In this thread I challenged everyone to tell me how much they make on a $50.00 incoming order. The same numbers apply either to florists or OG generated orders, so we're not splitting hairs too finely here, and the only difference between a F2F order with a 20% discount given is the 7% wire service commission, so $3.50.
A couple folks took me up on it, and I too would "in my perfect world" like to think that I would get $15.00 out of the $50.00, but it's just not possible. Now there will many points to this scenario that could be argued, I'm not trying to pick a fight here, just show the truth and stir up some debate and discussion for the many long time residents and the newbies to our community.
Come on, take a stab at my numbers...
+$50.00 Incoming order
-$10.00 20% Other florist/OG commission
-$3.50 7% Wire service commission
-$10.00 20% Labor or Labour for my Canadian friends
-$15.00 30% Cost of goods(container, greens, flowers)
-$9.95 Delivery charge (real dollars)
+$1.55 Left to cover, card and packaging materials, membership, technology, lights, heat, rent, vehicle repairs, insurance, gas, drivers wages(you could argue the drivers wages come out of the $9.95, but that's a myth too, that amount does not cover his employer contributed taxes and his wages unless he's working for 6 bucks an hour. BTW it does not cover gas and vehicle repairs either [can't do everything]) and there's probably some little things I have overlooked.
Boy, that's a LOT for that little $1.55 to do isn't it.
Now some will argue that the 20% is the "profit". You could consider it that if, and only if you are the designer/owner. But if that's the case your not paying yourself enough. If you're paying a designer wages, then the 20% goes to pay them and your portion of their taxes, plus any other benefit you offer.
Now, on a F2F order you do a bit better, that $1.55 becomes $4.05. That goes a little further to cover the expenses every order has to cover for every shop, unless you like to work for free for someone you don't even know. I'm sure none of you would offer this kind of pricing to your local cash customers, so why do you do it for people you don't know?
And yes, it "used to be" a courtesy thing to give up the 20%... but honestly can you really afford to these days? Some have an issue with my thinking on this and that's ok, if I was flush with cash I'd be glad to give it up, but I'm not, and my accountant thinks it's a stupid thing to do.
So come on and play, tear up my numbers... Prove Me Wrong.....
A couple folks took me up on it, and I too would "in my perfect world" like to think that I would get $15.00 out of the $50.00, but it's just not possible. Now there will many points to this scenario that could be argued, I'm not trying to pick a fight here, just show the truth and stir up some debate and discussion for the many long time residents and the newbies to our community.
Come on, take a stab at my numbers...
+$50.00 Incoming order
-$10.00 20% Other florist/OG commission
-$3.50 7% Wire service commission
-$10.00 20% Labor or Labour for my Canadian friends
-$15.00 30% Cost of goods(container, greens, flowers)
-$9.95 Delivery charge (real dollars)
+$1.55 Left to cover, card and packaging materials, membership, technology, lights, heat, rent, vehicle repairs, insurance, gas, drivers wages(you could argue the drivers wages come out of the $9.95, but that's a myth too, that amount does not cover his employer contributed taxes and his wages unless he's working for 6 bucks an hour. BTW it does not cover gas and vehicle repairs either [can't do everything]) and there's probably some little things I have overlooked.
Boy, that's a LOT for that little $1.55 to do isn't it.
Now some will argue that the 20% is the "profit". You could consider it that if, and only if you are the designer/owner. But if that's the case your not paying yourself enough. If you're paying a designer wages, then the 20% goes to pay them and your portion of their taxes, plus any other benefit you offer.
Now, on a F2F order you do a bit better, that $1.55 becomes $4.05. That goes a little further to cover the expenses every order has to cover for every shop, unless you like to work for free for someone you don't even know. I'm sure none of you would offer this kind of pricing to your local cash customers, so why do you do it for people you don't know?
And yes, it "used to be" a courtesy thing to give up the 20%... but honestly can you really afford to these days? Some have an issue with my thinking on this and that's ok, if I was flush with cash I'd be glad to give it up, but I'm not, and my accountant thinks it's a stupid thing to do.
So come on and play, tear up my numbers... Prove Me Wrong.....
