The Inflation War
Updated: Aug 25, 2022
Inflation is hitting everyone hard - especially our industry - with the price of flowers and freight fluctuating daily. I hear from a lot of florists struggling with how to adjust pricing on an event they quoted 2 years ago, when pricing was flat. The price of events in 2022 look a lot different than those in 2020. So how do you go back to a bride with a 25% cost increase, not lose the client, and still maintain your profit margin?
Here's a few tips to battle the inflation war:
We've said it before and we'll say it again - don't sell an event on specific flowers. Try to sell a look and color scheme which gives you flexibility on flower choices. With all the havoc created by the pandemic and the cost of everything on the rise, some flowers are simply not available at pricing that makes sense. It's better to sell a concept and look rather than a specific flower.
Communication is key. Constant communication in this market is critical to keeping your clients informed about costs. Perhaps what you proposed two years ago can't be done to the degree in the original proposal. Instead of disappointing a client with a bouquet that's just not as large as the original proposal, consider eliminating extraneous items in the budget, so you can keep the items most important to the client. If a certain rose they wanted a year ago is just too expensive in this market - give some other suggestions. Don't expect the client to come up with alternatives - suggest different ideas and alternatives that stay close to the overall design and budget, while still maintaining your profit.
If you simply cannot make the proposal work for both you and your client - tell them early, rather than surprise them with a bill at the end. Honesty is always the best policy. People understand prices of everything are going up, including flowers. They might be willing to increase the budget if you provide honest information about the increases and they will appreciate your candor. Nobody wants an unexpected expense - especially the day of their wedding.
Factor in increases in your business. For many years the prices of flowers stayed flat, but rents, fuel, utilities and labor all went up. Now it's time to figure an increase on flowers each year, so when quoting a future event, give yourself some wiggle room for increases. A 5-10% increase year over year is a good benchmark to use.
With a lot of communication and working as a team with your client, you can ease those worries and stress during this volatile market.
“Inflation is when you pay fifteen dollars for the ten-dollar haircut you used
to get for five dollars when you had hair.”