1 / 16

Pricing & Mark-up in Floral Design

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.

ayoka
Download Presentation

Pricing & Mark-up in Floral Design

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Pricing & Mark-up in Floral Design Principles & Elements of Floral Design

  2. Objective of a Floral Business • Make money! • Determine the right price! • Too high vs Too Low

  3. Determining Price • Factors: • Price fluctuation during year • In season vs out of season flowers • Holiday demand

  4. 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.

  5. 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)

  6. Example # 1 • # 3 Corsage Ribbon • Cost= $ 4.95 per roll • Yards per roll= 100 • Unit cost (per yard) = Cost / # yards per roll Answer: $ 4.95/ 100 = 0.05

  7. 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

  8. 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

  9. 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

  10. 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

  11. 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.

  12. Mark-up • 2-to-1 • Used for HARDGOODS • Supplies such as containers, ribbons, floral foam, gift items, etc • 3-to-1 • Used for FRESH GOODS • Basic arrangements, bud vases, decorated plants, basic wreaths, and sprays

  13. Mark-up • 4-to-1 • SPECIALTY DESIGNS (more labor intensive) • Creative arrangements, wedding flowers, corsages, reception and party flowers

  14. Example 5 • Carntions- Unit cost 0.39 per stem • Mark-up cost: 0.39 x 3 = $ 1.17

  15. Example 6: • Design Bowl • Unit Cost 0.31 • Mark-up Cost = 0.31 x 2 = 0.62

  16. Floral Design Pricing Guides • Sample (see board)

More Related