becoming increasingly price sensi- tive. They are comparing prices more carefully, reducing impulse purchases, trading down to smaller arrangements and stretching gift budgets further than they did just a few years ago. Many are simply exhausted by the cumulative effect of inflation on everyday life.


Beware of Pricing Mistakes Florists who fail to recognize this grow- ing divide risk making dangerous pricing mistakes. One of the biggest errors businesses


can make during uncertain economic periods is underpricing premium cus- tomers out of the misconception that everyone is becoming price conscious. That simply is not true. The market is fragmenting, not moving uniformly. In fact, many florists are still pricing


premium work far below what affluent consumers are willing to pay. High-income customers do not buy


flowers the same way budget-conscious customers do. They are not evaluating arrangements strictly by stem count or container cost. They are buying emotional impact, artistic design, con- venience, prestige and trust. When a customer orders flowers for a luxury wedding, an upscale sympathy tribute or a high-end event, they are often seeking reassurance that the result will be excep- tional. Price often becomes secondary.


Avoid Broad Pricing Changes This creates a major opportunity for flo- rists willing to confidently raise prices on premium offerings. Too often, florists apply broad pricing


adjustments across the board instead of strategically pricing by customer segments. This unintentionally leaves sig- nificant profit on the table from affluent buyers who would pay more, while simul- taneously pushing away budget-sensitive customers who may notice higher prices.


Develop Segmented Pricing The smarter approach is to intentionally widen the spread between entry-level products and premium designs. That does not mean adding arbitrary


markups, but rather recognizing the true value of your expertise, service, design capability and reliability. Luxury buyers are often less interested in finding the


Too often, fl orists apply broad pricing adjustments… instead of strategically pricing by customer segments.


cheapest option than they are in avoiding disappointment. Premium customers are also more


accepting of seasonal fluctuations, upgraded containers, custom design work, premium flower varieties and delivery or service fees. They expect quality to cost more.


Maintain Pricing Discipline Meanwhile, protecting profitability on lower-cost products requires a com- pletely different strategy. For customers on the lower arm


of the K, price resistance is real and growing. Florists cannot ignore that reality. However, the solution is not destroying margins through discounting or abandoning proper pricing formulas. One of the fastest ways florists


damage long-term profitability is by allowing rising costs and consumer resis- tance to pressure them into breaking pricing formulas. Once profit percent- ages begin eroding, recovering them becomes extremely difficult. That’s why maintaining pricing discipline has never been more important.


Re-engineer Products Instead of reducing markups, florists should focus on intelligent product engineering to maintain target profit per- centages. Adjust flower choices, recipe structures and container selections to control hard costs. There are countless ways to preserve


value perception without sacrificing profitability. A vase arrangement using premium


roses and hydrangea may need to evolve toward carnations, mums or alstro- emeria, while still maintaining strong design aesthetics. A ceramic container may need to shift toward an attractive glass vase, basket or alternative vessel with lower acquisition cost. Greenery can play a larger role in creating fullness and scale without dramatically increas- ing recipe cost. Good design also becomes even


more important. Most consumers are not evaluating arrangements stem by stem. They buy emotional response. Skilled


florists can create impressive, beautiful arrangements at multiple price points when they understand design, balance, color harmony, texture, proportion and presentation. This preserves perceived value while protecting actual margins. This is where operational discipline


separates strong businesses from strug- gling ones. Florists who maintain pricing consis-


tency, understand contribution margins, and actively manage product mix will navigate this economic environment far more successfully than those who react emotionally to the market and customer pushback.


Be Intentional It is also important to remember that not every customer must be served equally. Many florists still operate under the


outdated assumption that they need to be everything to everyone. In reality, the widening economic divide may require businesses to make more intentional decisions about who they serve best. Some florists may choose to lean


heavily into luxury and premium design work, focusing on affluent clients, events and upscale gifting. Others may choose to dominate value-oriented everyday offerings through operational efficiency and carefully engineered product lines. Many will attempt a hybrid approach. But whichever direction a florist chooses, the pricing strategy must align with the customer base being targeted. Trying to maintain luxury-level service while competing on bargain pricing is rarely sustainable. The K-shaped economy is unlikely


to disappear anytime soon, and the divide between financially comfortable consumers and financially stressed households may continue widening for some time. Understanding which customer you are serving — and pricing accordingly — may become one of the most important business skills florists need moving forward.


Derrick P. Myers, CPA, CFP, PFCI, is the president of Crockett, Myers & Associates, Inc.


The magazine of the Society of American Florists (SAF) 35


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