14 



The Florists' Review 



OCTOBBB 4, 1917. 



are trying out the Ford car in conjunc- 

 tion with our Whites for the smaller 

 loads and we find that this can be op- 

 erated on a basis of 11.5 cents per mile. 



"It costs anywhere from 34 cents to 

 40 cents per package to make a deliv- 

 ery. The location of the store changes 

 this item. In our case the average 

 value per delivery for the last year has 

 been $4.01 each. 



"You will also note that we have 

 found the amount of money that we 

 carry on our books will average about 

 18.4 per cent per month for the entire 

 year. 



' ' Our own business, being more of 

 the telephone than the transient trade, 

 is represented by 32.3 per cent of cash 

 sales and 67.7 per cent charge sales. 



"It is our judgment that plants pur- 

 chased for resale should be figured on a 

 basis of three for one. In other words, 

 if a plant costs $1 it should be sold for 

 $3. If this plant is placed in a basket, 

 the basket should be figured on a basis 

 of two for one in addition. If this 

 plant was placed in a basket costing 50 

 c'ents, the complete article should sell 

 for $4. 



' ' Cut flowers bought for resale should 

 be figured on a basis of two and one- 

 half for one, and preferably three for 

 one. That is, carnations costing $4 per 

 hundred should sell for $1.50 per dozen. 

 Eoses costing $8 per hundred should 

 sell for $3 per dozen. 



"In figuring made-up work, we be- 

 lieve that the maximum to be allowed 

 for the cost of the raw stock should not 

 be to exceed 33% per cent of the re- 



tail price of the finished article, deduct- 

 ing the selling price of the basket that 

 the flowers are arranged in. As an il- 

 lustration, where you aim to make a 

 $5 basket, if this basket costs 50 cents, 

 according to the previous figures it 

 would sell for $1 without any flowers. 

 You will then have to deduct from $5, 

 $1, leaving the balance $4, and the cost 

 of the flowers in this basket should be 

 one-third of $4, or $1.33, this to include 

 flowers and greens. This illustration is 

 figured on a maximum allowance, and 

 you should, wherever possible, aim to 

 make that even less than one-third; 30 

 per cent would be much better. Of 

 course your ability to buy will be a fea- 

 ture that will govern this situation more 

 or less in every detail. 



' * We recommend that steps be taken 

 to make our prices more uniform 

 throughout the entire country and sug- 

 gfest that a committee be appointed to 

 work out this phase of it. Its results 

 should be submitted to the secretary 

 of the F. T. D., he in turn to mail 

 each mf^ber a complete list of prices 

 suggested, at least once every two 

 months. In this way the retailers all 

 over the country would have a basis to 

 work on that would be universally ap- 

 plied. 



"We believe that in estimating a 

 decoration the cost of all articles to be 

 used should be figured on a basis of 

 three for one. In other words, if the 

 cut flowers, greens, etc., used on the 

 decoration figure $100, the retail price 

 should be $300. Accessories, palms, 

 etc., should be figured on a basis of 



Albert Pochelon. 



(Secretary F. T. D.) 



from 15 per cent to 20 per cent of 

 their original cost for the loan value 

 and this sum should be added to the re- 

 tail price of tl^e other items to obtain 

 the proper quotation. 



"You will note we recommend in the 

 above that the plants and cut fljawers 

 be figured on a basis of three for one, 

 made-up work on the maximum basis of 

 three for one, preferably less, and yet 

 you will see that our actual records 

 show that the cost of stock is 37 per 

 cent of the gross sales. The difference 

 is made up of destroyed and wasted 

 plants and flowers. 



"Mr. Anderson suggested that if 20 

 per cent be added to the cost of every- 

 thing as it reaches the store it would 

 be a safeguard to overcome this situa- 

 tion and we believe the suggestion is 

 well made. 



"Analyzing the merchandise cost, 

 represented by 37 per cent, and our 

 recommendation to make this 33% per 

 cent at the maximum, or still more de- 

 sirable, only 30 per cent at least in all 

 made-up work, you will notice the ap- 

 preciable difference in the actual fig- 

 ures, 7 per cent, against our prospective 

 aims of 30 per cent. In round figures, 

 7 per cent would be one-fifth of 37 per 

 cent, or the 20 per cent referred to by 

 Mr. Anderson in making his suggestion. 

 So you see this is a vital point and, 

 since it works out with figures, we be- 

 lieve it to be so worthy that it should 

 command universal adoption. 



"It seems this is the only place 

 wherein it is possible to shade in order 

 to try to increase the profit. We do not 

 believe that 10 per cent is a just net 

 profit on the gross volume of sales for 

 the enormous chances that one has to 

 take in a business of this character 

 and also when you consider the unusual 

 hours. 



"We should like to have a thorough 

 discussion on this subject, so that it 

 will be possible for all of us to go back 

 to our business and revise our conduct 

 of it to increase our profits to a basis 

 where they justly belong." 



Discussion on Profits. 



The committee was not disappointed 

 in the discussion provoked. First of 

 all, it was emphasized that these fig- 

 ures are not for the public, but to show 

 retail florists where their money goes 

 and how they must figure to make a 

 profit in keeping with their work, their 

 risks and the service they give. 



Mr. Kerr asked where express charges 

 are included in the committee's esti- 

 mates, stating that with him, in Texas, 

 express charges have been found to 

 average 31 per cent of the invoice value 

 of the stock. The committee had in- 

 cluded express as part of the cost of 

 stock. 



J. S. Wilson had in his pocket some 



of the figures on the cost of operating 



50,000 feet of glass and a retail store 



doing a business of about $60,000. He 



found the percentage of cost to sales 



was: 



Payroll 35.00% 



Auto delivery (Fords) 4.50% 



Express and cartaRc 50% 



Telephone and telegraph 50% 



Printing and stationery 50% 



Postage 50% 



Ri>pairs on greenhouses 2.00% 



Ice 35% 



Light 35% 



Coal 4.00% 



Water 25% 



Lodge dues 35% 



Advertising 2.50% 



Donations 18% 



General expense 5.00% 



Bad accounts 65% 



