lily, then don’t sell calla lilies, sell something else,” says West Malling’s Nikki Meader. She adds: “We work by a
system that if we cannot multiple it by three, we won’t buy it. I think a lot of people buy their stock and then try to work out how much they can make on it afterwards, whereas I ask this question before I buy anything.” A similar system was also
used by a number of survey respondents, with one saying: “I came to my prices by multiplying stem price by three. I don’t pass on my wholesaler’s discounts if they are holding a special offer unless I have excess stock and want to shift it fast. I just use this extra income as a bonus to cover my wastage costs over the year.”
Nikki also gives an example
of how West Malling prices an order: “If a customer came in and ordered a hand tied, half of the cost would cover the flowers. The other half would then be made up of foliage, packaging and labour. It should be a little over this, but you have to make it simple so the florists can think on their feet. They already have to think about which value flowers to use in the lower prices, to give the same fullness.” The past few years have not
been easy for retailers, and florists have had it particularly tough. But every so often, regardless of the economy, changes need to be made to a business to make sure it is run as efficiently as possible. It can be
“If you are selling a lily at £2 during the summer and £4 in the winter, it stands to reason that your customer asking for a lily bouquet will get two different sized bouquets for the same money, you may lose the customer and your margins will be harder to keep track of, so as a rule, charge £3 all year round.”
a big task, but help is at hand, whether that be through an accountancy firm, or discussion groups that frequently take place. After just being asked our
survey questions, one respondent replied with: “Writing this down makes me think I should up my standard prices,” while another wrote: “I know I really should charge every time for packaging and greenery, but I find it difficult when the customer is in the shop. I really need to decide on what to charge and be firm.” Valuing your stock, your shop
and your skilled workforce is the only way to survive in an increasingly competitive industry, and the only way to do this is to make sure you have a competent pricing structure in place.
Things to remember:
Cover all bases – factor in all costs and overheads such as labour, rent, rates, delivery and all the extras, including; foliage, packaging, ribbon, tape and pins.
The amount that is left at the end is your profit.
Keep prices consistent – to ensure your customers come back.
Don’t stock what you can’t afford – if your customers won’t pay for it then neither should you.
Keep your staff in the loop – they need to know how your pricings work so they can add up as they work.
F&wb Summer 2013 95
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87