FTD drops price on drop ship roses
- Thread starter BBJ (Big Bad John)
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BOSS
FlowerChat Administrator
Looks to me, not much, but then again....BBJ (Big Bad John) said:
Add in the cost of obtaining a new customer, to this product, and they (I think) are losing money on this sale. It's their mission to compete with Proflowers, something they will not be able to do effectively as far as I am concerned.
Just another nail in the FTD coffin....
BOSS
FlowerChat Administrator
Highly doubt they'd lose money on this offer. There's such an overproduction of roses right now I'll bet those 36 'sweets' (i..e. teeny, tiny ones) can be had for less than $7.50 - maybe even under $5. Add in packaging, the vase, and freight and we're still talking about a cost of less than $20. The consumer will pay $29.95 plus a $11.99 'handling fee' (which now seems to have disappeared from the ordering page. hmmmmmm....).
Better than a 50% margin which is more profitable, and probably more reliable than a 29.95 'florist-delivered' product.
Better than a 50% margin which is more profitable, and probably more reliable than a 29.95 'florist-delivered' product.
I *think* this is a new method of online selling for FTD -
The deliver/service fee does indeed seem to have disappeared from all the product descriptions. Looks like they're banking on getting customers hooked into checkout before giving them the entire cost - and probably researched that the shopping cart abandonment was negligible despite consumers being disappointed with the surprise added expense.
I went into checkout and got this summary on the second page (after I had entered the recipient and card message on the first.)
The deliver/service fee does indeed seem to have disappeared from all the product descriptions. Looks like they're banking on getting customers hooked into checkout before giving them the entire cost - and probably researched that the shopping cart abandonment was negligible despite consumers being disappointed with the surprise added expense.
I went into checkout and got this summary on the second page (after I had entered the recipient and card message on the first.)
Such a deal! I'm assuming that the 'discount' is supposed to outweigh the added $12 in the mind of the shopper. Very, very interesting approach.Merchandise Subtotal:$59.99
Service Charge Subtotal:$11.99
Discount Subtotal:$(30.00)
Your Order Total:$41.98
All prices are in US dollars.
What about this line?
Next day delivery by FedEx®, DHL® or UPS® is available Tuesday, Wednesday, Thursday, Friday and Saturday for orders placed by 2p.m. Eastern Time to the continental United States. Delivery is included in the price of the arrangement.
Next day delivery by FedEx®, DHL® or UPS® is available Tuesday, Wednesday, Thursday, Friday and Saturday for orders placed by 2p.m. Eastern Time to the continental United States. Delivery is included in the price of the arrangement.
Like CHR said the roses are in heavy production right now and even though it is Woman's Day in Russia there is not much business going on over there. Usually right after Valentines the farms can count on Russia for strong sales but seems this year it is not happening. I am sure the growers are offering FTD ridiculously low prices just to move product.
Okay.....I did get this advertisement as an e-mail to my personal e-mail address, no ppc or paid advertising.
So Yes I think FTD can make a few pennys on each order, but........
How far is FTD willing to go in trying to match or better anyone elses pricing?
At one time shops displaying the FTD logo were known for the Highest Quality at a fair price.
Now it seems that the FTD logo stands for the cheapest flowers (any quality will do) which in turn has a trickle down effect to all members and anyone affilliated with FTD that displays the logo.
So everyone that got this e-mail will think........that's an FTD product so I should be able to get it at my local florist because he/she displays the FTD logo!
So Yes I think FTD can make a few pennys on each order, but........
How far is FTD willing to go in trying to match or better anyone elses pricing?
At one time shops displaying the FTD logo were known for the Highest Quality at a fair price.
Now it seems that the FTD logo stands for the cheapest flowers (any quality will do) which in turn has a trickle down effect to all members and anyone affilliated with FTD that displays the logo.
So everyone that got this e-mail will think........that's an FTD product so I should be able to get it at my local florist because he/she displays the FTD logo!
BOSS
FlowerChat Administrator
At VD (not a big wire holiday) (can;t wait for MD) I turned down maybe 10 customers that printed out FTD emails, that they brought in for cheap product...got so I carried a yellow highlighter and highlighted the direct ship method of delivery and the $11.99 Service Charge so they got my point...6 of the 10 boought on the spot at my prices, 1 called later and I assume I lost the other 3...no biggy...BBJ (Big Bad John) said:
Their advertising is creating an issue for local florists, some will honor the price to get the sale, some will not as they are not making money on the sale, and then some will take the time and try to educate the consumer.
May very well be a special limited to their existing customer list. What better way to stimulate impulse sales than to broadcast an email offering something at a low, low price for a limited time. That's just good marketing.BBJ (Big Bad John) said:
Ironically, the second call this morning was from a lady who wanted to know if we could make an 'arrangement' similar to something she found on FTD's site... and we're not even in FTD. It's a picture of yellow roses and iris - marked at $29.95 plus $10 for the vase.
She wanted it for delivery today which is why she decided not to use FTD.com. I explained that 'arrange in their own special way' meant that for $51.89 her sick mother-in-law would have had to put the FTD 'arrangement' together from her hospital bed. "Oh, my. You're kidding?"
Order's on it's way, arranged, with more flowers than pictured - for less than the total FTD.com price.
Honestly, when you add up the price of the flowers, vase and service charge, many shops can easily deliver those 'direct-ship' orders as arrangements - but not at 27-29% discounts plus all the other WS fees.
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