Floral designers: Avoid these 10 profit pitfalls — EveryStem (2024)

Alison Ellis of Real Flower Business has you covered wtih her #FlowerMath Course online.

If you need more help or want to clarify your pricing strategy check out the best Flower Math course available online. Alison Ellis has it down to a science over at Real Flower Business.

And, if you need a florist software to speed-up and simplify your flower pricing and ordering process. EveryStem is the best! Alison uses it for all of her flower pricing and attributes the fact that she achieved a 70% profit margin on every wedding she’s designed this season to this affordable software.

Now that we’ve covered the basics, I want to tell you about some profit pitfalls I see when it comes to floral design. They each cut away at the profits of the designers that make them. So, you’ll want to examine each one in the context of your business. Do you find yourself participating in any of these profit sucking behaviors?

10 profit pitfalls to avoid in your floral design business

1. Not budgeting flower orders and having too much waste

There are a lot of ways to create waste in the floral business. The biggest one is over ordering flowers. You need to budget your flower orders based on the flower math I mentioned above. Please leave a little wiggle room for breakage, but don’t order more than you need just because you don’t want to sit down and do the math.

2. Not evaluating perceived value

A cost based pricing model is a great way to ensure you are making a profit on every order. But it does not directly address perceived value. So when an arrangement doesn’t live up to the client’s idea of perceived value, it could land you in trouble. Your customer may complain because they think it doesn’t live up to the price they were charged. This will end up costing you more in the long run. You’ll make it right by refunding or replacing the floral arrangement. The key here is confidence in your math. That confidence will translate clearly when you educate your customer. You can let them know that it is filled to value and you stand behind it. You’ll want to make sure you are managing the customer’s expectations upfront to avoid these situations as well. We’ll delve deeper into that concept in a future post!

3. Not including all your costs in your pricing calculations

That tape you used on the bridal bouquet last weekend? You need to make sure that is included in your hard-goods costs. Too many small items being left out of the costs in your floral pricing can add up over time. Do a double check frequently and ask yourself and your employees if everything is being included in the math!

4. Not educating your team

As an employee, working off a recipe is great, but it makes more sense when you understand the math behind it. First, take the time to master your floral design pricing strategy and formulas. Then teach them to your employees too. It’s very easy for small additions to an arrangement or wedding design to eat into your profits. An employee taking the liberty to add a few flowers into each design can significantly change your profit margins over the course of a year. As the leader of your team it’s imperative that you stay on top of your profit margins and keep an eye on your flower costs.

5. Not checking your wholesale prices

I see so many floral designers that do not check wholesale prices often enough. It’s their job to provide that information to you. So, don’t be shy. Ask for it! You must use accurate grower or wholesale pricing. Why go through this process if your prices aren’t up to date? Flower prices fluctuate frequently. So, make sure you are basing your math off the most accurate costs possible. Many wholesalers can send weekly emails with updated pricing. Make sure you’re on their email list and call them for specifics.

6. Not negotiating

When you buy 6 hydrangeas, you will pay full price. That’s okay with me. However, when you buy 600 hydrangeas you’ve got to ask for a reduced price or you’re just leaving money on the table. Compare a few quality wholesalers and go with the best combination of quality and price. I’ve negotiated deals with my main wholesaler for years. So, it’s a win for both. They get more business and I get to consolidate my orders with my favorite locally owned wholesale company.

The concept of negotiating also applies to other facets of your business. So, look around and ask yourself where else can I save on costs by comparison shopping or negotiating a better price? For example, your business cards and printing needs, rent or hard-goods and supplies. Start researching now.

7. Not comparison shopping the competition

Cost-based pricing is a great strategy used by most floral designers, but not all. As a business owner, it’s important to comparison shop your competitors. You may have a competitor that works off a lower profit margin than you do. How does their quality and service compare to yours? Part of bringing value to your customers is being knowledgeable about your competitors. That way you can educate the customer about the added value you bring to their experience.

8. Not rounding up

$5 here and $3 there adds up quickly! If you are taking your pricing very literally, consider rounding up. As an example, I would sell a Bridal Bouquet for $350 when the math added up to $338. Rounding up offers a little wiggle room to play with especially on higher budget designs.

9. Not auditing your profit margin

You’ve taken the time to check prices from your wholesaler (see #5), now you need to make sure they charged you correctly. Wholesale invoice mistakes can eat into your profit margin. So, keep an eye on that. I also recommend checking your wholesale flower costs against your total sales every month. If the costs are out of proportion to your revenue, you’ll want to investigate and adjust quickly.