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Silk flowers offer beauty of fresh flowers but can last several years, instead of a few days, before needing replacement. With the wide variety of types, color, and quality, silk floral arrangements are designed to meet the needs of decorating styles and the budgets of the customers. It can be difficult task to price one's own work, but some calculations will help you set a standard that will reward both designer and buyer with fair and reasonable pricing.
Step 1
Add the prices for all the supplies used in making the floral arrangement including the container, floral foam, silk flower stems, floral wire, and floral tape. If you used only a partial amount of some supplies, estimate a percentage used and multiply the total price by the percentage to get the cost of the materials.
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Step 2
Calculate the time used to make the silk floral arrangement. Decide what hourly pay rate you want to make from selling the arrangements. Multiply the time used with the hourly rate desired. A common range for handmade items is $10 to $15 per hour.
Step 3
Add the total price of the supplies with the total labor costs to set the approximate price.
Step 4
Include an amount to cover indirect costs such as utility costs, equipment used, and supply or order delivery costs. For example, when using 25% of your home as work space, divide that cost into the aproximate amount of arrangements you make annually. Figure in the depreciation of equipment, such as a replacement glue gun after 2 years of use, then divide the total cost into the average amount of arrangments made within that time. This amount will reflect the costs you incur in creating your floral crafts.
Step 5
Adjust the price if you feel it is too high or too low compared to competing sellers in your area. Look online to see how much Internet sellers charge, especially if you will sell your own arrangements this way. This also gives you an idea of the prices you'll compete with if you don't. Make sure you set the price to cover at least the cost of supplies and still allow for a profit by adjusting your hourly rate.
Tip
If you are able to purchase floral supplies on sale, you can charge the regular price to increase your profits or be able to also offer some arrangements wholesale to retailers or corporation. You can purchase wholesale if you have a state business tax certification. Also national craft supply stores often hold sales of 40 to 50% off their floral stems. Research the costs of buying supplies online; this may work out cheaper.
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