Tips

Florist Markup: Start With Overheads Then Let the Multiplier Fall Out

If you've ever asked "Should I charge 2.5x, 3x, or 4x?", you're starting from the wrong end. The right multiplier is the result of your shop's overheads, cost of goods, and profit goals — not a guess.

By Florist Toolbox 4 min read
Florist markup calculation showing overheads leading to the right multiplier

If you've ever asked, "Should I charge 2.5x, 3x, or 4x?", you're not alone. Most florists pick a multiplier that feels right — but the truth is, the right number isn't a guess. It's the result of your shop's overheads, cost of goods, and profit goals.

When you understand that, markup becomes simple, consistent, and totally defensible.

The Rule: Don't Guess Your Multiplier — Calculate It

The easiest way to get a realistic markup is with the Business Markup Calculator.

It uses your own numbers — rent, wages, utilities, cost of flowers, desired profit — to tell you exactly what average markup your shop needs to hit each year to stay healthy.

This is your foundation. Once you know your shop's required markup, you can price each bouquet or event to make sure you're on track.

Step 1 — Find Your Business's Required Markup

Head to the Business Markup Calculator and enter three things:

  1. Your annual operating costs — rent, utilities, staff wages, delivery van, marketing, insurance — everything it takes to open the door and keep the lights on.
  2. Your annual cost of goods (COGS) — what you spend on flowers, foliage, packaging, ribbon, foam-free mechanics — the items you resell or use in designs.
  3. Your target annual profit — either as a £ amount or a percentage of total costs.

The calculator instantly tells you your required average markup — for example, 3.2x.

That's the multiplier your whole business must average across all products to hit your profit goal.

Example: Annual overheads £95,000 + COGS £60,000 + target profit £25,000 = a required markup of 3.3x.

In plain English: for every £1 you spend on flowers and supplies, you need to sell an average of £3.30 to reach your profit target.

Step 2 — Sanity-Check It Against Reality

Add your average order value — say £50 — into the calculator. It will tell you how many orders per week, month, and year you'd need to meet your goals.

If it says "You'd need 3,000 orders a year" and you're averaging 1,800, that's your cue to either:

  • Adjust your markup,
  • Raise your average order value,
  • Or trim overheads.

This is how real shops build profit-aware pricing, not blind guesswork.

Step 3 — Translate It Into Everyday Pricing

Now that you know your business-wide markup (say, 3.3x), use that as your anchor for all product-level pricing.

Open the Arrangement Calculator, and price each bouquet, wreath, or design to match or beat your target markup.

If your calculated price for a bouquet lands at 2.8x, that's fine — as long as other products land above 3.3x to balance your mix. It's about averages across the year, not perfection on every ticket.

Step 4 — Make Overheads the Hero of Every Price

Every bouquet you sell should do its part to cover your shop's overheads — rent, bills, insurance, software, wages. When you use the calculator, those costs are baked into your target markup.

So even if you don't think about them at the bench, they're always accounted for.

Step 5 — Build Your Shop Pricing Tiers (with Confidence)

Use your markup as the baseline, then layer in product tiers:

Tier When to use it Typical markup range Notes
Market / Subscription Regular repeats, quick to make 2.6x–2.9x Low labour, low waste
Everyday Gift Your main sellers 3.0x–3.3x Balanced labour and wrap
Premium / Designer's Choice Luxe stems, bespoke wrap, events 3.4x–3.8x Higher time and risk

If your calculator says you need 3.2x overall, you can see right away how those tiers help you hit that target on average.

Step 6 — Check-In Once a Season

Costs shift. Wages rise. Electricity changes.

Re-run your numbers in the Business Markup Calculator once a season — it only takes a minute — and keep your markup aligned with your real overheads.

It's the single best habit to protect your profit.

FAQs

Why not just use 3x? Because it might not cover your overheads. A London shop paying £3,000/month rent needs a very different markup to a rural studio with £800/month overheads.

Do I add VAT on top? Yes — calculate ex-VAT, then multiply by 1.20 for your customer price.

What if my required markup looks "too high"? That's useful insight. It might mean your overheads are heavy or your average order value is too low. The calculator shows you the levers you can pull.

The Bottom Line

Markup isn't a florist's instinct — it's a business safeguard. When you start with overheads and work outward, you'll never underprice again.

Run your numbers now: Business Markup Calculator

Once you've set your target markup, use the Arrangement Calculator to keep every product aligned.

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