Flowers are a gift from nature. They bring joy, comfort, beauty, fragrance, shape and style into people's lives and environments. And they are an appropriate gift for virtually any occasion. In addition, they are used to commemorate life's most important moments, such as births and weddings. For these reasons, a retail flower business can be creative, fun and rewarding. It can also be quite profitable if you price your flowers properly. Determining the cost of flowers may seem complex, but it is actually quite simple. Follow these guidelines for how to properly price flowers for retail.
Determine the amount you paid for a bunch of flowers that you purchased wholesale. For example, you may have paid £23 wholesale for a bunch of 20 roses.
Divide the amount of money you paid for a bunch of flowers by the total number of flowers in the bunch. For example, to determine the price of the roses mentioned in Step 1, you would divide 20 (roses) into £23.
Use the answer you receive after completing Step 2 to establish your wholesale cost per stem. For example, £23 divided by 20 roses equals £1.10.
Multiply the wholesale cost per stem times three to determine the retail cost per stem. To find the retail price for the roses mentioned above, multiply £1.10 times three, which equals £3.50.
Round the amount you get after completing Step 4 up or down to a consumer-friendly price. For example, you might round £3.50 down to £3 even, or up to £3.50. It is easier to determine the cost of several stems priced at £3.50 each than it is to quickly figure out the cost of several stems priced at £3.50 each.
Remember this simple formula when determining the retail price of flowers: multiply the wholesale price per stem times three to establish the retail price per stem.
- Use the same pricing formula described above to determine the retail cost of greenery, such as leather fern, and fillers, such as caspia. Many florists make the mistake of failing to charge properly for these seemingly inconsequential additions to bouquets. Always get paid three times what you paid for the stems you include in an arrangement.
- Use the pricing formula outlined above to price merchandise, such as vases and baskets, and supplies, such as bricks of floral foam.