"On Learning from Order Gatherers" by Tim Huckabee

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Tom Carlson

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Aug 26, 2004
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www.fairviewflorist.com
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I understand where Tim Huckabee is coming from. Order Gatherers are smooth businessmen and they know how important and impressive it is to have a polished presentation.

Florists, on the other hand, are pretty common folks, not so savvy in the business world, might be at the cutting edge of design, probably quite knowledgeable, but must just don’t cut it very well in how to relate to consumers. That is what Tim Huckabee told us.

Tim Huckabee wrote “Florists have a strong reaction to wire orders. Some view them as “just discounted business” and others go to great length to procure them. To view wire orders as “just discounted business” proves that they are not analyzing the numbers rationally. In order to take 10 to 20% of ones entire sales and discount it 20% and then pay another substantial percentage to get those sales just does not make any sense.

When any merchant gives a discount, his questions should be, “what am I getting in return”? Is it advertising, community exposure, goodwill? One rationale could be that I am going to capture a company’s total business, by being their exclusive florist thus getting something in return. One has no way to get all the wire order business when you have no exclusivity on it. There was a day when a wire service offered some degree of exclusivity. That has not been for a long time.

Going to great length to procure them (wire orders) made a degree of sense at one time. If you got in $10,000 worth of orders, you would expect to have $10,000 (more or less) going out. The economics worked out and the net gain was the service (relay) charge. It was a service to the consumer that no other merchant could duplicate. Commissions were looked upon as a wash unless you aggressively promoted to get outgoing order business. I wonder if all florists are aware that regions of the U.S. send more orders than they receive. In my conservative, prudent, tight fisted Midwest, there are fewer outgoing wire orders than incoming. The same goes for the value or wire orders. We constantly struggle to get customers thinking $50 on outgoing orders.
Can a consumer send flowers today without placing the order at a wire service flower shop? YES
Can a flower shop handle orders directly from a consumer in another city? YES
For the consumer who does not have Internet or who wants service, can a flower shop handle those orders without the traditional wire services? YES

Who needs the traditional wire service? NONE OF THE ABOVE. Then will somebody please tell us why florists contribute to a business model that is sucking the life out of the retail florist industry? How can a florist in good conscience accept a rebate when they know that it is sucking the life out of the florist on the filling side? Is there no conscience any more? Are there no ethics any more?
 
Tom,

The problem is not florist industry specific. The business world in general has moved into a new arena. Major large corporations and almost every retailer, everywhere, are playing with little or no regard at all to ethics.

We are finding major banking industries, American Car Companies, Travel Agencies, and after hours answering companies moving their telephone call centers over-seas to LOWER labor markets to decrease spending and INCREASE short term profits.

Over the last 50 years American Business has been OUT SOURCING anywhere to produce sales at lower costs. This has been creating the HYPER COMPETITIVE business and retail world we are now witnessing.

This is not brand new to the flower business. Heck, some may still remember when the florists in this country grew the flowers for their own arrangements. Florists that did not grow their own flowers bought them from other florists, or regional domestic growers. Then we learned we could buy them cheaper from off shore growers. We in many cases introduced middle companies to broker these flowers and sell them to us cheaper then we could grow them in our own greenhouses.

At some point florists began OUT SOURCING their marketing departments. Many shops stopped their own marketing, leaving it to the wire services. As our industry in the greater numbers began to rely less on our own ability to produce orders, and leave marketing to other producers the majority accepted the discount and commission structure as just the cost of doing business.

Back in those days you could still buy a new delivery vehicle for under $10,000.00, you could get almost an unlimited number of in-expensive labor and operate without breaking your checkbook. Florists were not paying attention; we weren’t looking forward far enough to see by not marketing our own brands we were setting ourselves up for future extinction.

Wire Services did not create the Order Gatherers. Florists did. And now the problem is; the wire services can’t just kick the order gatherers out, because the business environment that WE ALL created relies too heavily on the orders that are being generated and controlled by a fraction of the over all number of members.

The florist industry is now in a HYPER COMPETITIVE STATE. Not only from order gatherers, but from direct shippers that are promoting ONLY their OWN IDENTITY. National Brand names have emerged within the past 10-15 years that surpass even the most dominate florists in any market in our country. We have; proflowers.com, Hallmark, 1800flowers and a few others that are household names, NATIONWIDE. Then we have companies like; Flowers Sent Today, justflowers.com and others that advertise heavily online and in telephone directories in every city, state and town, EVERYWHERE.

ETHICS, you ask? It seems that the business world may have MIS-INTERPETED consumer demand for lower priced goods and services. American Businesses have too many investors to satisfy, too high of a mortgage, too many cars, too many expensive dinners, too many watches, too many shoes in our closets and too big of an APPITITE for more in this country. We lost focus on LONG TERM success, and business turned to focus on short term quarterly profits.

There is an old saying that has been around for as long as I can remember. Pigs get slaughtered. I think that the only thing we can hope for is that; the consumers in our country SLAUGHTER the pigs, and restore the ethics.

We have created a monster. And in my opinion (for what it’s worth) things ARE GOING to play themselves out, no matter how many of us on this board, or any other one choose to become activists for the cause of a better florist industry.

The question is no longer how we stop the madness. The question is who will be left standing after the dust settles.

Any florist that wants to be part of their local market in the future, should;

STOP worrying about what and who is doing what 5 states over. Florists need to PRODUCE and PROVIDE what the PERSON around the corner from YOUR store is looking for! We need to DELIVER it for what is FAIR and REASONABLE that provides VALUE for what they are going to PAY for it!!! We have got to ADVERTISE aggressively and MARKET to them. Tell them WHERE we are, WHAT we have and teach then WHEN and WHY they should order from US!!

Advertise and market ONLY your own BRAND!!!! No one else, EVER has, and NEVER will do it for you!!
Rob
Fabulous Flowers
 
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