Your price on this one?

[ROBSWF]

That's an astoundingly low number. We hover at 19-20% (26-27% including hardgoods) and think we're doing well at controlling costs. Industry average is more like 25% (30-33% including hargoods.)

Aside from the 'South Florida Factor', is the low percentage from buying deep and controlling/limiting the menu? From standing orders?

Really South Florida has little to do with it. I know little about the cost of product on the west coast. But I’d bet any amount of money any shop with enough volume to buy product direct could cut their cost of product in half overnight! I learned so much from RC when it comes to this department. Looking at the numbers is a job that is correctable almost only by ownership. Buying, where to buy from and at what price to buy are all key.

We do not as RC does not buy strictly on price!! But there are right places to buy, and wrong. I think many mistakes people make are buying everything form one place!!!

 

[RC in Dayton and Cincinnati]

It's tough to respond to this because the picture is so misleading.

The picture is reasonably attractive, yet it would be impossible to reproduce it using the listed flowers in a respectable manner, a classic example of visually over promising the consumer.

Our version of that arrangement would run $35, but it would be made all-the-way-around and have two to three times the flowers.

And without doing too much repeating, I agree with what Rob is saying.


RC

 

[CHR]

Thanks guys.

Rob, maybe my math is fuzzy here. If you'd sell that arrangement at $20 and have a fresh COGS of 15%, then the wholesale price of flowers and foliages to make that design would be $3.00???!!!

Is that right or am I missing something?

 

[ROBSWF]

It could be REAL CLOSE!!
These are prices from only one place. Some are higher, there is even price lower. Depending on who it's coming from.

What do you think

40 cm roses .17
Bu of leather .90
Bu of gyp 2.50
Snaps bunch 1.50

Bet its pretty darn close!!!!
Heck we just received 90cm Calla’s today with a very nice medium opening for .69 cents today. I’d bet any one of the wholesalers around this area would be over $2.50 if not more.

Rob

 

[ROBSWF]

As in anything, the more we are able to produce and sell everyday, or every hour, the numbers only get better and better!!

And, just so you know I do think your numbers are respectable. I know many shops have no idea how crazy they can get. At least your looking and YOU KNOW!!!!

Rob

 

[Frank]

Rob - Please guide us to a lower-cost source!

40 cm roses .17
Bu of leather .90
Bu of gyp 2.50
Snaps bunch 1.50

What???? I wish we paid that little. Where can we go to pay those prices?

How does your competition in town stay in business with your "super-ultra-value" pricing?