Rebranding & Repricing to attack OGs

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kt4ye

Well-Known Member
Oct 15, 2007
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Charlotte
www.flowerhut.com
State / Prov
NC
Let me suggest a marketing STRATEGY and TACTIC to enhance almost any Real Florist’s positioning versus OGs and their look-alike twins, the Wire Services.

In the suggestion below, I am assuming membership in one or more of the major Wire Services. I also assume that you are tired of receiving orders that were obviously placed locally for delivery locally.

  • The Strategy: Real Florists can re-brand themselves as FLORIST DIRECT suppliers. Think about it. For the freshest produce, everyone knows that you should buy Grower Direct. For the best price on manufactured goods, you buy Factory Direct. And Pro Flowers has done an excellent job of selling the idea that the most inexpensive flowers (in bulk) are Grower Direct. So let’s build on this PRE SOLD concept!
From the customer's viewpoint, Florist Direct has to be better than purchasing from a third party OG or Wire Service!

  • The Tactic: The first step is to INCREASE web prices so that the online prices are THE SAME as those posted by TFTD800. (Remember… their prices include $7 for delivery) The second step is to add OUR local delivery charge as a separate line item. Since for most Real Florists, the local delivery charge is substantially less than the OGs handling/service/delivery charge, we already have a (slight) price advantage. The final step is to offer a SUBSTANTIAL DISCOUNT (I use 20%) OFF of the Wire Service’s Prices (for local deliveries only.)
  • The Results First, this approach challenges the customer to price-shop. They will be pre-conditioned to do so by the Florist Direct re-branding. Second, the customer will get BETTER SERVICE and a product that COSTS THEM LESS than if they buy from an OG or Wire Service. Finally, we are capturing orders that we know (in many instances ‘cuz they tell us) would have been placed via the Wire Services. And THOSE orders are significantly more profitable than if received from a Wire Service. And, we know who the customer is, so we can market to them again and again.
We at the Flower Hut have been using the 20% local discount for some time, but had been basing it on the Wire Service’s Suggested Retail Price. We have recently INCREASED our prices so they match the Teleflora and FTD web prices prices. Contrary to expectations, our sales DID NOT GO DOWN. They went up. Part of this is due to the re-branding.

We changed the customer-readable headlines on our website to include the phrases, “Florist Direct” and “20% Discount Off Teleflora and FTD Advertised Prices.” Since we did this, we have seen a substantial (like 50%) increase in website conversion efficiency. And ALL our online orders are now substantially more profitable than they were before.

All The Best!

Bill
 
Glad someone is thinking...about helping themselves. Not about what is not happening to then within the industry. Kudos to you!
Interested in others remarks.
 
We at the Flower Hut have been using the 20% local discount for some time, but had been basing it on the Wire Service’s Suggested Retail Price. We have recently INCREASED our prices so they match the Teleflora and FTD web prices prices. Contrary to expectations, our sales DID NOT GO DOWN. They went up. Part of this is due to the re-branding.

We changed the customer-readable headlines on our website to include the phrases, “Florist Direct” and “20% Discount Off Teleflora and FTD Advertised Prices.” Since we did this, we have seen a substantial (like 50%) increase in website conversion efficiency. And ALL our online orders are now substantially more profitable than they were before.

Is the 20% automatically deducted off the listed price upon checkout? Does your checkout automatically distinguish between local delivery and non-local delivery? In other words, does it know when to deduct and not to deduct the 20%?

This is a very interesting concept and has piqued my interest.
 
Is the 20% automatically deducted off the listed price upon checkout? Does your checkout automatically distinguish between local delivery and non-local delivery? In other words, does it know when to deduct and not to deduct the 20%?

This is a very interesting concept and has piqued my interest.

For several years it was automatic in my Yahoo website, based on the target zip code. THEN they upgraded it and shi*canned the feature. @&^%$&%()!

On an interim basis, I have loaded all my discountable zip codes as "discount codes." The customer has to put the code in manually -- a pain in the A**.

Chances are, you may have that discount feature in your website. You know... send out a flier and tell the customer to enter "VDAY5OFF" to get Five Bucks off the purchase price or "MDAY10%OFF" for percentage off.

I'm supposed to have the automatic feature done custom by Jan 30. Its now the 29th and no feature #UGH#

Bill
 
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Bill I really like The way you are going after some sales.
A question I stopped ordering special containers from FTD and Tele. because I could not fill the orders for the money they listed as retail.
So how are you giving the 20% off. There price or your.
David
 
Bill I really like The way you are going after some sales.
A question I stopped ordering special containers from FTD and Tele. because I could not fill the orders for the money they listed as retail.
So how are you giving the 20% off. There price or your.
David

I use the FTD or Teleflora price that is published on their websites. That price is their suggested retail price plus (currently) $7.

Bill
 
I use the FTD or Teleflora price that is published on their websites. That price is their suggested retail price plus (currently) $7.

Bill

The pricing formula doesn't work for us in Canada, at least not for us. The SRP for TF and FTD posted on their sites is too low to begin with, so we have to price it accordingly and then offer a discount. TF is getting closer on more realistic SRP pricing and at least they include a disclaimer now that prices might be higher in Hawaii, Alaska and I think they started including Canada.... I really like your idea Bill. Thanks!
 
YOU ARE BRILLIANT!

What I am using in my website is the term, "Predatory Floral Marketer."

Whatcha think?

Bill

Phantom Florists, lurking on the Internet, do not own a flower shop

The problem is that these terms are too "opinionated", because "predatory" "phantom" are our opinions.

Consumers generally discount the truth in opinionated claims.

Terms like "Middlemen" "Agents" are more neutral and therefore more believable by unbiased consumers.

Basically we need a term to covey the fact that orders going through OGs are more expensive than "Florist Direct". If we can convey this concept clearly in shortest possible phrases, we will win the marketing war.

"Florist Direct" versus ... what exactly?

Any language genius out there? :)
 
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The problem is that these terms are too "opinionated", because "predatory" "phantom" are our opinions.

Consumers generally discount the truth in opinionated claims.

Terms like "Middlemen" "Agents" are more neutral and therefore more believable by unbiased consumers.

Basically we need a term to covey the fact that orders going through OGs are more expensive than "Florist Direct". If we can convey this concept clearly in shortest possible phrases, we will win the marketing war.

"Florist Direct" versus ... what exactly?

Any language genius out there? :)

"florist direct" vs. "florist INdirect" or "florists third party brokers"
 
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"florist direct" vs. "florist INdirect" or "florists third party brokers"

I like the nuance of "brokers". I think this will work. The word "brokers" is neutral but has implict negative connotation in it. But again, I'm not a native speaker, so we need someone like Vic or Randy here. :)

brokers, brokers,...

"third party floral brokers"
"third party flower brokers"
"flower order brokers"

I think we are getting there. Any idea about alternative naming for direct shippers? "Direct" has too much positive connotation.
 
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