Is 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 daily sales. Here are some great ways to be smart and buy smart in the floral industry.

Profit Margin

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 in owning a flower shop.

Simple Profit Formula – Cost of goods $ + markup % = $ + Cost of labor = Final selling price $

Markup Percentage

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. General rule of thumb is not to go under 40%.

image via pixabay.com

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

Order supplies and flowers that sell, Reference your weekly product category and weekly sales report and order accordingly. We all love lavish high end flowers, understanding your market and customer base will help in determining whether these flowers are sellers or not.

Tip: pay your wholesalers on time, paying on time or at time of delivery allows the wholesaler to give you a discount. 

image via pixabay.com

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. Set a standard weekly delivery for price breaks.

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. 

Shop Early

With your busy schedule, try and make a trip to the flower market and purchase you’re weekly flowers. As they say “the early bird gets the worm,” getting top pick at fraction of the cost will save you money in the long run.

image via pixabay.com

Dollar Store

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 a piece. 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 can ship to your local store, saving you more money. 

Prep  Flowers

Your flower purchases are a investment for your business, 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. 

Florist do you have any cost saving ideas on buying floral supplies? Please share with our readers below.

____________

Thank you for reading the Floranext florist blog. Floranext Love Florists and we are committed to bringing flower shops the best information and tips to run their floral business. Click here to learn more about our florist software and how you can upgrade your florist website or floral point of sale.