My boss is going to sell flowers to a hospital gift shop at a discount. He needs to come up with a contract for the hospital. My concern is that he is not charging them enough for the flower arrangements. Does anyone have any idea what should be charged to the hospital?? A percentage most likely. He wants to charge them 50%. But I do not feel this is near enough. It would be a losing proposition. I am worried about this. Thanks all of you. Jan
2007-07-28 05:14:29 · 3 answers · asked by nelliekellie 1 in Local Businesses ➔ United States ➔ Other - US Local Businesses
Think of the 'price' your boss wants to charge the hospital gift shop this way ... the 'gift shop' is a CHARITABLE shop, and the 'profits' they make usually go to help the 'indigent' patients get their health care free. Second, most people who buy flowers at the gift shop have someone in that hospital who got sick suddenly, and they are 'afraid' to leave, even just to 'buy flowers' ... but they LOVE their patient, and they may not have 'a lot of money' but really do appreciate it when the flowers aren't priced so high they can't afford them.
I think that even if he must take a 'small loss' on those flowers, that he is doing a 'good and charitable' act, and can actually take the 'money he loses' off his taxes ... which can 'pay him' much MORE than if he was able to 'clear a small profit.' In other words ... IT'S FINE ...
I hope you tell your boss about your 'doubts' and also about what I've told you here ... I may be 'wrong' about the 'why' your boss wants only 50% of his 'normal charge' ... but at least you now have 'more information' on what a 'hospital gift shop' does, and why it's a 'good thing' for the flowers to 'cost less.'
2007-07-28 05:25:58 · answer #1 · answered by Kris L 7 · 0⤊ 0⤋
I once sold floral arrangements to a gift shop. I figured my cost to make the arrangements, the x3 markup (standard floral markup), discounted 10%, and that is the price I charged to the gift shop. The gift shop, in turn, marked them up again, and that is what the customer ultimately paid. After the gift shop paid me, I didn't care if they sold the arrangement for $1.00 or $100.00. Whatever profit they could make was fine.
So, there you go, folks. If you are sending flowers to the hospital, call the florist and order direct, and avoid gift shop prices...lol.
2007-07-28 05:23:41 · answer #2 · answered by claudiacake 7 · 0⤊ 0⤋
Should be close to 100% of what you charge your normal customers. Have the contract drawn up by a paralegal or attorney. 50% is really low.
2007-07-28 05:17:23 · answer #3 · answered by lyzz115 2 · 0⤊ 0⤋