How to calculate gross margin rate when reselling flowers ?
These floral arrangements were designed and made by our students under the directions of instructors during real lessons in the classroom of California Flower Art Academy where you can learn floral arrangement by way of hands on training of ONE ON ONE instructions (semi private lesson).
Suppose you are the owner of floral shop and selling cut flowers and flower related merchandise such as vase, comport, floral foam (oasis) etc etc. No matter how high level of floral design skill you have and how beautiful shop you have, if you do not pay careful attention to the profit and gross margin earning from daily operation, your business will be screwed up.  |
Especially when setting up a sales price after procuring merchandise from a floral market, the way you calculate will seriously affect the profitability of your sales activities. For people who are business savvy and quite familiar with simple calculation method, what we are talking in this section MIGHT sound like a trifling matter and they MAY say it is a common sense or publicly known things that everybody is familiar with. Suppose you procure a very expensive vase at a flower market for $100. You would like to make 30% sales profit (gross margin) on the price at you sell to your customers, how are you going to calculate ? We find many people say the calculation is as shown below:  |
(A) $100 x 1.30=$130. You multiply the buying price by 1.30 (because you want to make 30% gross margin). Is this correct ? Answer is no. Right calculation is as follows:
(B) $100 divided by 0.70=$142.86 (correct selling price is $146.86).
$142.86 includes 30% gross margin in the selling price. However $130 includes only 23% gross margin. California Flower Art Academy offers a Wide Range of Programs for European floral arrangement and also Japanese Ikebana. If you are interested in learning floral designs at our school, you can choose your favorite program from above list. If you have no previous experience in floral arrangement, we recommend you to sign up for under mentioned programs:
A. European arrangement: B. Japanese floral art:
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