Dropping Teleflora

dhamil6490

Active Member
Dec 2, 2008
141
149
43
Columbus
www.blumengartenflowers.com
State / Prov
OH
I've made the decision. After reviewing 2008 TF sales vs 2009, seeing a 30% drop in HQ orders and F2F orders AND seeing overhead costs remain the same or go up, it finally dawned on me that this is a loosing proposition. I told my rep and he offered me a few enticements to stay, but at the end of the day it just ain't worth it. Sometimes I feel like I'm cutting of my nose to spite my face, but in this economy, if it isn't a profit-maker it isn't worth doing. If I'm looking at this the wrong way, please don't hesitate to correct me. All opinions are welcomed.
 
This is a decision that has to be based on each flower shop's situation in their market. You can always rejoin TF.

But here is my perspective: Our revenue is down due to 4 factors
1. Our largest employer shut down a 90 year old factory or over 4 million st ft & 4,600 jobs.
2. The economy is impacting communities even if they have not lost jobs
3. Competition is intense and if other merchants aren't selling flowers, they are knocking them.
4. The Internet has changed everything and now we have to deal with Social Networks?

In my case, I have cut our payroll to the core and my staff can still handle more orders. It is a fact that when designers are busy, they produce more designs. So if a shop has payroll that is non-productive, then incoming wire orders are a big plus. So I am thankful for every order I can get. My emphasis now has to be on sending more orders.

Another factor to consider is the fabulous option consumers have when buying/ordering flowers as a gift. No one else can do that as efficiently as florists. The Wire Services do a lot of advertising [I wish it was being done like it was back prior to the Internet]. I believe that Teleflora supports the Florist better than FTD or 800.

Yes, TF competes with us, but I doubt they would stay in business if they did not match what their competition is doing.

Consumers today are DUMB, but gradually getting educated. Had an 800 order this week, ordered by a husband in our town for delivery to his wife in our town. In fact, he was home waiting for the order. Because we had to get in touch to confirm ability to deliver, he got our VM message. So he called back. When I told him the route his order took, that he paid $15 more for the 800 service, paid more for the half dozen roses than if he called us direct. He asked who we were and where we were located. I gave him our address and it did not register. I asked if he knew where Stokes Bar is? To which he replied, You bet, that's my favorite bar. I said that we were directly across the street. He said he sometimes parks in our parking lot in the evening when the bar is busy. THAT'S OUR CUSTOMER!!! WHAT DO I HAVE TO DO TO REACH HIM? Well, we've not him now. I looked them up in our receiver file and we have delivered to his wife several times in the past, all 800 orders.
 
whether you're with a wire service, or not, consumers are generally lazy, not so much "dumb".....whomever "catches" their short attention span when they "need" that particular service, is likely to be the beneficiary of that particular order!!
There ARE stupid consumers, but, there TOO, are stupid florists, and stupid mechanics, and stupid electricians, and stupid city workers
 
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The only thing I'd say as a 'Teleflora person' is don't overlook the value of the things that 'cost'. If you're not using any of our additional services, or if they're not working for you, we're obviously sorry to see you go, but you have to do what's best for your shop.

The point we sometimes don't make a big enough deal out of in our 'sales pitch', however, is that what we do any longer may not be best suited to creating profit for you.

Think of it like this -- would you tell your internet provider that if they don't bring you orders, you'll stop using them in your shop? Or will you say 'this is an expense I need so I can check my e-mail, use Google maps and generally run my business'?

We think that most of what we provide at this point in history falls on THAT end of things. They look like costs, but they provide you things you need (or want because they make running your business easier/more efficient/whatever), and so you determine at what point they stop providing value and only subscribe up to that dollar amount. Things like your POS system, your credit card processing, marketing materials like product posters, and so on.

Best of luck making a difficult decision!
 
The only thing I'd say as a 'Teleflora person' is don't overlook the value of the things that 'cost'. If you're not using any of our additional services, or if they're not working for you, we're obviously sorry to see you go, but you have to do what's best for your shop.

The point we sometimes don't make a big enough deal out of in our 'sales pitch', however, is that what we do any longer may not be best suited to creating profit for you.

Think of it like this -- would you tell your internet provider that if they don't bring you orders, you'll stop using them in your shop? Or will you say 'this is an expense I need so I can check my e-mail, use Google maps and generally run my business'?

We think that most of what we provide at this point in history falls on THAT end of things. They look like costs, but they provide you things you need (or want because they make running your business easier/more efficient/whatever), and so you determine at what point they stop providing value and only subscribe up to that dollar amount. Things like your POS system, your credit card processing, marketing materials like product posters, and so on.

Best of luck making a difficult decision!
What a great response.

I have been thinking. Instead of "Save the Florists", which is dumb. :)

Perhaps you should fire your marketing manager, and you could try using that florist targeted advertising budget to reiterate what you already do? TF=Wire service. No one can deny. But, in a short response to a post here and in the email thread, you have listed of a bunch of things. There seem to be other great things that TF does that never get discussed; Anywhere!

After all, you are advertising to business owners who will read what you have to say. Say something relevant for a change! "Save 50% on your posters". "Best prices on XXX in the industry", and back it up with some real goods.

Just sayin.
 
had an interesting discussion with the NE/ME rep the other day. Will see him at the show this coming weekend. Wanted to know why I had dropped TF - told him and he said he could get me in the book before MD.........hmmmm hasn't that been printed or on it's way?? Naw, they can trot along with the uneducated filler they already have here (who doesn't know how to do a "cube design")
 
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I've made the decision. After reviewing 2008 TF sales vs 2009, seeing a 30% drop in HQ orders and F2F orders AND seeing overhead costs remain the same or go up, it finally dawned on me that this is a loosing proposition. I told my rep and he offered me a few enticements to stay, but at the end of the day it just ain't worth it. Sometimes I feel like I'm cutting of my nose to spite my face, but in this economy, if it isn't a profit-maker it isn't worth doing. If I'm looking at this the wrong way, please don't hesitate to correct me. All opinions are welcomed.


Not looking at it the wrong way, but maybe only one way...The reason the ws game is hard to quit is because of the so many departments and tools they have for us to use....for instance, I chose to go with their technology, I have their POS, cc processing and website for reasons that fit me and my biz, can I save elsewhere, probably, could I finance these elsewhere, probably not...do I use the ws end, not really....does it pay for itself, not sure, too many variables to sort out...and I am tied in...I am a memebr of the board and enjoy that part, the list of pros is high, the list of cons, the biggest of which is money is smaller, but money is a huge driving force right now...

I just dropped 800-flowers because having 2 ws was totally stupid...so now we will see where I get with TF...I personally thing TF needs to split up the departments into separate entities so people can pay ala cart for the services they want, I think they will benefit from selling tech stuff separate from membership...my 150.00 membership fee is useless for the few orders sent and received, on top of the fees I pay for my website, cc processing and pos....I wish I could just pay for what I use and get rid of what I don't really need...

I keep the one ws because I advertise full service florist with worldwide delivery, but the last 4 wire outs I had, there were no florists that delivered to the towns and I ended up calling them out direct....That sux outloud, because I am paying for the service, but I don't want TF to be calling my orders out for me, I don't trust their possible foreign sales reps to get it done and am afraid of getting the call at 5:30 that my order wouldn't be accepted, because we all know that these people dropped the wireservice for a reason and probably are filling for them when they call direct...so now where does that leave me...it bites bad...
 
The only thing I'd say as a 'Teleflora person' is don't overlook the value of the things that 'cost'. If you're not using any of our additional services, or if they're not working for you, we're obviously sorry to see you go, but you have to do what's best for your shop.

The point we sometimes don't make a big enough deal out of in our 'sales pitch', however, is that what we do any longer may not be best suited to creating profit for you.

Think of it like this -- would you tell your internet provider that if they don't bring you orders, you'll stop using them in your shop? Or will you say 'this is an expense I need so I can check my e-mail, use Google maps and generally run my business'?

We think that most of what we provide at this point in history falls on THAT end of things. They look like costs, but they provide you things you need (or want because they make running your business easier/more efficient/whatever), and so you determine at what point they stop providing value and only subscribe up to that dollar amount. Things like your POS system, your credit card processing, marketing materials like product posters, and so on.

Best of luck making a difficult decision!

The SHARK swimming with the fishes...
 
Think of it like this -- would you tell your internet provider that if they don't bring you orders, you'll stop using them in your shop? Or will you say 'this is an expense I need so I can check my e-mail, use Google maps and generally run my business'?
No I would not. But I would tell them that if they do not increase my speed, and lower my expense that I will move my business elsewhere. Oddly enough, they usually comply. My ISP just increased the speed at no cost increase to users last week...as a THANK YOU for doing business with them. Never seen a wire service do anything similar.

Last I knew Teleflora was not an ISP, so your argument holds no water. it's not my ISP's job to get me orders, it USED to be my wire services job, but they failed miserably, so, like anything else that is a detriment to my business, I eliminate or lessen my exposure to them.

All three major wire services do the same things, there is little difference between them these days. Yes I would still say that Teleflora is still the "most florist friendly" but that line is blurring more everyday. Case in point is Teleflora's partner ProFlowers. Perhaps the biggest retail florist basher in the industry, yet Teleflora chooses to partner with them in the name of "getting florists more orders", while in reality they are getting florists mostly UNPROFITABLE orders to fill while ProFlowers and Teleflora make more than the filling florist. Seems fair huh?

Like Lori, we too have seen huge holes in coverage the last few months. So much so that it got to be a huge pain to try and get orders out at a holiday...so I quit... the coverage issue will only get worse. My guess is that the next 6 months will see unprecedented numbers of florists leave, never to return.

Florists don't look at things correctly in many cases... many are paying $149.00 a month or more, plus connectivity (merc/dove/BMT) charges etc... so if they send only a hand full, and get in a hand full or even 3 hands full (15) it cost them about $10.00 per DISCOUNTED order, removing any potential profit...

no thanks...
 
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BOSS-
My point was to look beyond just the sending/receiving orders part and evaluate the value of the other technologies or services that we provide. We're much more than 'just' a wire service, anymore.

Most florists think of incoming orders as both a source of income-generating orders and as the only reason for a 'wire service'. I'd like to propose that we all know that incoming orders are down across the board and that Teleflora has evolved beyond behind a simple wire service to a floral services provider. Also, as many discussions on FlowerChat have concluded, incoming orders are a great source of additional business, but are probably not enough to keep a business afloat on their own (which is part of the reason we expanded beyond the 'simple' wire service model).

I hope that helps clarify what I intended to say. :)
 
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Nicole....

When Teleflora moves to a stance of putting the retail florist interests, and consumers interests ahead of those of their "partners"... then you'll have something to toot about...

Yes, TF has morphed into a one stop shop for many things florists need in todays world. Problem is, that most companies that do not focus on a couple things, and do them well, tend to try and be all things to all people and their offering suffer because they do not concentrate on what they do best.

There is not one thing that Teleflora or any other wire service provides, that can not be done better, and usually cheaper by a company that focuses on that item. Yes, I would say you can provide many different things to a shop, but at what cost?

Technology, credit card processing, website development, hosting, containers, perishables, marketing materials and just about anything else you care to mention can be done cheaper, and in many cases better by companies that focus on these individual items.

I can not be all things to all customers, and a wire service can not be all things to a florist... it simply does not work.

Teleflora had (may still have) the chance to set this industry on it's ear and grab the lions share of everything floral, they could have killed FTD and BMT... but sadly I think those days may have passed, they may have missed their chance, (or not wanted to take it). Too bad they seem to doing the monkey dance... monkey see, monkey doo...

Leaders lead, followers follow.... and wire services become extinct eventually.
 
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Having a conversation with Teleflora reminds me of Little Red Riding Hood's conversation wtih the Wolf.."My what big teeth you have"

I realize, TF promises nothing and delivers little, except to OG.

Is floristexpress their client or not?

"The better to eat you with my dear."

http://www.proflowers.com/

http://www.floristexpress.net/
 
Nicole your right about the services that TF provides. There is value in credit card processing, (I have yet to see anyone beat what they offer) and POS solutions. I'm fine partnering up with Teleflora for these reasons.

However the ability to send orders is really getting hard to balance. Using a $50 average order 20% on 15 orders will cover Teleflora Membership. 20% on 30 orders covers dove cost and membership. I'm afraid that when you send that little every month the margin of profit is so small.

I use to like promoting Teleflora products. But to be honest I just couldn't sell them. I tried the wizard of oz bouquet recently and I thought for sure that would of been a hot seller. Nope I still have 9 of the 12 that I bought. I did a great job promoting it but it just didn't happen.

I wouldn't really mind giving Teleflora my $150.00 if it was used to promote me. You guys are kind of doing it with those flowers in the box commercials but you could do so much more.

The challenge Teleflora has is to give me a reason to be a Teleflora Florist. Something that tells the consumer that the Teleflora logo that is displayed represents the best in the industry when it comes to design and quality product and Its more then just a place to send your order to another florist.
 
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the ability to send orders is really getting hard to balance. Using a $50 average order 20% on 15 orders will cover Teleflora Membership. 20% on 30 orders covers dove cost and membership. I'm afraid that when you send that little every month the margin of profit is so small.
Eric, I assume you're saying a total of 45 orders a month to cover these two costs.

I doubt most shops have even half that many.

What about the selection guide? Marketing Advance (if they have one like FTD does)? Dove Charges?

Shall we go on?
 
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I'd like to know why TF doesn't offer any incentives to the florist who have been loyal to their company. Florists who pay their bill in full each and every single time. Why do florists have to threaten to quit before the incentives are offered?

I'm not talking about any incentives that if you don't cancel within a certain time you get billed either. Perhaps a free month of membership fees for every 24 you belong with your account in good standing.
 
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I just dropped 800-flowers because having 2 ws was totally stupid...so now we will see where I get with TF...I personally thing TF needs to split up the departments into separate entities so people can pay ala cart for the services they want, I think they will benefit from selling tech stuff separate from membership...my 150.00 membership fee is useless for the few orders sent and received, on top of the fees I pay for my website, cc processing and pos....I wish I could just pay for what I use and get rid of what I don't really need...

PLEASE!!! Can someone from Telelflora HEAR that!!!

I LOVE RTI... I love my CC processing... But I don't want to be in the WS anymore and at current, the only way I can solve this problem is to go "sending only" - which is what we are doing. However, seeing as our intention is to be WS free by the end of the year, that means I have to seriously consider leaving RTI... don't really WANT to do that.

I guess Teleflora has to decide is they can make it worth their while to offer that option to the POS shops. I'd jump on it in a heartbeat!
 
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See there, that's the problem, you can't get what YOU WANT unless you take what THEY WANT you to take. Can't have one without the other...

They would rather lose florists that think like you do, rather than work out equitable solutions that would benifit BOTH parties...

Teleflora and FTD....dumb and dumber ;)