As you already know the flower business is very competitive, with every florist wanting to make high-profit margins at the same time be competitive with a high number of sales. Therefore the need for pricing flower arrangements competitively.
Pricing flower arrangements require a strategic goal of having the most profitable possible price, for every customer.
Pricing flower arrangements
When assigning a price to your arrangement you do just stick any price because you think that will give you high-profit margins, there are few pricing basics one should know before assigning any price.
1. There is no price that fits all
As a florist, you already understand that different people are attracted to different flowers, color, and design styles. So is prices of the arrangement, there is no price that can fit all your arrangements. Pricing Flower Arrangements. When assigning a price you should understand that there are people that are love discounts and that love free shipping, adding this to your price will increase the number of buyers.
2. Charm pricing
This is the practice of ending prices with number nine. Numerous research has shown that using charm pricing stimulate customers to buy more. An arrangement priced at $29 will sell more compared to an arrangement priced at $25. Charm pricing proves to the customer value or savings
3. Let them spend More
There are customers, though a few who would like to pay more for your arrangements you should let them. There will be customers that will want the arrangements with unrealistic prices but other customers who perceive flowers highly will tend to
4. Understand how customers value your product
Having a high price for your arrangements gives a sense of high quality and uniqueness. When pricing your flowers understand how your customers value them. for an example, you could have an arrangement that is popular among your customers increasing its price will have it valued more and also increase your profit margins.
Consumers take one piece of information with so much importance that they use it as a base to make other evaluations and decisions, this is what anchoring is. The ability to manipulate this information can be very profitable.
A florist can have a unique limited arrangement that is priced very high and similar arrangements with a small difference priced low (though still a high price). Having high prices act as anchors make lower prices attractive and make your brand more prestigious.
Note: be careful not to anchor your customer to the wrong side, a customer will be willing to spend $75 but anchor him with $40
6. Compete to be the most expensive.
Price sends a message about the quality of your products in this case arrangements and also your brand. Studies have proven that the human brain perceives expensive products as of high quality. Having classic arrangements with a higher price will make your customers see you as an expert in what you do
After understanding these few pointers you can now calculate the price of your arrangements and implement a price strategy that will not only attract more customers but also increase your profit margin and number of sales.