First the bad news: When it comes to planning for a profitable Valentine’s Day, “there are no secrets,” said Paul Goodman, MBA, PFCI, a longtime floral industry financial pro. Now, the good news: Practical, actionable advice can set up any retailer for a holiday success. “Valentine’s Day profitability is really about smart management,” explained Goodman.
Paul Goodman, MBA, PFCI
Holiday profitability was the focus of a recent Society of American Florists virtual event headlined by Goodman, a longtime contributor to Floral Management. During the 30-minute session, which included time for a Q&A, Goodman detailed three core areas (productivity, controlling COGS and staffing) that every retailer needs to prioritize every year — and especially during a holiday that falls on the Sunday of a three-day weekend in a pandemic.
He also tackled a question high on the mind of every retailer moving deeper into holiday prep: What the heck to expect this year? “Normally a Valentine’s Day on a Sunday is going to have a decrease in volume,” Goodman said. “However, this year, we have the ‘COVID effect’ — sales overall have actually increased for flowers. Because of that, I think there will be a COVID effect for Valentine’s Day.”
Goodman’s advice: Track sales closely in January and compare those in real time, year over year, to your 2020 returns. Those trend lines will help inform your thinking regarding how much, or how little, the pandemic could shift your Valentine’s Day returns this year.
“If you are seeing an increase in sales , you can expect a COVID effect for your business for Valentine’s Day,” Goodman said. He also noted that many larger florists he’s talked with are planning to be about on par with 2020 returns, when the holiday fell on a Friday.
Read more about industry members’ expectations for Valentine’s Day.
The full Goodman session, which is free to SAF members, is available to watch at members’ convenience. Plus, mark your calendar for Jan. 19 at 2 p.m. ET and Goodman’s follow-up session on financial decisions involving holiday delivery. Register today.
Mary Westbrook is the editor in chief of Floral Management.