The Real Cost of Starting a Florist Business in Australia
Essential Equipment and Start-up Costs
Hi, my name is Siobhan and one of the owners of Lily's Florist. This is my opinion on advice to set up a florist shop business, from my experience alone. Starting a florist business in Australia isn't for the faint hearted, trust me, we learnt that the hard way back in 2006 when we bought our first flower shop in Kingscliff. Back then, we thought we knew what we were getting into. We had zero floristry experience, a baby on the way, and our accountant literally told us not to buy the business, which we still joke with him now about. But here we are, 18 years later, still standing, albeit a lot older, with a network of over 800 partner florists across Australia.
The reality is, getting into flowers requires serious upfront investment, particularly in refrigeration equipment (we could not afford A/C in the shop so for 6 months a year it was torture), which will be your biggest single expense. Based on what we've seen across our network and our own experience, you're looking at anywhere from $30,000 to $150,000 to get properly set up, depending on your business model and location. The location can have a dramatic effect on your upfront costs, especially if you go into a shopping centre, but more on that later.
The Cold Hard Truth About Refrigeration
Your flowers are only as good as your cold chain. This isn't negotiable. We learnt this lesson pretty quickly when we first started getting those 40+ calls a day for flowers at our Kingscliff shop. The previous owner had taken out a Yellow Pages ad just before selling to us, which explained the phone ringing off the hook.
Commercial flower coolers will set you back between $3,000 to $8,000 for small display units. If you're serious about volume, you'll need walk-in coolers, which run $15,000 to $35,000. The temperature requirements are specific too: most flowers need 2-6°C with 75-80% humidity. Get this wrong and you'll be throwing money in the bin daily.
Back in our early days when finding partner florists, they would often tell us the same thing: proper refrigeration is the difference between a profitable business and constant waste. Thought, to be honest, this mostly came from our network partner in Darwin and Far North Queensland, which makes sense!
Essential Equipment That Actually Matters
After watching hundreds of florists succeed and fail over nearly two decades, here's what you actually need versus what people try to sell you:
Display and Storage Equipment
Professional display systems run $1,000 to $8,000. You need proper flower bucket display stands (around $130-300 for 12 buckets), individual buckets ($8-25 for metal, $5-15 for plastic), and mobile display units with wheels ($200-800).
Storage isn't glamorous but it's crucial. Wire shelving units cost $80-300, storage trolleys for conditioning flowers run $150-500. Every florist we work with who's been successful invests properly in storage from day one.
The Tools That Pay for Themselves
A professional toolkit costs $500-2,000. You need quality scissors and pruners ($25-85 for basics, $45-120 for premium Sakagen scissors), florist wire ($8-25 per roll), floral tape ($3-12 per roll), and OASIS foam ($2-8 per block).
Monthly supply costs typically run $500-2,000 depending on your volume. This covers foam, wire, ribbons, vases, wrapping materials. These costs scale directly with sales, so budget accordingly.
Real Start-up Cost Breakdown
Based on current market rates and what we're seeing our partners invest back in the day:
Minimum viable setup: $30,000-50,000 This should get you a basic home studio, like in the spare bedroom or the garage, or weekly market stall setup with essential refrigeration, tools, initial inventory, and basic marketing.
Mid-range retail operation: $70,000-150,000 This will cover a proper shopfront with commercial refrigeration, a professional fit-out, comprehensive tool kit, substantial initial inventory, and a solid marketing foundation start, that is a website and payment gateway.
Premium Shop: $150,000-450,000 For those going all in with prime location like a Westfields, top-tier refrigeration systems, luxury fit-out, extensive inventory, and aggressive marketing launch. I was in Sydney in early August to watch the Wallabies play and went into one of these very shops. Wow is the word, the potential stress was my thought, and the risk - well, very high, especially tucked away around a corner, like it was.
The Hidden Costs Nobody Talks About and it's Unavoidable
Business registration seems simple but adds up quickly. ABN registration is free if you do it directly through ABR (avoid the third-party sites charging fees). Business name registration costs $45 for one year or $104 for three years through ASIC. This doesn't include your bookkeeping and accountancy fees to manage all that for you, unless you are a numbers whiz, not like me, at least in accounting anyway.
Insurance is non-negotiable. Public liability runs about $39/month for basic coverage, but you'll want more. Our partners, when I was personally in contact with them almost daily, typically pay $500-2,000 annually for comprehensive coverage including public liability, product liability, contents, and business interruption insurance.
Local council permits vary wildly. In Sydney, you might pay $500+ for retail permits plus $1,000+ for signage. Regional areas are more reasonable at $50-200 for basic permits.
Location Makes or Breaks You
Sydney CBD locations demand $1,200-1,400 per square meter annually. Melbourne CBD runs $700-1,000. Brisbane is more reasonable at $500-800. But here's what we found out, regional areas at $200-400 per square meter can be goldmines if you nail your marketing and the location.
When we moved from Kingscliff to Pottsville, then eventually took everything online, we saved thousands monthly in rent. Some of our most successful partners operate from industrial areas with minimal foot traffic but killer online presence and delivery services.
The Business Models That Actually Work
Traditional Shopfront
Highest investment ($120,000-210,000) but established customer patterns. You'll need display fridges, a 2x2m cool room minimum, proper fit-out with benches and sinks, POS system, and solid foot traffic. The revenue potential varies wildly from what I have seen - small shops turn over $65,000-300,000 annually, medium operations hit $300,000-600,000, larger ones exceed $600,000. Online florists into the millions!
Online-Only Operations
Lower overhead ($30,000-87,000 start-up) but requires strong digital skills. Website development runs $5,000-30,000 for proper e-commerce. Google Ads budgets of $1,000 monthly typically generate $3,000-5,000 in revenue if done right, but honestly that is just a roughly. This is essentially what we evolved into, though it took us years to figure out the formula, and we're still working on it, it's now evolved to a science and it's so complex it makes your eyes water.
Mobile and Event Specialists
Vehicle modifications cost $5,000-15,000, portable refrigeration adds $2,000-8,000. Target weddings, corporates, funerals. Higher margins but seasonal volatility. Several of our partners started this way before expanding.
Home-Based Studios
Lowest entry cost ($15,000-30,000) but check your council zoning first. You're limited on signage, foot traffic, and potentially employees. Perfect for testing the waters or specialising in delivery/events.
At least I think so, I have a cheeky anecdote on this. When we moved into our home office in Pottsville, our first Valentine's Day in 2011. I was close to 9 months pregnant (with Ivy) and still answering the phones, we had 2 ex-florists, Anna & Will, plus 3 others, and 2 friends. You can imagine the street and cars, in a tiny neighbourhood. A person from Tweed Council knocked on the garage door, clearly after a complaint had been made. I opened the door to which he saw utter chaos, paper everywhere and 8 people taking calls madly, desks all over the place...to say he was befuddled would be an understatement. I gently explained to him that what we did, how we did it, and that we were not open to the public, just online. To which is he "thanks" and meekly took off. The point of the story was that if you plan on having customers come to your home studio to buy flowers you may need to check with your local council about the rules and regulations.
I will do a follow up post to this one on this very topic at a later date (a florist we know in Casuarina NSW just did this with great success): How to transition from owning your own shop, to going online only.
Wholesale Relationships and Buying Power
Sydney Markets at Flemington processes over $150 million annually through 60 stand holders. Melbourne's National Flower Centre at Epping serves 700+ florists across 67 hectares. Brisbane Markets operates Monday-Friday 4:30am-1pm.
New accounts typically need $500-1,000 minimum orders initially. You'll start on cash terms, progressing to Net 30-60 once you prove yourself. Wholesale prices run 40-60% below retail, with volume discounts kicking in quickly.
Key suppliers include Tesselaars (nationwide, 70+ years experience), Koch & Co for supplies (90+ years, based in Auburn NSW), and regional specialists who often offer better terms for locals.
Technology You Can't Avoid
POS systems designed for Australian florists run $50-300 monthly. You need GST compliance, Australian payment processing, delivery management with local postcodes. We use custom software now, but started with basic Square at $0/month software plus 1.6% per tap.
E-commerce is mandatory now. Shopify starts at $42/month for basics. Your website needs mobile responsiveness, delivery scheduling, area restrictions, payment integration. Budget $5,000-30,000 for professional development, or start basic and upgrade as you grow.
The Seasonal Reality Check
Valentine's Day and Mother's Day aren't just busy, they're insane. We'll never forget Valentine's week 2011 in our Pottsville home office. I was 8.5 months pregnant, phones ringing nonstop from 6:30am, friends we'd drafted in looking absolutely staggered at what we'd created.
Mother's Day generates $995 million nationally with 20-30% price increases. Valentine's Day hits $465 million market value with 15-25% price surges. Wedding season (September-April) maintains premium pricing with couples averaging $2,444 on flowers.
You need working capital to handle these peaks. Inventory costs can triple, you'll need temporary staff, and suppliers will want faster payment during high demand.
Money-Saving Strategies That Actually Work
Buy used equipment for non-critical items. Display cases and shelving at 30-50% off new prices work fine. But never compromise on refrigeration, that's false economy.
Form buying groups with other florists. We've seen groups of 3-5 shops negotiate 10-20% better wholesale terms. Share delivery routes in overlapping areas.
Time your launch strategically. January to very early February is quieter, giving you time to establish systems with lower inventory pressure and prepare for Valentine's Day (week). Suppliers offer better terms during slow periods.
Consider starting home-based or online-only, then expanding once cash flow stabilises. Several of our most successful partners started in garages and spare rooms before moving to retail spaces, and of course the other way around.
The Numbers You Need to Hit
Industry standard markups that keep you profitable:
- Fresh flowers: 3.5x wholesale cost minimum
- Hard goods: 2.5x wholesale cost
- Labour should be 25% of retail price
- Target 50-70% profit margin
- Keep cost of goods under 35% of retail
If these numbers don't work in your market, either your costs are too high or your pricing is too low. There's no middle ground in floristry, you're either profitable or you're dying slowly.
The Bottom Line
Starting a florist business in Australia requires serious capital, but the opportunity is real. The industry's worth $1.1 billion and growing 3% annually despite challenges. Success comes down to proper refrigeration, strong supplier relationships, adequate working capital, and understanding your local market.
We've watched hundreds of florists over 18 years. The ones who succeed invest properly from day one, particularly in refrigeration. They build genuine relationships with suppliers and customers. They understand that flowers are emotional purchases, not commodities.
Most importantly, they're prepared for the reality that this is hard work. Those 18-hour days we pulled in the early years weren't unusual, they were necessary. But if you get it right, if you nail your systems and build your reputation, you can create something special.
Just remember what our accountant told us back in 2006: "Don't buy it." We ignored that advice and built a network of 800+ florists. Sometimes the best business decisions are the ones that terrify you.
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Sources
The information in this article draws from extensive industry research and our 18 years of experience in the Australian flower industry. For those wanting to dig deeper into specific aspects of starting a florist business, we recommend these essential resources: IBISWorld's Flower Retailing in Australia report provides comprehensive market statistics, growth projections, and business numbers that validate the industry's $1.1 billion valuation and 2,893 operating businesses. Square's startup guide offers practical cost breakdowns and business planning advice that aligns closely with what we've experienced across our network. For equipment investment, Commercial Fridges Online showcases the range of refrigeration options and real-world pricing that matches what our partners typically invest. Those considering a home-based start should review Sprintlaw's legal requirements guide which covers zoning restrictions and compliance issues we've seen trip up many newcomers. Finally, IMARC Group's Australia Flower Market analysis provides the broader market context and growth trends that continue to create opportunities for well-prepared entrepreneurs entering the industry.