The saying “the right tool for the right job” is so true! There is no question that it’s a must to have the correct tools to create flower arrangements and all types of designs. You don’t have to spend a fortune to have quality tools, just the knowledge of how to use them properly for different design elements. Continue reading Your Tools For Floral Success
Designing flower arrangements is a wonderful career, but making money from these creations is even better. Whether you’re a home florist or brick and mortar retailer, proper mark ups are key to your financial success. I know you’re captivated by the floral artist gig, striving for kudos from your clients, friends, and peers. Throw that ego aside for a bit while we discuss this important part of your floral world.
There are different markups (the amount of times you multiply your original cost for a profit) for various types of arrangements, as well as all the items you use in the designs: fresh flowers, greens, supplies and hard goods. This post will focus on general markups for product with a later post explaining labor charges on various types of designs. Below is a general list of items and the minimum industry markups I recommend:
- FRESH FLOWERS—-cut flowers that you purchase need to have a markup of at least 3.5 times the cost of each flower. So, if you purchase sunflowers for $3.99 a 5 stem bunch (+ sales tax when you buy from your local grocery store) the retail price you charge needs to be $2.80 ($3.99 ÷5= $.80 x 3.5 = $2.80. Smart to bump it up to $3.00/stem for easy calculating. If you use the whole bunch, figure $15 for the bunch. If I get a good deal on something I will mark up 4 or 5 times if I can. “Buy low and sell high” is one of my favorite sayings!
- GREENS AND FILLER—-greens and filler (like leather leaf, lemon leaf, baby’s breath, waxflower, statice) are as important as any of the flowers in your arrangements, requiring a 2.5 time markup. These items always come in bunches…..dividing the bunches into fourths for figuring their cost is a good way to do it. If a bunch of baby’s breath costs $10.00, each section has a cost of $2.50. Get an idea of how many stems in a quarter bunch; it will vary, but don’t worry, your markup will be fine. Let’s say there is 4 stems in a quarter bunch, which is a cost of 63⊄ for each stem. Multiply this 2.5 times ($.63 x 2.5 = $1.58) and you have your proper markup per stem. You can decide if you’d like to go up to $1.75 or even $2.00 retail per stem for ease of addition. Bunches of leather leaf generally have 10 to 20 (depending on supplier) stems in each, with the cost being $4.00 to $8.00 or more per bunch. So here we go: let’s use $8.00 for our cost with 20 stems in the bunch, which makes each stem cost $.40 ea. $.40 x 2.5 = $1.00 per stem retail (what you need to charge).
- SUPPLIES AND HARD GOODS—-this includes all “non fresh” items you use to design your arrangement like fresh foam, baskets, vases, wire, pins, ribbon. This product should have a markup of 3 times the cost of the item. If a basket costs $3.50, the retail amount you should charge in your design is $10.50 (3 x $3.50 = $10.50). Charge for ribbon by the yard, cost x 3 and write it on the bolt of ribbon, even on your least expensive satin ribbons. You can divide your box of wire into 4 sections, then get an idea of what you should charge for a small group of wire.
Profit margins are so important in any business, but can really be overlooked in the floral industry. You might say “why worry about a piece of wire, its only a small thing”….the fact is, every item you use costs money and the customer needs to pay you for it. Buying smart is extremely important: the cheaper the item, the more profit you make. The less we use while making the arrangement look awesome, the more money we make and the happier everyone will be. Now, we don’t want to cheat anyone, we just want to be creative artists who have money to keep creating!