1-800 Flowers Strengthens Last Minute Hoilday Gift Delivery

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Peter1

I Suck Cuz I'm Banned
Nov 1, 2002
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December 11, 2003 03:21 PM US Eastern Timezone

1-800-FLOWERS.COM Strengthens Last-Minute Holiday Gift Delivery Capability with Expansion of Local Fulfillment Centers

WESTBURY, N.Y.--(BUSINESS WIRE)--Dec. 11, 2003--
Orders To Be Accepted As Late as December 24 for Same-Day Delivery; E-mmediate(SM) Gift Option Also Available for Gift-Buying Procrastinators


1-800-FLOWERS.COM (NASDAQ: FLWS), the leading multi-channel retailer of thoughtful gifts for all occasions, today announced that the Company expects to provide customers with what it believes will be among the latest order placement deadlines for Christmas gifts in the specialty retail category. The Company attributes its enhanced last-minute delivery capabilities to the unique capabilities of its BloomNet(R) network of independent florists and the successful expansion of its Local Fulfillment Center (LFC) strategy.

1-800-FLOWERS.COM will accept orders for a select collection of perfect holiday gifts on Christmas Eve Day, December 24th, for same-day delivery through the Company's BloomNet and LFC network. The Company will also offer customers a wider assortment of last-minute gifts, including flowers, plants, gift baskets, plush items and other holiday presents, that can be ordered as late as 10:00 p.m. Eastern time on the evening of December 23rd for next-day delivery on December 24th (while supplies last).

The LFC network strategy, which has incorporated the establishment of "mini distribution centers" covering many of the top 50 markets in the country, significantly increases 1-800-FLOWERS.COM's same-day and next-day delivery capabilities for both floral gifts and a growing selection of non-floral gifts (e.g. gift baskets, plants, candy, plush, giftware). A majority of the LFC locations -- more than 60 in total -- are owned and operated by the independent members of the BloomNet florist network.

"Shoppers are always pressed for time and this year will be no different," said Jim McCann, CEO, 1-800-FLOWERS.COM. "With more than 25 years in the gift-giving business, and with the expansion of our LFC strategy, we are pleased that we have the systems in place and the perfect selection of thoughtful gifts to help both those who shop early and those who wait until the very last minute to place their holiday orders."

The Company's hybrid gift fulfillment system includes its BloomNet network of approximately 3,000 of the finest florists around the country, the LFC network, and Company-owned distribution and warehouse facilities located in New York, Virginia, Ohio and Illinois.

E-mmediate(SM) Gift Option & Gift Certificates.

For those people who wake up on Christmas morning and realize that they have forgotten to send Aunt Mary a gift, 1-800-FLOWERS.COM offers its E-mmediate Gift(SM) option. Customers can use the E-mmediate Gift feature to have an e-mail sent to the intended gift recipient. The E-mmediate Gift e-mail can include a description and photo of the gift being sent, and a personal message can let the recipient know they are not forgotten this holiday season. The personalized e-mail message can also arrive with an image of a wrapped box, to keep the gift to come as a surprise. The recipient should receive the actual product shortly after Christmas, depending on when the order is placed.

1-800-FLOWERS.COM also offers electronic gift certificates that can be sent instantly and used to purchase any gift through the company's web site and toll-free number.
 
hmm... Only if Aunt Mary has email and guess what, there are plenty of people who don't.
I will not deliver any of their orders, especially 23rd and 24th.
Am so sick of them.
Rhonda
 
They won't get anything delivered through us , come hell or high water , they may send here but they will stay unforwarded , unrejected and unfilled , as I have stated before , don't consider them as orders and after the last time they tried ,I doubt they would bother again. Screw em!!!!
 
Missing the point ?

The article Peter posted, has lots of stuff in it. This IS the way the future (for the short term anyway) is going to go. 800 having trouble getting their orders filled has uped the ante and is building their own fulfillment centers all over the place.

Thing thats happening, is they are taking the orders out of the traditional stream, and becomming their own best customer.

Sure, some will say they sell junk, but dam* folks, if thats the case, at the rate they are growing, the CONsumer WANTS JUNK.

And, as they ARE moving to warehousing those direct ship items at the LFCs, they will soon be able to offer same day delivery of that cookbook with the steaks and potatoes.

Not only that, they have the buying power on the fresh side, like Wal-Mart on the durables side, to command low prices, buying in bulk, from farms, and disbursing the product to various major locations, to be split again and short shipped to the local level LFCs.

Trust me on this, next one to open, will be Boston, and in VERY short order. Once 800 has enough LFCs in place, they will be able to cover 90% of their own orders, and not have to worry about areas where they get 3-4 per holiday. Its all in the numbers.

Remember, these facilities are designed (I know the working here too) to function and at a profit on the 70% model going in. Everything is geared to achieving profit at a lower margin, and making it up on volume.

Sure we'll say that its not our quality, its not our service and on and on, BUT, I would offer, that this is what the consumer is buying, and setteling for so there must be something there. Likewise, knowing how this newest one is being set up, and the folks involved, I would say they will not have the quality issue so many talk about.

Also, it's going to continue for the time being, as the consolidation I have been harping on continues in our industry from the MOM AND POP SLOBs, to the larger operations, to the local wholesalers, and up and up, to a point, where we may even see it in the WS Biz....

Time to get back to dig'n my foxhole.... were gonna need one !
 
Sadly, the consumer is easily convinced that junk is the way to go...more bang for the buck...besides, mold and mustiness are included in the price. (Wal-Mart etc.)

1-800 called here last month to offer us a "partnership"...uh huh and no thank you.
 
We talked about this 3 years ago....

how maybe FTD shops might become "franchises" and 1800flowers would be setting up their own network, because more shops are refusing to fill their orders.
AGAIN...REAL FLORISTS missed the mark....too little, too late...we COULD have controlled this gauntlet, instead of fearing it!!
Mike
 
Hmmm...

Originally posted by George Simon
What makes an order from 800-Flowers worse than an order from FTD or Teleflora?
Click to expand...

Good question George...

From what I have seen in my store, when they still flowed outa the Merc, the average 800 order was under 30 dollars, where by my average from Da Dot is around 65.00++ and from regular FTD florists about 43.00.

And, for ME, it was like filling for my competition, keep in mind, this was a couple years back before Da Dot got to be what it is today. Now tho, the orders I get from Dot.com, are roughly 30-40% higher in dollar value than the florist generated orders.

800 is, and will continue to change the face of our industry, once everything is in place, then it will be time to gradually increase the price (kinda like Wal-Mart, hook 'em then rape them) of each order. Keep in mind, its in 800's best interest to keep the LFCs profitable and bizzy....turning product, hardgoods and everything else, and with the lower overhead of an LFC, compared to a retail store, it's getting easier and easier.
 
Well, the reason I asked is that Teleflora and FTD take 27% out of the order, 800-Flowers takes what, 30%?
But with 800-Flowers, you don't have to pay any membership fees or per order or transmission charges, etc., etc.
So, the way I see it, it is about the same. Therefore, if you can fill a Teleflora or FTD order profitably, you should be able to do the same with an 800-Flowers order.
The problem I see with being an 800-Flowers fulfillment center is, that if you are not in a big city like NY, they can give you orders for delivery that are very far away from you and that makes the order un-profitable.
On the other hand, they can give you so much volume that if you prepare and purchase accordingly, I've been told you can make a profit.
 
Originally posted by George Simon

On the other hand, they can give you so much volume that if you prepare and purchase accordingly, I've been told you can make a profit.
Click to expand...

Volume....what's with that?

I would rather sell $500,000 at a net of 10% than sell 2.5 mil at a net of 2% and have all the headaches that go with it!!!!
 
Actually George, 1800 takes 27% like TF and FTD and they don't take the .75 fto. So they are a bit less expensive. Then if you figure in the fees, they are way less expensive than FTD and TF.
It's funny how the average sale is so different from one part of the country to another. For me, the stuff I get from FTD.con is usually the basket of cheer for $29 or at the holidays it's always the $35 arrangement that is on special. With the exception of roses from FTD.con, I rarely get an order for over $40.
1800 on the other hand for me is in the mid $60 on average. When I decided to dump FTD I went through the last 12 months of statements and pulled all of the 1800 orders that were sent via the merc, that was about 62% of the orders. 34% of the orders where FTD.con and the other 4% were real florists.
1800.com Always gives me enough money for delivery. Yes, I have to ask for it some times, but they always give it... FTD.com rarely ever gives enough for delivery and if I ask for more they almost always cancel the order.
I used to not take 1800 orders but they started going up in value and giving me enough for delivery so I figured what the heck. And I still do not see why people will fill for FTD.con and not 1800. makes no sense to me. For those shops that do not fill for 1800. if they think that is going to make them go away, their dreaming. Bob Norton told us face to face that 1800 had the largest amount of sends in the industry. Another point while we'er on it. The ONLY complaints that I have ever recieved on an incoming wire order was on FTD.con orders. I have had two of them. In both cases FTD.con sent and order, I sent an ask back saying that I did not have a certain flower or container, they sent back that it was ok to sub and in both cases there was a complaint. That is when I stopped taking orders for .con that I could not fill exactly like the book.

Jim
 
Um...

Originally posted by jbarb
Actually George, 1800 takes 27% like TF and FTD and they don't take the .75 fto. Jim
Click to expand...

I think they DO if its sent other than on Bloomlink, and there are roughly only 3K of those shops.
 
Many key points there George...

Originally posted by George Simon
Well, the reason I asked is that Teleflora and FTD take 27% out of the order, 800-Flowers takes what, 30%?
But with 800-Flowers, you don't have to pay any membership fees or per order or transmission charges, etc., etc.
Click to expand...

Except in "most" cases florists are recieving these orders over the Duck or the Merc, thus, they ARE paying to get these orders, even the .75 trans TAX.

So, the way I see it, it is about the same. Therefore, if you can fill a Teleflora or FTD order profitably, you should be able to do the same with an 800-Flowers order.
Click to expand...

Sure you "can" !! KEY thing to keep in mind, is that LFCs are set up to work on the 73% minus 2% (marketing tax) in the beginning, and they are not retail outlets, no need for phones, fax machines, lots of computers, all set up on one little Bloomlink PC to recieve.


The problem I see with being an 800-Flowers fulfillment center is, that if you are not in a big city like NY, they can give you orders for delivery that are very far away from you and that makes the order un-profitable.
On the other hand, they can give you so much volume that if you prepare and purchase accordingly, I've been told you can make a profit.
Click to expand...

IF folks could not make a profit 800 would not have fulfillment centers !!!!!!!!!!!!!!!!
 
Except in "most" cases florists are recieving these orders over the Duck or the Merc, thus, they ARE paying to get these orders, even the .75 trans TAX.
Click to expand...


Hmmm... all of the ones I've dealt with receive the orders through the internet and they are not fulfillment centers. Fulfillment centers get a server from 800-Flowers.
I guess you do have to have their software and if no one in your area has it they have to send through the Dove.
 
I don;t know the full deal...

Originally posted by George Simon


Hmmm... all of the ones I've dealt with receive the orders through the internet and they are not fulfillment centers. Fulfillment centers get a server from 800-Flowers.
I guess you do have to have their software and if no one in your area has it they have to send through the Dove. [/B]
Click to expand...

Perhaps it is internet based, I don;t know, that would allow them to send freely, but I would assume only to the 3K membership, the rest must be MercDuck ?!!??

MercDuck... I kill my self :hammer:
 
that is true, like Boss says, if the shop is not a bloomlink member, then the orders go through the merduck and it cost the .75 for fto.
If you are bloomlink, they have their own software program for sending and recieving. I have not seen this program in operation, my friend has it and she says it is very easy to use. By they way, if you are a bloomlink member and using the software, you can send orders to non bloomlink shops. The orders go through the mercduck just like a regular order from and FTD or TF shop would.
Seems like 1800 is covering their bases better than FTDTF is doing in that respect.
 
Re: I don;t know the full deal...

Originally posted by BOSS
MercDuck... I kill my self :hammer:
Click to expand...

Was asked this by a Neighborhood florist today, can a order from Teleflora Technologys be transmitted on the Merc?

I didn't know what to say since I'm not involved with FTD so I said I don't know and wondered how a TF product through the Merc would show up on the TF Statement???

I told them I would reject it since you do NOT HAVE THE NEW GUIDE since they were one of them florists to send it back to TF.

I though this could not be true..a Merc order wanting a Teleflora Product? they have the printout of this order...

I'm NOT sturring up anything here tonight...I was just dumbfounded that a TF Technologys order was transmitted over the Merc requesting a TF product and they called us to see what that product was.. I'm not making this up either.
 
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