The costs of goods are rising everywhere these days, and we’re certainly feeling it in the floral industry. Rio Roses’ Director of Sales, Oscar Fernandez, recently shared some hard, cold facts about this: Packaging prices are up 30 to 40 percent. Mandated labor costs are up by 7.5 percent in Ecuador and 10 percent in Colombia. Freight is up between 30 and 35 percent. And this is just a partial list. So, how do you protect your profit margins with all these rising costs? Here are four important ways:
Pass Costs on to the Consumer
Consumers are aware that prices are going up everywhere, so they won’t be surprised when they see the price of their flowers rise. And frankly, if your cost for flowers has gone up by 20% or more, then you have no choice but to pass that cost on to your customers. And keep an eye on your profit margins: If they start dropping below a minimum target markup, it’s time to raise your prices.
To read the rest of the story, please go to: Rio Roses
