What Does It Actually Cost to Keep a Flower Shop Open?
Understanding your running costs is essential. Without a clear picture of where your money goes each month, you cannot price your work properly or know whether you are actually making a profit.
Fixed Costs
Rent
Rent is usually your single largest fixed cost:
- Rural village or small town: £500-£1,200 per month
- Market town or suburban parade: £1,000-£2,500 per month
- City centre or affluent area: £2,000-£4,000 per month
When evaluating a lease, factor in service charges, maintenance obligations, and rent review clauses.
Business Rates
Many small shops qualify for Small Business Rates Relief. If your rateable value is below £12,000, you pay nothing. Between £12,001 and £15,000, you receive tapered relief. Above £15,000, expect £200 to £600 per month.
Insurance
A flower shop needs several types of insurance:
- Public liability: Covers claims from customers injured on your premises.
- Employer's liability: Legally required if you have any staff, even part-time.
- Contents and stock: Covers flowers, equipment, and cold room contents against theft, fire, or flood.
- Commercial vehicle insurance: Required for your delivery van.
- Business interruption: Covers lost income if you cannot trade due to an insured event.
Typical total across all policies: £150-£400 per month. Shop around annually — florist-specialist brokers often find better rates.
Utilities Breakdown
Electricity is the big one because cold room refrigeration runs 24 hours a day:
- Electricity (including cold room): £150-£350 per month. A walk-in cold room can account for 40-60% of your electricity bill.
- Water: £40-£80 per month. Flower conditioning uses more water than most people expect.
- Gas (heating): £30-£80 per month, seasonal.
Consider an energy audit — LED lighting, cold room door seals, and timer-controlled heating can reduce costs noticeably.
Variable Costs
Flower and Plant Stock
Typically 25-35% of your revenue. Monthly: £1,600-£6,000. Costs swing dramatically with the seasons — you may need twice the stock budget in February as in January.
Sundries and Packaging
Cellophane, tissue, kraft paper, ribbon, boxes, gift bags, water sachets, flower food, and cards. Monthly: £200-£600. These costs creep up unnoticed — a 3p ribbon upgrade per bouquet adds £60 across 2,000 bouquets per year.
Delivery Costs
- Fuel: £100-£400 per month
- Van lease or finance: £200-£400 per month
- Maintenance, MOT, and tyres: £50-£150 per month
- Parking permits or congestion charges: Variable by area
Use the Delivery Profitability Calculator to check whether your delivery charges genuinely cover your costs.
Waste and Waste Disposal
A well-managed shop should aim for 10-15% waste on flower stock. If you spend £3,000 per month on flowers, 12% waste equals £360 per month in lost stock value.
Beyond the stock loss, green waste collection typically costs £40 to £80 per month. Some florists arrange composting partnerships with local allotments or farms to reduce this cost.
Staff Costs
A florist on £12/hour costs closer to £15.50-£16/hour once you add employer NI at 15%, pension at 3%, and paid holidays. See our guide on the true cost of employing a florist.
Monthly Cost Breakdown
Here is a realistic monthly cost table for a market town flower shop with one full-time employed florist:
| Cost Category | Monthly Amount |
|---|---|
| Rent | £1,500 |
| Business rates (after relief) | £100 |
| Insurance (all policies) | £250 |
| Utilities (electric, water, gas) | £350 |
| Phone, broadband, software | £130 |
| Flower and plant stock | £3,200 |
| Sundries and packaging | £350 |
| Delivery costs (fuel, van, maintenance) | £450 |
| Waste (12% of stock) | £385 |
| Waste disposal | £60 |
| Staff — one full-time florist | £2,700 |
| Miscellaneous (repairs, cleaning, etc.) | £200 |
| Total | £9,675 |
That is roughly £10,000 per month before the owner draws a penny in wages.
What This Means for Your Pricing
If you sell 200 arrangements per month, each one needs to contribute approximately £50 towards your overheads — before any profit. If you sell 300, it drops to £33 per arrangement.
The Operating Cost Calculator helps you map out all your costs. The Cost Evaluation Calculator lets you assess whether your pricing genuinely supports your business.
