What Does Break-Even Actually Mean?
Break-even is the point where your revenue covers all of your costs. Not a penny of profit, not a penny of loss. Surprisingly few florists know their break-even point — most have a rough sense of needing to be "busy enough," but that is not a number you can manage to.
The Break-Even Formula
Break-Even Point (in units) = Fixed Costs / (Average Selling Price - Average Variable Cost)
Fixed costs stay the same regardless of how many arrangements you sell: rent, business rates, insurance, utilities and refrigeration, staff wages, phone and broadband, and vehicle lease payments. Variable costs rise and fall with every sale: flowers and foliage (typically £8-£20 per arrangement), sundries like cellophane, ribbon, and flower food (£1.50-£3.50), delivery packaging, card machine processing fees (1.5-2.5%), and a waste allowance of 10-15% of your flower cost.
Worked Example
- Fixed costs: £8,000 per month
- Average selling price: £45
- Average variable cost per arrangement: £18 (flowers £12, sundries £2.50, waste £1.50, card fees £1.00, packaging £1.00)
Break-even = £8,000 / (£45 - £18) = £8,000 / £27 = 296 bouquets per month
That is roughly 74 bouquets per week, or about 12-13 per working day in a six-day shop. You can run this calculation for your own shop with our Break-Even Calculator.
Understanding Contribution Margin
That £27 is your contribution margin — the amount each sale "contributes" towards paying off your fixed costs. Once fixed costs are covered, every additional sale's contribution margin becomes pure profit:
| Bouquets Sold | Revenue | Total Contribution | Fixed Costs Remaining |
|---|---|---|---|
| 100 | £4,500 | £2,700 | £5,300 left to cover |
| 200 | £9,000 | £5,400 | £2,600 left to cover |
| 296 | £13,320 | £7,992 | Break-even reached |
| 350 | £15,750 | £9,450 | £1,450 profit |
| 400 | £18,000 | £10,800 | £2,800 profit |
Every bouquet beyond 296 delivers £27 of profit.
What If Your Break-Even Is Too High?
Raise prices: £45 to £50 changes contribution margin from £27 to £32. Break-even drops from 296 to 250 bouquets.
Reduce variable costs: Even £2 per bouquet savings moves break-even from 296 to 276 bouquets.
Cut fixed costs: Renegotiating your lease or switching energy supplier could save £300-£500 per month.
Increase average order value: Upselling add-ons lifts the average without needing more customers.
Use our Cost Evaluation Calculator to review whether your current prices truly reflect your costs.
Seasonal Break-Even Adjustments
Floristry is intensely seasonal. February and March can generate 20-30% of your annual revenue, while January and August are painfully quiet. Calculate your break-even annually first, then map it against your seasonal sales pattern. Peak months need to generate enough surplus to carry quiet periods — if your annual break-even is 3,500 arrangements but you only sell 180 in January, February's 500+ sales need to compensate.
Using Break-Even for Bigger Decisions
Break-even analysis is a decision-making tool for every significant investment:
Should you hire? An extra florist adds roughly £2,500 per month. Break-even rises from 296 to 389 bouquets. Can that person help you make and sell 93 more per month?
Can you afford a van? A £350 per month lease adds to fixed costs, but if delivery lets you charge £8 more per order, the van could actually lower your break-even.
Should you move premises? If a busier shop costs £800 more per month, you need 30 more sales to cover the difference.
Run your own numbers with our Break-Even Calculator and Cost Evaluation Calculator.
