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Pricing & Mark-up in Floral Design

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.

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Pricing & Mark-up in Floral Design

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

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

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

  4. 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.

  5. 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)

  6. 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

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

  8. 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

  9. 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

  10. 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

  11. Mark-up • Standard Ratio Mark-up Pricing- • Method we will use in this class • Easiest method of 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.

  12. 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

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

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

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

  16. Floral Design Pricing Guides • Sample (see board)

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