Welcome back to the Pricing Etiquette series! In this third and final installment, I'm diving deep into the mistakes many wood flower florists make when pricing their creations. Part 1 was all about Establishing your Quality Markup while Part 2 was about the added value of your artistry when establishing labor costs. In this part, we're going to dig deep into what NOT to do - in case Part 1 and 2 weren't exactly what you wanted to hear.
Pricing isn't just about picking a number that feels right—it's a strategic process that reflects the value of your work, ensures your business is profitable, and helps elevate the industry as a whole. It is also not easy. So don't be too hard on yourself if you find yourself doing any of them. It took me years to not do many of these below!
To help you avoid common mistakes, I've compiled a list of 20 mistakes you should steer clear of when pricing your handmade wood flower arrangements:
1. Guessing What Someone Will Pay
One of the most dangerous pricing mistakes is setting your prices based on what you think customers are willing to pay. While understanding your market is important, guessing can lead to inconsistent pricing that doesn’t reflect the true value of your work in both the quality and artistry you put into it.
Tip: Research your market, understand your cost of goods, and base your pricing on concrete data, not assumptions.
2. Not Knowing Your Cost of Goods (COG)
Your cost of goods includes everything that goes into creating your product—materials, packaging, and even shipping. If you don’t know how much it costs to make your product, you’re likely to set prices that don’t cover your expenses. I have a blog about Understanding your Cost of Goods Sold here that you can read when you're done with this one!
Tip: Calculate the cost of every component in your product and use this as the foundation for your pricing. In Part 1 of this Pricing Etiquette Series, I write about the quality of the goods you source being an important factor.
3. Underpricing to Undercut Competitors
Lowering your prices just to be cheaper than your competitors (especially local competitors if you have other wood flower florists near you) is a short-sighted strategy that can devalue your work and the industry. It also puts pressure on others to lower their prices, creating a race to the bottom instead of rising to the top and elevating everyone as we rise together. You don't want to be the lowest price, you want to be the best designer and to be paid as such. Come at pricing with an abundance mindset and use them to help determine value-based pricing advantages with how you package your unique offers.
Tip: Focus on what makes your product unique and valuable, rather than competing on price alone. Perhaps if another wood flower florist (or faux or fresh florist for that matter) is a competitor, you may want to establish a brand presence that creates community and adds more value because of the artistry and longevity of what you do.
4. Ignoring Your Time and Labor
Your time is one of your most valuable resources, yet it’s often overlooked in pricing. If you’re not factoring in the hours that you spend crafting your products, you’re effectively working for free. Please don't work for free.
Tip: Assign a reasonable hourly wage for yourself and include it in your pricing calculations. I go deep into this at the end of Part 2 in the Pricing Etiquette Series - including hourly rate suggestions based on your artistry.
5. Setting Prices Based on Emotion
It's common to let feelings of guilt or fear affect how you price your work, but this can lead to undervaluing or overvaluing your level artistry. Remember, you deserve to be paid fairly for your skill and effort. Keep in mind that you likely aren’t your own ideal client. You’re not targeting those who think, "I could make that!"—instead, you’re appealing to people who value the time, artistry, and uniqueness of your creations. Don’t let the assumption that no one will pay a fair price lead you to undervalue your creations.
Tip: Base your pricing on data, not emotions. Confidence in your prices comes from knowing your value. Be sure to reference Part 1 and 2 of this series if you haven't read them yet!
6. Failing to Adjust Prices Over Time
Costs change, and so should your prices. If you’re not regularly reviewing and adjusting your pricing, you might find that your profit margins are shrinking over time. I also argue that as you work with wood flowers longer, you are able to add to your labor costs as a result of improving your artistry by using the elements of art, principles of design and color theory to enhance your designs aesthetic value. I offer a color theory course specifically for wood flower florists to help with just this - and believe that after taking it you should raise your labor cost to hep cover the cost of the course and increase your profit margin overall.
Tip: Review your prices at least once a year, or whenever your costs increase, to ensure they still reflect your expenses and market conditions. I personally review my prices every launch I add to my website, and as I add new product designs.
7. Not Accounting for Overhead Costs
Beyond the direct cost of materials, your business either has or will eventually have overhead expenses like rent, utilities, marketing, and more. Ignoring these costs can lead to underpricing and financial strain. I advise my coaching clients who are looking to scale into a brick-and-mortar space or a studio outside their home to start pricing their products as if these overhead costs are already in place. This allows you to test the market and determine if your business can support the necessary price increases or cost reductions to achieve the profit margin needed to cover these expenses. If you ever need guidance on planning this process, I’d love to help in a coaching call.
Tip: Allocate a portion of your overhead costs to each product to ensure you’re covering all your expenses. This could be a percentage or a dollar amount that allows you to make goals and plans around how many pieces as what prices you need to sell monthly to cover your expenses.
8. Pricing the Same for All Products
Not all products are created equal, and neither should their prices be. Using a one-size-fits-all pricing model doesn’t account for differences in materials, time, or complexity. I price my succulent gardens individually with design when creating larger pieces. I only add a blanket price for my smaller items that I know have a huge profit margin and take little labor cost to create.
Tip: Price each unique product individually based on its one-of-a-kind attributes and production costs, even if they have similar elements or aesthetics as other products in your collections.
9. Not Considering Your Target Market
Your ideal customer plays a big role in determining your pricing strategy. If your prices don’t align with your target market’s spending habits, you might struggle to make sales. When defining your ideal client, consider who you are marketing to now versus who you want to be marketing to. (Does your local area include your ideal client or do you need to reach our further?) Do they value your artistry or are they bargain shoppers? Create your target market and ideal client based on a variety of factors like psychographics instead of purely demographics.
Tip: Understand your target market’s expectations and set your prices to match their perceived value of your products. If you are singing up for markets - consider the different clients that attend flea markets versus artisan markets or wedding markets versus craft shows.
10. Ignoring the Value of Your Brand
Over time, your brand gains value as you build a reputation for quality and reliability. Failing to price in this value can lead to undercharging for your products. Consider how long you have been in business and if this pertains to you. As you grow your hobby to a business or from a side gig to a full-time job, you can keep this in mind when reviewing your prices yearly.
Tip: Reflect your brand’s reputation and uniqueness in your pricing to justify higher price points but remember not to price yourself out of your target market.
11. Failing to Include Profit Margins
Your pricing should not only cover costs but also include a profit margin that allows your business to grow. Without profit, your business won’t be sustainable.
Profit Margin (%) = [(Selling Price - Cost of Goods) / Selling Price] x 100.
Tip: Determine a reasonable profit margin and include it in your pricing calculations to ensure long-term viability. You need to know this to understand how low you can ever "discount" items if you choose to do so.
12. Discounting Too Often
While discounts can drive sales, offering them too frequently can undermine the perceived value of your products and train customers to wait for sales. Don't be Kohls. Be Nordstrom.
Tip: Use discounts sparingly and strategically to maintain your product's perceived value.
13. Pricing Based on Competitor’s Rates
It’s natural to look at what others are charging and feel like you should follow suit, but remember: your journey, your costs, and the value you bring are uniquely yours. What works for them may not fit perfectly for you, and that’s okay. Pricing isn’t just about numbers—it’s about honoring the experience and effort behind those numbers. The truth is, those who have been in business for nearly a decade or more have had the time to refine their pricing based on hard-earned wisdom and experience. You’re building your path, and it’s important to set prices that reflect where you are now, while still honoring your worth. Your success will come from finding the sweet spot that works for you, not from mirroring someone else’s journey. And remember, the competitor you’re comparing yourself to might not even be hitting their own profit goals. Trust your process, and know that you’re capable of finding a pricing strategy that leads to your success. I’m rooting for you!
Tip: Focus on your own business model and costs when setting prices, rather than copying competitors.
14. Not Charging for Customization
Personalized and custom-made items require additional time and resources, so they should be priced accordingly. Failing to charge for these extras is a common mistake.
Tip: Establish a pricing structure for custom work that reflects the additional effort and materials required. I like to increase my hourly wage or do an extra labor cost for custom work.
15. Ignoring Seasonal Demand
Some products sell better during certain times of the year. If you’re not adjusting your prices to reflect seasonal demand, you might be missing out on potential profits. I'm not saying to be immoral and just raise your prices to get more money out of your buyer, but to consider your own time availability to make all of the products in demand. Say around Valentine's Day that you offer premium pricing on your two dozen bouquets. If they take you MUCH longer than the single stemmed roses, you may want to charge a premium for them. Or vice versa, you increase your single stem price to $10 instead of $9 for the whole first and second quarter because it is peak season for Valentine's Day, Prom and Mother's Day and you know that this is a best seller that could potentially make you much more than the one-time two-dozen roses item you listed.
Tip: Consider raising prices during peak seasons when demand is high and lowering them during off-peak times. If this doesn't feel right, you can run an off-seasonal sale as a way to move product that hasn't sold and justifies your premium pricing year-round.
16. Undervaluing Your Expertise
Your skills and experience are part of what makes your product valuable. If you’re not factoring these into your prices, you’re likely undercharging. You definitely need to read Part 2 if this sparks more thought for you!
Tip: Recognize the value of your expertise and include it in your pricing strategy.
17. Failing to Communicate Value
Even if your prices are fair, customers need to understand why your product is worth the cost. If you’re not communicating the value of your product, customers may balk at the price. It's my least favorite part of being in a new industry where so much of the general public has NO IDEA what a wood flower is, how it is made, where it comes from, how you create with it, or why it is so awesome. It is a weekly task that I think needs to be in your marketing strategy.
Tip: Highlight the artistry, quality, and uniqueness of your products in your marketing to justify your prices as well as educate your audience about wood flowers in general.
18. Not Offering Tiered Pricing
Different customers have different budgets, and offering tiered pricing can help you capture a wider audience. Failing to do so can limit your market. For example, my business offers small succulent gardens for a $25 price range and goes up to succulent gardens for $100+. This way, small giftable items are readily available, and larger gifts for memorials, or group gifts are too. I do the same with Single, Duo and Trio Bouquets as well as one dozen, a half dozen and two dozen flowers. I also offer a 4x4x4 wooden box and a 5x5x5 wooden box that vary in price by at least $75.
Tip: Consider offering similar products at various price points to appeal to a broader range of customers.
19. Overcomplicating Your Pricing Structure
While it’s important to be thorough in your pricing, making it too complex can confuse customers and deter them from making a purchase. When offering products at different ranges, make different listings.
Tip: Keep your pricing structure simple and transparent to make it easy for customers to understand and for you to track.
20. Not Testing Pricing
Pricing isn’t set in stone, and it’s okay to experiment to find what works best. If you never test different price points, you might be missing out on opportunities to optimize your profits. I sold out of three launches in a row back in 2021 of the same item: candle bouquets. So I started raising my prices from the $50 price point I totally guessed at (yep... common mistake number 1) and I then looked into the cost of goods and my profit margin and determined a $75 price point was actually a much better price. I offered the next launch at the hugely inflated price point (in my opinion, that was a huge bump!) and I sold out again. I raised them to $85 and I didn't sell out, but I did sell a lot while leaving some residual inventory. I found that the $75 price point was ideal for the size of candle and circumference people wanted. So I started adjusting my sourcing to optimize my profit margin. I also have a market research group that I call NWB Insiders and I feel comfortable asking people for their price ranges for upcoming gifting seasons and which designs or color schemes they like better. Always use market research! Never be afraid to actually ask your audience for their insights. It helps gain trust and community building too!
Tip: Periodically test different pricing strategies to see what resonates most with your customers.
So now that we are three parts into this series, I think we can determine that pricing your handmade creations is both an art and a science. By avoiding these 20 common mistakes, you can ensure that your prices reflect the true value of your work, support the growth of your business, and contribute positively to the wood flower industry. Remember, pricing isn’t just about making sales—it’s about valuing and evolving your artistry, your time, and the unique products you bring to the world.
Let’s commit to pricing our creations with care and intention, so we can all thrive together. 💪
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