It's a question that retail florists hear almost every day. Many consumers believe that flower prices are too high. To help you understand how flower prices are determined, read on....

Market prices for flowers are actually determined by supply and demand, through an auction process. And this happens long before the flowers reach the retail flower shop.

Since Holland is the largest exporter of flowers in the world, the auctions are held there. The worlds largest flower auction is located in Aalsmeer, just a few miles from Amsterdam. The auction building itself is the largest commercial building in the world, at nearly one million square feet.

Each day, nearly 22 million flowers and plants from some 5400 growers from all over world are flown in and sold at auction. The auction turns over nearly 8 million dollars worth of flowers and plants each day. And within a few hours, the flowers sold can be on their way to the consumer, anywhere in the world.

The Aalsmeer flower auction sets the world market price for flowers daily. Prices are determined by a combination of factors, including supply and demand, flower quality, weather, and seasonal production. Here are a few facts about flower prices:

• Average cut flower prices have held relatively constant or even declined slightly in the last decade. Factoring in inflation, this translates to a slow but steady decline in prices and profit for the grower. The impact on the decline in profits has been offset through increases in productivity. Lower flower prices have been offset by higher energy costs for heating, cooling, and transportation.

• Daily price fluctuations can be considerable in the auction marketplace. Due to the supply and demand of cut flowers, short-term price fluctuations occur frequently at the auctions. Weather conditions, such as excessive heat, frost, and storm damage can have a strong impact on short-term prices.

• Seasonal price patterns exist. Since most flowers are purchased in countries located in the northern hemisphere, prices are at their lowest during the summer when production in those countries is at its peak. Prices are the highest in during the winter months, when production is low. On average, most imported flowers are sold at lower prices than Holland flowers, the main reasons for this being the higher quality and wider range of flowers that Dutch growers supply, as well as growing a number of specialized, highly sought-after flowers.

• Differences in flower quality also affect price. Quality, to a large extent, is determined by vase life and bud development. This isn't something that is always evident upon visual inspection, so a grower's reputation carries considerable weight in this area.

• Large differences in price occur between new varieties and standard flowers. New and "special" varieties can command prices that can be way above average. Since consumers are demanding flowers that are new and different, the demand is usually higher than the supply, helping support a higher price.

These are the major factors that affect the price you pay for flowers. Retail florists are experts in determining the quality of the flowers they buy, and they are well versed in the best methods of care and handling of cut flowers they sell. Your local retail florist is there to make sure you get the best quality and value for the money you spend on flowers.

This article was written by Greg Johnson, owner of Milwaukee florist Greenfield Flower Shop, and the online floral information site, FlowersFloralFlorist.com.

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