Posted:  30 Nov 2012 08:26   Last Edited By: teddij
Registered User Currently Offline Join Date: Nov 2012	Posts:  1 Reputation: Unranked User Rank: 1 - Seedling
My name is Teddi and I am new to this forum. I was previously a florist and now I am working as a scaper and loving it. It was an easy transition since I worked in floristry, making color bowls is my favorite. I do have a question... I am nervous my pricing may be too high and I am  having a hard time getting comps in my area.  I charge $300 initial set-up fee for a site with aprox 20 plants/varying sizes. Then I recoup my losses on expenses over the next two months of billing, so that by month 3 my plants and containers have been paid in full by the client and I am bringing in mostly profit in my monthly fee. Any thoughts? What formula have you used to price out a job? Thanks so much and I really appreciate all the info I have been reading.

Posted:  01 Dec 2012 18:32
Registered User Currently Offline Join Date: Jan 2011	Posts:  798 Reputation:  43 User Rank: 10 - Blossom
Sounds like a lease in some respects, but your details are a little sketchy.  Here's how we do it: If an outright sale for a new account, we expect COD for the plants and containers and installation fees, which will depend on the size of the order.  If a lease, you still want to be paid up front for the installation costs (your labor doesn't get paid on the layaway plan, right?), and you would amortize the cost of goods over whatever time frame you agree upon with the client (but you want to recoup costs within 6-12 months maximum).  We usually do 24 or sometimes 36 month lease terms, so after the costs are recouped (separate from the ongoing maintenance portion of the monthly billing, of course), what remains is a monthly shot of profit.  There is very little residual value in interior plants or containers after 2 or 3 years in most cases (unlike leasing a Mercedes), so that's not much of a consideration in pricing leases.  You should of course factor in the cost of financing the lease, and that will depend on your situation (using credit card to finance, or bank financing, or self-capitalized investment). Use your landed (delivered to you) cost of goods to calculate your lease figures.

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