Every year without fail, Valentine’s Day poses a (happy?) headache for guys – Should I be buying flowers this year? Prices of roses can increase significantly from $2 to $10 per stalk. Some florists do not even sell single stalk during Valentine’s Day. Thus, you are caught in a dilemma. As much as you love her, you cannot justify the ridiculous price of roses during this day.
On the other hand, other guys are spoiling the market by buying bouquets of roses that are larger than their girlfriends. Thus, you might end up buying roses reluctantly while complaining it is daylight robbery.
Florists know that you are less sensitive to price of roses during this “special” day. However, it is not the only reason for the increase in price. The cost of roses also increases significantly as each party from the supply chain markup their prices heavily during this period.
Here’s the journey of how your roses came from the rose farm to your other half. And why it is going to cost you a lot next week.
1. Rose Farms
Opportunity Cost Faced
Rose farmers have to cut back on the production of roses in preparation for the Valentine’s Day production. This means that rose farms will not produce any full bud roses for 10 to 12 weeks.
In addition, during Valentine’s Day, long-stemmed roses are in the highest demand. In order to produce one stalk of long stemmed rose, farmers must sacrifice several rosebuds.
Additional Labour Cost
As roses require manual harvesting, additional labours are hired to harvest and pack the roses. The volume of production could be many times the usual quantity delivered. This is to ensure that the roses reach the florist on time, and not earlier or later.
2. Rose Suppliers
Additional Transportation Cost
As all our roses are imported from overseas (80% from China), demand for cargo space increases during this period. Suppliers have to pay more as additional planes are deployed to deliver these roses in time for Valentine’s Day. Moreover, more trucks and drivers are needed to transport the flowers from the airport to the suppliers.
Additional Labour Needed To Process The Flowers
When the roses reached the florists, the life of the roses are extended by the removal of the bottom leaves and the cutting of the stems at an angle. Preservative and warm water are added to increase the size of the bloom. Roses are arranged, wrapped and decorated in time for Valentine’s Day delivery. Again, if they offer delivery services, florists have to arrange more trucks to deliver the roses to the customers.
A One Day Event That Costs Money
The fact that Valentine’s Day is only one day poses a very tight deadline for each party in the supply chain to carry out their job. Hence, each party increases the selling price of roses as additional labours are required to help to meet this tight deadline. And since the consumers (boyfriends/ husbands) are less sensitive to how much florist charge for bouquet of roses, all the additional costs are passed on to you.
Since prices of all flowers will increase during this period, try considering other alternatives such as helium balloons (no price increase according to a florist), stuffed toys (can be subjective) or even buying a pot of flowers! Couples can also have a wish list each to reduce the pain of having to think of what the other half wants. Valentine’s Day is not the only day that couples should show their appreciation to each other.
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Categories: Money Matters