The September/October issue of Floral Management provides advice on how to navigate planning for the holiday season.
With the sales boom from the pandemic in the rear view mirror, this holiday season is likely to bring back some old challenges as well as some new ones, writes finance expert Derrick Myers, CPA, CFP, PFCI in the September/October issue of Floral Management.
That’s why it’s important to be prepared with a plan. Myers provided a checklist to help florists navigate planning for the holiday season.
Project Sales
Based on a 5% decline in sales that has been common for a lot of florists this year, project holiday sales at 95% of your 2022 holiday sales.
Determine Discounts
Price your holiday merchandise with enough markup that you can offer a discount early in the season (right after Thanksgiving is ideal) and still net at least twice the markup with the discount. After the holidays, drop the price significantly to turn the remaining inventory back into cash.
Consider Walk-In Traffic
If you have two dozen of an item and 10 people walk into your shop to see it, you could give them away and still have too many left. Understanding the number of people who will be shopping will help you determine how much to buy and how fast it needs to sell.
Think About Decorating Needs
Can you use holiday merchandise that doesn’t sell this year to decorate the shop next year? Or could it be featured in a named custom arrangement produced exclusively by your shop, and marketed on your website? If so, don’t mark down those items.
Look at Storage and Holding Costs
If your shop has ample storage to keep the leftover holiday merchandise, you might not want to discount. But it can get costly if you need to rent a storage facility or warehouse to store the remaining inventory. And don’t forget that there is considerable cash tied up in the product — cash you might need and can get if you offer a discount.
For more detailed advice, including how to get 2024 off to a strong start, read “Make a List and Check It Twice” in the September/October issue of Floral Management.
Amanda Jedlinsky is the managing editor of SAF NOW.
