FTD: Harvesting the Flowers to Grow the Weeds?
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Mikey the Flower Guy
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The Next 6 Quarters.....
will be the true picture for the major players from an investment standpoint!
My belief, is that FINALLY, the REAL FLORISTS will now get the recognition, and "wooing" that they deserve...just a gut feeling of mine of course!!
will be the true picture for the major players from an investment standpoint!
My belief, is that FINALLY, the REAL FLORISTS will now get the recognition, and "wooing" that they deserve...just a gut feeling of mine of course!!
12BucksFor2Dozon
New Member
Mickey
Mickey, I think the idea about koolaid is right on target. Today the florist side of the flower industry makes up less than 50% and it is still falling.
Some of this is due to changes in the wire services, new delivery models and because florists still cling to old ideas and refuse to accept the changes happening in the marketplace.
No one is going to waste their time wooing a segment of the market that is failing, unless of course you can convince that segment of the market that they still need you no matter what the cost.
Mickey, I think the idea about koolaid is right on target. Today the florist side of the flower industry makes up less than 50% and it is still falling.
Some of this is due to changes in the wire services, new delivery models and because florists still cling to old ideas and refuse to accept the changes happening in the marketplace.
No one is going to waste their time wooing a segment of the market that is failing, unless of course you can convince that segment of the market that they still need you no matter what the cost.
Mikey the Flower Guy
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...or else you *could* be just "drinking the koolaid".
ANY reason is good enough for me....
:beer
Sorry Mikey--I don't see it that way. The number of florists dropeed to 19,000 or so and FTD stops reporting them. No one seems to care. Revenues are still going up. Profits are still going up. That's all that matters to Wall Street and Leonard Greene & Assoc. I'm seeing a big bonus in Mike S. future.
Audra
New Member
It's amazing how many florists fall for it. Most of us are dumping services and yet three new florists in town just joined Teleflora. They must have crack in their tapwater.
Audra
Mikey the Flower Guy
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this COULD BE a fantastic thread.....
if we refrain from pointing fingers!!
My opinion lays with the 80/20 rule (which is probably more predominate now tthan ever), whereby 20% of your clients bring you 80% of your wealth!!
I have some very high maintenance customers, that require a great deal of hand holding, and pacifying, BUT, each of them make me a great deal of money!!
I have ALSO, some very high maintenance customers that I would rather NOT have, BUT, are always welcome, that make little to NO money for us, in ANY format, and are therefore exendable, should such a thing happen!!
The wires KNOW that many shops that join, will make little to NO MONEY for them, and even with membership fees, and other out of control clearinghouse fees, those shops TOO, will make nothing, or go under!!
FTD knows that, TF knows that, 1800Flwrs knows that...so WHY is 1800FLWRS hel-l bent on building it's OWN distribution network of shops??
It's because they pick and choose the shops that they can suck in/or convince that they NEED THEM!!
And here's MY overview......the wires are dead without REAL FLORISTS...they ALL KNOW IT NOW, and are therefore NO LONGER in a position to lead you to water that you WILL NOT DRINK!!
IF a particular number of shops are NOT contributing to the overall bottom line of ANY BUSINESS, why have them in the FIRST PLACE??
Again....I AM BIASED towards a particular wire service, and truly hope that you guys ARE NOT COMPLETELY RIGHT......
if we refrain from pointing fingers!!
My opinion lays with the 80/20 rule (which is probably more predominate now tthan ever), whereby 20% of your clients bring you 80% of your wealth!!
I have some very high maintenance customers, that require a great deal of hand holding, and pacifying, BUT, each of them make me a great deal of money!!
I have ALSO, some very high maintenance customers that I would rather NOT have, BUT, are always welcome, that make little to NO money for us, in ANY format, and are therefore exendable, should such a thing happen!!
The wires KNOW that many shops that join, will make little to NO MONEY for them, and even with membership fees, and other out of control clearinghouse fees, those shops TOO, will make nothing, or go under!!
FTD knows that, TF knows that, 1800Flwrs knows that...so WHY is 1800FLWRS hel-l bent on building it's OWN distribution network of shops??
It's because they pick and choose the shops that they can suck in/or convince that they NEED THEM!!
And here's MY overview......the wires are dead without REAL FLORISTS...they ALL KNOW IT NOW, and are therefore NO LONGER in a position to lead you to water that you WILL NOT DRINK!!
IF a particular number of shops are NOT contributing to the overall bottom line of ANY BUSINESS, why have them in the FIRST PLACE??
Again....I AM BIASED towards a particular wire service, and truly hope that you guys ARE NOT COMPLETELY RIGHT......
Frank
New Member
David,
Thanks for an interesting article. I'm not sure myself what the future has in store for FTD and FTD FLorists.
What's your take on FTD David?
Thanks for an interesting article. I'm not sure myself what the future has in store for FTD and FTD FLorists.
What's your take on FTD David?
12BucksFor2Dozon
New Member
I don't think FTD, and especially Wall Street, truly believe that F2F is the future of floral gifting. Remember, the rise in share price has occurred during the florists' bail-out! Obviously, Wall Street has NO use whatsoever for member florists in the FTD network. They are actually rewarding FTD for dumping florists, not punishing them. The fact that they no longer even bother reporting membership numbers shows FTD's true disdain for its member network.
Even a cursory reading of Bob's plans shows an intense focus on using the FTD brand to service direct ship floral gifting, and this is what the Street wants to hear. I think WS also likes the fact that FTD has so many profitable (to THEM, of course) member florists "on the hook", to help pay their bills as they transition to their new, glorious, highly-profitable direct ship future.
They see traditional florists as the suckers holding the profit bag while FTD sticks it to them over the next 10 years, eventually bypassing them completely to get not 7% not 27% but 100% of the order.
JMO.
Even a cursory reading of Bob's plans shows an intense focus on using the FTD brand to service direct ship floral gifting, and this is what the Street wants to hear. I think WS also likes the fact that FTD has so many profitable (to THEM, of course) member florists "on the hook", to help pay their bills as they transition to their new, glorious, highly-profitable direct ship future.
They see traditional florists as the suckers holding the profit bag while FTD sticks it to them over the next 10 years, eventually bypassing them completely to get not 7% not 27% but 100% of the order.
JMO.
Mikey the Flower Guy
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The "consolidation" of all industries, and supply/manufacturing system streams are using the similar model, and have long "bypassed" the point where WE currently reside!!
China, and other overseas supply "contractors" have already overtaken the traditional wholesale/retail supply stream, BUT, there IS STILL ONE THING they (none of them) can do, an that is PROMISE/GUARANTEE same day delivery of a largely manufactured/packaged product such as ours!!
So, I'm very curious......you MUST FEEL, that the buying public WILL NO LONGER demand "same day policy".....are you alluding to THAT??
And IF SO, then what is next.....central pizza warehouses, shipped out for YOU to "assemble"??
I hear so many people say that computers, and technology replacing US, but, many trades, INCLUDING the florist trade, still has room to grow, and prosper IMHO
Hope it's cheap crack Audra... it's all they'll be able to afford! I truly don't get it. I don't understand, in this day and age, where technology is available so readily, why shops still join.
Trying to dump FTD was like chewing off an arm, one sinew at a time. They do not make it easy. If I had to do it again, there would be no wire service in my shop... period.
V
12BucksFor2Dozon
New Member
I think you run over to their shops quick and try to sell them on Amway and Avon, while they are still in the mood to "partner"...
Mikey the Flower Guy
It's a GREAT DAY to live, and love!
- Nov 10, 2002
- 9,206
- 3,792
- 113
- 72
- State / Prov
- Ontario
Mikey the Flower Guy
It's a GREAT DAY to live, and love!
- Nov 10, 2002
- 9,206
- 3,792
- 113
- 72
- State / Prov
- Ontario
12BucksFor2Dozon
New Member
No doubt, Mikey, disruptive technology is all around us, changing business models on a near-daily basis.
One of the other boards has someone who always tries to equate flowers with foodstuffs, and I find the comparison weak to say the least...do people *need* to consume flowers 2-4x/day?
Well FTD may always need "same-day" fillers, and perhaps even a few, in a few select markets, will even continue to have a profitable relationship with them, but no doubt about it...the moment FTD can figure out a way to replace them and take the $$$'s back to the mothership, they will. Won't hesitate 1millasecond.
THAT is my fundamental problem with Big Flower, and that is the TOTAL lack of principles and loyality when it comes to the bottom line. FTD will tell ANYONE ANYTHING in order to make dollars from them, and won't even blink as they run them over tomorrow.
I guess that's "business", and ok, I'm down with it. You believe that FTD covering your back, fine...but overwhelming evidence shows that *this* partner will be nowhere to be found when the going gets tough.
Well, I do too, although its getting tougher every day, and perhaps even for a while top-sending/nOG FTD "members" will continue to take advantage of naive, new "filler" shops to fill the overpriced "same-day" deliveries, but customers will soon wisen up, and LEARN to remember to order the day before.
When Proflowers offers 2 dozen roses for $29 next-day, and Teleflora a dozen for $65 same-day, how long do you think it really going to take consumers to alter their buying habits?
I think FTD will continue to make money. I hope that I as an FTD florist member also continue to make money with them. At the moment I think I do. I like and use there computer system. I think they were very smart to consolidate to one system and do see improvements on a regular basis. I also do well and find they provide great service with my Fol web site. While not perfect I think flower after hours does a decent job for a phone service. I also use constant contact for e-mail and trying reach local for pay per click. Each shop owner will have to decide if the feature’s a vender provides makes sense for them. I think they will have many florists say yes to the services they provide.
They can do so with a smaller amount of florists. I think the ones that are leaving purchase the least from them so it will not hurt them as much.
Rhonda
Well-Known Member
David and Frank, it all goes back to the old days....
FTD and Teleflora were both aware of the shops they "employed" to deliver their goods. Shops applied, they waited to be inspected, design skills were observed, their cooling apparatus were inspected, and their stock as well. Their Brick and Mortar Facades were graded!! None of that no longer applies. As shown by the phone call I got this week, they look through the internet, find a "shop" selling flowers, call them to find out if they want to join, How about 6 free months? It no longer makes it assured that If I send to Los Angeles CA, that I can be assured that the shop I call or send to has any type of reputation of being in business longer than a month, has a qualified designer, even that it has a real store front. FOR instance, JustFlowers tried to send another order through to us today. That is NOT what I consider an FTD florist. Teleflora has signed shops in MY town, shops not even open for business locally, without any "designer" just a craft producing person...HELLO, is this what we call Quality Assurance??? I have spent the last 15 years taking complaints from recipients of "arrangements" delivered by these other shops. My only response now is giving them the 800 numbers to either Teleflora or FTD. It no longer is my problem. My line now is, here is my 800 number for them to call me next time or my web site address.
FTD and Teleflora were both aware of the shops they "employed" to deliver their goods. Shops applied, they waited to be inspected, design skills were observed, their cooling apparatus were inspected, and their stock as well. Their Brick and Mortar Facades were graded!! None of that no longer applies. As shown by the phone call I got this week, they look through the internet, find a "shop" selling flowers, call them to find out if they want to join, How about 6 free months? It no longer makes it assured that If I send to Los Angeles CA, that I can be assured that the shop I call or send to has any type of reputation of being in business longer than a month, has a qualified designer, even that it has a real store front. FOR instance, JustFlowers tried to send another order through to us today. That is NOT what I consider an FTD florist. Teleflora has signed shops in MY town, shops not even open for business locally, without any "designer" just a craft producing person...HELLO, is this what we call Quality Assurance??? I have spent the last 15 years taking complaints from recipients of "arrangements" delivered by these other shops. My only response now is giving them the 800 numbers to either Teleflora or FTD. It no longer is my problem. My line now is, here is my 800 number for them to call me next time or my web site address.
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