From 1 October this year, it will become possible to adjust the weekly price for plants during the week. After each modification in a weekly list, a 24-hour time lock comes into effect, only after which subsequent modification is possible. This allows growers to better respond to market conditions and buyers more security of supply. This is the outcome of several meetings with (plant) growers and buyers.
Recently, we have been working with growers and buyers to find the right arrangements for adjustable weekly prices. (Moving towards real-time pricing in Floriday, Next step in real-time pricing for weekly lists, Adaptive weekly pricing as a real-time pricing solution). In this article, we provide an update on the outcomes of the January 2024 session.
Meetings with growers and buyers
Last year, we started discussions with growers and buyers about the desire to be able to adjust prices in the weekly plant grower prices. Normally, these prices were fixed for a whole week. By being able to adjust prices, growers in particular want to be more responsive to current market conditions. Buyers want greater security of supply. For buyers too, it is important not to have too many price changes in quick succession during the week.
Customisable weekly lists with 24-hour time slot
At the last meeting in January, we reached new agreements with growers and buyers. The market's current practice of setting prices by 10am on Thursday for the following week will continue. This will allow growers to change the price in the current week. The price is processed immediately. Once adjusted, there is a 24-hour time period in which adjustments are not possible. This creates more opportunities for growers to change the price, but the 24-hour time lock prevents this from happening too often.
Growers and buyers can agree among themselves to have a fixed price though. This is possible by placing the buyer in a separate price group whose prices are not changed in the current week. Also, buyers can still choose whether to forward order requests directly to the grower or collect order requests to forward at a later date. In doing so, the buyer does take a price or availability risk.
1 June testing and going live 1 October
A customisable weekly list requires changes in the work process of growers and buyers and in their software packages. For this to go well, it has been agreed to start from 1 June with the first growers and buyers supporting customisable weekly prices. Going live on 1 October for every grower and buyer working with weekly lists.
The software suppliers are also aware of the proposed changes. Technical development is also shared with software suppliers. Do you also work with weekly lists? Then start talking to your own software supplier to find out what changes are needed in the software package.
More information?
Want more information on customisable weekly prices? If so, please contact our support team by calling 0174-352070 or emailing support@floriday.io.