How Much Is An Order Worth?

[kt4ye]

An ongoing topic seems to be that orders that we receive from the WS and/or OGs are undervalued. What this seems to mean is that too much of what the customer pays is going into the seller’s pocket, and too little is going to the fulfilling florist.

To help put this in perspective, I have put together a list of some common ways that third parties provide sales services in various industries. The list is NOT comprehensive, but is intended to provide some reference points as to how much a seller is “willing” to pay in order to sell something.


Please note that "Selling Price" means the price that the customer actually paid.

1. Real Estate Cost: 6% of Selling Price Services Provided: Advertising, Demonstration, Obtain Order, Assist In Sale Completion
2. Sales Rep. Cost: 5% to 15% of Selling Price (not including shipping) Services Provided: Demonstration, Obtain Order, (Often) Get Payment
3. Online Supermarket Like Amazon.com Cost: 6% to 15% of Selling Price (not including shipping) Plus about $100/mo. Services Provided: Advertising, Demonstration, Obtain Order, Get Payment
4. Wire Service Cost: 40% to 50% of Selling Price (including shipping) Plus about $500 to $1000 per month Services Provided: Advertising, Demonstration, Obtain Order, Get Payment, Product Design

I have a question for the group. Does anyone know of ANY Sales Entity in ANY Stable Industry that ROUTINELY takes over 40% of the Customer’s Money as a sales commission?

Bill

 

[shannonlovesflowers]

well, I don't understand all the mumbo jumbo, but what i do know is this:

My complaint about getting "undervalue" orders is when lets say the arrangement they are asking for such as a dozen roses retails for $75 plus delivery in our shop and the sending florist/og/ws send gives us a total of $65.

They aren't magic roses and there still a delivery fee. They don't magicly become cheaper just because the customer bought them from TF.com or 800posers.

That's my problem.

 

[FloralFantasies]

One Crazy Industry

Does anyone know of ANY Sales Entity in ANY Stable Industry that ROUTINELY takes over 40% of the Customer’s Money as a sales commission?

Bill

You're right Bill. I don't think there is any other industry that does that.

 

[BOSS]

Does anyone know of ANY Sales Entity in ANY Stable Industry that ROUTINELY takes over 40% of the Customer’s Money as a sales commission?

Bill

Um Nope.....

But Bill, sadly stupid florists are willing to give it up, give it away, and be content doing it. Except of course the Order Gatherers, they want the system to remain so they can continue to rape and pillage.

Personally, I've never been closer to the door myself. Some of the crap going on in this industry, that is supposed to be about making people feel better, and celebrating joy's, makes me sick.

 

[Hal Conklin]

The worst part about this whole equation is THE CONSUMER is being the "ONE THATS SCREWED" . As much as i am in total agreement ?? That buyer has a better chance of never buying flowers again, therefore causing more resentment within both the consumer and retail ranks. Under valued orders and orders not filled properly due to animosity (which is totally understandable). The only answer is "EDUCATION". The question is "HOW". This response is a little off kilter however I felt needed to be said. Now back to the CASINO blackjack table is hot..

 

[TOTO]

Their PROBLEM has become OUR PROBLEM!

well, I don't understand all the mumbo jumbo, but what i do know is this:

My complaint about getting "undervalue" orders is when lets say the arrangement they are asking for such as a dozen roses retails for $75 plus delivery in our shop and the sending florist/og/ws send gives us a total of $65.

They aren't magic roses and there still a delivery fee. They don't magicly become cheaper just because the customer bought them from TF.com or 800posers.

That's my problem.

Well said Shannon!

It MUST BE MAGIC if they can sell OUR PRODUCTS cheaper than we can, plus NOTHING for our delivery $ERVICE!

NAW, it's just a scam! While they wage a war amongst themselves in their efforts to see just which MIDDLEMAN DOT.CON FLORAL ORDER GATHERER can sink to the lowest SRP on the food chain, they have managed to try and take all the rest of us DOWN WITH THEM TOO!

The really sad part, is in the fact that, we have too many victims out here who are willing to succomb to their TOO LOW SRP madness.

And then, it begs the question of: Why would the SHOPPERS buy that florist's roses at $75 when they can sneak through the same florist's back door through the DOT.CON MIDDLEMAN while thinking they saved $10.00, but really getting shorted in the end?