a simple process (in theory). There is a cost, retail, and labor expense. It's really this simple. However, for some reason there is a lot of confusion keeping new florists from being profitable in their businesses and making prospects less confident in working with really talented individuals.
So we are going to let you know how to price everything you sell in your flower shop. If you work from home or share a studio space, you still MUST stick to this pricing model. Do not charge less because you are new, have a lazy eye, are feeling emotional, or whatever. Just don't.
HOW TO PRICE ANYTHING THAT ENTERS YOUR STORE (OR HOME BUSINESS) THAT IS FOR RE-SALE
Anything that is not a supply such as flower buckets, ribbon, DCD spray, tissue paper, etc... needs to be inventoried and counted as a RETAIL item. Simple take the invoice cost of the item (fresh or hard good) and multiply it by 3.
Retail items can include:
HOW TO PRICE YOUR SERVICES (AKA THAT LABOR CHARGE THING)
If a customer comes in and asks for a bunch of flowers and a vase, you charge them for each item, then send them on their way. If they ask you for a bunch of flowers to be ARRANGED in a vase, you charge them a 20%-30% labor charge. You arrange the vase well, use high quality products, package the vased design extremely well, offer flower preservative, spray the arrangement with flower preserve (crowning glory), and kindly share with him/her proper care instructions. Let them know their investment comes with a 24 hour if it dies we'll replace it policy (or whatever your shop policy is).
WHAT HAPPENS IF YOU DECIDE NOT TO TAKE OUR ADVICE
If you want to risk under charging your work (not charging retail and labor) aaahhem... You're in for a whole world of hurt. If you set your rates too low, it's going to be hard as hell to come back from that and raise them. You can't just say 'oops guys, sorry. I missed price everything in my shop because I didn't know what I was doing, and now I'm loosing money, soooooo. No one cares. Please do it right the first time.
If you want to be a martyr for your business and under charge, you may have some self esteem issues around receiving. You may have some deeper money issues. Pricing is a black and white, no grey area part of your business. Keep it simple. Get creative with your merchandising, your window displays, or your arrangements. If you over complicate it or get wishy washy you'll end up looking like this little guy below... Good luck and post any q's you may have on pricing below!
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I just want to let you know that I'm finally making the move to getting own studio space. I've spent a year sharing a space with another creative, but the space has become to small for the both of us. I'm really excited to see my vision coming to life. Thank You again for all of your coaching help and website development!
M. Dawn Floral Design Wedding & Event Floral