Pricing plants can be one of the most challenging yet crucial aspects of running a successful plant business. Jason from Fraser Valley Rose Farm offers practical advice to help growers—whether hobbyists or aspiring entrepreneurs—navigate this essential aspect of their operations. With a focus on balancing profitability with customer expectations, his insights simplify the complex process of plant pricing.
The Two Key Factors of Pricing
Pricing boils down to two main considerations:
- What Price Allows You to Make Money?
This includes covering costs and ensuring a reasonable profit margin. - What Is the Customer Willing to Pay?
This reflects the perceived value of the plant in the marketplace.
Jason emphasizes that these two points may not always align. If customers are unwilling to pay a price that allows you to profit, the plant may not be worth growing for resale. The best opportunities lie in plants where your costs are low, but customers are willing to pay a premium due to demand or uniqueness.
Calculating Profitability
Understanding your costs is the foundation of profitable pricing. Jason explains two scenarios: reselling plants and growing your own.
Reselling Plants
For resellers, the process is straightforward:
- Purchase plants or related products from wholesale growers or brokers.
- Apply a standard markup, typically between 2.5 to 3 times the wholesale cost, to set a profitable retail price.
For example:
- A plant bought for $5 should sell for at least $12.50 with a 2.5x markup.
- This higher markup accounts for plants’ perishability, seasonal demand, and maintenance requirements.
Growing Your Own Plants
For growers, calculating costs is more complex. Jason offers a method to determine a base cost for homegrown plants:
- Direct Inputs: Include the costs of pots, soil, and plant material (seeds, plugs, or cuttings).
Example: A pot costs $0.10, soil $0.10, and a plug $0.30, totaling $0.50. - Growing Space Costs: Consider the cost of using your space and time.
- Industry studies suggest an average cost of $0.50 per square foot per week for nursery production.
- Multiply this by the time your plants take to grow.
Example: A tray taking up 1.5 square feet for 10 weeks would add $7.50 in space costs, divided by the number of plants in the tray.
- Labor and Overhead: Factor in labor, utilities, and other operational costs if scaling up.
Once you’ve calculated your total cost, apply your markup to set a price that ensures profitability.
Understanding Market Demand
After determining your costs, the next step is to understand what customers are willing to pay. Jason highlights two key strategies:
Avoid Common Items
Large growers dominate the market for high-demand but common plants, such as bedding plants sold at major retailers. Competing on price with these businesses is difficult. Instead, focus on niche, rare, or specialty plants where customers are less price-sensitive and willing to pay more.
Identify Scarcity and Uniqueness
Offering unique plants can justify a premium price. For example, Jason grows Clematis integrifolia ‘Mongolian Bells’, a less common variety. While a standard perennial might sell for $10, he charges $12 to $14 for this rarer option, leveraging its scarcity.
Researching Comparable Prices
Market research is an essential part of setting your price. Jason suggests the following approaches:
- Shop Local Nurseries: Visit nearby garden centers and note prices for similar plants in comparable pot sizes.
- Browse Online Stores: Check prices on e-commerce platforms for plants you’re considering selling. Be cautious, as online prices often reflect shipping costs and may not align with local markets.
- Observe Customer Behavior: Pay attention to what sells quickly at farmers’ markets or plant sales and what lingers.
This research helps you position your prices competitively while considering your unique value proposition.
When to Walk Away
Jason stresses the importance of knowing when a plant isn’t worth growing for resale. If customers consistently balk at a price that allows you to make money, it’s a signal to move on to more profitable plants. As a grower, you’re better off focusing on items that align with both your costs and market demand.
Final Thoughts: Balancing Profitability and Passion
Pricing plants may seem daunting, but Jason’s approach simplifies the process by breaking it into manageable steps. Start by understanding your costs, researching the market, and focusing on plants with strong profit potential. By avoiding overly common items and leveraging unique or rare offerings, small growers can carve out a profitable niche.
Whether you’re pricing your plants for a farmers’ market, an online store, or a local nursery, the key is preparation and confidence. As Jason points out, pricing is an essential part of transforming your passion for plants into a sustainable business.
