Valentine’s Day rose prices are
driven by supply and demand of the consumer.
Growers start charging wholesalers and retailers escalating prices in
December and January. These prices
reflect the additional crops, labor and materials used to keep up with current
demand as well as future demand.
Growers have to produce enough
roses in January/February to meet the needs of the consumer. If a typical flower shop buys 100-200 roses a
week year round, their supply for Valentine’s week is usually 10 times that or
more.
Typically the difference in price
is roughly 3 times what year round prices are for the same product. In order to maintain the same level of profit
and cover costs of goods sold, retailers must raise their prices also.
Weather conditions during the
growing season for the valentine’s crop, fuel prices and the economy also
affect the prices on roses.
Most roses are exported out of
South America. If they receive heavy
rains, flooding, drought or pest damage to their crops, this affects the amount
of supply coming out of South America.
Fuel prices and the supply/demand
equation that applies to fuel prices are a great example of the flower
industry’s supply/demand equation.
With the expansion of the Internet
and openness of trade with South America, many big box retailers (i.e. grocery
stores) are able to purchase flowers directly from the grower. Their advantage over smaller, family owned
flower shops is the volume in which they buy.
Their order is generally for several thousands of stores, which
guarantees them bulk discounts. This is
where the price difference is the greatest in grocery vs. independent flower
shop.
The difference in quality comes
into play once the flowers receive their retail destination. An independent flower shop’s staff is trained
with years of experience on how to properly care and handle fresh flowers. They are also able to pass on their education
to you, the consumer, on how to properly care for your flowers once you get
them home. They will also package your
flowers and plants to protect them from the elements once you leave the
store. Fresh flowers cannot withstand
temperatures below 34-36 degrees. Green plants, 55 degrees. Blooming plants 40-55 degrees.
This article is simply to help the
consumer understand what drives prices up at Valentines day and why there is a
price gap between big retailers and smaller family owned businesses.
