If you have ever applied a 3x markup and assumed you were making 300% profit, you are not alone — but you are losing money without realising it. Understanding the difference between markup and margin is one of the most important financial lessons in floristry, and getting it right can be the difference between a thriving business and one that slowly bleeds cash.
Markup vs Margin
Markup is the multiplier applied to your cost price. Margin is the percentage of your selling price that is gross profit: (Selling Price - Cost Price) / Selling Price.
A 3x markup gives you 66.7% margin — not 300%:
| Markup Multiplier | Cost Price | Selling Price | Gross Profit | Margin (%) |
|---|---|---|---|---|
| 2.0x | £10.00 | £20.00 | £10.00 | 50.0% |
| 2.5x | £10.00 | £25.00 | £15.00 | 60.0% |
| 3.0x | £10.00 | £30.00 | £20.00 | 66.7% |
| 3.5x | £10.00 | £35.00 | £25.00 | 71.4% |
| 4.0x | £10.00 | £40.00 | £30.00 | 75.0% |
When your accountant says you need a 65% gross margin, that means roughly a 2.85x markup — not the 1.65x many florists mistakenly calculate. Check your figures with our Business Markup Calculator.
Why Half a Point Matters
The difference between 3x and 3.5x on £120,000 of flower sales at cost:
- At 3.0x: £360,000 revenue, £240,000 gross profit
- At 3.5x: £420,000 revenue, £300,000 gross profit
- Difference: +£60,000 per year
That £60,000 is pure gross profit — money available to cover wages, rent, and your own income. Half a point on your multiplier could be the difference between drawing a decent salary and barely scraping by.
Worked Examples by Product
Hand-Tied Bouquet
- Flower cost: £9.50 (mixed stems)
- Sundries: £2.50 (wrap, ribbon, food sachet)
- Total cost: £12.00
- At 3.0x markup: retail price £36.00, gross profit £24.00
- At 3.5x markup: retail price £42.00, gross profit £30.00
Funeral Spray (Single-Ended)
- Flower cost: £15.00
- Sundries: £3.50 (ribbon, cellophane, card)
- Total cost: £18.50
- At 3.0x markup: retail price £55.50, gross profit £37.00
- At 3.5x markup: retail price £64.75, gross profit £46.25
Potted Orchid Gift
- Wholesale cost: £8.00
- Sundries: £3.00 (pot cover, bow, care card)
- Total cost: £11.00
- At 2.0x markup: retail price £22.00, gross profit £11.00
- At 2.5x markup: retail price £27.50, gross profit £16.50
Different Markups for Different Products
Products with higher wastage, more labour, or greater skill justify a higher multiplier:
| Product Category | Suggested Markup | Why |
|---|---|---|
| Fresh cut flowers | 3.0x – 3.5x | Standard perishable stock with moderate waste |
| Potted plants | 2.0x – 2.5x | Lower waste, longer shelf life, minimal labour |
| Sundries (cards, vases, gifts) | 4.0x – 5.0x | No waste, no preparation time |
| Ribbon, wrapping, accessories | 4.0x – 5.0x | Negligible waste, bought in bulk |
| Wedding and event work | 3.5x – 5.0x | High skill, consultation time, setup and breakdown |
| Funeral tributes | 3.5x – 4.5x | Skilled labour, time pressure, frame costs |
When to Adjust Your Markup
- Seasonal peaks: Add an extra 0.5x-1.0x during Valentine's Day and Mother's Day when wholesale costs spike and demand allows premium pricing
- Premium varieties: 3.5x-4.5x for garden roses, peonies, and seasonal luxuries that customers specifically request
- Bulk and corporate orders: Can drop to 2.0x-2.5x when you have guaranteed volume and reduced waste
- Delivery-included pricing: If you bundle delivery into the product price, make sure the markup accounts for the delivery cost too
Common Mistakes
- Using the same markup for everything — a flat 3x across all products leaves money on the table for low-waste items and underprices high-labour work
- Forgetting hidden costs in your base price — card machine fees (1.5-2.5%), flower food sachets, market trip fuel, and parking should all be included before you apply the multiplier
- Marking up on the wrong base cost — your base must include the delivery charge from your wholesaler and a waste allowance of 10-15%, not just the stem price on the invoice
- Not reviewing regularly — wholesale prices shift with the seasons, energy costs change, and the minimum wage rises annually. Review your markups at least every six months
Run your current figures through our Business Markup Calculator and use the Break-Even Calculator to check whether your sales volume supports your overheads at your chosen markup level.
