By The Numbers: Know thy Sales

Sales are the lifeblood of this business. It’s critical that you know where they come from! I’m Charley and welcome to my first blog, my intention is to provide fellow florists understanding of the numbers that drive the florist business.

In 2012, the average Florist Sales were $322,000 per year, if the average order was $60.00, that’s 5,367 orders, working six days a week, the shop would handle 17 orders per day. However it does not work that way, as we live for three major holidays (Valentines, Mother’s Day and December Holidays) and survive the remaining 9 months.

Sales cures all problems, so look at the Sales numbers from the Money Source, i.e. Cash, Credit Card, House Charge and Wire Service, next look at the Sales Sources, i.e. Walk-in, Telephone, Website and Wire Service, next look at Delivery Method i.e. Will-Call / Pick-up, Delivery, Courier or Wire Out and lastly look at the Occasion Code, i.e. Birthday / Anniversary, Get Well, New Baby, Sympathy, Business and Wedding / Special Events. Product Mix is another important part of the Sales number, i.e. Fresh Flowers Sales, Greenhouse / Plants,

Giftware, Add-ons (Candy, Plush, Balloons), Fruit / Gourmet. Put all of these numbers are percentages and you have your shop’s Sales Profile. Money Source, Cash 10%, Credit Card 60%, House Charge 20% and Incoming Wire 10%. Repeating the process for the remaining sections and you have a complete sales profile of your shop.

About Charley Howard

Charley is the Director of World Flowers and business instructor at the Floriology Institute. In his blog, “By the Numbers with Charley Howard,” and through content in Floriology classes, he focuses on the financial aspects of being a florist in today’s environment, providing a basic understanding the florist’s sales numbers, cost of goods, labor and payroll costs, operating expenses (fixed and controllable), understanding the cost of wire in and wire out orders, and other income such as delivery, relay fees, rebates, and commissions.

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