Hi friends, welcome back to another episode of Coffee Wine & Flowers!

Have you ever felt unsure about your pricing? Wondered if you’re charging the right markup on your designs, or how to handle delivery and setup fees for your events? Or maybe you’ve overheard about other florists charging their clients design fees, credit card fees, or mockup fees and questioned whether you should be charging these fees too in your proposals? Have you ever been afraid to alter your pricing due to competition, or say, another florist charging less than you? Today’s episode will reveal the answers to all of these common questions and more.

This post will summarize the episode, but if you’d rather plug in those ear buds and listen on the go, just press play! Or you can also find the episode on Spotify, Stitcher or Apple Podcasts. Just open the app and search for Coffee Wine & Flowers Podcast.

Alright! Before we dive in, last thing – if you missed last week’s episode titled “Floral Pricing: The First Steps No One Talks About” that is a great intro into what I’m chatting with you about today! So go listen to that first, and then head back here.

FREE DOWNLOAD

I’ve also created a Free Guide to help you navigate the steps in today’s episode! So make sure you download it and carve out some time to implement the strategies, and level up your pricing game!

Free Download: FLORAL PRICING PLAYBOOK

If you’re ready for a deep dive into floral pricing, grab a pen and get ready to take notes. We’re not messing around—I’m sharing everything I know about pricing and generating profit. If you want to build real wealth in your business, mastering pricing is essential.

Understanding Your Market and Pricing Foundations

Last week, we covered foundational strategies for approaching pricing. This week, we’re diving deeper into the numbers. I regularly receive DMs from florists asking for pricing advice. While I’m happy to respond, I believe it’s more helpful for you to understand how to price things yourself. Having your own pricing model and confidence in your formulas is crucial for business growth.

Let’s use an example from a recent DM. A florist admired an arch I created and wanted to know what I charged and how many blooms and greens I used. I could provide a rough estimate, but that wouldn’t ensure a net profit for their business. It’s important to develop your own pricing model to confidently pitch to clients without seeking validation each time.

Developing a Pricing Formula

Pricing formulas help avoid wild guesses and achieve accurate prices based on numbers. For physical products like floral arrangements, you start with a floral recipe, add up costs, and multiply by 3 or 4 times. Then, you add a labor percentage, typically around 20%, to offset labor costs. The markup gives you your gross profit margin, which is not your net profit or salary. It’s what remains after labor expenses and cost of goods.

Understanding Overhead Costs

Your business expenses include everything outside of the cost of goods, such as studio rent, utilities, equipment, and software subscriptions. These add up quickly. Early in my business, I thought I was profitable because of high cash flow, but I wasn’t tracking my numbers closely. Nearly two years in, I realized I wasn’t truly profitable and had to backtrack and price more strategically. You can avoid this by understanding your business expenses and tracking them monthly or annually.

Tracking Business Expenses

Accurate tracking of expenses is crucial. You can hire an accountant or use QuickBooks to categorize transactions and report business expenses as tax deductions. At the end of each month or year, run a report to see your spending in each category. This will show you how much of your gross profit is going toward business expenses and how much is left for personal income.

Setting Financial Goals

Once you master tracking and understanding your expenses, you gain control over your personal income. If you want to earn a certain amount annually, get serious about business spending, pricing formulas, and sales goals. Consistent profitability allows you to set higher sales targets, grow, and accumulate wealth.

The Importance of Market Research

Before determining a product, service, and price point, research to identify the most promising market clientele. Many florists, including myself, make the mistake of pricing and selling without knowing their target market. This approach forces you to build a clientele around a pre-determined product. Instead, understand your market first, then tailor your offerings and pricing accordingly.

Adding Fees and Charges

Consider additional fees like delivery, setup, design, credit card, and mockup fees. There isn’t a one-size-fits-all answer; each business owner should review their finances and decide based on their unique circumstances. If your end-of-year net profit is zero, it might be time to add these fees, either as a percentage or a flat fee.

Handling Price Competition

Price competition is inevitable. Clients may compare proposals and choose based on price differences. However, pricing yourself competitively shouldn’t be your primary concern. Matching or undercutting prices might secure a booking, but it often results in a loss. Focus on making real money by understanding your business costs, target market, and financial goals.

Conclusion: Prioritize Your Bottom Line

Ultimately, what matters is the life you get to live. While the beautiful blooms and photos might have drawn you into this business, mastering the tedious, strategic aspects of pricing is what will provide lasting success. By focusing on your bottom line, you can build a profitable business that supports your desired lifestyle and future goals.

Thank you for tuning in today. I hope this episode has given you valuable insights into mastering floral pricing. Remember, the real win is the life you get to live. Have an amazing day, and I’ll see you in the next episode.

BEFORE YOU GO!

I’ve created a Free Guide to help you navigate the steps in today’s episode! So make sure you download it and carve out some time to implement the strategies, and give your floral biz the pricing glow-up it deserves!

Free Download: FLORAL PRICING PLAYBOOK

See you soon!

XO, Sarah W.

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