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B January | 2024
1. Understanding Costs
Costs encompass all business expenses, not
materials costs but also variable expenses,
like wages and credit card fees, as well as
fixed expenses (rent or mortgage payments,
vehicle payments, salaries and benefits,
utilities, insurance, property taxes, interest,
depreciation, amortization, etc.).
2. Recipe Pricing
Consistently account for all items used in
your flower arrangements.
3. Accurate Labor Pricing
Factor in labor costs by percentage or actual
time spent creating designs. Consider additional
expenses like your business's FICA (Social
Security and Medicare) required match, along
with the cost of any employee benefits you pay
for, to ensure that your true labor costs are covered.
4. Markup Considerations
Determine your markups based on all your business
expenses and desired profit (will vary according
to volume). Understand the industry's standard
markups (mentioned earlier in this article), but
tailor them to your specific business needs.
5. Profit Calculation by Event
Calculate profits based on your desired
profit margin per event, considering costs
of flowers, hard goods, labor and other
expenses. Ensure that profits align with
event goals and business viability.
6. Yearly Profit
Projection Strateg y
For wedding- and event-only flower businesses,
factoring in annual business expenses and the
number of events will enable you to estimate
your yearly net profit before taxes and fees.
is reverse approach simplifies understanding
costs and setting pricing strategies.
7. Floral Software Benefits
Using floral software simplifies pricing calculations
and ensures accurate cost evaluation.
Seven Essential Pricing Tips for Florists
By Mayuri Parikh
