Why do flower prices fluctuate?
Anyone who has been in the flower business for any length of time knows that the market does not follow a fixed line. Prices are influenced by a combination of natural and economic factors. Consider seasonal influences: in spring, when daylight increases, so does supply. This often leads to more favorable prices. In winter, on the other hand, when production in Europe declines, prices actually rise.
Holidays also play a big role. Around Valentine’s Day or Mother’s Day, global demand for roses and tulips in particular increases explosively. This has a direct impact on prices, especially for popular colors such as red. There are also external factors that are less predictable: energy rates rising, inflation, transportation problems or unfavorable weather conditions in growing regions such as Kenya, Colombia or Ethiopia.
The result is a market that can change rapidly, and where it is important for buyers to stay sharp.
How can you deal with this as a buyer or retailer?
Although price fluctuations cannot be completely prevented, you can anticipate them strategically. An important starting point is insight. By analyzing data from the past, or recognizing trends in collaboration with your supplier, you get a better picture of expected price movements. If you know that certain flowers will structurally increase in February, you can adjust your assortment accordingly in January.
In addition, it pays to be flexible in your offer. In case of significant price increases of popular varieties, consciously choose seasonal flowers or less common varieties. Customers often appreciate originality and sustainability more than you think, especially if you communicate this clearly. Transparency about price fluctuations and offering a surprising alternative can even increase your customer satisfaction.
For larger customers, it can be smart to make fixed agreements with a supplier. Volume contracts or seasonal deals provide stability in price and availability, which is especially valuable if you supply supermarkets or large retail chains with fixed price lists.
PPExport’s role in market movements
At PPExport, we closely monitor market developments. All prices are visible in real time in our webshop, so there are never any surprises. Moreover, we actively think along with you: if the price of a certain variety peaks, we will offer you alternatives that fit your margin better.
Our purchasing department has daily contact with growers worldwide. This enables us to identify early on when the market is getting tighter – or precisely when there are opportunities to buy at advantageous prices. Our scale and close relationships with growers enable us to offer competitive conditions, even in turbulent market conditions.
In addition, we regularly share price insights and forecasts with our regular customers. This allows you to plan better, adjust your assortment in time and stay ahead of your competition.
Conclusion
Fluctuating flower prices are a reality in our industry. But they don’t have to be an obstacle. With insight, flexibility and strong cooperation with your supplier, you can turn price fluctuations into an opportunity. Whether it’s about smart purchasing, adjusting your offer or surprising new customers with alternative flowers: thinking ahead keeps a grip on your margins and your service.
Would you like to know how PPExport can help you with strategic purchasing? Please contact us or view the current range in our webshop.
