Those numbers will tell you very quickly whether the strategy is working.


Sales Mix There’s also a stabilizing effect that gift- ware can bring to your revenue. Floral sales tend to be tied to events and sea- sons. Holidays drive spikes, while other periods can feel slow and unpredictable. Giftware, particularly when it’s aligned with seasonal trends and everyday occasions, can help smooth out those fluctuations. Measure this through your sales mix: 


What percentage of total revenue is non-floral?


 


Is that percentage growing over time?


Is giftware generating revenue outside peak floral holidays?


If you see steady growth here, you’re


building a more balanced and resilient business.


Inventory and Cash Flow However, giftware is not without risk. The most immediate challenge is inven- tory. Unlike perishable product, giftware ties up cash until it sells. Every item you bring into your shop represents cash that is no longer in your bank account. If it sells quickly, that’s not a problem. But if it lingers, it becomes a liability. This is where one of the most


important metrics comes into play: inventory turnover. At a minimum, you should track: 


How many times per year you sell through inventory





How long items sit before they sell


Slow-moving inventory ties up cash


and leads to discounting, which over time erodes your margins and your brand perception. Healthy retail operations turn over inventory six to 10 times per year and pay close attention to this metric because it directly impacts liquidity. A shelf full of unsold merchandise may look appealing, but financially, it’s idle capital. I’ve seen too many florists fall into


the trap of overbuying. They attend a market, get inspired, and purchase based on what they like rather than what will sell. The result is inventory that doesn’t move, forcing markdowns that erode margins and train customers to wait for sales.


When done right, giftware can transform your shop. It elevates the customer experience, increases revenue, and strengthens your position in a competitive market. When done poorly, it becomes a distraction that drains time, space and cash.


Margin Discipline That brings us to another key number: your gross profit margin on giftware. It’s not enough to sell items — you


need to know your profit. If you’re buying at $10 and selling at $20, that looks like a strong margin on paper. But if you end up discounting that item to $15 just to move it, your real margin shrinks quickly. Tracking margin by category helps you understand what’s truly contributing to your bottom line and what’s just taking up space. Margins are where strategy becomes


reality. Your records should clearly show: 


What is my gross margin by product category?


 


Which items consistently sell at full price?


Which items require markdowns to move?


Without this clarity, it’s easy to


assume retail is more profitable than it actually is. There is also the matter of the time


and labor associated with giftware. Every product introduces additional work. It needs to be received, priced, displayed, tracked and eventually reordered or cleared out. If your systems are not strong, that work ties up time. What started as an opportunity can turn into operational drag.


Space as an Asset Space is another practical consideration that often gets overlooked. Retail square footage is limited. Every display, every shelf, every table has to earn its keep. One way to evaluate this is by looking at sales per square foot— total giftware sales divided by the space those prod- ucts occupy. If giftware is occupying valuable retail space but generating low returns compared to your floral sales, it may not justify its footprint. Strong


retailers understand that space is an asset, and they measure how effectively it’s being used. Another consideration is brand.


More product does not automatically mean more value or more sales. In fact, the opposite is often true. When a shop tries to carry a little bit of everything, it dilutes the brand and can confuse or overwhelm customers.


A Disciplined Approach Giftware can absolutely be a smart addi- tion to a floral business. But it has to be approached with intention. If you’re going to add giftware, start


with a clear strategy. Choose categories that align with your brand and your cus- tomer base. Focus on items that are easy to merchandise, quick to sell and carry healthy margins. Test small, watch what sells, and adjust accordingly. Pay atten- tion to your numbers: Average order value, sales mix, inventory turnover, and gross margin will tell you the truth faster than instinct ever will. Most importantly, think like a retailer.


That means buying based on perfor- mance, not personal preference, by understanding your numbers and curat- ing rather than accumulating. When done right, giftware can


transform your shop. It elevates the customer experience, increases revenue, and strengthens your position in a com- petitive market. When done poorly, it becomes a distraction that drains time, space and cash. The difference comes down to


discipline. Because profitability isn’t something that happens by chance. It’s something you design.


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


The magazine of the Society of American Florists (SAF)


39


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52