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Extra Features and Video Online FloristsReview.com R E A D O N L I N E 61 Pricing Example Flowers and foliage $10 Apply a 3.5x markup, and you're at $35 Add a vase that cost $2.50 Average markup of 2.5x = $6.25 You are now at $41.25 Now add 20% percent of the retail price of all the materials used in the arrangement for labor, which would be $8.25 Retail price for that arrangement $49.50 What you need to charge for an arrangement is going to be diff erent from what I need to charge for the same arrangement—and diff erent from what other fl orists in your area need to charge, as well. at's because all of our expenses are diff erent. Another more nebulous factor is your clientele: How much is your market willing to pay—and capable of paying? Here is a pricing example using standard industry markups: Let's say that an arrangement contains fresh fl owers and foliage that cost you $10 at wholesale; apply a 3.5x markup, and you're at $35 retail. Add a vase that cost you $2.50; at the industry average markup of 2.5x, you will charge $6.25 for that vase. You are now at $41.25. Now add 20 percent of the retail price of all the materials used in the arrangement for labor, which would be $8.25 in this example, and your retail price for that arrangement would be $49.50. NOTE: When calculating prices, don't forget to mark up and charge for fl oral foam, fl ower food, tape, ribbon, enclosure card and envelope, card holder, packaging materials and all other supply items that go into the fi nished product. At my shop, we mark up fresh materials 5x. at means that in the previous example, we would charge $50 for the fresh fl owers and foliages. We charge additionally for ribbon and upgraded containers, but basic containers are included with fresh materials that are marked up 5x. We also add $1.99 to cover the small miscellaneous items mentioned in the previous paragraph, so we would charge $51.99 for that same arrangement in my store. is pricing method may not work for everyone, but it is simple and works great for us. Discovering the markups that work for your shop is so important to your profi tability. Remember, every shop is diff erent, and only you can determine what is necessary for your shop to be profi table. And you do that by monitoring the big three expense categories and your cash fl ow. Best wishes for a busy and profi table Valentine's Day and entire 2023. When calculating prices, don't forget to mark up and charge for fl oral foam, fl ower food, tape, ribbon, enclosure card and envelope, card holder, packaging materials and all other supply items that go into the fi nished product.

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