Question
Hi Sue!

I know you are based in the U.K. but I imagine your answer will apply to any location in the world.  I am starting a silk flower arrangement business.  I do not intend to open a store but rather go sell directly to individuals and corporations.

I am using top quality flowers and vessels and they are quite expensive, even at wholesale.  My question is: What percentage is customary to use as a mark-up.  I have been told conflicting numbers.  Some books/people say to double your cost and others say triple it.  How much does a "starter" charge for concept and labour?  Is that amount added at the end of your tally for costing the arrangement or is it "thrown in the whole amount of your arrangement" i.e. if the arrangement costs me $40, do I multiply this by 2 or 3 and then add my labor, or do I add up the $40 + my labor and then multiply by 2 or 3?  

And lastly, since I will be doing custom design for homes as well, should I charge for my time for visiting their home in order to coordinate the arrangement with their decor?

I am sorry to be so lengthy... Thank you in advance for your expert advice!

Nicole Lachapelle

Answer
Dear Nicole,

This is a really difficult one.  What I have found is you have to jiggle your price sometimes. Somethings look more expensive than they actually are, others not so but have cost alot to produce. Swings and roundabouts. I'd be inclined to start at I meant to go on and I would add up everything I have used to make the display, even little things you maybe had hanging around, I would double up on that cost, including any taxes, then add my time on top. How much you charge for your time is another matter but see how that goes, and if you find you are not shifting the stock as well as you'd like, re-evaluate. Likewise, if you cannot make it fast enough, put your price up a little but you will have to find a happy medium.

I have done many home visits myself and find that it is very hard to charge this in, but others do............but if you have your clients trust and they feel they are not being abused, you'll find it'll come good in the end because maybe they'll use you time and again and spend lots of money with you.

My partner is always preaching to me that I sell myself short. You have a skill and you are offering a service, selling quality goods, therefore everything you do should be worth something.

Hope this has helped

Regards
Sue