Many consumers still think that flower sellers will suffer heavy losses during Tet. However, according to our research, most Tet flower vendors are traders, and only a few gardeners sell directly.
Reduced prices still yield profit
According to the gardeners, about 2 months before Tet, traders will visit flower gardens in Ben Tre, Dong Thap, Tien Giang, and Ho Chi Minh City to assess the cultivation, production, and weather conditions. Based on this information, they will make early deposits or decide whether to buy directly or not.
Flowers at the garden are priced at around VND 30,000 per pot
Mr. Hoang Van Hien, a flower gardener in Sa Dec, Dong Thap, said that after gathering preliminary information, traders would wait for about 1 month to assess the favorable conditions before finalizing their purchase. If the supply is ample, they will act accordingly. Otherwise, they will make early deposits to prevent other traders from competing and pushing prices up.
Flower growers assert that traders always have the upper hand because they can offer lower purchase prices, 20-30% lower than standard market prices. Therefore, traders rarely suffer losses.
Ms. Hang, from Cho Lach, Ben Tre, said that, this year, traders have used the excuse of economic difficulties and poor sales to persuade gardeners to lower prices for Tet flowers. Since gardeners don’t know who to sell to, they reluctantly accept.
Mr. Bui Thanh Liem, Head of the Department of Agriculture and Rural Development in Cho Lach district, Ben Tre province, confirmed that local flower growers have had to lower prices by 30-50% compared to last year to attract traders.
Trucks carrying flowers from Ben Tre to Ho Chi Minh City charge about VND 3 million per trip
Mr. Chau Van Hoang, who sells all kinds of flowers at Gia Dinh Park, Ho Chi Minh City, and has a flower garden in Sa Dec, Dong Thap, said that traders always come out on top. For example, a pot of chrysanthemums sold for Tet in Ho Chi Minh City can cost VND 150,000-200,000, but traders purchase it for only VND 50,000-60,000 at the garden. Adding transportation costs of about VND 5,000 per basket and rent of VND 3.5 million for a lot at a flower market, traders can earn triple the profit. Even if they lower the price to VND 100,000 or give away the remaining flowers, they still cannot suffer losses.
Similarly, Ms. Nguyen Thi Ha, from Sa Dec, Dong Thap, said that a few months ago, she priced a pair of mung bean blossoms at VND 40,000-45,000 and wrightia religiosa at VND 50,000-55,000. However, traders still wanted lower prices. Meanwhile, sellers in the city offer prices above VND 200,000 per pair. Even if they sell the remaining flowers for VND 50,000 per pair, they have already covered their costs. The cost of transporting 500 pots by truck is only about VND 3 million.
