...and taking the discussion one step further, let's assume that in most markets the competing florists in your area are FWOAC.
You start diverting incoming orders to them, and they think life is grand. Suddenly business is booming, and they have to increase labour and flower costs because they are just too busy. Maybe they even have to expand their premises, increasing fixed expenses as well!
But now we are into the "6 months of hell" (June 1 to Dec 1). You've already cut back on your flower orders, but you just can't let staff go because...
a) they'll find another job in the meantime
b) there are no qualified designers in the area to hire when the time comes.
c) they depend on you for their livelihood...
d) whatever other reason you might provide.
Like Griff says, the big O.G's & established shops can maintain their staff & absorb the costs, but many Mom & Pops will die in the process.
My advice to those dependant on incoming & want more:
- get rid of staff & do it yourself,
- find smaller premises if you don't own the building (since the big box stores & grocers that treat flowers like a commodity will kill off your cash & carry as they sell on price, so who needs the space),
- find an unfilled niche, be it weddings, event planning, rose specialists, exotic flowers and build your reputation locally
- and buy a saddle...it's gonna be a rough ride.
But of course this won't happen with most shops. Industry restructuring is happening before our very eyes, as this process of consolidation is only beginning.
Welcome to the new reality & beware the "bogey man".
We should discuss paradigm shift at a later time
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