Navigating cut flower pricing part two (SFFF35)
(The Six Figure Flower Farming Podcast, Episode #35)
Episode Summary:
In this episode, Jenny delves into the complexities of flower pricing, building on the previous discussion about industry standards and cost considerations.
She outlines three primary pricing methods: cost-plus pricing, value based pricing, and market based pricing, emphasizing the importance of understanding production costs, perceived value, and market conditions.
Jenny also discusses pricing markup formulas and the significance of brand positioning in determining prices. The conversation concludes with a reminder that effective pricing strategies require a deep understanding of individual business circumstances and your own individual market dynamics.
Key Takeaways
You must know your costs of production to price effectively.
Pricing involves understanding perceived value and market conditions.
Cost-plus pricing is a basic method but may not reflect prices your market can bear.
Value based pricing allows for capturing higher profits based on customer value perception.
Brand positioning significantly influences the perceived value of products.
Market-based pricing can lead to competition based solely on price.
Conduct market research to understand local pricing dynamics.
There is no one-size-fits-all markup formula for pricing.
Every flower farm has unique pricing strategies based on various factors.
Understanding your costs is essential for ensuring profitability.
Chapters of Interest
00:00 Understanding Flower Pricing Basics
06:08 Cost-Plus Pricing Explained
11:51 Market Based Pricing Considerations
17:47 Final Thoughts on Pricing Strategies
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