Pricing events is something of a science and an art, argues Mark Anderson, founder and president of FloristWare and a contributing writer for Floral Management magazine.
“Gather a group of five florists and you’ll likely get five different event pricing strategies,” he explains in his latest column for Floral Management. “One florist might say she rigidly adheres to a cost-plus formula, and that she booked the last 12 events she quoted.” March Price it Right
That scenario sounds enviable, Anderson argues, until that same florist also admits that, while her shop was indeed busy with all those events, she barely made any money from them.
“Meanwhile,” he adds, “another shop owner might confess that while he knows cost-plus is important, he’s more likely to price an event based on a ‘cold read’ of a customer, or how much he wants to make from a customer who has the potential to be a nightmare. He doesn’t book as many events, but the ones he gets are very profitable.”
Which is the better approach? Read Anderson’s column for a breakdown of both tactics, along with three bad habits all retailers should break in event pricing.
