No one likes to pay more for the same products or service and flowers are no exception. There are many venues for obtaining floral expressions. From the quick marts, mass market stores, and gas stations, flower shops have a plethora of competition. But ask yourself what else you offer besides flowers. We are not talking extended inventory options of giftware, balloons and greeting cards, we are talking about added benefits such as service, relationship, convenience, delivery and a host of other services not available at most other flower outlets.
Just as a soda is offered to you from a vending machine at seventy five cents, the same soda is now a dollar twenty-five cents at the local fast food restaurant. That same soda when purchased at the cinema now jumps to three dollars and another dollar fifty is added at the amusement park! It is the same product, but is surrounded by different services.
The question is where do you position yourself in this matrix of pricing? Are you a grab and go shop with no services added or are you the top of the line, premium elite shop with all services bundled into one complete package? Most flower shops fall in between and offer many services with options. The thing to remember is that services cost money. Make sure you are charging enough mark-up on products to cover the services you are including (wrapping, boxing, proper care and handling, etc) to cover the costs.
Basing your costs on your competition can be tricky and not a wise choice. Operating costs, overhead expenses, and product costs may not be the same for you as they are for them. Know what you need to make a profit and reflect this in your mark-up. While you want to remain competitive, being known as the cheapest is not always associated with the best. Often in a lower priced store while business is plentiful, there is little return on the dollar. Spinning your business wheels with little or no forward traction is not a good thing.
Don’t hesitate to charge what you are worth and earn the financial rewards you so richly deserve for all your hard work and efforts.
By Tom Bowling AIFD PFCI exclusively for Florabundance, Inc.