Pricing & Mark-up in Floral Design Principles & Elements of Floral Design

Objective of a Floral Business Make money! Determine the right price! Too high vs Too Low

Determining Price Factors: Price fluctuation during year In season vs out of season flowers Holiday demand

Determining the Unit Cost The cost of each individual item used Hardgoods (ribbon, containers, foam, tape, etc) are usually sold in cases, boxes, rolls, or other bulk amounts. Florist normally uses these products by the piece, foot, or some other unit of measure.

Determining the Unit Cost (cont’d) Total cost of these items must be broken down into a single unit cost This is done by dividing the total cost by the number of units enclosed Always round up! (so you don’t lose money)

Example # 1 # 3 Corsage Ribbon Cost= $ 4.95 per roll Yards per roll= 100 Unit cost (per yard) = Cost / # yards per roll Answer: $ 4.95/ 100 = 0.05

Example # 2 Floral Design Bowl Cost= $ per case Containers per case = 48 Unit cost = Cost /containers per case Answer: $ 14.60/ 48 = 0.31

Unit Cost- Flowers Fresh Materials (flowers, foliages, etc) are usually priced by the stem or bunch. Flowers and foliages are packed: By quantity By Weight

Example # 3 Leather Leaf Fern Cost= $ 2.49 per bunch Stems per bunch = 20 Unit cost = Cost / # of stems Answer: $ 2.49/ 20 = 0.13

Example 4 Pompon Chrysanthemums Cost= $ 3.75 per bunch # stems- variable- determined by weight Calculate- you used ½ a bunch Cost for ½ bunch = Cost x quantity used Answer: $ 3.75 x ½ bunch = $ 1.88

Mark-up Standard Ratio Mark-up Pricing- Used by determining the wholesale cost of the item, then multiplying, or marking up, that cost by a number. This mark-up used to cover operating cost, labor, and profit.

Mark-up 2-to-1 Used for HARDGOODS Supplies such as containers, ribbons, floral foam, gift items, etc 3-to-1 Used for FRESH GOODS Basic arrangements, bud vases, decorated plants, basic wreaths, and sprays

Mark-up 4-to-1 SPECIALTY DESIGNS (more labor intensive) Creative arrangements, wedding flowers, corsages, reception and party flowers

Example 5 Carntions- Unit cost 0.39 per stem Mark-up cost: 0.39 x 3 = $ 1.17

Example 6: Design Bowl Unit Cost 0.31 Mark-up Cost = 0.31 x 2 = 0.62

Retail Cost of Good Plus Labor Calculate the retail value of each part of the arrangement (using the mark up ratio) Then add 25% for labor

Example #7 Total price $ % for labor $30.95 X 0.25 = $7.74 labor $ $30.95 = $39.00 total