I purchase daily in £ on a BV holland auction in € our prices change dramatically. The winter months are a killer as I purchase most of my flowers from growers / farms based in Holland (minimum wage around €11 per hour) so they need the heating cranked up! Many stores are selling African or South American roses as its hotter nearer the equator - where the minimum wage is around £50 per week so 5 hours labour EU is equivalent to a week in the fore mentioned countiies. I try to have the least amount of air freighted or boat freighted flowers in the store which itself is challenging as this is more expensive.
Our minimum order for flowers is now £50 it was £40 a year ago and £25 in 1997 I can make £50 look £60 but a £40 can loook £30 and you often get complaints from the smallest spender- they often want a £40 to look like the £150 bouquet.
We now have a service fee for delivery to pay the extra for fuel on our online store
We were £72 for a dozen roses in 1997 for the "Dior Grade" 90cm and heads the size of you fist. We are still £72 per dozen but the roses are now 50cm and about the size of your first finger coiled with your thumb. If we get the 90cm "Dior" ones they need to be around £200+ for a dozen - which is out of most peoples reach.
I'm from an era when mortgage rates were 14% circa 1992 when I set up my business - 2008 is probably the most similar time to now - after the finacial crash. In 2008 I closed the retail presence, went appointment only - so held no stock and looked at every aspect of the business financially - from paper, wrapping and all the product non floral -Mobile phone contracts - internet charges - Parking permits- Internet and accountant charges etc. I started to offer "experiences/ training/ workshops at clients houses and travelled to clients.
2022 - I have just signed a new lease agreement with a 5% increase / break clauses and again become appointment only. Though the doors are open if we have work going on. I will not be stocking indoor plants this Autumn / Winter as they need heat.. I'm riding the storm with inflation so high - I do not want a repeat of interest rates of 14% - which is the way to balance out inflation.
The difficult thing about inflation is - If you started your business next week the costs are the costs they are going to be - If you've been trading as long as I have - you reflect back at what they were - which can be a bit depressing.
Dunno if I'e gone off topic here _ I would say don't get despondent - look at what you have got and how you can retain it and it's OK to raise your prices - you don't have to justify them.
Someone said to me years ago:
When someone you don't know says you're expensive - Ignore it - It's expensive to keep a horse or a yacht. When your regular clients say you are expensive you might need to address your pricing.
Oh and self raising flour in a dutch baby will get amazing results.
