Article Florists' Review wire service article

You decide:

http://www.floristsreview.com/main/may2010/RoyerMay.html

Interesting quote:
Royer said:
[FONT=&quot]Sources inside wire services have told me that gaining members is not difficult. Retaining members is nearly impossible if the wire service cannot provide at least the approximately 13 orders a month needed to offset fixed membership costs.
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I have a hard time believing the 13 orders a month to break even, this would depend on the actual cash value of the orders and the wire service math used.
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I think he's right on. The only thing I would add is to encourage florists to create there own websites and offer the convenience of the internet to their customers to give the dotcoms a little competition.
 
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I really like the fact that the history has been written into the article. Lots of you were here though my research of this very thing and know our current status. This article basically summed up 1.5 years of research! He left out a major part of the puzzle thought, the codified products. <---Big one!
 
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I was totally impressed with it, especially since Florist's Review had the guts to publish it! I could not believe what I was reading with the $5 membership fees. Say what?! Really? My, my, inflation has certainly been in effect with that.

I also have a hard time believing that 13 orders would be a break-even point. I can hardly believe that he would have forgotten the COGS, but maybe he did.

At any rate, I plan on showing that article to EVERYONE, I may even take out an ad! It explains better than I can exactly what is going on. I was almost giddy when I read it this afternoon.
 
How much is a full page ad ? Maybe we could get together and say Thank You to Mr. Royer !! :)
I thought it was to the point, made valid points of the downfall thanks to rebates and the birth of the OG's... yeah a few things were not mentioned but he only has so many words he can say in a column ! Well don!
 
For many years, I've said that nothing will change until some of the really big senders get motivated to take the warped system straight on. Some smootch closer to WSs (remember the 'incremental sales' pitch?) when they get pay or bennies, other finally recognize it for what it really is...

What this industry really needs is an affiilate referral system between florists - like an Amazon emporium - that shows what local delivering florists really offer... at their own prices. The top-down overlay of beautiful product shots followed with deliveries that hardly bear a resemblance to what's sold is so 'last decade'.

A quick reminder... we've been able to see financials from publicly held companies (1-800 and FTD UNTD) and it's clear that florists - through their own purchases (clearinghouse, POS, products, CC clearing, advertising, etc...) generate the most profits for both companies - more than consumer sales. Without your dollars, these companies have no business model.
 
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BOSS's Quote of the day!

CHR said:
it's clear that florists - through their own purchases (clearinghouse, POS, products, CC clearing, advertising, etc...) generate the most profits for both companies - more than consumer sales. Without your dollars, these companies have no business model.
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And there's the rub... too many florists still think that the wires are their friend/saving grace/partner, never realizing that they are the very thing killing the industry, or at the very least lowering the price points to a level where we can not generate NET gains high enough to pay a real world wage.

Cathy's right, we need a referral system. I still hold to the notion that NOT doing order transfers between shops is the best direction to go, giving you full value for services rendered, and the same to me. You'll never convince me otherwise.

We do NOT need branded containers, we do NOT need order generators, we do NOT need Big Brother. In almost every case, their products and services are inferior to those offered by other companies, like Pioneer Wholesale, Strider, MAS, FAS, PayPro's, and the list goes on...florists just don't have the guts to step off the WS bus in numbers big enough to make a real difference.

Royer, coming out with the true facts is a giant step...too bad most won't heed the warnings...
 
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Well I have long stated on here that we should have a referral system based on the internet. With a web site that shows arrangements in traditonal glass and baskets that can be obtain from any wholesaler. If a customer click to order it would ask for zip code and it would give consumer list of member shops in that area and upon clicking on a florist bring them into that florist personal web site were they would not only have that item but any items of their own choosing. And I am sure there would be zip codes that would not have a florist but I don't think it would stop such a system from working. I am a non technical person and have no idea how complex such a system would be and certainly members would have to pau some dues to keep such a site running . But what ever the solution is there certainly can not be done on a free lunch bases
 
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The article was spot on. I have been trying to convince my husband that we do not need a wire service. I never really had much to do with the shop in SC, but now that we are working together everyday he is more involved with helping make decisions. After I read the article to him, he said you are right. I have had them all Redbook, AFS, FTD, Teleflora, Bloomnet and never want one again. I hear other shop owners here complain about filling the lower priced orders and owing so much money at the end of the month. Not for us. Wire service free and proud of it.
 
A good article and it didn't pander to the OG and Wire services.

That's what good journalism is about.. telling the truth and providing a balanced explanation.

We dropped off Teleflora in January and have ZERO regrets.

We use the flowershopnetwork, which is $250 per year. We do that just to keep a foot in the fire.

The $350 worth of TF charges we paid each month are now being used in better ways for promoting business.

I gotta mention that horrid $79 late charge we paid on a $7.65 balance we owed TF one month.

Unbelievable....

[video=youtube;RzBVxuMjrTQ]http://www.youtube.com/watch?v=RzBVxuMjrTQ[/video]
 
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