FTD: The good, the bad, the ugly???

[avenuegardensflorist]

two things - it was told me once by a wire service exec - every 100 orders an OG sends keeps 4 shops bill paid.

Big picture

second it was pointed out I forgot an important cost to factor into a filling shops take on that $50 order...

The wire service owner's wife's boob job. Them ain't cheap I hear, for a good one.

So take another $10 out of their pocket too when figuring this stuff.

and where's my slice of Lemon Meringue pie?


PS - I'd sure like, no make that love to get a $10 rebate...

...i was wondering the same thing.
Anyone here get a $10 rebate? Not I.
How many orders does an og or florist have to send thru the wires to qualify for $10 rebate per order?

 

[HeatherTuckey]

I haven't had this much fun since... Um ... Valentine's day at the shop!!
I LOVE THIS THREAD!!!!

 

[RC in Dayton and Cincinnati]

...i was wondering the same thing.
Anyone here get a $10 rebate? Not I.
How many orders does an og or florist have to send thru the wires to qualify for $10 rebate per order?

Who said anything about a $10 rebate? There are other incentives with considerable value other than the rebates. That's why I defined it as "rebate, incentives and perks".

 

[goldfish]

two things - it was told me once by a wire service exec - every 100 orders an OG sends keeps 4 shops bill paid.

The other way of looking at the same picture is: monthly bills of 4 filling florists are financing the rebate program of 100 OG orders?

 

[Joe Mioux]

A question for Randy and JB.

How many top 100 FTD florists are OG's?

and how much of the membership fees and other ancillary fees go towards wining and dining you people?

joe

 

[RC in Dayton and Cincinnati]

The other way of looking at the same picture is: monthly bills of 4 filling florists are financing the rebate program of 100 OG orders?

And the top ordergatherers are sending several hundred thousand orders a year.

RC

 

[bloomz]

A question for Randy and JB.

How many top 100 FTD florists are OG's?

and how much of the membership fees and other ancillary fees go towards wining and dining you people?

joe

All of them.

Most (90% or more) have B & M flower shops as well.


I don't know how much they spend on a Top Member Trip but I could shoot a guess at 500K.

 

[Joe Mioux]

Bloomzie, are you speaking for Randy as well?

$500K/20K florists equals $25 per shop.

Hell you two can split my $25. Have a ball on $12.50.

Addendum: oops, 20K florist can't be right for FTD. Probably more like 10K.

so you two can split my $50. Knock yourselves out. Each of you have a ball on my $25.

 

[HeatherTuckey]

All of them.

Most (90% or more) have B & M flower shops as well.


I don't know how much they spend on a Top Member Trip but I could shoot a guess at 500K.

I would say that is a good guess for the expense of the TF top 50 trip as well.

Not sure what % are OG, but I am guessing less than 90%, depending on your definition of an OG.

 

[BOSS]

How many top 100 FTD florists are OG's?

and how much of the membership fees and other ancillary fees go towards wining and dining you people?

joe

My (close) guess is 12-15 of the top 100 are pure-play Order Gatherers, do not forget there are several that are in the top 25. Also included are the groceries. I mean with Kroger's 2800 locations they can't help but be in the top tier, and they are along with other multi-location groceries, and people like Art that have suedo-directories supposedly directing consumers to florists, but in reality gathering orders.

Highest rebate I know of is $8.50.

And lastly Joe, a lot of money goes to "wineing and dining" those with orders (or those vocal ones). Back in the day, if you chose to forgo a trip or other event, you'd likely receive a check for $5K since in reality you saved them a bit by not going...

Cool thing is, some "top members" are just saying no these days, and no longer getting checks in the mail....

 

[RC in Dayton and Cincinnati]

The last year I attended the top 50 Teleflora trip, six or seven years ago, around 15,000 orders was the cutoff line to make the trip. I know this because a friend from roses.com did not make the trip that year with just shy of 15,000.

The following year I chose not to go, expecting to receive the check, but none came. Teleflora had changed their policy.

The year after that Teleflora dropped off my top 50 plaque with no invitation to the trip. Even though I had qualified they didn't like the fact I had switched all my sending to FTD.

I also believe Gregg Coccari save at least one spot and possibly several for his east coast florist buddies who rightfully didn't qualify for the trip.

To make the FTD trip I believe 5,000 -6,000 orders is the cutoff point.

 

[CHR]

I'm hearing the cut-off point for TF's Top 50 trip is now around 5500 orders annually, too.

 

[RC in Dayton and Cincinnati]

Which probably indicates the consolidation of the ordergatherers, or small time ordergatherers being squeezed out.

 

[lori042499]

So, the customer pays the 15.00 service charges to the d'OG, The WS pays 20.00 to the d'OG, the WS retains 3.50 of the 50.00 leaving 46.50 for the filling florist.

Am I correct so far?

The WS then takes an additional 20 percent of that 46.50 leaving 36.90 in actual dollars for the filling florist.

Am I correct still?

The filling florist has to fill that order for the 50.00 total minus their amount for delivery. If the delivery fee is 5.00 then the florist fills the order for 45.00 product total.

45.00 minus 36.90 leaves the florist a shortfall of 8.10

Am I correct still?

Where is the profitability in filling incoming orders then?

a 45.00 vase should only cost 15.00 COGS...This is where the volumes and ratio of local to WI makes the orders either moderately profitable or a losing game..and where ,most florists lose the costing issue because it becomes difficult...

Now out of the 21.90 left if you do enough volume of orders the labor, ws fees and delivery cost gets smaller and smaller and more is left for your profit center, the less orders you have the costs get bigger and less profit is left...

Fact of the matter is you will never get 100% of a WI and should never expect it to be full profit...

I believe this is where most florists get befuddled and feel betrayed by these orders..

 

[lori042499]

two things - it was told me once by a wire service exec - every 100 orders an OG sends keeps 4 shops bill paid.

Big picture

second it was pointed out I forgot an important cost to factor into a filling shops take on that $50 order...

The wire service owner's wife's boob job. Them ain't cheap I hear, for a good one.

So take another $10 out of their pocket too when figuring this stuff.

and where's my slice of Lemon Meringue pie?


PS - I'd sure like, no make that love to get a $10 rebate...

All I know is that I better start gathering orders for all over the country because I need me one of those boob jobs after losing almost 200lbs it is now a necessity and I need funding...hey wait maybe I can have bloomz make me a template website for donations, I hear a woman with 14 kids is getting them that way...

 

[RWK]

Fact of the matter is you will never get 100% of a WI and should never expect it to be full profit...quote]


EXACTLY !!!!!!!!!

In this ever-tightening, tenuous, uncertain economy, at least for me, it stands to reason that I would want to maximize my profits as much as I possibly can. Filling an incoming wire order is not going to help me do that I don't believe.

 

[LJVF]

EXACTLY !!!!!!!!!

In this ever-tightening, tenuous, uncertain economy, at least for me, it stands to reason that I would want to maximize my profits as much as I possibly can. Filling an incoming wire order is not going to help me do that I don't believe.

I would disagree. If you are talking purely from an order standpoint, discounted orders (wire ins) can help a florist get through some lean times, as long as the numbers add up (which can be tough to do I admit). I would consider this supplemental income, in no way can a florist survive on wire ins alone.

Remember, this is strictly from an order standpoint for a single shop, not taking into consideration the long term effect it may have on the floral industry as a whole which in turn may indirectly effect the individual florist in the long run.

 

[Joe Mioux]

Fact of the matter is you will never get 100% of a WI and should never expect it to be full profit...quote]


EXACTLY !!!!!!!!!

In this ever-tightening, tenuous, uncertain economy, at least for me, it stands to reason that I would want to maximize my profits as much as I possibly can. Filling an incoming wire order is not going to help me do that I don't believe.

here we go.....

Ricky, 100 profit from a missed sale is $0.

if you forgo accepting all WS orders, your competitor will get those orders.

So, 73pct of say for example an extra $3000 per month incoming WS business is $2190 in Revenue. If your COGS are $1000, you Gross Profit is $1190.

Now which is better? $0 or $1190? Sometimes this works sometimes it doesn't, the owner must make that decision.

joe

 

[lori042499]

I would disagree. If you are talking purely from an order standpoint, discounted orders (wire ins) can help a florist get through some lean times, as long as the numbers add up (which can be tough to do I admit). I would consider this supplemental income, in no way can a florist survive on wire ins alone.

Remember, this is strictly from an order standpoint for a single shop, not taking into consideration the long term effect it may have on the floral industry as a whole which in turn may indirectly effect the individual florist in the long run.

It all depends...I am finding that my incoming has dropped so much that the margins are getting very tight on making any profit...I was doing about 100 WI a month and now down to 20-25 non-holiday months...all the services are boostong membership and the florists are signing on to get a few more orders to not have to layoff and taking away so many from the existing members...The WS numbers are falling just like ours and less volume and more members means a dip in even more orders...I am painfully watching my profits dwindle down to barely worth the effort from keeping my busy and afloat...I have been watching the numbers for 3 years and the last 4 months are painfully close to costing me money...so close that at any moment I may have to make the hard decision...

 

[A Mood For You]

This thread did not turn out quite how I wanted it to :newbie