FTD Going Directly After ProFlowers

[CHR]

Last night while driving home I heard a new FTD commercial that directly targets ProFlowers well-known radio drive-time marketing. The ad starts out gently/humorously talking about the benefits of giving flowers and mentions stopping in at 'your local FTD florist' or ordering from FTD.com. It specifically mentions anniversaries.

The kicker - "Order from FTD.com and get 18 roses for $19.95."

Mentions 'click on the microphone' to take advantage of the promo - ala ProFlowers. BTW, the 'special' shows mixed roses in oranges, yellows, pinks with 2 reds - not exactly a popular combo. One dozen reds are shown displayed in a vase, starting at $29.95, but the text says they arrive wrapped or boxed at that price. $10.99 service charge with a $15 surcharge for Saturday delivery. !!!?

Will be interesting to see if shops get walk-in/phone-in requests for this. I'd recommend all FTD members (and actually all traditional florists) have a plan to deal with customers asking for this deal. Consider offering to match the special dollar-for-dollar, especially if you have a way to capture data for future marketing (address, email). Hey, the customer came to you on someone elses advertising dollar. Even if it's your regular customer, why send him/her off to FTD by failing to 'match' their offer?

Print copies of their specials so that you can show and explain the details of their deals and offer upgraded alternatives in shades of Wow.

It's important to note that even though ProFlowers pushes low prices, their average sale is in the range of $50. Why? Because they use the time-tested method of enticing customers by price and then upselling via add-ons (vases, chocolates) and upgrades (more desirable color, more flowers, faster delivery.) Get past the low price offers and look to see how they are succesfully making it work.

No point in grumbling about this latest FTD ad campaign. Just figure out how you can position your business to take advantage of it instead of just defending yourself from it. In another thread, Boss discusses issues related to competing with the current FTD direct-ship specials.

Not sure if this is just a test campaign or it's being rolled out on a national level. All I know is to be ready for it.

 

[CHR]

OK, I said no grumbling but do want to note that it seems FTD has ditched the product iimages of 'bunched roses surrounded by leatherleaf' in favor of showing arranged products even for their drop-ship/do-it-yourself kits.

One can only guess that the arrangement images sell far better than the bunched ones without the vase, when offered at the same price (since they're actually the same item delivered.)

Others on this board disagree, but I still maintain that both ProFlowers' and FTD's uses of arrangement images when selling unarranged product are powerful and highly misleading. Rather than go after ProFlowers for this visual bait-and-switch tactic, FTD has co-opted it.

And local florists get left to explain it.

 

[hcflorist]

Will be interesting to see if shops get walk-in/phone-in requests for this. I'd recommend all FTD members (and actually all traditional florists) have a plan to deal with customers asking for this deal. Consider offering to match the special dollar-for-dollar, especially if you have a way to capture data for future marketing (address, email). Hey, the customer came to you on someone elses advertising dollar. Even if it's your regular customer, why send him/her off to FTD by failing to 'match' their offer?

Print copies of their specials so that you can show and explain the details of their deals and offer upgraded alternatives in shades of Wow.

It's important to note that even though ProFlowers pushes low prices, their average sale is in the range of $50. Why? Because they use the time-tested method of enticing customers by price and then upselling via add-ons (vases, chocolates) and upgrades (more desirable color, more flowers, faster delivery.) Get past the low price offers and look to see how they are succesfully making it work.

No point in grumbling about this latest FTD ad campaign. Just figure out how you can position your business to take advantage of it instead of just defending yourself from it.

We've been copying the FTD "wrap" campaign for months. Started just before Valentine's. It was a HUGE success for Valentine's. And it's continued to be popular with the younger crowd since then.

We've been very successful at selling "upgrades" with almost all of the sales for the "wrap" items. Most of them go out sold with an up grade that arranges the item in a glass vase. And many of them go out with candy and plush upgrades. By the time it's all said and done, most of them wind up being in the $50.00 range.

 

[BOSS]

By the time it's all said and done, most of them wind up being in the $50.00 range.

Hey HC... couple questions...

Are these items on your web site, available for ordering for local delivery?

Are the one's your selling mostly cash and carry or are they pting for the "delivery upgrade"?

I think you mentioned a key element...the "younger crowd".... getting the younger crowd to buy flowers, and incorperate them into their lives is a big thing that will begin to build the next generation of flower buyers...

 

[hcflorist]

One can only guess that the arrangement images sell far better than the bunched ones without the vase, when offered at the same price (since they're actually the same item delivered.)

Others on this board disagree, but I still maintain that both ProFlowers' and FTD's uses of arrangement images when selling unarranged product are powerful and highly misleading. Rather than go after ProFlowers for this visual bait-and-switch tactic, FTD has co-opted it.

And local florists get left to explain it.

Our experience has been that most opt for paying to have the arrangement put in the vase by us before delivery (something that FTD and Pro can't do). We have tried to avoid deception by plainly stating how the item arrives UNLESS the vase arranged upgrade is purchased. I can't say what FTD's experience has been, but we've had virtually NO complaints on these items so far. Most, in fact, are purchased with the vase arranged upgrade. So, so long as you adequately present it, I think it might be appropriate to present the hoped for presentation of the final product, whether arranged by the recipient or by us.

FTD seems to do their research pretty well. I suspect that they're testing to see if the arranged image will improve sales. Or maybe they already know that the arranged image will improve sales. We've switched to the "arranged in vase" images, too, although I can't tell that they've helped sales any. Probably won't be able to tell here until we get out of the "between seasons" period that we're in right now.

 

[hcflorist]

Hey HC... couple questions...

Are these items on your web site, available for ordering for local delivery?...

Yep. They're on the website. And like FTD, they're generally among the Front Page featured items, although we're in the process of building a whole new department around them.

Are the one's your selling mostly cash and carry or are they pting for the "delivery upgrade"?...

Most are delivered AND arranged and we're using REAL delivery charges, if you'd care to look at our website, for ALL of our local delivery area. We specifically state that these items are NOT available outside of OUR LOCAL DELIVERY AREA. Frankly, it's going to REAL delivery charges and making our Delivery Department into a separate profit center that has allowed us to get competitive with this kind of thing. We no longer subsidize the delivery from in the price of the flowers. Both stand on their own.

I think you mentioned a key element...the "younger crowd".... getting the younger crowd to buy flowers, and incorperate them into their lives is a big thing that will begin to build the next generation of flower buyers...

I totally agree. The older crowd that was built on FTD marketing is dying off. We'd all better be looking at how to train that new crowd if we want them to be customers. If FTD and the Pro want to finance a campaign that aims well at a younger market, I'm willing to ride their "coattails".

 

[Griff]

Where does the buck stop??

If florists feel that showing flowers arranged in a vase and then shipping the product in a box is wrong, why don't florists say something? Not to each other, but to the consumer. TV cable companies are always running ads against the "dish" as to unreliable it is to get a signal or how difficult it is to install. I don't understand why florists continue to accept being pushed around and not say anything. You do not have to run radio and TV ads. You have yellow page ads, mailers and websites and you can offer "do it yourself" bouquets, just like the other guys. You can offer to "preassemble" these bouquets for an added cost because the receipent deserves a "complete gift" and not a gift without assembly instructions! Florists have the capability of controlling the whole process of providing flowers and delivery and don't take advantage of it. How about telling the customer that they is no extra charge for requesting AM or PM or Saturday delivery. Afterall, if the birthday or Anniversary is on Saturday, does anyone think the consumer should have to pay extra to have the gift delivered??

Everyone might want to go back and read BOSS' comments about competiing against the box.

 

[hcflorist]

If florists feel that showing flowers arranged in a vase and then shipping the product in a box is wrong, why don't florists say something? Not to each other, but to the consumer. TV cable companies are always running ads against the "dish" as to unreliable it is to get a signal or how difficult it is to install. I don't understand why florists continue to accept being pushed around and not say anything. You do not have to run radio and TV ads. You have yellow page ads, mailers and websites and you can offer "do it yourself" bouquets, just like the other guys.

What you propose is an exercise in frustration. No florist has the bucks to mount a campaign war against the big guys. The better solution is to take what they do and turn it into something positive for yourself. Let them promote it and plant the seed. Then be sure that you have what they're offering at maybe just a little better deal or with a little better perk. USE THEM AND THEIR BUCKS. It's kind of like the principle behind some of the martial arts forms. You use the larger opponent's force and energy against him to your advantage.

You can offer to "preassemble" these bouquets for an added cost . . .

That's exactly what we're doing and our assembled price is in line with what the unassembled cost of their vase is. After all, they're nothing more than "drop-in" arrangements. You also mentioned the "DIY" concept. That's exactly what WE call them. We label the arrangements as DIY arrangements and the department we're building around them is our
"DIY Arrangement" department.

 

[Frank]

If florists feel that showing flowers arranged in a vase and then shipping the product in a box is wrong, why don't florists say something? Not to each other, but to the consumer. TV cable companies are always running ads against the "dish" as to unreliable it is to get a signal or how difficult it is to install. I don't understand why florists continue to accept being pushed around and not say anything. You do not have to run radio and TV ads. You have yellow page ads, mailers and websites and you can offer "do it yourself" bouquets, just like the other guys. You can offer to "preassemble" these bouquets for an added cost because the receipent deserves a "complete gift" and not a gift without assembly instructions! Florists have the capability of controlling the whole process of providing flowers and delivery and don't take advantage of it. How about telling the customer that they is no extra charge for requesting AM or PM or Saturday delivery. Afterall, if the birthday or Anniversary is on Saturday, does anyone think the consumer should have to pay extra to have the gift delivered??

Everyone might want to go back and read BOSS' comments about competiing against the box.

Griff, What are you doing at your shop in regards to your questions and comments?

 

[Griff]

Fair enough question, Frank

I'll give you the long version, instead of the short version.

Dropped all the WS over 4 years ago so I wasn't continuing to financially support the ones that were working against me and my business.

At the same time had two separate flower shops that were trying to start up operations in this town and let them take every discounted incoming wire order they were willing to deliver and they did. Even convinced one to get a Dove. Each lasted about 6-8 months. Never said I was a nice guy.

About a year or so ago I changed my pricing on certain stems of flowers. Some of the more common ones such as carnations, pomps and minis, I have a smaller margin on these items <2.25 -2.5> depending on the local grocery stores pricing, but I'm not buying them by the box. Can't see that I have lost any real profit because loose flowers is still a very small portion of the business. But have seen more guys buying carnations. I don't have any weekly special, just everyday prices. I'm never going to beat the grocery stores, it keeps me in the ball park.

Used to offer budget wedding, but discontinued the idea years ago because no one seemed to be interested. Now because of companies like Proflowers, I brought back the idea. No. I don't have a website, but the first question asked of any Bride that makes an appointment is if they are interested in a budget package or custom wedding and I have a printed sheet that covers the budget offering. Same concept as Cathy and some of the others are already doing, just not as flashy for lack of a better term.

As for the "flowers in a box" situation, I figured this out some time back by looking at Proflowers and FTD.com and what they were doing. I have a very unigue situation in that I have a wholesaler located in my town. Together we discussed the situation and if any customer calls these days before 2:00 and asks what the price of my roses are, I respond with $55 a dozen arranged or two dozen wrapped for $42.00. If they want the 24 wrapped, I call the wholesaler, they close at 3:00, and they pull one bunch of 50cm and my driver picks them up and brings them back to the shop. I strip the bottoms, remove one rose from the bunch, enclose the food packet, NO greens, enclosure card and wrap in clear celo and out the door. Yes, I put water tubes on them. Roses wrapped and delivered for $47.00 in my town as versus Proflowers at $46.98. I have had some take me up on the offer and others preferred the dozen arranged.

So Frank, I'm doing pretty much what everyone has been talking about. I don't have a website yet because I'm still struggling with some things within myself, but eventually I'll come around.

Did I miss anything?

 

[Griff]

One other point

Then be sure that you have what they're offering at maybe just a little better deal or with a little better perk.

And here is a point I forgot to include. I have never felt that anyone has to spend big money on advertsiing budgets to sell the customer on anything we have been talking about. I don't agree with everything that Charlie B said in a previous post. I would not even consider setting up a department to do "drop in" bouquets. But that quote he made above is exactly what this is about. Although we are all florists, our businesses are all different because of how we think individually. We all recognize the same industry problems and yet choose to handle them differently. Whether you like it or not, Proflowers is about price. Flowers in a box is about price. Flowers and plants from the grocery store is about price. I agree with Charlie that the younger generation is much more price oriented and it is why FTD and all the rest are expanding their offerings to include lower price alternatives. As a business person, you can decide whether you wish to ignore them altogether or find ways to provide SIMILIAR offerings at SIMILIAR prices without tearing your business apart.

 

[Blue Oyster Cult]

Wonderful Griff!

Folks talked years ago about going outside the box but just like every slogan...the same old problems exist in 2005 with new technology today and not because the industry has no hope, just because everyone thinks they have the solution outside of "the box". To bad the box today is the computer your shop is hooked up to on the sending network so you can have these seamless orders transmitted without any hassle.

Griff, I don't know the answer, :hammer:

 

[BOSS]

Folks talked years ago about going outside the box but just like every slogan...the same old problems exist in 2005 with new technology today and not because the industry has no hope, just because everyone thinks they have the solution outside of "the box". To bad the box today is the computer your shop is hooked up to on the sending network so you can have these seamless orders transmitted without any hassle.

Griff, I don't know the answer, :hammer:

Why does everything have to boil down to a POS issue for you Shel? This thread is about FLOWERS!

 

[Frank]

I liked the long version!

Did I miss anything?

Griff, Thanks for your interesting response. Yes, the only thing you didn't cover was your advertising ("why don't florists say something".)

I do not understand why a florist such as yourself with such "forward thinking" does not have a web site? Is it because your target market does not use the internet to place orders?

Thanks for sharing!