Valentine’s Day Prep: Inflation Busters to Ease Sticker Shock - safnow.org

Bundling roses with chocolates or other add ons is a great way to head off online price shopping.

Prices have gone up on nearly everything thanks to inflation, and everyone — including your customers — has noticed.

While the rate of inflation dropped to 6.5 percent in December from its peak of 9.1 percent in June, consumer spending slowed last month, according to the Federal Reserve Bank of New York.

As Valentine’s Day approaches, how do you help your customers’ wallets feel the love? Several industry professionals offered their tactics, which include differentiating products to avoid falling victim to price shopping, adding value to products, and being transparent with customers.

Head Off Price Shopping

With so many consumers shopping online, the first line of defense is heading off price shopping — especially for popular flowers.

“The answer this Valentine’s Day is to bundle roses,” says Dan McManus, founder of TeamFloral, a marketing consultancy. “That’s the only arrangement a consumer can price shop.” Plus, he adds, men like bundles because it makes shopping easy.

He recommends offering three tiers of pricing and strategically “bundling” in add-ons. For instance, a florist might offer a half dozen roses with other types of flowers mixed in for $99; a dozen roses with an add on, such a plush, candles or essential oils, for $149; and a deluxe arrangement of roses with an add on for $199 (“That’s there to make the $149 bundle look less expensive,” McManus says.)

Add Value

For the last six years, Kennedy’s Flowers in Michigan has been offering refillable petite vases that allow customers to get free flower refills for a certain amount of time. The flowers cost around $5 wholesale per fill because of the vase size, and in order to keep things running smoothly, three years ago the shop began pre-making refills and keeping them in the back cooler so they’re ready when customers arrive.

“We average anywhere from $5 to $15 per refill depending on the vase,” says design manager Holly Haveman. “Sometimes people come in and shop, and other times they simply come for free flowers, however, when customers come into our store, it keeps us top of mind and gives us a chance to build a relationship.”

To provide variety, Kennedy’s has six refillable vases that are available different times of the year. For Valentine’s Day, the shop is selling the Queen of Hearts vases, which are $79.

“We like them because they are petite vases, so they’re not huge to fill, and they last longer than just the initial day and week of Valentine’s,” says Haveman. “Queen of Hearts is popular as a traditional Valentine’s arrangement, as an add-on to a bigger arrangement, and also as a gift from women to women—think Gal-entine’s—and from women to themselves.”

Carma White of Four Seasons Flowers in San Diego offers a subscription service so customers can receive between 10 to 20 percent off on flowers—depending on how much of a time commitment they make— with the dollar value starting at $30. This allows customers to get what they want, when they want it, and they can have as much or as little variety in their orders that they want.

“We have people that get a $30 wrap and they pick it up once a week,” says White. “We also have somebody that comes in seasonally, and he loves it because he says the flowers last longer and the variety changes so much. Customers who used to get flowers at the grocery store every week when they went shopping just love the diversity with us. That’s huge.”

Be Transparent

No matter what strategy you choose during these challenging financial times, Jodi McShan of McShan Florist, Inc. in Dallas advises that florists resist the temptation to lower prices in the hopes of luring customers into their shop.

“Florists shouldn’t be afraid of prices,” she says. “Everyone sees increased prices, from gas to eggs and beyond. Consumers are used to increased pricing, but florists always seem to be fearful of prices.”

She’s found that explaining how costs across the supply chain have risen helps her customers understand their pricing.

“Education is key,” she says. “Don’t just your prices, explain to customers what is going on—shipping costs, employee pay and benefits, costs of goods, etc. Yes, you may lose a couple of customers, but proper pricing will more than cover the couple of lost customers.”

Kenya McCullum is a contributing writer for the Society of American Florists.

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