Business on unusual gifts. Business plan: candy bouquets
How much does a floral arrangement for a wedding cost? Let's discuss the cost and the nuances of which it consists.
It's no secret that the cost consists of the price of material (flowers), labor, delivery, installation / dismantling on site. But why do different florists have their own pricing policy? Because floristic design is a service, and the masters set the cost for work depending on their own value in the market.
Today we will talk about pricing with florist Galina Guseva. And we will get the clarifications that brides need so much for budget planning.
What makes up the cost
On average, a flower costs from 100 rubles. (rose) up to 400 rub. and covers an area of 10 cm. up to 25cm. (hydrangea). Plus consumables (oasis, pallets, fasteners), decor (vases, candlesticks, fabric, arch).
That is, decorating a wedding with flowers and greenery of the middle price category, without fabric decor and an arch, will cost 30,000-40,000 rubles.
What is included here:
– bridal bouquet – 5000 rubles;
– composition for the presidium up to 60cm. length - 7000-8000 rubles;
- 3-4 tables of guests with small compositions of 25-30 cm in diameter - 2500-3000 rubles;
– seating for guests 2000-3000 rub. (print, flowers, easel).
Separately, the rental or purchase of vases, delivery - in Moscow or outside the Moscow Ring Road, installation and dismantling are considered.
There may be a large expense item here, because. the flower arch is mounted from 3 hours. As a rule, you assemble all the flowers on the arch on the spot, plus fabric, glass beads. But the prices for flower arches start from 25000r. Small decor: candles, candelabra, feathers can be rented from a florist or a third-party service. However, be sure to check with your florist to follow the same concept of the wedding.
In fact, wedding decoration is a set of options. Bouquet, presidium, guest tables, seating, arch. It is advisable for brides to calculate the budget and distribute it among the desired options.
About the cost of flowers
Usually a bouquet and composition for the presidium are considered mandatory, with these elements most of the photos, other options - if possible.
It is also not economically profitable to make a wedding in flowers on the eve of March 4-8, September 28-1, February 13-14.
But on the days following these dates, it is possible to get some flowers at a discount, but only those that will be on free sale, that is, “what remains”. You should not count on a 50% discount, and the flowers may not be of very good quality. If you are considering the current trend - - the cost will need to be reconsidered.
Nuances
As for the fabric design, try to opt for a restaurant with beautiful chairs, then you will not have to cover them with covers, this trend is already outdated. And guests can take the compositions from the tables home or receive them as a prize for competitions.
As a rule, guests give a lot of bouquets, and sometimes they are not chosen in the best combination 🙂 Brides can gently hint to guests that they can order flowers from the florist who arranges the wedding. In this case, guests receive a good discount on bouquets and free delivery. In addition, bouquets designed in the same style, from those flowers that the bride loves, are not ashamed to be placed at the presidium or sofa, where you can make an impromptu photo zone out of them.
* Calculations use average data for Russia
331 000 ₽
Starting investments
265 000 - 330 000 ₽
53 000 - 111 000 ₽
Net profit
5 months
Payback period
To open a small flower shop with an area of 20 sq. meters will require 331 thousand rubles, which will pay off for 5 months of work. Net profit in the first year of operation will amount to 682 thousand rubles.
1. Flower shop. Project Summary
Every year the volume of the flower business is growing, which indicates the active development of the industry. Today, the business idea of a flower shop is in demand and very profitable. The goal of the project is to open a flower shop in a city with a population of more than 1 million people. The main source of income for the establishment is the sale of flower products. The target audience of the flower shop is the population of the city aged 20 to 50 with an average income.
The main advantages of a flower shop:
minimum initial costs;
high profits in the long term;
business profitability of 20-30%.
For the implementation of the flower shop project, a room with a total area of 20 m 2 is rented, located in the immediate vicinity of the shopping center. The initial investment is 311,000 rubles. Investment costs are directed to the purchase of specialized equipment: the arrangement of a retail outlet, the purchase of flower products. Own funds will be used to implement the project.
The financial calculations of the business plan cover a three-year period of the project's operation. It is anticipated that after this time, business expansion will be required. According to the calculations, the initial investment will pay off in the fifth month of operation. Based on the results of the first year of operation, a net profit of 682,782 rubles and a return on sales of 21% are forecast. Integral project performance indicators are presented in Table 1.
Table 1. Key performance indicators of the project
2. Description of flower shop industry and company
Flowers are one of the main attributes of the holiday. The tradition of giving flowers and decorating space with them has firmly established itself in Russia. Therefore, flower shops always find their customers, despite the season and economic crises. The demand for flowers is a kind of reflection of the financial condition of society - the richer it is, the more flowers are bought. And at the same time, even in times of crisis, flower shops are actively conducting their business - only the emphasis on sales is shifting, preference is given to budget options, but sales of flower shops do not decrease.
Over the past few years, the Russian flower market has been demonstrating active growth. The statistics of market volumes testify to the dynamic development of the flower market. Every year, the market volumes are increasing - for the period from 2011 to 2015, the volume of the cut flower market in physical terms increased by 1/3.
Figure 1. The volume of the flower market in real terms, billion pieces, 2011-15
In monetary terms, this growth is more noticeable due to the increase in prices for flowers. During the period 2011-2015, the market volume increased by almost 40%.
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Figure 2. The value of the flower market, billion rubles, 2011-15
To date, the entire Russian market can be estimated at 160 billion rubles in monetary terms and 35.8 tons in physical terms. According to analysts' forecasts, the Russian flower market will continue to grow. According to the analytical company GLOBAL REACH CONSULTING, the real capacity of the domestic market is estimated at $40 billion.
Thus, a flower shop is regarded as one of the most promising business ideas, despite the risky component. The average profitability of the flower business is constantly growing. At the same time, the likelihood of risk also increases. The main threats are related to the pronounced seasonality of the business and the high probability of incorrect planning of sales volumes of flower products. Flower sales peak in February, March, May, September and December, and the summer months are considered the "off" season, which can cause a significant reduction in profits. In addition, flowers are not stored for a long time - the maximum period for their sale is limited to one week. In case of excessive purchase of flower products, the store may suffer losses. However, sellers take this risk into account when pricing, assuming that about 60% of the flowers will not be sold.
Another risk is the flower shop's heavy dependence on imports. Today, Russia ranks sixth in imports of cut flowers, and the share of imports in sales is about 90%. However, there is a positive trend in the share of domestic products. According to analysts, in the next ten years, Russia will take second place in Europe in terms of imports after Germany. This risk lies in the possible growth of the exchange rate, the likelihood of a ban on the import of flower products from some countries, the tightening of customs policy, etc. Figure 3 shows the structure of flower imports by producing countries. The largest share of imports falls on the Netherlands - 44.7%, the second and third place is occupied by Ecuador and Colombia with a share of supplies of 36% and 12.8%, respectively. Other countries account for only 6.5% of deliveries.
Figure 3. Distribution of producing countries by volume of deliveries in physical terms in the Russian Federation, 2014
Roses account for 43% in the structure of flower deliveries. The second most popular flowers are chrysanthemums - 24%. The top three is closed by carnations, the share of supplies of which is 22%. In general, in recent years, the leaders in supplies have remained unchanged, but there is a tendency to popularize exotic, unusual colors. Recently, flower shops are trying to diversify their assortment and attract customers with unique types of flowers.
Figure 4. Structure of flowers in the total volume of imports (in physical terms), %, 2014
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Pricing in the market consists of two components - the amount of costs (taking into account the exchange rate, customs duties, the price of gasoline, etc.) and fluctuations in demand - an increase in demand entails an increase in prices. On average, the pricing policy in the flower market implies an extra charge of 100-300% of the purchase price.
In most cases, the retail sale of flowers is carried out in the form of flower pavilions and stalls - 70%, about 10% falls on flower shops, flower shops and boutiques designed for the premium segment are less popular. Recently, online stores are gaining popularity, which are a less risky model of the flower business.
Analysis of the flower market showed the relevance and relevance of this business. The main advantages are a relatively quick organization and start of work, the absence of licensing activities, a low threshold for entering the market, an acceptable level of initial investment, high demand for goods and a level of profitability. However, the disadvantages of the flower business should also be taken into account: non-standardization of products, high dependence on customs policy , exchange rates, pronounced seasonality, high level of competition.
3. Flower shop. Description of goods and services
The main activity of the flower shop is the retail sale of flower cuts. For the flower business, a set of additional services is important, which form its competitive advantages. Additional services may include:
flower courier service;
floristic decoration of celebrations;
sale of related products (postcards, soft toys, sweets, etc.);
gift wrapping;
drawing up floristic boxes with flowers and sweets;
original packaging of bouquets, for example, cone bags with a comfortable handle or craft paper;
drawing inscriptions and drawings on flower petals;
creation of floral compositions for decoration.
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The range of additional services of a flower shop can be much wider - it depends on the format of the store and its goals. To form a list of services in a flower shop, it is recommended to study the services of competitors. To date, the sale of standard bouquets is a losing business model. Modern consumers value creativity, original approach and exclusivity of the floristic services provided.
List of flower shop services:
Sale of cut flowers (rose, chrysanthemum, tulip, peony, ranunculus, hydrangea, eustoma, carnation, gerbera, alstroemeria, narcissus, orchid, lily, freesia), taking into account the seasonality of flowers;
Gift wrapping of flowers and bouquets ;
Making floral arrangements and bouquets ;
Sale of related products (postcards, gift boxes with flowers and sweets);
Delivery of bouquets by courier service ;
Floral decoration for celebrations. Services for the design of premises are provided by prior order, taking into account the wishes of the client;
Ordering a bouquet by phone - to save the time of clients waiting for the bouquet, the store provides a pre-order service. It is enough for the client to call in to pay and pick up the bouquet.
4. Flower shop. Sales and Marketing
Statistics for medium and large cities allows us to form a typical “portrait” of a flower shop client: 57.9% of men, 42.1% of women, the average age of the buyer is 35 years, material wealth is average. In accordance with the above statistics, the target audience of the store is also determined - the population aged 20 to 50 years with an average income level.
The first step is to analyze the competitive environment. allow you to assess the level of demand and business threat, develop your competitive advantages and decide on a marketing strategy . creative services presented in your store.
When planning an advertising campaign for a flower shop, it should be borne in mind that promotion channels such as advertising in newspapers, on radio and television in the flower business do not bring the desired effect. This is due to the fact that buying flowers is often an impulsive phenomenon - a person walks past a flower stall and decides to buy a bouquet here. Therefore, outdoor advertising will be the most effective. In addition, one of the parameters that determine the competitive advantages of a flower shop is a favorable location. The most successful location for a flower shop is a pavilion at the intersection of several streets with a lot of passer-by traffic.
In addition, it is recommended to create a group and a profile on social networks that advertise products. Creating a website for a flower shop is completely optional, especially if you plan a small flower stall. Setting the price for the sold goods of a flower shop should be carried out taking into account the prices of competitors. It is important that the pricing policy be flexible enough - this will satisfy the demand both in the budget and in the expensive price segment. To stimulate the sale of flower products, bonus cards, various discounts and promotions, and a loyalty program for regular customers can be used.
You should also provide for the creation of your own logo and branded packaging, which will become the hallmark of the store. The development of an exclusive style, logo and original name will cost an average of 6,000 rubles. An advertising sign will cost around 20,000, including installation. Do not forget about such a form of advertising as word of mouth. Therefore, the best advertisement will be fresh flowers and the professionalism of florists who can create beautiful flower arrangements.
5. Flower shop. Production plan
Opening a flower shop includes six main stages, including registration, selection of location and premises, recruitment, purchase of equipment, search for suppliers of flower products, sales planning and purchase of goods. Next, we will take a closer look at each of them.
1. Registration with state bodies. Retailing flowers is not a licensed activity, which simplifies the process of collecting the documents required to open a flower shop. The organizational and legal form of an enterprise can be an individual entrepreneur or LLC. For a flower shop, it is recommended to register an individual entrepreneur with a simplified taxation system (“income” at a rate of 6%). Types of activities according to OKVED-2:
47.76.1 Retail sale of flowers and other plants, seeds and fertilizers in specialized stores. This is the main activity. When diversifying the flower business and having additional services, you can specify the following codes:
47.78.3 Retail trade in souvenirs, handicrafts
64.12 Courier activities other than national postal activities
74.10 Activities specialized in the field of design
82.92 Packaging activities
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It is not necessary to enter the entire list of codes, but if you plan to further expand your business, it is recommended that you enter all of the listed codes that may be required in the future.
List of documents for opening a flower shop:
permission to trade in flowers;
the program of sanitary and production control is obtained once after approval by Rospotrebnadzor;
contracts for deratization, disinfestation and disinfection;
contract for the maintenance of the ventilation and air conditioning system;
contract for the export and disposal of solid waste;
internal documentation: register of disinfectants;
SES hygienic permit or relevant quality certificates.
2. Location and choice of commercial premises . The main criterion for choosing a location is high traffic of people. It can be street intersections, an area near a shopping center or a bus stop, busy streets in residential areas. A retail space on the ground floor of a residential building is also suitable - as a rule, such premises are relatively cheaper. For a flower shop, a room of 20 m 2 is suitable - this will be enough for a retail space and a small room for storing flowers. For the implementation of the project, it is planned to rent a room near the shopping center. The area of the leased premises is 20 m 2, the average cost for a city with a population of 800-1 million people is 20,000 rubles.
3. Selection of personnel for a flower shop. The main employees of the flower shop are florists. It is recommended to take a responsible approach to the choice of a florist and hire professional staff, since the quality of the services provided depends on them. During the daily operation of the store from 9:00 to 21:00, two florists will be required to work in shifts.
4. Purchase of equipment. In a flower shop, it is necessary to maintain a temperature of +5º to +8º C, which is comfortable for flowers. To do this, you will need to install a specialized refrigerator. The cost of such equipment is 50,000-70,000 rubles, and the installation averages 20,000 rubles. To save money, you should consider purchasing used equipment - it will cost 20-25% less. You should also take into account small working equipment that florists will need to make bouquets - rubles are laid for this. Another important point is the installation of security and fire-fighting equipment, the cost of which will be an average of 30,000 rubles.
5. Search for suppliers of flower products. This point is one of the key when organizing a flower business, since the work of the store and the quality of the final product depend on the reliability of suppliers. The search for partners can be carried out through thematic forums and websites. The choice of suppliers is a rather responsible and painstaking work.
6. Planning of sales and purchase of flowers. Planning sales volumes is a very important stage, since the supply of flower products depends on it. Incorrectly calculated terms can lead to either store downtime or losses due to product damage. Another task follows from this - an established system for the delivery of flower products. Keep in mind that freshly cut flowers must be brought in every 4-5 days. Thus, it is planned to carry out 5 purchases per month every 5 days. To fill a trading area of 15-20 m 2, an initial purchase of approximately 70,000 rubles will be required. At the same time, the additional purchase of the assortment will amount to 10,000-15,000 rubles.
Flower shop sales planning is based on the seasonality of the flower business. Sales peaks fall on the following dates - February 14, February 23, March 8, May 9, September 1. Profit for these days can be 20-25% of the total profit for the entire month. In summer, demand drops significantly, although graduation and wedding days should be taken into account. An approximate schedule of revenue volumes by months is shown in fig. 5 - it shows the peaks and declines in flower sales.
Figure 5. Dynamics of sales volume of flower products by months
Predicting the income of a flower shop is quite difficult. In each case, it is necessary to carefully plan sales volumes, taking into account the price segment, region, competitors, etc. For the forecast in this project, average market indicators will be used. According to statistics, the volume of sales in a stationary store per month is 200-250 bouquets. Based on the fact that the store will present a variety of flowers - both inexpensive and premium - sales planning is based on a ratio of 60/40%: i.e. the number of inexpensive bouquets will be 120 pieces, and expensive ones - 80 pieces. The average price of bouquets in the inexpensive segment will be 300 rubles, in the expensive segment - 1500 rubles. On average, the monthly revenue will be 267,150 rubles.
Table 2. Planned sales of a flower shop
|
MONTH |
INEXPENSIVE SEGMENT |
EXPENSIVE SEGMENT |
REVENUE PER MONTH, RUB |
||||
|
SALES VOLUME, PIECE |
PRICE, RUB, |
REVENUE, RUB |
VOLUME OF SALES, PCS, |
PRICE, RUB. |
REVENUE, RUB |
||
|
September |
|||||||
|
Revenue for the year: |
|||||||
6. Organizational plan for a flower shop
For the functioning of a flower shop, you will need to form a staff:
- Cleaning lady (part-time), cleaning the premises 3-4 times a week.
The director is a store manager who combines the work of an accountant and a procurement logistics specialist. The director may be the business owner himself;
Florists - employees who are engaged in compiling compositions and selling bouquets;
It is planned to hire two florists who will work in shifts. Work schedule: 2 through 2. Practice shows that for a successful business, flower sellers must not only be able to make bouquets and get along with customers, but also know the psychology in order to offer the bouquet that the client wants to buy. This point should not be neglected, so when choosing florists, you should take it into account. wage fund will amount to 72,000 rubles, and taking into account insurance payments - 93,600 rubles per month.
Table 3. Flower shop staff
Since the list of services includes the delivery of bouquets, cooperation with a courier service is necessary. Currently, the market offers various options for courier services that are interested in cooperation with legal entities . The average rate of 1 delivery in the city is 250 rubles. Usually stores, providing such services, make an extra charge of 50-100 rubles. Since it is quite difficult to predict the popularity of this service, the profit from it is not taken into account in this project. In case of successful business development, it is planned to hire a courier driver who would deliver flower products. At the initial stage of the business, having such an employee on the staff is not profitable.
7. Financial plan for a flower shop
The financial plan takes into account all income and expenses of the project, the planning horizon is 3 years. It is planned that after this period the institution will need to expand its business. To launch the project, it is necessary to calculate the amount of initial investment. Approximately 43% of the initial investment is in the technical equipment and furniture of the store; 45% of investments - for the initial purchase of flower products and the formation of a fund for paying rent and salaries in the first months of work, for advertising and registration - 12%. Thus, the total amount of the initial investment will be 311,000 rubles. Own funds will be used to implement the project.
Table 4. Investment costs
|
Name |
Amount |
The cost of 1 piece, rub. |
Total amount, rub. |
|---|---|---|---|
|
Equipment, furniture, appliances |
|||
|
Refrigeration showcase |
|||
|
Split system (for commercial premises) |
|||
|
Floral table |
|||
|
Security and fire fighting equipment |
|||
|
Computer |
|||
|
plastic vases |
|||
|
Decorating tools, tools (scissors, stapler, wrapping paper, etc.) |
|||
|
Registration |
|||
|
IP registration |
|||
|
Making a seal, opening a cash register |
|||
|
working capital |
|||
|
Flowers and plants for floristry |
|||
|
Payment of salaries, rent in the first months of work |
|||
The fixed costs accounted for in the business plan consist of rent, utility bills, payroll, advertising costs, and depreciation. The amount of depreciation is determined by the straight-line method, based on the useful life of fixed assets in 5 years. The fixed costs of the flower shop also include tax deductions, which are not presented in this table, since their amount is not fixed, but depends on the amount of revenue. In the structure of costs, the share of the payroll is 47%, the purchase of flower products - 25%.
Table 5. Flower shop monthly expenses
8. Performance evaluation
The payback period for a flower shop with an initial investment of 251,000 rubles is 5 months. The net monthly profit of the project upon reaching the planned sales volumes will be 156,000 rubles. It is planned to reach the planned sales volume in the third month of operation. Profitability of sales in the first year of operation - 21%. The net present value is positive and equal to 88,312 rubles, which indicates the investment attractiveness of the project.
9. Possible risks of a flower shop
The flower business comes with a variety of risks to consider when planning:
- Fluctuations in the exchange rate and the likelihood of tightening customs policy. It is possible to reduce the impact of this risk by diversifying suppliers and purchasing part of the goods from domestic manufacturers;
- Loss of space or increase in rent. Since a favorable location largely determines the success of a business, changing it can entail significant costs. To minimize this risk, you should carefully choose a landlord and conclude a long-term lease agreement.
Flowers are a perishable commodity. In order to avoid losses, it is necessary to constantly monitor the market and forecast demand;
The likelihood of receiving low-quality or defective goods. It is possible to reduce this risk by choosing reliable suppliers and competently drafting a contract;
The cyclicity of the flower market and the episodic demand (seasonality). It will not be possible to completely eliminate the risk, but it is possible to mitigate its impact by opening new business segments and introducing additional services;
Mistakes in the estimation of sales volumes , which can lead to the disposal of 60% of all flower products.
It is possible to mitigate this risk by collecting statistical data: installing a sensor at the entrance to the store that counts incoming visitors. These indicators and sales statistics will allow you to calculate the optimal volume of purchases and draw up a weekly plan. Small flower shops adapt to the format of work within 1-2 months;
High level of competition in the market. It is possible to reduce this risk with a well-thought-out marketing strategy of a flower shop and the achievement of certain competitive advantages ;
The article describes the risks of running a flower business very well, but did not emphasize that one of the main factors affecting the success of this business is the location of the pavilion and the level of competition in the immediate environment. Why is it so?
First of all, because in large cities the population itself is heterogeneous. Neither by age composition, nor by income, nor by preferences. And this is important, because in different areas there is a different “average bill”, which directly affects the profitability of a business.
Secondly, where citizens with higher incomes live, the share of bouquets with a floristic component and having a higher profitability in the revenue structure will be noticeably higher than in areas where pensioners mainly live.
Thirdly, it makes sense to focus on “related” products and services and increase their share in revenue, since in most cases, their “profit on sales” is higher than the typical average markup on the main product.
Working on such projects, I was often asked: what flowers are most in demand? What should be the minimum purchases and product balances? What should be the markup? Unfortunately, only practical experience or careful study of the market can initially answer these questions. At the same time, he, the "experience" in each city, in each district is different. This must always be kept in mind.
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An entrance ticket to the Moscow floristic market can be purchased for $15,000. And the investment can be recouped in a year and a half. The ideal time to start is on the eve of March 8
Flowers for African friends
In the mid-1990s, a graduate of the Moscow State Technical University. Bauman Stanislav Kotomkin decided to congratulate his friends in a distant city and send them a bouquet. But it was not possible to implement a beautiful plan: there was no company in Moscow that would provide such services. So Kotomkin had the idea to create a company specializing in the delivery of bouquets.
The company he founded, AMF - International Flower Delivery Network, began operating in 1996. First, a website was created, on which, like on an advertising showcase, photographs of branded floristic works were placed. Site visitors first chose the bouquets or compositions they liked and made orders by phone. And in 1999, Kotomkin's company opened the SendFlowers.ru online store, where you can place orders on-line.
“Today we are the largest operator of the flower market in Russia,” says Maria Shipigina, General Director of the company. – We deliver bouquets in 740 cities of Russia and 195 countries of near and far abroad. In the rating compiled by the National Association of Electronic Commerce (NAUET), last year our online store SendFlowers.ru ranked second in terms of sales efficiency among Russian online stores.
The capabilities of AMF - International Flower Delivery Network can be judged by one recent order completed in the city of Bamako, located in the African country of Mali. No one has ever been able to deliver flowers to this part of the world. The Moscow managers of SendFlowers.ru quickly found a decent flower shop in Mali, where they made a bouquet according to the sample chosen by the Russian client and presented the gift to the local addressee.
The experience of Stanislav Kotomkin, although on a much smaller scale, has been repeated by many entrepreneurs today. Ten years after the creation of the company "AMF - international flower delivery network" in Russia, there are already more than 60 flower online stores. In Moscow, for example, more than 150 sites offer flower delivery services (one company can have several virtual sites). Although, at the same time, 80-85% of the capital's retail floristic market is still occupied by stalls and pavilions operating near the metro, in underground passages and next to crowded shopping centers . The third format of the flower business is specialized stores and salons, which are visited by those who prefer to choose gifts with their own hands and are ready to pay for higher quality.
Creators and artisans
Flowers, as you know, are a special, emotional product. When emotions play, we don’t think much about saving a few extra tens and even hundreds of rubles. Therefore, the standard retail margin for this delicate product is 150-300% of its cost. The cheapest bouquets are carelessly tied by the sellers themselves from what was at hand. The most expensive is an order made by professional florists from specially purchased fresh flowers, dried flowers, fresh fruits. An elegantly assembled bouquet is almost an art. And, in fact, along this line there is a line between a trivial outlet and a floristic salon. A place where art does not smell is a shop or stall. A company that knows how to make natural beauty even more elegant and offers exclusive services is a salon. But how she sells them - off-line or on-line - is no longer important.
Due to the high prices in Moscow, a small store positioning itself as a salon is able to generate an average monthly net income in the region of $5,000 or more (see table). And a company doing business on a grand scale (trading both through a physical store and over the Internet, working with both private and corporate clients) can well earn $ 25,000 before taxes.
Those who do not pursue exclusive beauty do not live in poverty either. The daily revenue of even a small pavilion can reach 20-30 thousand rubles.
“Every day two or three new shops or stalls open in Moscow,” says Galina Pergamenshchikova, president of the National Guild of Florists. - Beginners are attracted by the prospect of quick and good earnings. But a significant part is just as quickly ruined.
Economy option
The least risky floristic business model is an online store. To create it, it is enough to find a good florist, hire couriers, rent a small room - from 10 sq. m - under the workshop and open a site that acts as a virtual showcase. The total start-up costs for everything - rent, advertising, purchase of furniture, office equipment, flowers and accessories - will not exceed $ 15-20 thousand. This is quite a feasible investment for small businesses, and this is how many now flourishing floristic companies began their activities. With proper organization, the simplest Internet business can be promoted in a year and a half and start dreaming of creating a powerful website that allows you to accept payments in various forms and track supply chains. Certified authoring software for such a virtual store costs several hundred thousand dollars.
However, not everyone is set up for long-term and professional work. The low cost of the entrance ticket attracts many one-day companies to the virtual flower trade.
“They usually make themselves known on the eve of the holidays, when the demand for flowers grows several times,” says Maria Shipigina. - Before March 8, Valentine's Day, in December on New Year's Eve such "beginning businessmen" open a website and post spectacular floral compositions on it, shamelessly borrowed from the portfolio of well-known companies. Then it remains to recruit not very experienced florists and find where to buy cheap flowers. Having removed the foam, the company disappears until the next holidays.
In fairness, it should be noted that everyone makes good money on holidays - both market leaders and one-day ones.
Floristic business is characterized by seasonal fluctuations in demand. In the summer, during the holidays, sales decrease. Partially eliminate sales failures allow weddings that take place in the summer and early autumn. Then, in September, the rise in demand begins, reaching a peak around the New Year and in the spring.
“On the eve of March 8, all floristic companies are working in emergency mode,” confirms Roman Zarubin, art director of the Salvador Gardens Creative Floristry Workshop. - In a few days, the company can fulfill a two-three-month plan for turnover.
During the peak period of the year - from March 2 to March 11 - many flower shops, including virtual ones, make 10-15% of their annual turnover.
House of High Art
The disadvantage of online shopping is also obvious: many buyers do not trust virtual stores. Most, before placing an order, prefer to see the work of the company with their own eyes. Therefore, a natural step in the development of a flower delivery service that has come into business seriously and for a long time is the opening of a store with a real address. It usually offers a wider range of services and products than cut flower bouquets and arrangements: potted plants, gifts, accessories for home floriculture.
The highest level of the floristic business is luxury salons. There are about a dozen of them in Moscow. They specialize in the production of highly artistic flower compositions by order of clients, in landscaping services for offices, apartments, cottages, in the floristic design of mass holidays and social events.
In order for a flower shop to become a salon, it must acquire regular wealthy customers. A good salon is a podium for bouquets and flower arrangements that show the skill of florists. Therefore, the cost of building a "house of high art" is many times higher than for opening a stall - in the amount of $ 100 thousand. In addition, you need a room with an area of at least 70 square meters. m on a crowded street, and better - in the city center.
The moment when the salon receives public recognition can be considered the receipt of an offer to arrange flowers for a star party, a show program or make bouquets for famous people. Often such an order is carried out by barter. The salon arranges the premises at its own expense, and the organizers of the event advertise its services among the guests.
Dutch "disease"
During the year, a good salon operating in the center of Moscow offers from 250 to 500 varieties of cut flowers and the same number of potted plants. Prices are generally the same everywhere. The average cost of a finished bouquet or composition ranges from $ 100-150, and potted plants - from 500 to 8000 rubles.
– Muscovites love roses most of all. They account for more than 70% of cut sales, - says Roman Zarubin, art director of the Salvador Gardens Creative Floristics Workshop. - Chrysanthemums, carnations and tulips are a little behind in popularity. And among the exotic, the most popular flower is the orchid.
All floristic companies buy flowers from wholesalers. A dozen major importers control over 90% of the wholesale market. The largest of them are Starlight, 7 Flowers, Amadeus and Green Line.
Dependence on imports is the “Achilles heel” of the Russian floristic business. A significant increase in the exchange rate of the dollar and the euro, customs duties and transport tariffs every time makes everyone worry - from the owner of the most nondescript tent to the owner of the most sophisticated salon. However, as far as profits are concerned, much depends on the purchasing policy. Floral firms with experience are able to predict demand in such a way as to work without losses. And for beginners, at first, 20-50% of plants remain unsold.
Approximately 80% of the flowers come from Holland, where wholesalers buy at auctions. The Dutch are engaged in floriculture on an industrial scale. Here, at any time of the year, you can buy almost any plant used in floristry: lilies of the valley in December, lilacs in January, etc. Today, our country is one of the ten largest importers of Dutch flowers.
Few of the Russian farms grow flowers. In terms of quality, their products are inferior to foreign ones, and florists prefer not to mess with them. However, the situation may change in the near future. Six months ago, the Russian company Urals Energy, together with the large Dutch flower growing company Revaho, built a rose plant in the Kaluga region. The Rose Garden joint venture is designed to cut up to 2 million plants per year.
Two in one: florist-psychologist
At the origins of many famous salons are entrepreneurs who started in the 1990s as simple florists. And this is no coincidence. The skill of a person who invents and composes bouquets is the basis of success in the floristic business. There are clearly not enough of those on the market yet. After all, to become a good master, it is not enough to have an innate artistic taste. It is necessary to go through several stages of training.
“The training of a highly qualified florist lasts at least two years,” says Galina Pergamenschikova. - Studying includes a phased development of theory with its subsequent consolidation in practice - in the cabin.
Learning the basics of floristry in short-term private courses costs several hundred dollars. Mastering the academic program - $ 6000. The most famous and respected Moscow academies are "Nicole" and "EF Design", where people come to study from all over Russia - floristic salons are increasingly opening in other large cities.
But skill is also not enough. In small companies, florists not only make bouquets, but also take orders from customers. And this also requires them to master the basics of sales.
“The backbone of any salon is regular customers, both private and corporate,” notes , financial director of the Flowers on Sretenka salon. “If a visit to your firm leaves them fond memories, they will come to you whenever flowers are needed.
However, if the floristic salon seriously intends to fight for the largest customers, such a combination of functions will no longer work. Decorating magnificent weddings, holidays in large companies with flowers, servicing wealthy businessmen who order flowers for their beloved women on March 8 for $ 2000-3000 - only a professional sales manager can handle such tasks. Ideally, if he is equally well versed in colors, and in the design of contracts, and in people. Indeed, sometimes the success of a transaction depends on the subtlest understanding of the mood and needs of a person ordering a luxurious bouquet.
“Not so long ago, a man of about 40 approached us, who decided to make a gift to his ex-wife,” recalls Tatyana Makurina, corporate client manager at Flower-shop.ru salon. - The situation was twofold: he wanted to show respect for the person with whom he was once closely associated, and at the same time he was afraid that he would receive the flowers back. I talked with this client for several days, choosing the perfect bouquet. He called me - and we talked for a long time about the habits and tastes of his ex-wife. As a result, we received an order for a basket of white lilies for about $400, although initially there was talk of only $50. The woman was shocked. And the man then specifically called to thank.
HOW MUCH CAN YOU EARN?
A floristic salon that sells at least 10 bouquets a day at an average cost of $100 can count on such a result. The calculation is based on a survey of entrepreneurs.
MOSCOW FLORISTICS
Market size
- 2003 - $120-130 million
- 2004 - $150-160 million
- (according to unofficial data - over $500 million).
- The forecast for 2010 is $1.2 billion.
Rates of growth
- On average - 23% per year.
Market saturation
- In Moscow, there are hundreds of small flower shops and about 40 flower shops of various classes.
More than 150 websites offer flower delivery services.
Ideal floristic salon*
- Location: on crowded streets, busy freeways, in the front row of houses; parking is required.
- Premises: retail space of at least 70 sq. m, ancillary areas of about 100 sq. m with refrigerators.
- Staff: an experienced team of florists, administrators, couriers.
* At the request of potential investors.
Floristic salon revenue structure
- Sale of bouquets and arrangements of fresh cut flowers - 35%
- Phytodesign - 25%
- Sale of compositions from dried flowers - 10%
- Sale of potted plants - 12%
- Flower delivery - 5%
- Sale of accessories for home floriculture - 3%
- Sale of related products (souvenirs, soft toys, sweets) - 10%
Average monthly profit
- Online flower ordering service - $2500-3000.
- Middle class flower shop - about $5000-7000.
- Luxury floristry salon - at least $ 8,000-10,000.
Efficiency of buying a ready-made company
- Business format: a flower shop with a staff of 5 people and a turnover of $10-12 thousand.
- Location: northwest of Moscow.
- Object cost: $35 thousand (in 2005).
- Expected payback period: 1 year.
"The soldier who does not dream of becoming a general is bad."
This winged aphorism of A. Suvorov is the best suited to the needlework world. There are no bad soldiers among us! We are all always striving for the best. And then a day comes when this or that hand-made product is asked to be sold or made to order.
And here, many invariably "attacks" panic))). And most often it is not what and how to be done that torments, but a more prosaic question: "How to determine the cost?" There are many economists among the masters of the Fashion Hobby Club, so instead of panicking, we just sit down and count)).
In the blog, we have already shown an example of calculating the cost of a handmade postcard, and today I would like to offer an example of calculating the cost of a bouquet of sweets.
| Basket "Coffee in the snow" |
This article will be useful not only to my companions in needlework, but also potential customers for a price guide.
I will show two methods for calculating the cost of a bouquet of sweets: detailed calculation and an enlarged-generalized method. (Please note that the prices indicated in the calculation are no longer valid))
Let's calculate the cost of a large basket of sweets "Coffee in the snow".
1. Detailed calculation.
Here it is necessary to remember and scrupulously write down everything that was used in the manufacture:- Sweets Eclair milk . The price of 1 kg is 187 rubles. There are an average of 24 candies in 100 grams. The cost of 1 candy is 18.7 rubles: 24 pieces = 0.78 rubles. Bouquet contains 63 pieces x 0.78 rubles = 49.14 rubles.
- Sweets with coffee filling . The price of 1 kg is 270 rubles. In 100 grams, an average of 8 pieces. The cost of one candy is 27.0 rubles. : 8 pcs = 3.38 rub. In a bouquet 39 pieces x 3.38 rubles. = 131.82 rubles.
- Bank of coffee Black card Gold Arabica - 220 rubles .
- Wicker basket - 360 rubles .
- Corrugated paper. I count blue and brown together. Spent 2 m x 20 rubles. = 40 rubles.
- Floral film . Used with blue and white pattern. It took 4 m x 15 rubles for the pounds. = 60 rubles.
- Taplet . Almost a whole skein of brown and a little white has been used up. I think for 1 piece x 90 rubles. = 90 rubles.
- Foundation . In this basket I used mounting foam. The large bottle was enough for 2 baskets. 1/2 piece x 220 rub. = 110 rubles.
- Glue sticks . Consumed 4 pcs. x 12 rub. = 48 rubles .
- Birch skewers . Packing 100 pcs. purchased for 60 rubles. The cost of one stick is 60 rubles. : 100 pieces. = 0.60 rub. Used 46 pcs. x 0.60 rub. = 27.60 rubles .
Plus not included:
- toothpicks
- Staples
- use of scissors, stapler, glue gun
This is the net cost of materials used.
Plus the work of the master. Here already individually. On the one hand, when composing compositions from fresh flowers, phytodesigners take from 20% of the cost of the "material" used. But we have each flower is made by hand! And I sat over this basket for two evenings. Less than 400 rubles. I don't rate my work.
The total cost of a basket with a bouquet of sweets is 1600 rubles.
2. Enlarged method.
When you are asked about the cost of this or that bouquet, you will not calculate penny grams every time. A more sophisticated way is needed.From the experience of the collected bouquets and the materials used for them, I came to the following calculation:
- 1 sprig of sweets - 15 rubles,
- 1 flower of a simple form (rose bud, crocus, bell) - 20 rubles.
- 1 flower of a magnificent / complex shape (rose, poppy, narcissus, chamomile, peony, iris) - 30 rubles.
- Rosebuds 39 pcs. x 20 rub. = 780 rubles.
- Twigs 7 pcs. x 15 rub. = 105 rubles.
- Coffee 220 rub.
- Bouquet base. Bouquet in a basket - 360 rubles. plus the base itself - I estimate about 100 rubles. for such a volume. Total 460 rubles.
- Plus for the assembly (the so-called "unaccounted for") and the decor of the bouquet. Usually I add, depending on the size of the bouquet, from 100 rubles. Here the basket is large, but there is no additional decor in the form of butterflies, dragonflies, etc. I will add 100 rubles.
The difference from the previous calculation is insignificant. And I always round up the enlarged cost in one direction or another, depending on the bouquet. So here the same 1600 rubles come out.
