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60 January | 2023 Business I am always surprised when I hear about fl orists who don't charge for their labor. Let's fi x that today! Baby steps—start by adding a 10 percent labor charge, and then when you (and your customers!) feel comfortable with that, go up to 15 percent and so on. FACILITY COSTS e last of the big expenses for businesses comprise one's rent or mortgage, utilities, property taxes, insurance, building maintenance, depreciation, security and so on. is should be no more than 10 percent of your annual sales, according to Goodman. Are you like me—in business forever and your building is paid off ? Or do you have a high monthly rent or mortgage payment, utilities, insurance, maintenance and property taxes ? is is a crucial factor in how much you need to mark-up perishables and hard goods and how much you need to charge for labor. OK, so how does all of this information help you determine how much you need to charge for your beautiful and artistically designed arrangement of fl owers? First, you need to assess how you are doing in each of the big three expense categories in relation to your current sales volume. What can you do to increase your sales volume, buy smarter and decrease expenses where possible? Once you analyze all these things—and more—you can make informed decisions on how much you need to charge. MARKUPS AND PRICING STRATEGIES Standard industry markups on fresh fl owers range anywhere from 3x to 5x, with the "norm" being 3.5x. So, a $1 rose could sell anywhere from $3 to $5. NOTE: Be sure to include shipping costs into your fl ower costs; we all know that has gone up signifi cantly. Let's say you decide to go with a markup of 3.5x on fresh fl owers and foliage. If your cash fl ow is good, that is probably a great place for you to be. If cash fl ow is a little scary some months, a 4x markup—or more—could be what you need to charge. e standard industry markup on hard goods (nonperishables, including containers, ribbons, cards, picks, fl oral foam, fl ower food, etc.) is 2.5x; however, some fl ower shops charge 2x while others charge up to 4x. Be sure to include shipping costs into your fl ower costs; we all know that has gone up signifi cantly.

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