Are WS-free florists really more profitable?

Status
Not open for further replies.
CHR said:
Ding! Ding! Ding! We have a winner!

Emphasis mine. We could all argue the fine details of the numbers but Cheryl is advocating taking the sane approach, understanding how WSs works (or do not work) for a business. Her last two posts in this thread have been outstanding. Bravo!
Click to expand...

Ditto!

Cheryl, this is the post that I have been waiting to read.

You have determined, for your busines, that anything under 25 orders isn't WS profitable.

This is an educational, informative and helpful post for those florists who are sitting on the WS Fence.

The combination of your posts in this thread answered the question I posed to WS-free flowers shops. You answered the question without actually or directly answering the question for them.

Joe
 
exquistite timing...

Well, at the risk of rubbing salt into fresh wounds, here is a story, posted TODAY (can't get much more topical then that) of a FTD Top 100 florist, who has been around for 50 years, shutting their doors suddenly.

Hmmm...I wonder what THEIR view about the profitability of being a WS member would be? I am sure that the 25+ WS orders/month was all they needed to stay in the green, right?

Discussions, anyone? And, PLEASE, no emotions.
 
it's very convenient that you associate a shop closing with FTD Mark....any number of reasons can force a shop to close...many times it's personal!!
Don't assume that you know those shoes you HAVEN'T walked in......
 
Of course, Mikey, I agree...but you cannot simple dismiss a case like this offhandedly because it doesn't fit into your template of what you are trying to prove or disprove.

In fact, hard evidence like this is EXACTLY what this thread was supposed to be about.
 
This isn't the first big FTD shop to go out of business but the cause may or may not have to do with being a member. It could be poor management across the boards, too many family members dipping into the till, a huge second mortgage on the building, etc...

WS-free florists go out of business too, ya' know. ;) But most are small so they won't warrant a newpaper article.
 
..ok...we agree on that, but, obviously, we can agree that, in this case, being a top WS member did nothing to help this established business survive, right?

This story fits *exactly* into the template that TOTO so wisely laid out in a previous post...this shop watched as FTD pulled the rug from under it, and allowed OOA OGs into its established area to skim the cream from its orders, and soon, because they were blinded by their long-time FTD affiliations, found that could no longer stay profitable.
 
Mark,
I have to agree with Mikey. I opened the article you placed in the above post, and read that the florist has closed. At this point, no one has been able to reach them. I do not know this florist, and am sorry that you have chosen to use their closing to further your crusades.

People close businesses for many reasons, some of which include: Ill health, death, loss, divorce, as well as lack of profitability. A local florist here recently closed their doors on a Wednesday after meeting with a wedding party on the previous Sunday, and taking a large deposit. Reason: the receipt of some very bad medical news on Monday -- that was very unexpected. This person has chosed to personally make the most of the time that is left. OR....maybe it was just time to close, with no other option in the horizon..........

Another local shop finished out the week on Friday & Saturday, and closed their doors forever that Saturday night. Financial dilemas brought them to a very closely guarded, secretative conclusion.


My post above was to give everyone an example of what my shop needs to send out in orders each month to pay for the cost of belonging to a wire service. For me, 25 orders out @ 20% commission = payment for those charges, based upon an average order of $50.00.
( Assuming a "Sending Only" shop perspective, which I am not).

I discussed the bare, basic, unable to avoid, charges that you incur to be a wire service member, should anyone be considering or wondering what the costs are, ......and what you need to have outgoing to cover those charges.

I did not discuss, or attempt to give any figures on the incoming side of the equation, other than to remind people that incoming costs $1.25/order, plus the 27% that you are already giving up to the sender.

Regards,
Cheryl
 
CHERYL BAKIN said:
... I do not know this florist, and am sorry that you have chosen to use their closing to further your crusades.
...
Click to expand...

Crusade? Whatever...I've stated over and over that I don't care if every shop in the world plugs in the MLM WSs and goes to town.

In my mind, I think its YOU guys who are on the crusade to convince naive new shops owners that by getting and filling 25 orders/month, the WS make sense.
 
Mark,
for the last time, I DID NOT ADVOCATE FULFILLMENT of 25 orders/ month BY ANY SHOP! I also AM NOT a wire service cheerleader. I was using my shop as an example of what works for me, and how I reached those conclusions in an analytical manner.

I stated that FOR MY SHOP, the number of orders that I must SEND per month, to cover the MOST BASIC WIRE SERVICE CHARGES is 25, at an average order of $50.00/order.

This was a cost analysis -- nothing more. The math is pretty simple.

The Philosophy of particiation in a wire service is another issue. I try to separate the facts from philosophy & emotion when I am doing an analysis.
I also stated that for me, THEY ARE A currently TOOL, nothing more. When the Tool stops being useful, or breaks, I will kick it to the curb and get a new one.! (I am always on the look-out for new tools.....)

Cheryl
 
12 Bucks...me Thinks You Protest Too Much!

Just about 3 years ago we bought the inventory and fixtures of a neighboring shop that had been a viable competitor when they closed to take a weekend off on Friday, and never opened again!!!! It had nothing to do with the fact that they were members of 2 wire services! It had everything to do with the fact that one of the owners discovered that she had lukemia (SP?), and at the same time the other owner was offered a job with full health benefits working for the State Correctional System! They simply never came back to town to do an orderly shut down. We bought the inventory and fixtures, another flower shop bought the phone number, and a 3rd party from out of town bought the real estate. My point is that you can not ASSUME or ASCRIBE a reason for anything, no matter what may appear to be on the surface.:hammer:
 
Yawn

broken_record.jpg
 
Hello Guys !!!
I am 7 yrs in the flower Business and i think the WS is a good think if id would be Florist to Florist Network. Even our Rep said you will make money if you send Orders. Because We receive 20 % of the Amount of the order we send .
I think thats why a lot of florist are still depended on WS. Yes we can use our CC but we will not be able to get our 20 % most likely. We allowed the WS to control the Floral Market. I was sitting down last Chritmas and Calculated the Profit we make if we fill an Order of $ 50 value we make $ 10 to $ 15 and i almost cried. And we do not have the time to think because If we can have the time we want to rest and not be worried. Like i said i like the Idea of a WS and I will support the if the supported use. I f not seen any support of any of the WS . We are in assents a Big Franchise and we carry the name FTD , Teleflora, 1-800- Flowers.com .They would be nobody with out use and we think we would be without the WS nobody. I wish and i Hope we can Stir the ship around . They need use.
Also The Membership Fee and all the Cost for Advertisment in the Directory cost use as much as an full page Ad in the Yellow Pages and etc...
I am actually glad that there is a forum for Florist. We work hard and we need the respect from any WS .
Well i think i feel better right now. There are almost more Online Shops than Florist and we get the smallest pie of the Floral Industry.
Any why.........thats my thought to this matter
 
Nothing AND Everything to do with this

Please forgive me for adding my 2 cents, since this is probably off the subject or maybe it's not, depending on your point of view, I tried to post this elsewhere but couldn't find the posting, so just take what you want out of it. Please view the presentation and have a good day...http://www.theinterviewwithgod.com
 
Bouquet Corral said:
Hello Guys !!!
We are in assents a Big Franchise and we carry the name FTD , Teleflora, 1-800- Flowers.com .They would be nobody with out use and we think we would be without the WS nobody. I wish and i Hope we can Stir the ship around . They need use.
Also The Membership Fee and all the Cost for Advertisment in the Directory cost use as much as an full page Ad in the Yellow Pages and etc...
I am actually glad that there is a forum for Florist. We work hard and we need the respect from any WS .
Well i think i feel better right now. There are almost more Online Shops than Florist and we get the smallest pie of the Floral Industry.
Any why.........thats my thought to this matter
Click to expand...

We are not a franchise and they are not your friends. How would you feel if you bought a 7-11 franchise, paid all the money you had to open your business, and the franchisor opened a little stand in your parking lot selling slurpees for 1/2 price?
 
Or even better, let's say you bought a Pizza Hut chain, then found out later that a bigger, more estblished Pizza Hut owner who lived in Thailand advertised in your area, took pizza orders, skimmed 30%, and made you do all the work?

Sounds a little fishy to me...and no, its not the anchovies.
 
Status
Not open for further replies.
Top Bottom
Back