Flower Shop Network?

RKF said:
That's a common misconception. Quite often, if you owe the WS it means you MADE money. It just depends what do you owe them for?

If I send 100 orders at $60 ea that's $6,000 outgoing, of which I have collected $6,000 + $5 service charge / order = $6,500 in my pocket right now. At the end of the next month I have to pay the WS 80% of that $6,000 = $4,800. On those 100 orders I also earned a $4 rebate, reducing my debt to the WS to $4,400.

At first glance ... Oh, my! I owe them $4,400!! The @#$%@ must be ripping me off!

Actually, I just profited $1,100 (that's $11 per order profit, less marketing, sales & admin costs), even though I'm paying the WS.

Now, if the debt is for ASB listings, failure to REJ, or other useless nickel & dime fees, that's a bigger problem.


Flip side is if the WS is sending me a cheque that means I filled a lot of orders ...
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a great explantation, simple, and very understanding.....yet, many florists cannot wrap their heads around.....
 
marie g bushnell said:
She did fill orders for them, not enough volume because it's a fairly new shop. No wire-outs. I know she purchased their containers. She owed them money after a busy holiday.
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Marie, I had this happen to me. Well, not exactly. They DID owe me a check, but by the time I deducted MY delivery COSTS, I actually ended up doing all of their holiday orders PLUS gave them an extra $200. The check was basically funny money when it all came down to the bottom line.

I know florists DO get confused, but this is not the case when there are few if any wire outs.
 
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prestonway said:
Unless my math skills have left me, the gross profit per order is $21.

(20% commission x $60) + $5 service charge + $4 rebate = $21/order

But WDIK ;)
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You know ... I typed that reply on my phone sitting in the airport. I actually thought to myself, "I bet I'm going to screw up the math and Frank will bust me on it."

Nicely done :)
 
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