Real Flower Business

Education and Business Training for Floral Designers.

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Why Florists Cannot Compete On Price

realflowerbusiness.com, floral design, floristry, business of flowers

Have you ever been pressured to lower your prices in order to book a job?

Today, a floralpreneur® in my Facebook group shared that a client slashed her prices in half and re-sent the new pricing back to the florist!…..needless to say, the comments on that one made for some good reading!

As a business owner and floral artist, it’s important to recognize that you don’t want every customer. You want the customers that want YOU…and are willing to pay your for your work!

Business guru and genius marketer, Seth Godin, talks about Competing On Price as a “race to the bottom”. As Mr. Godin puts it, what do you do when you win?…ie. when you’ve succeeded and you’re “at the bottom”!

The idea of “winning” based on undercutting, is a misconception. You cannot “win” if the only reason someone picked you is because you’re cheap-er.

The real reason you don’t want to compete on price….

A florist cannot lower prices and exceed expectations at the same time!….not unless you’re giving up your profit margin.

And if you’re going to sustain your business, you must respect your profit margin.

I don’t want to win at the game of “cheapness”.

I want to win at the game of quality work and amazing customer service.

Click to watch this quick video, “Why you cannot compete on price”:

 

 

What is your goal?…

Do you want to be the cheapest?

Or do you want to be better than the cheapest?

I hope you’ll choose option #2 above!

Don’t compete on price!…so you can keep doing beautiful work!

With love from me to you,

Alison

P.S. In today’s video I mention my Flower Math course, which is designed to help florists price with confidence and maximize profit margins! (click here for details on the course!)

More FREE Tips from the Blog:

You down with O.P.P? (Other People’s Proposals) Click HERE to read.

How much should florists charge for rentals? Click HERE to read.

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What do florists charge for delivery?

real flower business, tips for floral designers, floral business, floral design school

What should florists charge for delivery & set-up?

On weddings and events you might call it “delivery” or “day of labor” or “set-up fee”…..

I call it the :Delivery & Set-up fee” and it includes my time from the minute I start to load my van to the minute I’m done unloading it after an event.

Your time is valuable and you should be paid for delivery and set-up.

A delivery fee can be:

  • related to the radius from your flower shop, like a straight up delivery fee for any arrangement that leaves your door…
  • a percentage of the total order…
  • a starting rate of X with a mileage fee on top…

Delivery is more of a choose your own adventure aspect of pricing in your business.

For example:

  • Delivery starts at $150,
  • We don’t leave the door for less than $500 on a Saturday,
  • We charge 15% of the total order,
  • How much does it cost per van, per employee, per hour?
  • Add a PITA charge=pain in the (you know what!) for holidays, inconvenient locations and overall hassle-factors.

People expect to pay for delivery & installation (or set-up).

A delivery fee is different from a design fee.

The design fee is what you charge per design….it pays for your time and expertise in floristry.

Delivery fee pays for your vehicles, labor, time spent waiting….

I used to be really nervous to increase my delivery fee. It took me years to realize what I needed to take into account to make it worth my while to deliver.

Click below to watch: Price Talk Live! A replay from my Facebook group On Delivery & Set-up Fees!

In this video I’m fresh off the heels of a Chapel Designer Workshop where I taught at Hope Flower Farm in May. Going to live workshops is invigorating and can leave me vibing for weeks. Connecting with people who share our passion is an amazing gift.

I share a bit about who was at Hope and what we did there in this live chat, but you can skip ahead to the delivery & set-up tips if you fast forward to 4:25 minutes in!

I charge based on what it costs to “do this job”….

I calculate this on a per hour basis and also consider the mileage, number of helpers, number of vehicles, whether I have to climb a ladder and whether I have to come back or stay on call to move things between the ceremony & reception.

My delivery fee isn’t related to how much my client spends, it’s based on how much I need to make that entire day work seamlessly so that I meet their expectations and also cover the time I invest.

The bigger the event, the bigger the delivery and set up fee.

 

Consider the following when determining your delivery rate:

  • Some florists charge 10-20% of the total order,
  • Breakdown is additional (if it’s another trip, that’s separate!),
  • Administration fees (to coordinate delivery with other vendors, etc.),
  • Conceptualization fees (it takes time to make a set-up plan sometimes),
  • Give-up-my-Saturday fee,
  • Per van cost,
  • Per employee/hour,
  • What’s your “replace me fee” (if you’re sick or unable to go to the wedding, what will that cost you?)

Delivery may sound simple, but theres a level of care, expertise and professionalism that comes with the job.

Making money in your business should not be a mystery. Florists must have clarity on pricing.

Move forward pricing well, making a profit, and give yourself a pay increase with a small bump in your delivery fee.

Keep doing beautiful work, floralpreneur®!

And, by the way, as I mention in the video above, there’s a monthly payment plan on Flower Math for $49 per month for 1 year (click here).

You get the entire course right away and you can take 1-year to pay. If you need Flower Math, I’m happy to extend this payment plan option to make it more accessible.

Don’t hesitate to be in touch with any question for me.

With love from me to you,

Alison

Click here to join me in my Facebook group for future livestreams!

Click here to watch: 3 Numbers Florist Need To Know!

Video notes:

You can read an article I wrote for Florists’ Review Magazine about the Floral & Fauna Fashion Show and flowers with purpose, click here: floristsreview.com/flora-fauna-fashion-show

The teacher lineup at Hope included: Holly Chapple, Gregor Lersch, Hitomi Gilliam, Francoise Weeks, Passionflower Sue (Susan McLeary), and I was invited to speak about business (specifically pricing & website stuff!).

It was a honor to be on the roster with these legends and incredible floral pros.

Questions for me? Feel free to be in touch @ floralartvt@gmail.com

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10 Things I Did To Grow My Floral Business

flower business, learn to be a florist, floral design, florist education, flower school

It’s a snowy January and I’ve officially booked up my calendar for my 2019 wedding season. It feels kinda rock ‘n roll to realize I’m entering my 18th season in business! I’ve worked really hard over the years to build up my floral design business and it’s all been completely worth it.

Part of why my hard work has paid off is due to the fact that I’ve been really focused on what I want from my business and how I want my business to fit into my life. (Having a successful business isn’t just about making money or “being busy”; it’s about creating happiness and fulfillment, too.)

I’ve done a lot of things to grow my business, but I thought it would be helpful to narrow down the top 10 things that had the biggest impact on my business success and my overall happiness factor, too. [Read more…]

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Pricing For Florists: Flower Math Payment Plans

Flower Math is the Florist’s Guide to Pricing & Profitability.

Did you know that there are 3 payment options for Flower Math?….well, here they are:

  1. Make 1 payment of $499 and SAVE $100 Off the full retail price! Click HERE.
  2. Choose 2 interest free payments of $249.50 (Still saving you $100 off retail!). Click HERE.
  3. Take advantage of the 12 month payment plan at $49 per month Click HERE.

Pick the payment plan that works for you and I’ll see you inside the course!

Flower Math, online pricing course for florists, real flower business

It’s my belief that every florist should turn a profit in their business, which is why I designed this course in the first place a little over 3 years ago! Read more about Flower Math here.

With love from me to you,

Alison

Flower Math

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4 Actions To Grow Your Business

You’re officially approaching the end of the business year and while the year may be over, this work on your path to a profitable business must continue.

So to support you on that path, I thought it would be helpful for me to lay out the focused steps I teach florists to grow a profitable floral design business.

Because the truth is, the biggest problem for most entrepreneurs is they simply don’t know exactly what action steps to focus on to grow their cash flow and scale their business with less effort.

Real Flower Business Courses For Florists

Growing a sustainable business really comes down to 4 focused action steps:

Step #1 – Price For Profit

This is the process of following industry standard markups, applying a design fee, charging for delivery & set-up, and generally just feeling good about your profit margins.

Once you’re at a place where you don’t need to worry about how much money you’re making on each sale, you start shifting to “how you can make more money with less effort.”

No matter where you are at in business, whether working from a home-studio or a brick & mortar shop, I always suggest you follow the Flower Math formulas for pricing to ensure profitability…(in fact, you can learn more about my Flower Math technique right here!).

Step #2 – Establish Your Value

Following Flower Math formulas will help you increase your income, however you must also think about the long term sustainability of the business.

That’s where building a reputable brand comes into play. The value you provide to your clients is what your brand is all about. Trustworthy and reliable is what an integrity brand is all about….(This is the real reason people choose you over other florists in your area!)

Step #3 – Monetize Your Brand

Then, once you’ve built a trustworthy brand, it’s time to tap into it to generate some more cash flow by charging premium prices for the level of service and overall experience you provide.

And truthfully, this is as simple as consistently creating beautiful floral designs and providing outstanding customer service experiences so that you develop a sought-after business!

You rinse and repeat these 3 steps over and over again until you have your cash flow where you want it to be…where it is more consistent & reliable.

Step #4 – Scale Your Business

This step is focused on the 3 key areas that allow for you to expand your income without expanding your workload. This is the stage when you MUST ditch the hustle-mentality and start thinking and working SMARTER.

These 3 key areas are: Clear Offers, Authenticity Marketing, and Streamlined Systems.

With these 3 things in place, you will be able to welcome in qualified new clients…and eliminate price shoppers….because clients already understand what you do and trust your brand so that all you need to do is lead them through the process.

These truly are 4 CRITICAL focused action steps you need to grow and scale your business. Work smarter, not harder as you grow.

Hopefully that makes your next steps clear and if you have any questions, please let me know…

To ask me a question or drop me a line e-mail:  info@floralartvt.com

xo. -Alison

P.S. The Flower Math course I mentioned in Step #1 is an easy to follow technique that is making me and my students a lot of money on every order…simply by applying the Flower Math formulas…and there’s no technology required….other than your computer and a calculator.

By following Flower Math…

  • I make a consistent 70% profit margin (or more!) on the cost of flowers & supplies.
  • My clients tell me they make more money on every order they place.
  • Susan made back the purchase of the course in just 1 wedding and said, “I can make a career out of this (and not only be a hobby florist!)”.
  • My client in England said, “I’m not a natural with maths and found it very helpful and easy to understand. I spent £2,000 on a recognised floristry course and am annoyed that they did not cover this amount of detail!!”
  • Canadian designer, Larissa, told me she was happy that she “had to pay taxes for the first time” because she turned a profit in her business after taking Flower Math!
  • Heather signed up in mid-November and she said, “I actually felt the light bulb come on in my head.”

In fact, on average the floralpreneurs who follow the techniques I teach are making more money and feeling more confident on the very first order they quote.

So, if you want to get in the loop on exactly how they work, then click here to learn more and SAVE $100 Off Flower Math Today!

With love from me to you,

Alison