FTD advisory council

Nobody here that I know of Steve...

I was on it once, back in the day... nice dinner parties but not much concrete got accomplished.
 
Boss have you read the FTD news letter yet particularly the section that has to do with this council discussing the profitabilties of incoming orders? They seem to indicate that we should not be looking at those order as supporting labor and overhead?????
 
Thanks for the heads up dude... had to dig it out of the trash can...

[allow me some creative editing of the Lead in]

The success of our industry rests with respected florists [read: Order Gatherers] from around North America representing you [read: Filler Fools] on topics including pricing [read: how far can we shrink the margin], customer service, marketing [read: rebate negotiations] and product [read: cookie cutters]

Now, that said, I'm not at all surprised that FTD would put one of their biggest order gatherers on an "advisory council". At least in the days of Bad Bobby there was a very wide and ranging group of people involved.

From the article I find it funny that they claim the will help me to evaluate and better understand my own economics. I guess I can fire my CPA.

I think I could make the argument that yes, there is no added overhead, unless you add Delivery, Design Labor and additional product purchases. I guess these orders do not require any of those items.
These orders deliver incremental profits to your business because the variable costs of filling them 'should be' lower then the revenue you receive
Click to expand...
Huh? "should be" ?? Not if I keep a designer and driver around after my local orders are done to fill incoming orders.

And to think they suggest you contact your FBC to have them explain how incoming orders can help you??? Again WT? Most of these yahoos can't even hold a job and jump from company to company so often they don't even get new business cards.

Nice that they shared"in-depth analysis of FTD pricing formulas" with the group, how about sharing them with the folks trying to make a profit?

When you take into account the actual costs of filling incoming orders the "incremental profit" just ain't worth it. And in reality if you figure your REAL delivery/design/accounting expense these orders come in at a loss right off the bat.

Steve, sadly it's all SPIN....they have to, unless they keep filler fools lined up to fill the junk, they're out of business.
 
When I refused to order any codified product for Christmas, based upon under value orders from .com, Marketplace had a LOVELY argument about how short sighted I am to insist on making a profit on EACH order! It is, apparently, much more valuable to align ourselves with FTD than to make our rent payments! (!!!!) I am tired of that attitude, let me tell you!
 
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more to the point Steve.....the tainted value of these orders, COMBINED with the fact that YOU must pay a "premium" (eg clearinghouse overheads) to even have access to such orders, is what "they" are trying to circumvent in their illogical theories.
Large shops, make up a small proportion of the reality of the floral retail industry, and as smaller shops have come to realize, the same brush cannot be used to paint the same picture, so, as in Boss's analogy, the og centre's and their derivative supporters, are landing on hard times, which by the way, has MUCH to do with what we have "accomplished", as a family, for what's it's worth!
 
....


...the article:


the success of our industry rests with
respected florists from around north america
representing you on topics including pricing,
customer service, marketing and product


The floral industry is changing and so is FTD. We know
that the success of our industry depends on keeping
our existing customers delighted while also attracting
new ones. As a result, FTD is actively seeking ways to
improve the customer experience when sending and
receiving flowers. FTD is very focused on bringing flowers
into people’s lives, thereby increasing industry sales and
sales in your shops. FTD has been working with florists
just like you to bring innovative programs and products
to the marketplace to ensure we all grow and are
profitable together.
To help us accelerate these efforts, the FTD Advisory
Council was created. The group of successful, respected
florists from across the country provides input on new and
existing FTD programs, informs about florist concerns and
challenges; and helps direct FTD to be a better partner
with its retail florist members.
Together, we are tackling the real issues that affect your
business in a candid and constructive manner, beginning
with two primary concerns.
Issues the Advisory Council recently
addressed with FTD are:
1. Profitability of wire service orders
2. Profitability of FTD.com orders
Profitability of Incoming FTD Orders
Incoming FTD orders (as all wire service orders) are
incremental business that helps take advantage of under
utilized capacity in your shop. For all but a few days a year,
additional orders each day require no added overhead or
labor costs so those orders add significant dollars to the
day’s profitability.
One way to look at non-holiday incremental orders is
to view your local and incoming wire orders differently.
Your shop’s base of local orders cover overhead and
labor costs. Florists need to build their local business and
establish a steady flow of orders to cover their shop’s costs.
Once that base is established, incoming wire and FTD.com
orders are very profitable. If you are unsure as to how these
orders can help your bottom line, your FTD Field Business
Consultant can clearly show you the incremental profits
that these orders can generate for your shop.
Profitability of FTD.com Orders
The profitability of incoming FTD.com orders is a topic
that was discussed extensively with the Advisory Council.
These orders are incremental to your business like the
other FTD wire orders discussed above. FTD.com spends
approximately $50 million each year in marketing to attract
these orders into the FTD network and delivers millions
of orders a year to FTD Florists. These orders deliver
incremental profits to your business because the variable
costs of filling them should be lower than the revenue you
receive. Your Field Business Consultant has examples and
can explain how these orders help your bottom line.
Also at the most recent Advisory Council meeting, FTD
shared an open in-depth analysis of FTD pricing formulas
and asked for candid input. We made a great deal of
progress based upon the Advisory Council’s feedback.
By identifying the changes required to help secure
profitability for florists and better help florists how to
evaluate and understand their own economics, both sides
will prosper. This understanding will allow florists to fill
every FTD.com order with confidence. Orders will not get
rejected and customers will continue to send flowers.
The FTD Advisory Council has offered many excellent
suggestions and FTD is already implementing their
recommendations
Click to expand...


...unreal. Propaganda.
 
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Appears just another smoking mirror approach by ftd. As a 35 year member what ftd is attempting is to drive down the long existing margins that florists desperately need to continue in business, thus enabling ftd to compete in the market but at the florists expense. We received a 16.99 order from ftd dot-con christmas eve and promptly rejected. Now we have to hassel them for a refund of the 2.00 charge on the order.we pity the poor florist that doesn't closley review their statement as it has become an open cash draw for ftd.
 
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all I can say is "oh my", they really aren't in touch with their "fulfilling partners" ....... can't wait for my new FBC to come in the next couple of weeks. (he said he'd be here).
Considering I don't get statements and apparently no emails either, a great many shops probably have no idea about this wonderful new aid FTD is touting. LOL
 
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Well Rhonda once your done schooling this new rep who I have not seen nor has he ever spoken with me send him over to Vermont and I will be glad to finish his education for him. He certainly can not be anymore nieve then Dave was and now the lucky Bloomnet florist get to deal with him lol.
 
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all I can say is "oh my", they really aren't in touch with their "fulfilling partners" ....... can't wait for my new FBC to come in the next couple of weeks. (he said he'd be here).
Considering I don't get statements and apparently no emails either, a great many shops probably have no idea about this wonderful new aid FTD is touting. LOL
Click to expand...



....


...just like membership was NOT notified of the
delcon policy to recoup $.50 for returning one.
What a failure ftd has been communicating w/ member florists.
I just do not get it. It is like they are begging membership
to leave. Go figure.
 
I wonder too, if they really looked at it like filler should.

Lets say a shop is paying, even the lowly $99.00 a month membership (not to mention all the other fees) and they receive only 9 incoming orders and have only a handful of outgoing, maybe in June. Thusly the additional fees *could be covered* by the outgoing 20% so a break even there, but thos 9 incomings cost them an additional $11.00 each to receive, PLUS the $2.00 FTO fee if they do not Dcon them. So...

$50.00 incoming
$13.50 27% REMOVED
$15.00 COGS Spent
$10.00 Labor Spent
$10.00 Delivery Spent (in real dollars)
$ 2.00 FTO TAX
$11.00 Membership Cost Spent
-$11.50 Yes kids... that's a MINUS $11.50

No wonder florists that fill are going broke. And no wonder too that FTD wants to spin the numbers.... anyone say... BINGO?
 
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BOSS said:
I wonder too, if they really looked at it like filler should.

Lets say a shop is paying, even the lowly $99.00 a month membership (not to mention all the other fees) and they receive only 9 incoming orders and have only a handful of outgoing, maybe in June. Thusly the additional fees *could be covered* by the outgoing 20% so a break even there, but thos 9 incomings cost them an additional $11.00 each to receive, PLUS the $2.00 FTO fee if they do not Dcon them. So...

$50.00 incoming
$13.50 27% REMOVED
$15.00 COGS Spent
$10.00 Labor Spent
$10.00 Delivery Spent (in real dollars)
$ 2.00 FTO TAX
$11.00 Membership Cost Spent
-$11.50 Yes kids... that's a MINUS $11.50

No wonder florists that fill are going broke. And no wonder too that FTD wants to spin the numbers.... anyone say... BINGO?
Click to expand...




.....would it only be a LOSS of ($11.00) iff
***that is if and only iff***
you do a delcon?

thanks for your analysis!
 
BOSS said:
Thanks for the heads up dude... had to dig it out of the trash can...
And to think they suggest you contact your FBC to have them explain how incoming orders can help you??? Again WT? Most of these yahoos can't even hold a job and jump from company to company so often they don't even get new business cards.
Click to expand...



Unfortunately the FBCs are not trained today like they were back in the days when class acts like Bill Maas ran the show at FTD. They were true "business consultants", not salesmen. Back then the newly hired FBC (FSR) had to train for 6 full weeks to learn all aspects of FTD's businesses and then had to travel with other reps for another 3 or 4 weeks before starting out in their territory. They also brought in paid professionals from the finance sector, public speaking specialists, computer literacy teachers, etc., to do 2 or 3 day classes/seminars with the FBCs at staff meetings. It was a never-ending learning process and the HQ managers were thorough in keeping the reps up to date and in the know as the company evolved.

Now, the training in any w/s is less than a week, and then the reps are put out there to sell, sell, sell. They have to learn all of the other stuff as they go. It's, no doubt, daunting for them, and frustrating for the florists that need a lot of help understanding all of the things involved with the w/s business.
 
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BOSS said:
$50.00 incoming
$13.50 27% REMOVED
$15.00 COGS Spent
$10.00 Labor Spent
$10.00 Delivery Spent (in real dollars)
$ 2.00 FTO TAX
$11.00 Membership Cost Spent
-$11.50 Yes kids... that's a MINUS $11.50
Click to expand...
Almost forgot... if you're paying the $149.00 membership and $90.00 Mercury fees, and got the number of orders mentioned above, it's actually a loss of...

$38.05 (minus) per order...
 
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BOSS said:
Almost forgot... if you're paying the $149.00 membership and $90.00 Mercury fees, and got the number of orders mentioned above, it's actually a loss of...

$38.05 (minus) per order...
Click to expand...




....but you do not have to take that into acct when
looking at the ftd voodoo economics of 'incremental value'
--you know those 'orders you would not have had' philosophy.
That is the new wharton ftd school of accting principles and practice.
Just in time to encourage the newly laid off corporate brain trusts
who decide to pick up the pieces in entrepreneurship of
flower shop ownership/mgmt and ftd making them feel it
is ok to lose ($38.05)/order cause it is for the greater good,
of ftd.
 
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Change you can believe in!

BOSS said:
I wonder too, if they really looked at it like filler should.

Lets say a shop is paying, even the lowly $99.00 a month membership (not to mention all the other fees) and they receive only 9 incoming orders and have only a handful of outgoing, maybe in June. Thusly the additional fees *could be covered* by the outgoing 20% so a break even there, but thos 9 incomings cost them an additional $11.00 each to receive, PLUS the $2.00 FTO fee if they do not Dcon them. So...

$50.00 incoming
$13.50 27% REMOVED
$15.00 COGS Spent
$10.00 Labor Spent
$10.00 Delivery Spent (in real dollars)
$ 2.00 FTO TAX
$11.00 Membership Cost Spent
-$11.50 Yes kids... that's a MINUS $11.50

No wonder florists that fill are going broke. And no wonder too that FTD wants to spin the numbers.... anyone say... BINGO?
Click to expand...

Funny how the more things CHANGE, the more they stay the same. (or get worse)

You can post these number over and over again and show the losses to the filling members and yet, many will continue to drink the Kool Aid while trying to justify and rationalize their own reasons for filling incoming OG and DOT.CON orders.

The WS's will continue to perpetuate this MYTH since it suits their agenda and the florists will continue to fill those orders in the hopes that, Santa Clause will be coming to their town soon.

As to the FSR's or FBC's? Those kids, like us, are just trying to hold onto their jobs and collect a paycheck at the end of every week.

Sure, they are the only person you might ever see who represents the WS and the only opportunity for you to VENT your frustrations, but nothing will change.

They have a difficult job as it is. Being in the middle of the WS company they collect a check from and the florist who has issues with the same company they choose to be a member of, does not really allow for a constructive dialogue.

As one former FSR put it to me: " MY ALLEGIANCE is to the COMPANY that signs my check! "

The new owners most likely think that, their new FLORIST ADVISORY COMMITTEE, is a fantastic NEW IDEA and a leap forward in their marketing efforts to try and stop the HERD from stampeding away from the money pit.

As you pointed out Mark; Been there, did that, and it never made a difference!

Next VISION they'll talk about is trying to restart the old districts (again). Of course, that will never happen, but it's another WARM and FUZZY in their efforts to buy more time as their ship continues to take on more water.

Truth be told, they have no interest as to what it would take to make their members happy.

In a word, PROFITS!

Then again, that would be in direct conflict with their own MISSION STATEMENT, since they can't deliver PROFITS to the filling florists and at the expense of their OG's and DOT.CONS.

That's the conundrum over the CHANGE which will never happen.
 
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