Pricing Markup in Floral Design Principles Elements of

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

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

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

Determining the Unit Cost The cost of each individual item used Hardgoods (ribbon, containers,

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.

Determining the Unit Cost (cont’d) Total cost of these items must be broken down

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)

Example # 1 # 3 Corsage Ribbon Cost= $ 4. 95 per roll Yards

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

Example # 2 Floral Design Bowl Cost= $ 14. 60 per case Containers per

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

Unit Cost- Flowers Fresh Materials (flowers, foliages, etc) are usually priced by the stem

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

Example # 3 Leather Leaf Fern Cost= $ 2. 49 per bunch Stems per

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

Example 4 Pompon Chrysanthemums Cost= $ 3. 75 per bunch # stems- variable- determined

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

Mark-up Standard Ratio Mark-up Pricing. Method we will use in this class Easiest method

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.

Mark-up 2 -to-1 Used for HARDGOODS Supplies such as containers, ribbons, floral foam, gift

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

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

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

Example 5 Carntions- Unit cost 0. 39 per stem Mark-up cost: 0. 39 x

Example 5 Carntions- Unit cost 0. 39 per stem Mark-up cost: 0. 39 x 3 = $ 1. 17

Example 6: Design Bowl Unit Cost 0. 31 Mark-up Cost = 0. 31 x

Example 6: Design Bowl Unit Cost 0. 31 Mark-up Cost = 0. 31 x 2 = 0. 62

Floral Design Pricing Guides Sample (see board)

Floral Design Pricing Guides Sample (see board)

Elements Principles of Floral Design Elements of FloralElements Principles of Floral Design Elements of Floral
Floral Formulas Floral Diagrams Key to Floral FormulasFloral Formulas Floral Diagrams Key to Floral Formulas
Floral Design Introduction What is Floral Design TheFloral Design Introduction What is Floral Design The
The History of Floral Design Egyptian Floral DesignThe History of Floral Design Egyptian Floral Design
History of Floral Design History of Floral DesignHistory of Floral Design History of Floral Design
Pricing Strategies Pricing Strategies Penetration Pricing Penetration PricingPricing Strategies Pricing Strategies Penetration Pricing Penetration Pricing
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FLORAL DESIGN Essential Standard 7 00 Understand floralFLORAL DESIGN Essential Standard 7 00 Understand floral
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FLORAL ARRANGEMENTS General Floral Design Rules Proper dimensionsFLORAL ARRANGEMENTS General Floral Design Rules Proper dimensions
Principles of Design Floral Design Miss Perry PrinciplesPrinciples of Design Floral Design Miss Perry Principles
Principles of Design Floral Design Ms Garrison PrinciplesPrinciples of Design Floral Design Ms Garrison Principles
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