SUPEREAGLE43 said:
After reading a few pages on the wireservice thread and seeing all of the doom and gloom I am scared to death. Do you people with long experience in the industry think it is not a good idea to open a new flower shop. After reading some of the posts I have a feeling that it is inevitable that flower shops are swiftly being phased out. Is there not a good living to be made any longer. My wife made the decision that WS's are a waste of time and money and we are not going to use them. Opinions are much appreciated.
My advice, for what it's worth? Be afraid. Be VERY afraid. I'd rate your chances of survival, if you were going into an established shop and you had prior knowledge and experience at pretty low. Starting from scratch, I'd rate your chances of survival at just about ZERO. I sure wouldn't want to do it now. And I think most credible statistics on the subject would back me up.
Prior to 2002, when the economy headed into the tank, the survivability rate for new businesses (not just florists) was horrible. Most, according to government figures, didn't survive 2 years, and that was in times much better than now. I doubt if anybody in government is interested in letting anybody know what the figures on that would be now.
Closer to home, we're approaching 15 years in the business. We cover several small mountain resort towns and the areas surrounding them. We built up to 3 stores and, when the economy started to tank, we circled our wagons, dumped our baggage, sliced off our fat, went back to basics, and consolidated into just a filling center. And that's probably the biggest reason why we're still around and 11 others that were here when we started aren't.
During the time we've been here, I've seen more than a 15 or 20 attempts to start new florist operations from scratch within our delivery area. I believe two of them may still be around but that's only because one of them only jumped into it recently and hasn't had time to run out of money, yet. The other runs the florist operation as an afterthought to a landscaping operation sales yard and the florist operation is part time.
During that same period of time, and particularly in recent years, I've seen at least 11 shops that were here when we started go out of business. Some of them had been multi-generation shops with a lot of experience and were very well established. What happened? The times changed and they didn't? I don't know. I was too busy trying to survive my own mistakes to analyze theirs.
During the past 6 months, I've seen 2 major wholesalers who serve our area call it quits. I'm told that another big and long established one has announced that they'll end operations by the end of the year.
So, yeah, between the statistics that are probably available if you dig deep enough and what I am seeing and have seen as a trend in my area and around the country, I don't think I'd advise you to spend any money you can't afford to lose on this venture. And, above all, don't rack up any debt, either to get into it or to operate it, if you decide to go ahead with it. PAY AS YOU GO ! ! ! And the moment you run out of the money you've allocated to put into it and try it, SHUT IT DOWN ! ! ! Do NOT dig yourself a DEEPER HOLE ! ! !
I agree with your wife on the WS issue. If one of them offers you one of those freebie deals which will give you access to some of their non wire service products and services, that might be of benefit. But I'd sure not put any money into any of them at this point in time as a new shop. There was a time when you could get yourself a cooler and a phone line, hang a sign, and use wire service business to start up and build a new flower shop. I know. We did it with two of our stores. But those days, I'm afraid, are gone and never to return. I doubt if it would be possible to do that now.
I do believe that the "handwriting" is on the wall for the retail floral industry. It is rapidly being taken over by the "big boxes" and "direct shippers". Florists like to argue over Order Gatherer/Wire Service issues. But I believe those are rapidly becoming non-issues. I believe that when the smoke clears, the Big Boxes and maybe the Direct Shippers will have captured most of the floral market share. I don't know who'll win the battle between those two, but I'm willing to bet that it won't make much difference to real stand alone florists. Cause they, along with the wire service operators and order gatherers that helped to kill them, will be long gone into history . . . along with the corner grocery store, neighborhood barber shop, and the milkman and butter and egg man.
But that's just my long (or maybe not so long) range opinion based on what I've observed in other industries, as well as this one.
And one final observation. Everybody likes to give advice. Some of it might work for you and some of it might not. Listen all you can but do your own thinking and remember that some of the advice you're going to get may have an agenda behind it that's not necessarily in your best interest.