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 RibbonCost= $ 4.95 per rollYards per roll= 100

Unit cost (per yard) = Cost / # yards per roll

Answer: $ 4.95/ 100 = 0.05

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

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-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.

Mark-up

2-to-1Used for HARDGOODSSupplies such as containers, ribbons, floral foam, gift items, etc

3-to-1Used for FRESH GOODSBasic arrangements, bud vases, decorated plants, basic wreaths, and sprays

Mark-up

4-to-1SPECIALTY 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 BowlUnit Cost 0.31

Mark-up Cost =

0.31 x 2 = 0.62

Floral Design Pricing Guides

Sample (see board)