I just wrapped up Week 3 of my September Pricing Series with 3 Steps to calculate your profit margins and you can watch a replay right here!
Today I answer the question: “How do you calculate your profit margins?
- There are 3 Easy Steps to follow to calculate your profit margin, which I cover in my video below…..
I also answered THIS QUESTION FROM A FLORAL DESIGNER:
“How do you set the right markup so you make money but people don’t feel like they’re being “overcharged”?
Do you calculate your profit margins? Should you? The answer is Heck Yes!
You might think “I didn’t lose money on this order, so I obviously turned a profit”….
But in reality IF YOU DON’T KNOW YOUR NUMBERS, YOU DON’T KNOW YOUR BUSINESS!
This is why it’s so important to run the numbers on every event; every order; every week!
In fact, THE MOST IMPORTANT THING you can do for your business is to track your profitability!
Now, I can’t tell you what your “final profit” should be…
that depends on your total overhead, labor costs and expenses…
But I can tell you that you CAN make a 70% profit on the cost of your flowers and supplies…
AND THAT’S EXACTLY WHAT I TEACH FLORISTS TO DO IN FLOWER MATH.
Whether you’re a wedding florist or you do daily orders in a shop, you can achieve margins of 70% or MORE on every single arrangement you make!
Here’s the truth, I’ve been doing this consistently for the last 17 years in my home-studio business and I know lots of florist who reach these margins, too!
And you know who reports these margins? MY FLOWER MATH STUDENTS!
Yes, it’s true, my students report increased confidence AND increased profits on the very first order they place after taking the course.
Some florists say they make back the entire cost of the course in just 1 wedding, REALLY.
In my Flower math course I share:
- 6 REAL weddings,
- real profits, COGS, & wholesale orders,
- a full list of itemized invoices on 6 weddings ranging from $1500-$10K,
- a behind the scenes look at how I send an initial quote to a client,
- a step by step on pricing formulas,
- how I write recipes that help me keep my wholesale orders tight and right,
- PLUS a list of all of my starting prices over the last 16 years!
I also cover:
- how to charge for rentals,
- tips for flower farmers;
- I share recipes for floral table runners and hanging chandeliers,
- Plus I offer a money-back guarantee on the course!
My Flower Math course answers all of your questions on markups, design fees, how to calculate delivery and rentals, and if you ever have a question for me, before, during or after signing up for a course, just get in touch via e-mail at firstname.lastname@example.org and I’ll get right back to ya!…we can even arrange a time to talk on the phone.
REMEMBER: IT DOESN’T MATTER WHAT YOU CHARGE IF YOU OVERBUY!
I hope you enjoyed today’s video and I hope you’ll be tracking your profit margins and pricing like a boss!
Here’s that link to my Flower Math Sale one more time> CLICK HERE!