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Extra Features and Video Online FloristsReview.com R E A D O N L I N E 59 When I present programs or create videos, I am often asked the same question: "What would you charge for that?" I usually answer $1 billion. While that usually gets a chuckle, the real answer is a little harder to come by. It is not one size fits all; it depends on your expenses— your cost of materials, your labor costs, your facility expenses and so much more. Let's start with the three main expense categories: COGS (cost of goods sold), labor (payroll) and facility costs. COGS According to Paul Goodman, M.B.A., CPA, PFCI, president of Floral Finance Business Services in Jenks (Tulsa), Okla. your total COGS should be no more than 30 percent to 35 percent of the retail price of the arrangement, and that includes all the fresh materials ( flowers and foliage) and all the hard goods (container, ribbon, floral foam, flower food, tape, ribbon, packaging materials, etc.) used in the creation of the arrangement. If you break that down further, the COGS for fresh flowers and foliage should be no more than 25 percent of the retail price of the arrangement. Keep a close eye on this; if you are struggling to keep your bank account at a good level, COGS is probably the culprit. LABOR Goodman suggests that your total payroll expenses, which comprise all employee wages and salaries—including that of the owner(s), employer FICA (Social Security and Medicare) matches, costs of employee benefits, etc., should be no more than 30 percent to 35 percent of your retail sales. e cost of labor varies greatly throughout the U.S.—and even among flower shops in the same city because the cost of living—and, therefore, wages and salaries— in rural areas are typically lower than they are in large metro areas where the cost of living is typically higher. In addition, the cost of doing business varies even from neighborhood to neighborhood in metro areas. Another thing to consider is are you a one-person show, or do you have a large staff that you need to pay? Only you can decide what your labor charges should be after looking at your payroll expenses in relation to your weekly, monthly or annual sales. Some florists charge 10 percent of the retail price of all the materials used in the arrangement for labor; others charge as much as 40 percent—or even more. Some florists may charge a bit more for high-stress and labor-intensive events such as large weddings and events, and they may charge a bit less for high- volume occasions like floral holidays.

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