Why in the heck is it so important to give our customers wholesale pricing Preston? Did you slip and fall on your head in the workroom, or did you simply bump it into the doorway trying to get your head through? Just because flowers cost what they do doesn’t take into account overhead costs like New York wages, rents, gas, food and housing costs. How about the years of expertise and experience….and most of all TALENT? Florist, the worlds most misunderstood profession. Thanks for your blog.” David Rohr, Co-Owner and Lead Designer at The David Rohr Floral Studio
First, thank you for your candid response to my blog yesterday. To answer your question, no I did not slip and fall on my head (though I sometimes behave as if I do). Except in this instance.
David, as someone who has been in business for almost 35 years, and also someone who was nearly two million in debt, I have learned two very basic facts:
First, most client’s want you to make a living, and the more transparent you are in explaining your prices, the easier time you will have getting them to pay it.
Finally, you do not want to work with clients who do not want to work with you after you have carefully explained what things cost.
You are absolutely right in your assessment that pricing does not only encompass the flowers, one must consider many other elements, such as the ones you mentioned (wages, overhead, housing etc.).
In yesterday’s blog, I mentioned that is also important for client’s to keep our time, talent and the tremendous effort that goes into our work in mind. My intention today is to give you the cost of the arrangement above while explaining how we got there.
I tend to use a very simple formula when pricing my arrangements.
The Breakdown Of The Arrangement Above:
The wholesale flower cost.
Supplies for the mechanics of the arrangement.
The custom-made 5-foot metal container.
Rendering and floral design.
Staff to make the arrangement.
Labor for installation and removal at the location.
Insurances for the event in case of accident (staff, equipment, hotel, workers compensation and so on).
So, for all of you who answered “C” yesterday, you were right. In the end, it cost us an estimated $1,500.00 to make this arrangement, and we charged $3,000.00 for it. David, I still think that transparency is the best way to make a sale.
Dear Readers: Do you agree with the concept of explaining your pricing strategy to your client, or do you prefer keeping it a secret? Also, do you have any question about the pricing above.
To Purchase Dear Preston: Doing Business With Our Hearts, Please Click Here.
Photo Courtesy of John Labbe