Beware if you fill for Da Dot

Status
Not open for further replies.
BOSS

BOSS

FlowerChat Administrator
Oct 31, 2002
19,394
8,269
113
68
Midland
www.smithsflowers.com
State / Prov
MI
Florists filling for FTD.com should be very aware the next few days, as FTD is "Testing" consumers purchasing trends and FLORISTS willingness to fill at LOWER price points...

Over the next days and weeks they will be switching back and forth between price points to see if consumers buy more at lower prices, and "if florists can fill" at these lower price points.

Prices will be interchanged on C1-C2-C3-C4 at various times to test sales volume based on price, and see if florists will fill them...

Pricing will be:
C-1 reg $56.99 test $46.99
C-2 reg $39.99 test $34.99
C-3 reg $66.99 test $56.99
C-4 reg $49.99 test $44.99
__________________________
Commentary on my part:

I take this to mean they are seeing lower sales numbers than expected, and are trying to find the "sweet spot" where they can sell, and where the filler fools will accept these orders...Seems to me it's pretty early in the season to have a DISCOUNT SALE...unless there is a problem...coupling this move with the departure of Dan Smith from FTD.com management, and that Soenen is the guy in charge...maybe the ship is sinking faster than we thought...and Wall Street is watching...

Have a great Saturday folks...MAKE MONEY!
 
I can fill some of those at the lower prices because I will leave out roses and use minis or standard carnations (which last better anyway) and/or do a standard christmas centerpiece with fir, pine, cedar, deco. BUT if they send it to me at a lower price, I will tell them it will be in the container (if I have it) but will be designers choice for flowers. The design in that sleigh is ugly anyway. Ours will be round and the greens will be prominent along with the mm balls, ribbon loops etc. Of course, I'm not codified anyway cause I bought them after I got my Thanksgiving Discount email. Bought at 1/2 price or more. I always sell out of anything with a hurricane so the red ones were "different" and I have already sold 6 of them done in permanent (shipping all of them out of state). Thanks for the info!!
 
Rhonda at work said:
I can fill some of those at the lower prices because I will leave out roses and use minis or standard carnations
Click to expand...
But the customer shopping on the web will be expecting to get the item as pictured...

Rhonda, not picking on you, I understand your reply, but the bigger picture is, they started by offering low priced roses, now they are moving toward lowering the prices on everything, (ala Walmart)...(ya don't think...Walmart/FTD??)...(Nah)...

What FTD is doing is seeing how LOW YOU WILL GO!

One other thing to keep in mind, is that this move will make YOU look MORE EXPENSIVE compared to FTD.com in the consumers eyes on the same product...do you have the time to monitor and adjust all your web pricing HOURLY as they do? I know I don't....
 
BOSS said:
But the customer shopping on the web will be expecting to get the item as pictured...

Rhonda, not picking on you, I understand your reply, but the bigger picture is, they started by offering low priced roses, now they are moving toward lowering the prices on everything, (ala Walmart)...(ya don't think...Walmart/FTD??)...(Nah)...

What FTD is doing is seeing how LOW YOU WILL GO!

One other thing to keep in mind, is that this move will make YOU look MORE EXPENSIVE compared to FTD.com in the consumers eyes on the same product...do you have the time to monitor and adjust all your web pricing HOURLY as they do? I know I don't....
Click to expand...

Yup...couple things...
A) will be on the lookout for these lower price items, and file Price changes accordingling.
I THINK EVERYONE WHO GETS ONE OF THESE ORDER SHOULD POST IT HERE AND TELL US YOUR RESULTS IN HANDELING THE ORDER....whadda' think???

B) Don't know about anyone else, but we are STILL getting some orders for towns we "dropped" during the last .COM fiasco. And, no, not shown as ASB's in the book.

C) It WILL make us look more expensive, and TOTALLY enforces my belief that .COM will actually lead to FTD's own demise. The low-cost way is NOT the way...ESPECIALLY at Christmas. Our average arr/centerpiece dollar amount is the highest during C-mas than any other holiday. (Roses at V-day excluded). People that shop with us do not want to go 'cheap'... It does not matter - c-piece, Fruit & gourmets, Poinsettias...ALL want to spend at LEAST $40.00. Avg. for 2004 was $44.85 (12/1 - 12/31). During rest of the year, $41.70... These numbers are customer sales ONLY - no wires....


FTD is once again messing around with something that is cheap-ning' the "brand"...what a shame.

- H.
 
PhillyPhlorist said:
ALL want to spend at LEAST $40.00. Avg. for 2004 was $44.85 (12/1 - 12/31). During rest of the year, $41.70... These numbers are customer sales ONLY - no wires... - H.
Click to expand...
I agree with you Herb!! Most of our locals are at least in the 40 & up range for Christmas.

We offer some price points from 20 and up, but find the bulk above 40. Heck we even sell a fair share of $100.00 plus table arrgmts this Holiday.
 
ROBSWF said:
I agree with you Herb!! Most of our locals are at least in the 40 & up range for Christmas.

We offer some price points from 20 and up, but find the bulk above 40. Heck we even sell a fair share of $100.00 plus table arrgmts this Holiday.
Click to expand...

YES! us too on the $100 centerpieces - usually with large hurricanes or something...the girls go to TOWN on those orders....

ALSO, we have pre-ordered MORE $75 ~ $100 Poinsettias this year than ever before. GUESS WHAT??? 1/2 the $75 size already SOLD (5/10). Still have 4/6 of the $100 monsters left (these things are HUGE...grown on collums above all the other points @ the growers - get GREAT care and lots of space to grow in...will put a pict on the board when they come in Monday...if my feable over-loaded brain can remember... (heck, some days I forget what day it is...and I'm only 37...in trouble me is??? ! )

- H.
 
You sell what you show...

Show 29.95 and thats what you sell... show 55.00 and thats what you sell.

My biggest selling Points based on numbers are $45.00 and up, and I'll sell 100 pots at $65-75.00...already sold 42 since Monday...

After having Huckabee here, and being convinced to raise my prices, were seeing customers selecting the MEDIUM size $50-65.00...

Consumers always plan to spend more at holidays...why the hell offer them cheap price points...
 
Have sold the most expensive points this past week that I have ever sold...and although we are down on holiday work in general, even the wire ins are higher...Down here, I think folks are still reeling from the post hurricane yucks...yesterday the county started burning 10 billion cubic feet of cut branches...yep 10 billion...we look NAKED!!!
Some of our party work cancelled or reduced the number of tables but I think in general those that are spending are spending a bit more.The redcution I see is more in corporate work.....I also think FTD is shooting itself in the foot ( or higher parts of the anatomy) by cultivating the " CHEAPIES". I think Soenen has a ****on about proflubbers and his focus is waaay off...this past month we have rejected more orders from them for undervalue...some from the OG's that we will no longer play the ask and ans game with...but they can have their cheapies and figure out how to get the product to them when it is too late to drop ship...we will be cultivating all of the ones that have the money to spend and those that have developed a distinctive "I do not want an FTD look" or I will "never order from FTD online again" attitude.
 
BOSS said:
Florists filling for FTD.com should be very aware the next few days, as FTD is "Testing" consumers purchasing trends and FLORISTS willingness to fill at LOWER price points...

Over the next days and weeks they will be switching back and forth between price points to see if consumers buy more at lower prices, and "if florists can fill" at these lower price points.

Prices will be interchanged on C1-C2-C3-C4 at various times to test sales volume based on price, and see if florists will fill them...

Pricing will be:
C-1 reg $56.99 test $46.99
C-2 reg $39.99 test $34.99
C-3 reg $66.99 test $56.99
C-4 reg $49.99 test $44.99
__________________________
Commentary on my part:

I take this to mean they are seeing lower sales numbers than expected, and are trying to find the "sweet spot" where they can sell, and where the filler fools will accept these orders...Seems to me it's pretty early in the season to have a DISCOUNT SALE...unless there is a problem...coupling this move with the departure of Dan Smith from FTD.com management, and that Soenen is the guy in charge...maybe the ship is sinking faster than we thought...and Wall Street is watching...

Have a great Saturday folks...MAKE MONEY!
Click to expand...

If you don't have the product, you don't have the problem.
I can't remember the last time I bought and promoted any of FTD's stuff.
 
Joe Mioux said:
If you don't have the product, you don't have the problem.
Click to expand...

Don;t have ANY of it here...not one piece...

Thing is,as FTD makes adjustments like Sher suggests to try and take on ProF, which Soenen does want to take down (never happen) with low price points, the value of the "Brand" continues to slide into the sh*tter...

Another thing...**IF** and *when* FTDgoes back on the selling block (my guess next year)(that is if they can prop the stock up enuf to be attractive)(monumental task)...ProFlowers may be the only company with industry knowledge in a position to buy it. Now, you will say "they don;t have the money" but I'd beg to differ with that theory, I have talked to the folks who run ProF, they are some pretty smart dudes...it would not be a long stretch to see them partner with the farms they procure product from Soutuvdaborder and make it easily, especially since FTD is over valued, based on debt by some $200 MILLION...

Oh and...off todays rumor mill...800 may be looking at Kabloom...no facts yet...but it makes since from the retail outlet direction, but not much from the franchise side...unless 800 thinks they could convert the Kablooms into 800 retail outlets, and then migrate the independant franchises to 800 based on their international name recognition and marketing power.
 
Joe Mioux said:
If you don't have the product, you don't have the problem.
Click to expand...
:> I nominate that as quote of the day.

No matter the national company, the assumption until this development was that margins on WS containers/orders could be calculated with a reasonable level of reliability, especially by florists that fill a high percentage of incoming orders.

Pardon me while I play Calculator Bill for a minute....

Effect on net of reduction from $66.99 to $56.99

FTD
Old - $10.99 service fee + 27% commission on 66.99 = 29.08
New - $10.99 service fee + 27% commission on 56.99 = 26.38
Difference = 2.70

Florist
Old - 73% of 66.99 less .95 receiving fee = 47.96
New - 73% of 56.99 less .95 receiving fee = 40.66
Difference = 7.30

The florist will receive $40.66 to fill what is being sold today at an overall price (arr plus service chg) of $77.98 to any consumer purchasing the item.

That's 52.15% of today's total selling price

Effect on net of reduction from $39.99 to $34.99

FTD
Old - 10.99 service fee + 27% commission of $39.99 = 21.79
New - 10.99 service fee + 27% commission on $34.99 = 20.44
Difference = 1.35

Florist
Old - 73% of 39.99 less .95 receiving fee = 28.25
New - 73% of 34.99 less .95 receiving fee = 24.60
Difference - 3.65

The florist will receive 24.60 to fill what is being sold today at an overall price (arr plus service cgh) of 50.99 to any consumer purchasing the item.

That's 48.25% of today's total selling price


Regardless of wire service membership, any business that can afford to discount their services this much should be doing it for their own, loyal customers first.

Care to bet on whether most FTD OG's follow suit on the 'test'?
 
CHR said:
:> I nominate that as quote of the day.
Click to expand...

Ditto tritto on that one! Even if I buy the stuff I NEVER codify for it. (and I rarely buy it, tho I bought the red hurricane strictly for local sales)
 
we've been "nailing"....

'em for the $11.99 service fee for a while now...get at least 10 bucks extra each & every time...
By the way, IF, your "dream" is to be profitable, you kinda DON'T want to "encourage" incoming from ANY "DOTS".
EG....get an order from a "DOT" for $41.67.....request 15 bucks more, order cancelled, RESENT through FTD's famous little OG, for $34.78...same order, same recip, same sub-order #.....
Get a brain cramp, ask for $100.00 to fill order, get a call...."can you fill this for $41.67??......"Nope!!"
Order cancelled here, probably sent to some witless shop...haven't got a "DOT" order since:bouncy:
 
Mikey the Flower Guy said:
'em for the $11.99 service fee for a while now...get at least 10 bucks extra each & every time...
Click to expand...

Yep you can... before I stopped accepting them, I tested Mikey's theory...and asked for $9.99 more on every order...they sent it!

Going forward I would think everyone could get it too...cut their profitability!! THey'll pay it just to get the order out!
 
Valentine's Day Update

Yesterday we received an order from 800-SEND-FTD for February 14 delivery.
The order requested two products: FTD 06-V6 and "1 chocolate ($15.00)." Total US$ provided: $64.99. We asked for a price increase to $71.99, noting that the FTD price for V6 is $49.99 and the FTD price for a box of Belgian chocolates is $14.99. No allowance was made for a delivery charge. We asked for $7 delivery. Rounding the chocolates up to $15 the total should be $71.99... $49.99 + $15.00 + $7.00 - all FTD's published Suggested Retail Prices. 800-SEND-FTD cancelled, saying that "7.00 dollar delivery is included in the price." Are they toying with the prices to see what we will accept?
Tom
 
Tom said:
Are they toying with the prices to see what we will accept?
Tom
Click to expand...

Simple answer is YES....

It's been printed (dang'd if I can find it) someplace, that FTD will be **testing** lower price points to try and compete with 800flowers as well as ProFlowers...and to see at what price results in more consumer sales.

With that, they in as much said that they would be testing to see how low the filling fools (my word for those who accept Da Dots orders) are willing to go in accepting their orders.

We will (I think) see over the next run of holidays (VD-MD) various *tests* to see what price points they can get away with.

Thing I don;t get, and never did, was that if it costs them $30.00 (industry estimate) to gain a new customer, and they are selling a $29.95 product, and then have to give away 73% of that sale to the filler fools...how the hell do they ever expect to make a profit (not that I worry about that part) ....

Boggles the mind:boggles:
 
Status
Not open for further replies.
Top Bottom
Back