Are your florist businesses facing stagnant growth at the same bottom line? You are probably pricing your floral products the wrong way. Keep reading to understand what are the factors to consider before setting the price and how pricing strategies are important to scale your floral business like never before.
As a florist, you know the hard work that goes into maintaining the flowers for a longer period, plus managing the business aspect of it. From keeping the flowers healthy, providing visually appealing packaging, and managing the staff to marketing the business, financial analysis, and running a whole business, it is surely draining but also worth it. Among all the other aspects of running a business, pricing strategies play a vital role in the growth of every business. It has the power to attract customers and retain them. A strategic approach to the pricing strategy can greatly impact the success of florist businesses.
Before jumping into the pricing strategies, if you are not using a Florist businesses automation tool already, you are lacking behind! A florist business automation tool is a boon to every florist business owner who wants to optimize their business and speed up its growth without disrupting the workflow. It eliminates the daunting task of manual scheduling, calendar updations, bookings and payments, bookkeeping, records, invoices, and more.
Picktime is one such online booking platform designed for florists to manage their florist businesses and scale like never before. It provides a wide range of features such as an online scheduler, client database, staff management, calendar synchronization, online payments, offers and discounts management, and more. Additionally, if you own a chain of florist shops at different locations, Picktime helps manage them all using one platform.
Florists can schedule bookings either manually or leave it on Picktime itself. It allows easy management of the bookings and schedules. With Picktime, there is no need for putting lots of time in email communication. It provides automated email and text reminders, so that your customers show-up for the pick-up. It also eliminates the hassle of payment management with easy and secure third-party payment applications. Your customers will love you for making their job easier.
With the team management feature of Picktime, florist shop owners can assign tasks to the staff, schedule the calendar of each member individually, manage them at different locations, and track their work progress. Furthermore, Picktime provides a unique and personalized online booking URL with every account that can be used to book products and services. Eliminate the need for tedious manual tasks, spreadsheets, and numerous calls, with Picktime!
Getting back to the pricing strategy, here are a few factors you need to know before you start setting prices for your floral products.
Factors to Consider for pricing strategies
There are many factors to consider when determining the prices of your floral products. These factors help create strategic pricing.
- Cost of the end product- It includes the cost of all the goods used in the production of your floral product such as the cost of flowers, vases, foliage, packaging materials, labor work, and other direct costs.
- Indirect costs- Costs such as rent, insurance, marketing costs, etc. that are indirect to the floral product but affect the florist businesses.
- Competitor research- A thorough competitor research gives an insight as to what your competitors are pricing for the same product or service. Pricing too high can drive customers away, and pricing too low can affect your profits.
- Target market- The target market is the group of people your business will serve. A thorough research will help understand the pricing preference of your target market.
- Seasonal demand- Floral products must be priced depending on the supply and seasonal demand. For Instance, during festivals and national occasions flowers that are more in demand should be priced higher, and during off-season should be priced at market value.
- Value proposition- The USP of your floral shop must be taken into consideration while pricing the products. It increases the profit margins.
Pricing Strategies for Florists
The Anchoring strategy
The Anchor pricing strategy plays with the decision-making of an individual, compelling them to choose a better deal. It involves placing the higher priced products near the affordable ones to make them choose a better deal between the two. For example, the products that need to be sold faster should be placed next to the expensive ones at a discounted price.
Anchor strategy can also be applied to the price tag of the product that shows the regular price and a discounted price. The sale price looks attractive compared to the regular price and affects the buyer’s decision-making. It makes the product that was first suggested look cheaper than the other products.
Also known as Markup pricing refers to the process of adding a fixed percentage of the cost price to the pricing of a product. It is one of the simplest yet effective pricing strategies. It sums up and covers all the direct and indirect expenses of the product, and leaves a profit.
For example, if the making process of a bouquet costs 100 bucks, then a fixed percentage of the cost price can be added to the selling price. In this case, if the fixed percentage is 10% then the selling price will now become 110 bucks. This strategy results in increased profit margins.
The bundling strategy
In the florist businesses, a package of two or three similar products brings more sales than individual products. Bundling is the concept of grouping a few similar products and selling them as a whole. A small percentage of discount can be provided on such packages to attract more customers and improve sales. The bundling strategy increases sales as it benefits the customers by giving them more products at a cheaper price compared to individual prices.
Offers and discounts
One of the best ways to increase customer acquisition is by providing offers and discounts that do not affect your profits and benefit the customers. Apart from the seasonal promotions and discounts, hourly, daily, and weekly offers excite the customers to buy more. Some of the examples are:
- Purchase more and pay less with a discount on large purchases. If a customer has made a bill of 100 bucks, offer a 10% discount.
- Limited-time offers are a great way to create a sense of urgency in customers, making them buy your products. Offer a limited-period discount for a day, or a few hours.
- Clearance sales are another way to attract customers and make profits. You can sell the products that no longer hold good value in the market at a discounted price instead of discarding them.
There you go! These are the things you need to keep in mind when pricing your floral products. Make an ideal pricing strategy and see your revenue blossom like never before. Check out Picktime to optimize your business so that you can save time from manual tasks and invest it in delivering exceptional services.