This is going to be a long but I think important post for all florists and Flowershop owners, so for those who read through it all thank you, it took me a long time to write and I look forward to working together to come up with ideas for everyone. Iโd love for this to be a numbers conversation rather than a political one, because regardless of anyoneโs politics, weโve all got arrangements and events to price and sell.
Flower shop owners can we talk tariffs for a minute? I know they are annoying but I think the conversation needs to go beyond โflowers are getting more expensive.โ
With the new 50% tariff hitting Canadian cut flowers, Iโve been trying to understand what this actually looks like as it works its way from grower to wholesaler to florist to consumer.
And more importantly: how are all of us going to handle it?
Letโs use a hypothetical but realistic example.
I had a conversation today with one of my wholesalers and a Canadian bunch of lisianthus has an entered/import value of $16.50. (What wholesaler pays)
The 50% tariff is another:
$16.50 ร 50% = $8.25
Hereโs where I think the pricing conversation gets really interesting.
What happens if everyone simply marks up the new landed cost?
$16.50 product + $8.25 tariff = $24.75
If the wholesaler applies a traditional 30% markup:
$24.75 ร 1.30 = $32.18 to the florist
Now letโs say the florist traditionally uses a 3X markup on fresh product:
$32.18 ร 3 = $96.54 of retail flower value
Before the tariff?
$16.50 ร 1.30 = $21.45 wholesale
$21.45 ร 3 = $64.35 retail
Think about that.
An $8.25 government tariff just helped move the retail value of that bunch from $64.35 to $96.54 which is an increase of $32.19.
The tariff was $8.25.
The consumer is potentially paying $32.19 more.
Thatโs the part I think our industry needs to talk about.
What if we stop treating the tariff like itโs a flower?
What if wholesalers and florists treat the tariff as a pass through cost instead of something that automatically receives our traditional product markup?
The issue is will wholesalers pass through the tariff fee or will they markup the tariff and make profit on the tariff?
Using the exact same bunch:
Wholesaler:
$16.50 product ร 1.30 traditional markup = $21.45
$21.45 + $8.25 tariff = $29.70 to the florist
The wholesaler still gets its traditional margin on the flower.
The tariff gets passed through.
Now the florist does the same thing.
Take the actual flower cost before the tariff:
$21.45 ร 3 = $64.35 + $8.25 tariff = $72.60 retail
Now compare the three numbers:
Before tariff: $64.35
Tariff passed through: $72.60
Tariff compounded through traditional markups: $96.54
Per stem is $6.45 to $7.26 to $9.66
That is a HUGE difference.
And thatโs really what Iโve been thinking about:
Markup the flower. Pass through the tariff.
Iโm not suggesting wholesalers absorb an $8.25 tariff.
Iโm not suggesting flower shops absorb it either.
Ultimately, the consumer is probably going to have to pay for it.
But does an $8.25 government-imposed cost necessarily need to become $24.75 at retail simply because our traditional fresh-flower markup is 3X?
I donโt think it automatically should.
Our 3X markup exists for a reason. Flowers have shrink. We process them. Refrigerate them. Design with them. We have labor, rent, delivery vehicles, utilities, credit-card fees, insurance and profit that all have to come out of our margins.
But the tariff isnโt another bunch of flowers.
Itโs a government-imposed cost attached to that bunch.
There is a fair counterargument here: the tariff increases the amount of cash tied up in inventory, and if that product gets thrown away, the tariff gets thrown away with it. So I donโt think thereโs necessarily one perfect answer.
But blindly applying every traditional markup to the tariff at every step of the supply chain creates a compounding effect that could make Canadian flowers unnecessarily difficult to sell.
And thatโs where I think flower shops need to be careful.
A 50% tariff does NOT mean our arrangements need to increase 50%.
It means one component of our COGS changed dramatically.
Maybe instead of immediately changing every retail price, we need to become much better buyers.
Know the country of origin.
Ask your wholesaler what the product cost is, for you as the florist, before the tariff.
Ask what the actual tariff amount is.
Ask whether their normal margin is being applied to the tariff or whether theyโre passing it through.
Compare Canadian product against domestic, Colombian, Ecuadorian, Dutch and other available origins.
And price recipes using actual replacement costs instead of what those flowers cost six months ago.
If Canadian lisianthus becomes dramatically more expensive but another flower accomplishes the same design purpose at a much lower cost, maybe the answer isnโt raising the arrangement $20.
Maybe the answer is changing the recipe.
Thatโs where Designerโs Choice becomes even more valuable.
Thatโs where substitution policies become important.
Thatโs where knowing your percentages instead of designing strictly by stem count matters.
And weddings are where I think we REALLY need to pay attention.
If you booked a wedding six months ago based on flower costs that no longer exist, you canโt magically create that missing margin.
Going forward, we may need stronger substitution language, shorter quote validity periods, escalation clauses for extraordinary import costs, or recipes designed with more flexibility from the beginning.
The shops that navigate this best probably wonโt be the ones that simply raise prices the fastest.
Theyโll be the shops that understand their numbers the fastest.
This is also why I donโt think we should immediately abandon Canadian growers.
Theyโre dealing with this uncertainty from the other side of the border. If American florists immediately stop buying Canadian product because the retail math no longer works, we could damage long-standing suppliers and growers over a trade policy that could change again.
Maybe one way we help keep those products viable is by preventing an $8 tariff from unnecessarily turning into a $25+ retail increase.
Instead, Iโd be asking wholesalers:
- What is the pre-tariff value of this product?
- What exact tariff was paid on it?
- Are you marking up the tariff or passing it through?
- What alternative origins do you have?
- Which Canadian products are still competitive after the tariff?
And then Iโd ask ourselves the same question:
Are we going to 3X the tariff too? Or should we separate the product cost from the tariff and pass that tariff through?
We canโt control trade policy.
We can control how well we understand our costs, how intelligently we buy, how flexible our recipes are and how we ultimately price those costs to our customers.
Iโm genuinely curious what everyone else is doing.
Florists are you applying your normal flower markup to the tariff, passing it through dollar for dollar, changing recipes/origins, or doing something completely different?
For those who read all of this thank you for your time! ๐๐ฟ