Economic Impact

[Tom Carlson]

I represent IFA on the Indeppendent Business Forum. The CEO of IBF ask me if I have any statistics on the impact of the economic downturn on independent florists businesses.

Please answer the Poll with your best estimate and it does not have to be for a certain period. Probably the last months would be appropriate as this is when the Housing and Wall Street crisis started be a key factor.

Tom Carlson AAF
Independent Florist Association

 

[Joe Mioux]

tom,

What is your reference point? Last year's sales? or something else.

If it is for last year, I am up 10 pct from y07, about even 06, greater than 10 pct up for 05, and 04.

joe

 

[Tom Carlson]

Reference point

tom,

What is your reference point? Last year's sales? or something else.

If it is for last year, I am up 10 pct from y07, about even 06, greater than 10 pct up for 05, and 04.

joe

Re: reference point: My logic would be to compare this years sales during the period when the Economic Crisis started [in your area that might be Aug/Sep] then how does that compare with the same period last year.

In my figures, I would not include my furniture sales because that is not flowers. But the day GM announced they are closing this 90 year old plant might be the start of the economic crisis. So if that was in April, then I would compare May thru Sep this year with last year.

What we want to know is whether the Economic Crisis has impacted your business on a scale of NO IMPACT YET to SOME NEGATIVE IMPACT for the same period one year ago.

In your case, it sounds like you would say, NO IMPACT.

 

[Joe Mioux]

Tom,

I think in my case and a lot of other traditional flower shops, business activity depends on funeral and wedding business during non-holiday months.

Asking the question whether a shop is up or down during the late summer earl fall months doesn't mean much.

The business activity will be predicated on those two major floral departments (weddings and funerals).

Now, the U.S. economic money tightening has been going on for well over a year. A year ago, gas prices doubled. ARM's started kicking in over a year ago, it is that banks finally started feeling the ARM issue in the last few months.

Since our business' are on the low end of family priorities, we need to focus on those business' that are growing. We already know the part of our business' that are contracting.

Joe

 

[CHERYL BAKIN]

Tom:
In our area, we are still experiencing good wedding & sympathy work, but are experiencing changes in everyday items. For instance:

Fresh flowers for gws, & thinking of you type remberances are off, but our Fruit & Gourmet baskets are UP. customers who are ordering the Fruit & Gourmet are telling us that they last longer -- the family has something tangible to use. We expect this will carry over to the holiday season, as families shop wisely with their money.

We are, for the first time in over 5 years, experiencing inquiries about SILK flowers for funeral home, gravesites, and homes settings. (!!)

People are not chopping things out -- but they are spending their money wisely, and cautiously.

Next years' weddings are VERY focused on price, and "the look" for the price. Whether that changes or not will depend upon who/how the economic picture changes over the next 3 to 6 months.

Cheryl

 

[Tom Carlson]

You're getting too detailed

Joe & Cheryl
And others who might be on the same page.

I am simply asking a very basic/vague question:

IS THERE ANY IMPACT ON YOUR BUSINESS FROM THE ECONOMIC ENVIRONMENT THAT WE ARE ALL FACING TODAY? Give us your PULSE.

Maybe weddings you are booking for June 2009 are smaller, maybe funerals are getting more memorials than flowers. It's not if you had a huge funeral last week due to a local celebrity passing into eternity. It's about your business in the overall.

If you can't decide, don't vote.

This purpose of this poll is not analitical. It's about taking a PULSE.

Do your best, your pulse is appreciated.

Tom Carlson

 

[CHERYL BAKIN]

Tom:
I did vote in your poll, so that you get the pulse.

I think it is important to have some commentary about how the "pulse" is doing & where it is going.....

Flowers, and other gifts are luxury items. We see luxury items, by the average consumer, in our area, being down right now, and thru the holiday period.

People will plan to spend on Wedding flowers, for instance, that can be planned and saved for 6 to 12 months out.

We are seeing some weddings being postponed.

Event business is our area (meaning holiday parties) are beginning to take a big hit. One facility reports business off a whopping 20%; another report holiday party business is off about 12%. (there are others also in the about 10% mark).

General feeling right now is that it is hard to plan a holiday party when you have just announced layoffs of several hundred to several thousands of people.

Cheryl