Florists' Wake-up Call
Is the fact that FTD now offers their complete line of products via Walmart finally the wake up call florists need to realize where the industry is heading? http://www.walmart.com/catalog/catalog.gsp?cat=182475
This latest move really highlights so many issues.
1. If FTD hosts your website or your site primarily consists of FTD products, Walmart will be offering the very same inventory as you, but for less.
The FTD Sweethearts Bouquet is retailing for $39.95 plus service charge at FTD.Com. That same bouquet is $33.59 at Walmart.com. I took a quick spin around the web and found it selling for $34.95 on most florists' sites. (Yes, I know the deliver fees are more but doubt most customers will even bother to notice.)
2. Think you can lower your local prices to stay competitive? Well, if I recall correctly, you must offer your arrangements to the wire services at the same rate you charge local customers. So no matter how low you go, by the rules, you'll have to accept those orders at a 27% discount...talk about a downward spiral. They will still be able to beat your price and make a small profit.
3. Would you buy those codiified items if you knew they were being offered by Walmart? Can you justify carrying them if they're forever to be used to fill deeply discounted orders, especially since they've lost all air of exclusivity?
4. Those of you co-branding with FTD are also now co-branding with Walmart whether you like it or not.
5. With this move, I believe they have crossed the line to make their real florists members de facto franchisees. All the work with less than half the profits.
Is this finally the motivation to get florists to feature their own products on their websites and to promote 100% local sales? I hope so.
There was an excellent post by Griff yesterday about the financial impact of 'smoke and mirror' pricing and the filling discounted orders. http://www.flowerchat.com/forums/showpost.php?p=30219&postcount=20 I urge everyone to read it.
Is the fact that FTD now offers their complete line of products via Walmart finally the wake up call florists need to realize where the industry is heading? http://www.walmart.com/catalog/catalog.gsp?cat=182475
This latest move really highlights so many issues.
1. If FTD hosts your website or your site primarily consists of FTD products, Walmart will be offering the very same inventory as you, but for less.
The FTD Sweethearts Bouquet is retailing for $39.95 plus service charge at FTD.Com. That same bouquet is $33.59 at Walmart.com. I took a quick spin around the web and found it selling for $34.95 on most florists' sites. (Yes, I know the deliver fees are more but doubt most customers will even bother to notice.)
2. Think you can lower your local prices to stay competitive? Well, if I recall correctly, you must offer your arrangements to the wire services at the same rate you charge local customers. So no matter how low you go, by the rules, you'll have to accept those orders at a 27% discount...talk about a downward spiral. They will still be able to beat your price and make a small profit.
3. Would you buy those codiified items if you knew they were being offered by Walmart? Can you justify carrying them if they're forever to be used to fill deeply discounted orders, especially since they've lost all air of exclusivity?
4. Those of you co-branding with FTD are also now co-branding with Walmart whether you like it or not.
5. With this move, I believe they have crossed the line to make their real florists members de facto franchisees. All the work with less than half the profits.
Is this finally the motivation to get florists to feature their own products on their websites and to promote 100% local sales? I hope so.
There was an excellent post by Griff yesterday about the financial impact of 'smoke and mirror' pricing and the filling discounted orders. http://www.flowerchat.com/forums/showpost.php?p=30219&postcount=20 I urge everyone to read it.