Title: Price merchandise and floral design work.
Course: Floriculture (18052-II) > Section: Understanding Marketing and Business Management

Pricing should include

- a cost analysis of floral arrangements (e.g., bill of materials)
- calculation of the cost of greenhouse crop merchandise (e.g., bench space efficiency)
- the ratio mark-up method of pricing
- the percentage mark-up method of pricing
- other methods of pricing merchandise and services including software used for determining profits for floral recipes and services provided for weddings, seasonal arrangements, the funeral industry, etc.

Process/Skill Questions:

- What is the unit cost of goods?
- What expenses are incorporated into overhead?
- How are retail prices determined, using the ratio mark-up method?
- What other method or methods may be used to price merchandise?
- How can services be priced?
- How is tax calculated?
- Why is it important to make at least a 70 percent profit on the cost of flowers and supplies?
- What happens if one fails to apply the proper markups and design fees?