Video: Core Sustainable Pricing Philosophies
Pricing is often a sore spot within the floral industry, and it’s one topic I’m very passionate about. Floral professionals are easily overwhelmed with how much to charge for their services, but with the right mind-set, this obstacle can be overcome. In this clip from the Team Flower Pricing and Ordering Class, I’ll share my core pricing philosophies which have helped guide my own floral design business (as well as countless others!) into a sustainable business model.
Core SUSTAINABLE PRICING Philosophies:
Price tags belong on products and services, not people.
Data is the driver.
Emotions belong in the backseat.
Averages are amazing!
Business model clarity is often the culprit of disappointing year-end profit reports.
Emotions are important signals that give us information, but they should be evaluated and relegated to their proper place, which is the backseat—not the driver's seat. Actions driven by emotions are often inconsistent and come with a measurable cost, so to maintain overall stability in your business, get in the habit of acknowledging and then properly corralling your emotions.
Nailing down averages and using them to assess different projects is critical, as averages give you a way to stabilize metrics that appear to shift often.
Product and business model clarity are critical to consistent profit margins. Undefined target markets, business models, and systems are usually the culprits when it comes to disappointing year-end profits.
Remember: As you clarify your market, your pay rate declines with every hour you invest that the market can't support! That's why, before you can confidently determine your pricing, you first need market awareness, a working business model, and appropriate systems in place.