FTD Top 100 Trip

[Eric S]

I see how the top 100 can work as hard as other shops and spending more on marketing with a better web presence then most.

But I am sorry that’s not why they are at the top. They are there because they continue to offer lower prices for items that can not possible be filled. They survive on the naive shops that continue to accept discounted orders which continues to lower the quality of the floral industry. Prices continue to increase but yet these companies continue to lower the prices without any consideration for what it really takes to fill any of their orders to value.

Today I really see the writing on the wall as I hear of smaller shops up for sale or closing their doors. It will take miracle to stay profitable as long as COG continues to rise and the leaders in this industry continue to lower the prices.

 

[TOTO]

YUP! When the WHALES FIGHT.....................

I see how the top 100 can work as hard as other shops and spending more on marketing with a better web presence then most.

But I am sorry that’s not why they are at the top. They are there because they continue to offer lower prices for items that can not possible be filled. They survive on the naive shops that continue to accept discounted orders which continues to lower the quality of the floral industry. Prices continue to increase but yet these companies continue to lower the prices without any consideration for what it really takes to fill any of their orders to value.

Today I really see the writing on the wall as I hear of smaller shops up for sale or closing their doors. It will take miracle to stay profitable as long as COG continues to rise and the leaders in this industry continue to lower the prices.

Tis OH SO TRUE ERIC!

As my Dear REAL FLORIST FRIEND OZ from NYC always stated:

"WHEN THE WHALES FIGHT, THE SHRIMP GET KILLED!"

And so, all of the OGs, DOGs, NON-LOCAL PHONIES, FARM DIRECT and all three of the WSs players, are all in a FIGHT now, just to see WHO IT BEE that can have the lowest possible price points.

Check out any of them who do the BAIT and SWITCH by getting the FLOWER CUSTOMER to their sites, and then, using the $19.99 special deals in order to get them over to their DROP SHIP OPTIONS rather than using a REAL FLORIST.

The BIG SURPRISE for those customers is at CHECK OUT. That's when the $19.99 suddenly becomes $47.99 with the added shipping charges.

On the flip side, and for their customers needing same day delivery, they've all lowered their SRPs to price points which I have not seen nor entertained since 1984 or for over 24 years ago.

No matter to them since, they still make their usual 20% sending commission, their 7% clearing house fee, and their 2% FTO (reverse the transmission charges over to DA FILLER FLORIST plus their $ERVICE CHARGES.

And so, on an order they capture at 100% from DA CONSUMER, they make $10.00 in commission, save $1.00 in transmission, make 7% in clearings (if it's a WS DOT.CON, or $4.00 REBATE, and collect a $ervice charge of $12.99.

Their TOTAL PROFITS come to $28.00 per $50.00 SKIMMED ORDER.

On the flip side, the receiving florist nets $35.00 for the same GROSS $50.00 order. Their COGS (cost of goods at 30%) is $15.00, Their COL (cost of labor at 25%) is $12.50, and their COD (cost of delivery at 20%) is $10.00.

The filling florist's total cost for filling that $50.00 GROSS ORDER is $37.50 for which, their net payment is only $35.00 resulting in a net loss per $50.00 gross order amount of (-$2.50) on the surface.

Add to that loss, the additional dues and fees associated with being a member of their PONZI SCHEME network, and that averages another (-10% loss) for a true net loss per order of (-$7.50)

But I remember now, the way they all justify these losses.

1. They get their products into the homes of potential new customers.
2. They're able to keep their help busy!
3. Their truck was going by there anyway!
4. They're able to turn over the inventory that much quicker!

For those of us who KNOW, nothing can ever justify LOOSING MONEY!

It's called COST SHIFTING folks! The very same problem which has infected our Hospitals and our Medical Insurance providers, and which is the same reason why, so many of our Hospitals, have been forced to close.

Any business can only afford to DOO SO MANY FREE BEES and cost shift the NON PAYING (net loss) CUSTOMERS over to the 100% PAYING CUSTOMERS.

When that balance of trade and those scales are tipped far too far, that's when those businesses, having been overburdened by TOO MANY LOSSES, fail to exist and simply, GO OUT OF BUSINESS!

END OF THAT STORY, ey?

 

[theRKF]

They are there because they continue to offer lower prices for items that can not possible be filled. They survive on the naive shops that continue to accept discounted orders which continues to lower the quality of the floral industry.

This may be true of some, but if I recall correctly RC charges more for outgoing orders than he does for items he delivers. Martin's has an average order on the plus side of $75, selling designs created in house. McShan's is probably in a similar situation to RC. Tidy's, Brant's, JB's shop ... all charge the same for outgoing as locally delivered.

Ryan

 

[Mikey the Flower Guy]

Wow my Mom was raised in Dayton near the Fairgrounds and always told me how she walked up hill to school in the snow and how my Uncles had to pull her along cause she was so short....I thought she was just giving the old razzle dazzle of how her life was so much harder when she was a kid routine that all parents do at some point. Man do I owe her an apology! Thanks for sharing RC.
Sher

didn't have my camera handy...we had huge snowblowers clear our main arterial route, AGAIN for the 4th time this year, and THIS time, had to make multiple passes, as the snowbanks were higher than the snowblowers

 

[Eric S]

This may be true of some, but if I recall correctly RC charges more for outgoing orders than he does for items he delivers. Martin's has an average order on the plus side of $75, selling designs created in house. McShan's is probably in a similar situation to RC. Tidy's, Brant's, JB's shop ... all charge the same for outgoing as locally delivered.

Ryan

I am sure the few that you have mentioned does do this. I just checked my average outgoing order for the past 6 months and its 82.40 includes the delivery charge.

But I don't think my 30 to 40 orders per month will land me in the top 100 anytime soon.

 

[theRKF]

my average outgoing order for the past 6 months and its 82.40 includes the delivery charge.

But I don't think my 30 to 40 orders per month will land me in the top 100 anytime soon.

Now ... if you can get that number up to a few hundred a month you'll be on the trip

 

[RC in Dayton and Cincinnati]

The trips are a nice reward for top senders. That's all they are.

It's easy to be resentful, and it's easy to blame others for our shortcomings, but if we strive to be the best we can be the sense of satisfaction should be the bigger reward.

RC

 

[Rhonda]

Now ... if you can get that number up to a few hundred a month you'll be on the trip

which is why the little guy is the stump from which the big tree grows lol
I was top FTD in my town?? for a great many years.......lol
I never got a trip and had to remind them about my 25 year placque...sheesh... Oh well.

 

[BOSS]

I always said there should be a trip/party for the biggest fillers...Bad Bobby even agreed, although it was toward the end for him...had he satyed around for a bit longer it would have happened.

I still think it fair, since without the fillers, there would be no senders!

But then again...:iamwith:

 

[Mikey the Flower Guy]

I think it's absolutely essential to reward top producers regardless of their industry!!
In THIS industry, we have a bit of a lemon to deal with...some of the MOST prolific producers ARE fillers, and NOT senders, and I think THAT is what has gotten some shops ire.
Bob Norton DID indeed have a plan in place to reward top fill shops, those with unblemished fill records, and it had to do with a fill/send ratio, and whether you were an FTD ONLY shop or not....it was a very sound plan!!
Over time, "bad Bobby" has made a mark of controversy AND contrarianism within FTD, BUT, there were NO meltdowns, and HQ ran like a well oiled machine....I REALLY liked that about Bob!!

 

[sfox]

You Know Mickey

I think it's absolutely essential to reward top producers regardless of their industry!!
In THIS industry, we have a bit of a lemon to deal with...some of the MOST prolific producers ARE fillers, and NOT senders, and I think THAT is what has gotten some shops ire.
Bob Norton DID indeed have a plan in place to reward top fill shops, those with unblemished fill records, and it had to do with a fill/send ratio, and whether you were an FTD ONLY shop or not....it was a very sound plan!!
Over time, "bad Bobby" has made a mark of controversy AND contrarianism within FTD, BUT, there were NO meltdowns, and HQ ran like a well oiled machine....I REALLY liked that about Bob!!

Big Bob was great guy Mickey. And since you, Mickey, are all for the filler florists I can really understand why Big Bob would be so high on your list.

Big Bob was the guy, that in a matter of months managed to triple the fees a FTD florist paid. Monthly dues as high as $299.00 were not uncommon.

Big Bob drove thousands of longtime good FTD shops to leave. He was the guy that started VNS. VNS was a wire service willing to sign up anyone, quality was never an issue. Then when too many FTD florists left, he rolled VNS back into FTD. Talk about a man with a "vision".

Big Bob was the guy who raised every single fee an everyday FTD FILLER florist had. His goal was to make sure that filling FTD orders was as huge a financial losing proposition as possible for that florist and then used that money to pay as much as was possible to every ordergatherer around so that FTD, not any silly florist, made money.

Ya, Big Bob was a hero. He made filling the wire orders a job for the FWAC.

But to me, the biggest thing Big Bob was able to do, was convince some florists that in fact he was on their side. Hell he had Boss selling FTD systems. Go back and read all the praises Boss used to sing about FTD Advantage.

Then, Big Bob managed to let Perry sell FTD for twice what he paid for it and along the way he and Big Mike made millions. And during his time in power at FTD, the retail florists share of the overall floral dollars dropped. Man, talk about a guy that worked for the betterment of filler florists, Big Bob was it

 

[bloomz]

I see how the top 100 can work as hard as other shops and spending more on marketing with a better web presence then most.

But I am sorry that’s not why they are at the top. They are there because they continue to offer lower prices for items that can not possible be filled. They survive on the naive shops that continue to accept discounted orders which continues to lower the quality of the floral industry. Prices continue to increase but yet these companies continue to lower the prices without any consideration for what it really takes to fill any of their orders to value.

Respectfully submitted for your perusal - that's a load of bollocks, Eric.


More later after my sunburn gets better.

lol

 

[Doug Hatcher]

I am sure there is a spread between 1 and 100

What are some numbers that a business would be sending to be in the Top 100? Just curious.

 

[theRKF]

Doug,

Last I checked, figure on 6,000+ outgoing to break the top 100.

Ryan

 

[TOTO]

CORRECTION PLease...........................

Big Bob was great guy Mickey. And since you, Mickey, are all for the filler florists I can really understand why Big Bob would be so high on your list.

Big Bob was the guy, that in a matter of months managed to triple the fees a FTD florist paid. Monthly dues as high as $299.00 were not uncommon.

Big Bob drove thousands of longtime good FTD shops to leave. He was the guy that started VNS. VNS was a wire service willing to sign up anyone, quality was never an issue. Then when too many FTD florists left, he rolled VNS back into FTD. Talk about a man with a "vision".

Big Bob was the guy who raised every single fee an everyday FTD FILLER florist had. His goal was to make sure that filling FTD orders was as huge a financial losing proposition as possible for that florist and then used that money to pay as much as was possible to every ordergatherer around so that FTD, not any silly florist, made money.

Ya, Big Bob was a hero. He made filling the wire orders a job for the FWAC.

But to me, the biggest thing Big Bob was able to do, was convince some florists that in fact he was on their side. Hell he had Boss selling FTD systems. Go back and read all the praises Boss used to sing about FTD Advantage.

Then, Big Bob managed to let Perry sell FTD for twice what he paid for it and along the way he and Big Mike made millions. And during his time in power at FTD, the retail florists share of the overall floral dollars dropped. Man, talk about a guy that worked for the betterment of filler florists, Big Bob was it.

I only remember him (now) as small bob!

As to HQ running like a well oiled machine, that's only because THE ROBOTS were too afraid that, their CHIPS WOULD BE REMOVED and they would be sent to the ROBOT JUNKYARD.

Just too bad the AUDITORS never did find those HIDDEN WAREHOUSES where small bobby hid all of that HOLIDAY BRANDED which he had shipped out to DA MEMBERS who never ordered it to begin with, and then, they returned it.

Kept that stash hidden and kept it on the books as SALES, ey?

And, didn't they just do a repeat of the same type of creative financing 101 with Advantage, having DA MEMBERS sign up for the system, and calling that SALES even though, they haven't been, nor may never be, INSTALLED?

In reality, nothing much has really changed since, even in the OLD TOP 100 CLUB, the inner circle always got those specials deals too.

The only difference I can see now, and as you've pointed out; THE MILLIONS paid to small bob and Mike, versus the CHUMP CHANGE (in comparison) the BLACKHATS sold the members out for, and pre 1994. :rofl:

 

[bloomz]

It was an absolutely terrible trip, weather was cool (for Mexico), tough talking with and picking the brains of the most successful florists in the country, hate that too.

The water was chilly for scuba diving (62) and I had to wear double wetsuits.

The band, flown in from Chicago was a quite good Beatles cover band with costumes from the different eras, and I just hate the Beatles.

And I think I got partially waterlogged from spending the whole day twice in the pool and my nose is peeling.

The beds were too soft and I gained weight from that darn excellent food too.

And I just hate that I learned a bunch of stuff to make my business more successful.

[/sarcasm]

The trips are wonderful opportunities and wonderful rewards for working very hard and being successful.

Many of the greatest minds in the industry are there, and share with one another quite openly. I'd drop some names but there were too many to remember, but the most successful florists in the industry were there.

I felt honored and very lucky to be in the presence of most of them. I'm just a small town kid from Oregon.

Even the very few non-brick pure play OG's there I can learn from - I neither love nor hate them, but I do respect what they know.

My mind is a sponge at these things.

And it all can be used to help my business.

So draw and quarter me and send me to the 'lectric chair.

It was a great trip.

PS - I'm sorry people like Eric's post above have such mistaken impressions of these trips - I think you have to have been there to know what really goes on.

 

[Eric S]

Puff The Magic Dragon & Buy Some Flowers.

If I could just figure out how to get florist across the country to carry these vases I know I could be the next top sending florist.

 

[BOSS]

But to me, the biggest thing Big Bob was able to do, was convince some florists that in fact he was on their side. Hell he had Boss selling FTD systems. Go back and read all the praises Boss used to sing about FTD Advantage.

One thing tho...Advantage **was** a good system...there are just better alternatives! I believed in the software...and to my failure Bob in some ways...

Sometimes we're too close to the fire, but don't realize it until we get burned...

 

[sfox]

and

But to me, the biggest thing Big Bob was able to do, was convince some florists that in fact he was on their side. Hell he had Boss selling FTD systems. Go back and read all the praises Boss used to sing about FTD Advantage.

[/quote]
One thing tho...Advantage **was** a good system...there are just better alternatives! I believed in the software...and to my failure Bob in some ways...

Sometimes we're too close to the fire, but don't realize it until we get burned...

[Boss, you're not the only one. Big Bob, did great things for FTD. But what was great for FTD, was terrible for florists, especially fillers.

The only real tragedy is that many still can't see that fact.

Right now this country is having a credit crunch. And while this is not good for the country as a whole, maybe some good will come out of it. FTD is a company operating with huge amounts of debt. Maybe the combination of declining sales on their consumer side, the credit crunch cutting off their ability to borrow cheap money, and florists leaving will force them to rethink how they view their florist related business and maybe start to work for the betterment of their florists rather then as a leach sucking the lifeblood out of them.

 

[Bigted]

The florists that attended the trip are not the enemy. Most have big shops or multiple shops and have worked very hard for a long time to get where they are. They provide the orders that thousands of shops are begging for. A few are sleazy blood-sucking OGs.

There seems to be some misconception that if the wireservices just go away everything would be fine. I don't see it that way. I guess opinions really do vary.

By the way--It wasn't really as cold as Bloomz said.