Molnar v. 1-800-Flowers

anytimeflowers said:
Thank you for that blog, it is clear and precise, and should be easy for the average consumer to understand. Best of all, it does not make the florist into a "whiner", it points out the damage done to consumers.
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Thanks!.

IMO most people do not care about florists whining the tales of what's being done to us. They care about what's being and been done to them.

This is the second story in 3 months about 1-800 duping consumers for big financial gains (the first being the post transactional marketing scheme which netted them more than $10 million.) As a public company, they have eroded Wall Street's confidence and their stock price shows it.

Their conference call about the Oct - Dec quarter is scheduled for Thursday and it will be interesting to hear how both issues are addressed.
 
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Well, I guess knowing what I now know about this company, I really should have guessed as much. It really makes perfect sense to me, and I guess maybe I am dumb for not seeing this for what it was.

Gotta hand it to em', they are possibly the most brilliant marketers I have ever run into, I mean, they DID come up with 1800flowers, they are always far ahead of the rest of us.

That makes me want to sit down and cry, except that consumers ARE getting a clue, maybe. Sometimes.
 
anytimeflowers said:
Gotta hand it to em', they are possibly the most brilliant marketers I have ever run into, I mean, they DID come up with 1800flowers
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Um... no they did not... McCann actually bought that number from a florist ( in IL or IN as I remember ) that was closing many years ago... he did build the brand... something any of us could have done with that number...

The law suit, as stated in the video has been turned into a future sales tool. Hopefully many consumers will see it for what it really is...
 
CHR said:
I missed the conference call yesterday, but hear the lawsuit was mentioned - tagged at a cost of $15 M.

The video guy is right about the settlement. It's basically a '$10 off' coupon and 1-800 has bigger and better discounts out there nearly every day.
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Cathy,
I don't understand how this is a $15 million lawsuit? it seems out-of-pocket costs to !-800 Flowers (fdba Conroys) totals about a half million dollars...$400k to attorneys, ples $5k to Molnar plus mailing fees and admin expenses to essential mail a very clever solicitation for business, which is insidious by its very nature. This is a $15 million advertising campaign! This guy is right on target, no matter how cynical it might seem. $10 to drive a customer to a website is chump change these days. And this is not even real money. After the "service" fee 1-800 will still net $4.99.
What every person on this board should do is e-mail the link Youtube link to their friends, and who in turn should ask their friends to open the video, and drive the Video up on the "You Tube" most watched scale.
This needs to be esposed for what it is - a classic American scam that incorporates all the ingenuity of our brightest and best engaged in the most pernicious and scurrilous pursuit designed to extract the most money from unwitting, decent citizens in the tradition of Enron, Madoff et al.
 
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For what it's worth...

***TSM Information Alert***​
1-800 Flower Holiday Discounts to be Charged to Florists​



Friday, January 22, 2010


Description In true 1-800 Flower fashion, they will be offering online discounts to consumers and then pass a portion on the cost of the discount on to the receiving shop. 800 has done this in previous holidays and is continuing the practice. The extra cost to filling florists will drive the filling percentage down to 56% on a $40 order!

Quote from 1-800 Flowers / Bloomnet:
“1-800 Flowers.com will again promote early deliveries by offering consumers a $14.99 discount on key products priced at $39.99 or higher. 1-800 flowers.com will fund 60% of the discount and we are asking all Bloomnet Florists to participate by sharing in 40% of the incentive…”

The full message to Bloomnet Florists is attached.

This is absolutely impactful to the filling florist.

EXAMPLE:
$40 Consumer Order
800 Filling Florist normally gets 71% = $28.40
Filling Florist is charge 40% of the $15 discount
Extra Florist Cost = Additional $6 on each order
Filling Florist really gets $22.4 to fill a $40 order
The net filling percentage is 56%
 
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