Auctions charge 5 to 10 percent plus costs. Inland freight forwarders costs range between 10 and 15 percent. Retailers mark up auction prices plus freight by as much as three times. Consumers are more price conscious now that the economic situation in the country is not as strong. Quality of flowers has decreased somewhat as growers try to respond to price competition.
Importers work on both fixed price and consignment bases.
Consignment prices are adjusted seasonally, monthly, and even weekly. Fixed price is usually offered only when the importer wishes to guarantee a steady supply or obtain special varieties or qualities not available elsewhere. This change is in part the result of the increased importance of auction sales in Japan. The pendulum was expected to swing back as pre-booked sales to mass merchandisers gain in importance. Moon Viewing in September, a year-end gift season and Christmas in December, and New Year s Day in January account for an additional 40 percent of flower purchases.