Are your floral supplies included in your profit margin?
Keeping an eye on flowers and floral supply deals and including supplies into your profit margin is a great way to cover costs and increase your sales. Here are some great ways to be smart and buy smart in the floral industry.
The profit margin is the difference between what you pay the wholesaler and the retail price of the product. It is important to include labor in the profit margin along with vases, wire, tape, extra ribbon and so on. Setting a consistent profit margin to your floral pricing allows you to be successful.
Simple Profit Formula – Cost of goods $ + markup % = $ + Cost of labor = Final selling price $
This is the percentage added on to your wholesale cost which determines the selling price for your customers.
For example, if you have a 100% markup on a product with a wholesale cost of $10, you’re selling price would be $20.00.
Tip: the percentage of the selling price is solely up to you depending on location and competitors prices. The general rule of thumb is not to go under 40%.
Buy Flowers On Auction
Buying flowers on auction will indeed give you more for your money, Sometimes half of your local floral wholesale prices. You must buy in bulk and works great for the busier seasons.
Buy What You Need
We all love lavish high-end flowers, understanding your market and customer will help in determining what flowers are best to order.
Tip: pay your wholesalers on time, paying on time or at time of delivery allows the wholesaler to give you a discount.
Bonding with Your Wholesaler
Create a special relationship with your wholesaler representative, let him or her know what you want to pay and what is affordable.
Tip: do not settle for the first wholesalers price, shop around, there are many flower wholesalers, call them all and ask for their standard price and compare.
With your busy schedule, try and make a trip to the flower market whenever possible. As they say “the early bird gets the worm,” getting a top pick at fraction of the cost will save you money in the long run.
We do not expect you to purchase all your floral supplies here, however, sometimes you can come across great finds all for a $1.00 apiece. Check out your local dollar store for great deals on vases and unique containers.
Tip: Some dollar stores have closeout prices on their websites and, saving you more money.
Please prep your flowers correctly to maximize their beauty and life span. Do not be wasteful or allow your employees to be wasteful. Being wasteful can be done subconsciously, it is important to account for every supply in your shop.
Tip: Pay special attention to ribbon, wire, pics, paper goods, and so on.
Designers, do you have any cost-saving ideas on buying floral supplies? Please share with our readers below.
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