Retrans issue, change or something

[bloomz]

I use retrans when there isn't a member, not that often but often enough to care.

Yesterday no member, only 2 non WS shops in the area. The order was for a $39.95 spring mix.

I get a price change request from retrans for $63.

Not having that much, I decided to call the shop and use our credit card.

I asked how much - she said she would do a $39.95 order. She said yes FTD just called us with that order - I asked what she quoted them. She told me she had told them $43.

I cancelled the order with retrans with the message WTF was with the extra money request when I now know what the shop was actually charging.

The message back said something like, sorry you didn't know we changed this May of 07 but we're only allowed to use 73% of the money you give us. Says they were quoted $45.28 (which still leaves a missing buck)

This explains the inordinate amount of price chage requests from retrans.

Silly me, I thought it was a service they were providing to keep the orders "in their network".

Duh

Lemme just do a little math - did I save money? I would have made about 17.50 had I granted them the price change (It would have been $23 out of my pocket as I was not going to call the customer for more money, which we usually don't do if it's less than about $20) She offered me a discount of 15% but I declined and told her to put it in the flowers.

So I guess I'm about $5 richer by sending direct. But I dislike the hassle of doing that.

But this "unadvised" change by retrans surprised me - I will be more vigilant in the future about their price changes.

 

[David]

Silly me, I thought it was a service they were providing to keep the orders "in their network".

Duh
.

As did I. It also bothers me that they never tell you who they placed the order or if It was placed. Guess you don't get a delivery confirmation on the orders they place either.

 

[fairfield]

Do I understand this correctly?

You would charge the customer $63 and the recipient would receive a $43 arrangement. Then you would receive a 20% commission and FTD would keep 7%.

WTF is right!!! How would you explain that one to a customer?

 

[Rock]

Hey Bloomzie,
In a convoluted way this means you were almost a skimmer and almost didn't know it ??!! :>
Rock on.........................

Do I understand this correctly?

You would charge the customer $63 and the recipient would receive a $43 arrangement. Then you would receive a 20% commission and FTD would keep 7%.

WTF is right!!! How would you explain that one to a customer?

 

[shannonlovesflowers]

I use retrans when there isn't a member, not that often but often enough to care.

Yesterday no member, only 2 non WS shops in the area. The order was for a $39.95 spring mix.

I get a price change request from retrans for $63.

Not having that much, I decided to call the shop and use our credit card.

I asked how much - she said she would do a $39.95 order. She said yes FTD just called us with that order - I asked what she quoted them. She told me she had told them $43.

I cancelled the order with retrans with the message WTF was with the extra money request when I now know what the shop was actually charging.

The message back said something like, sorry you didn't know we changed this May of 07 but we're only allowed to use 73% of the money you give us. Says they were quoted $45.28 (which still leaves a missing buck)

This explains the inordinate amount of price chage requests from retrans.

Silly me, I thought it was a service they were providing to keep the orders "in their network".

Duh

Lemme just do a little math - did I save money? I would have made about 17.50 had I granted them the price change (It would have been $23 out of my pocket as I was not going to call the customer for more money, which we usually don't do if it's less than about $20) She offered me a discount of 15% but I declined and told her to put it in the flowers.

So I guess I'm about $5 richer by sending direct. But I dislike the hassle of doing that.

But this "unadvised" change by retrans surprised me - I will be more vigilant in the future about their price changes.

the WTF part for me is you'll eat $20 for the customer??? the other part was bad too.
But seriously WTF!!!

 

[Erlene]

the WTF part for me is you'll eat $20 for the customer??? the other part was bad too.
But seriously WTF!!!

It's called customer service.

 

[bloomz]

Thank you Erlene - all reasonable price change requests come out of our pocket.

I quoted the customer a price and it's my responsibility to honor that quote.

I like keeping customers, I'm kinda silly that way.

 

[fairfield]

Thank you Erlene - all reasonable price change requests come out of our pocket.

WOW!!! When we were in TF and the receiving florist wanted more money, they would say, "call your customer and get more money". I could never bring myself to do that. If I couldn't find a florist to do it, I would eat it and learn that I needed more money for that area next time (I didn't have the Preferred List). I bet it is not at all uncommon for a florist to call their customer back for another $5.

The flip-side: On occasion I would get a florist (still do) that would say, "I will do it for you this time, but it doesn't meet our minimum..." It really amazes me that a $50 non-specific order will not meet a minimum...Gee, do ya' think you could update those internet directories you're payin' for - at least annually???

 

[BOSS]

all reasonable price change requests come out of our pocket.

Ditto here as well....

Learned it from JB....but I wish he would have taught my kids to tell me before they pee'd on me too...

 

[bloomz]

I had one happen at VD where I knowingly dumped a big order on a small shop where my judgement told me really they couldn't handle it ($350 - they were thrilled to have it, the big shops were already fully booked)

They fumbled, missed her at work - I gave the guys money back and sent a $75 apology bouquet on me.

It is ultimately my responsibilty to see what I promise gets delivered no matter where the delivery.

He'll be back.

I *think* that's the name of the game.

Now occasionally it is unreasonable and in those cases I have to call the sender and tell them we can't get it done - like the one to the USSR the other day where they (retrans - hmmmmmm) wanted $265 for a dozen roses.

That doesn't have a lot to do with my judgement or lack thereof, or does it?

 

[ivygreen]

Thank you Erlene - all reasonable price change requests come out of our pocket.

I quoted the customer a price and it's my responsibility to honor that quote.

I like keeping customers, I'm kinda silly that way.

If I quote it, the price stays and I take the hit. Customer service is key, and not many other retail shops could get away with calling someone back and adding to the purcase price, after the fact. I think it's the respect a customer deserves, and if the money is off well that's my fault, and my job to fix. JMO

 

[CHERYL BAKIN]

Jon, We operate the same way. Only occasionally do we have to take a hit.

I am on my staff all the time to check for the correct product, correct min order value for what we are trying to send, etc, etc.

Do we sometimes make a mistake? sure...Do we ask our customer to fix it? Not usually.....unless, like your USSR price, the price just gets riduculous!!

I was taught "old school" where we guarantee what we take, what we delivery....world-wide.

Happy Easter!

Cheryl

 

[shannonlovesflowers]

the WTF part for me is you'll eat $20 for the customer??? the other part was bad too.
But seriously WTF!!!

Customer service is one thing, but taking a $20 hit is crazy. See I was taught to look up the city in the "big book" or on the computer, see what their minimum is and see what their delivery is, if the listing says "rr deliveries vary" or something such as that that's my cue to call the receiving florist and make sure they can accommodate the order, or what it would REQUIRE to do it. What do you do next time the customer comes in and wants to send the same order to the same place expecting to pay $20 less than it requires? Do you eat that too?? I just don't think people (customers) are dumb. They understand that flowers and services cost money. When you go to classes or design shows they always bring up costs, cogs, labor, etc. Everything in your store costs money, including you! Even if you're a working owner, you need to make a living wage. $5 here and $15 there adds up! That could be monthly or year end bonuses for your staff, or even a crazier idea, a vacation for you! As far as another shop dropping the ball on an order regardless if it's $350 or $40, I would absolutely do something to make up for it and I would demand from the other shop to do something extra on their side as well. I can remember just 5 years ago most every where was charging between $5 and $7 for delivery and approx $60 for a dozen roses. Now it seems the average is $10- $12 for delivery and approx $75.00 for roses. I went into the grocery store the other day. An 18 pack of eggs was $5.79!! People aren't dumb they know prices on everything is high.
BTW, I can almost believe that the roses in Russia would be that crazy high. They use REALLY long roses there like 120cm or bigger is my understanding. Plus The American dollar is just about worthless right now. Gotta factor in all that. Anyway, not trying to argue, just sayin'. Also BTW I'm all about customer service, that's why I don't promise something I may not be able to follow through on. I took a Management/ marketing class years ago, the one thing that has always stuck with me is that "People will forgive an honest 'I'm sorry I just can do that' but they will never forgive 'We weren't able to follow through the way we said we would'". Customers are responsible for the payment of the flowers/product/service you provide for them, not you.

 

[bloomz]

Customer service is one thing, but taking a $20 hit is crazy.

Guess I never laid claim to not being crazy.

So color me crazy - I resemble that remark.

opinions vary...

blessings :blowkiss:

 

[TOTO]

Don't want to RAIN on ANYONE's PARADE, but.......

Since this is 2008 (not 1988) no order to another REAL FLORIST leaves our shop at LESS THAN $50.00. That's our BARE BONES MO and we try to sell em into $60.00 or more.

I think it was Herman Meinders with Redbook back in 1990, who stated that: "99% of all of their complaints regarding their WS orders came from price points which were below $30.00. Accordingly, they were raising their MO to $30.00 in their effort to avoid complaints. And, here we bee in 2008, a full 18 years later, and we're talking about a price point of $39.95, OH MY! lol

(I'll pull his article out of my archives just to be sure)

That allows for a $40.00 floral arrangement (low end) plus the extra $10.00 to help the delivering florist cover their cost of delivery.

Since all of our orders now go through IFA at 80% NET TO FILLING FLORIST versus the old WS 73% less their other 2% FTO, thus netting them only 71% after the WS WAMPUM SMOKE SCREEN CLEARS, our filling florists get their net payment of $40.00 in their BANK ACCOUNT within 48 hours versus 30 to 45 days via the WS statement's reconciliation time line.

And so, REAL FLORIST to REAL FLORIST via IFA at NET $40.00 versus the WSs (less 29%) net at $35.50 after they've run it through their WRINGER, is a FAR BETTER DEAL and a NON BRAINER, OH MY!

As to RETRANS, and helping you $ervice your customers? HAH!

That kind uv help, (SKIMMING) no REAL FLORIST can afford to have!

Lastly, and when we DON'T KNOW what the right price would be to effect the desired results of the wants and needs of our customers at the other end of the delivery spectrum, we tell them the truth. After which, we also tell them that, we'll check on that for you and get back to you as soon as possible. There is NO WAY in our world that, we will MIS-QUOTE the price which is needed by any delivering florist and before we know it, only to wind up eating the difference at our end because, we THOUGHT WHAT IT BEE!

While we take our responsibility to OUR CUSTOMER'S NEEDS very seriously, that DOES NOT INCLUDE LOOSING MONEY on any of their orders, due to the fact that, we did not know what we were talking about!

As to RE-TRANS (outside of the USA) our MO is $75.00, but we also advise them that, in some cases, they may have to invest more money due to the foreign exchange rates, or now, the devaluation of the US dollar.

Forewarned is FOREARMED, and I refuse to make up the difference!

 

[RWK]

Herman Meinders was AFS..........I don't think He had Redbook as well?

 

[TOTO]

Update and YES, it wasn't Herman Meinders.

Herman Meinders was AFS..........I don't think He had Redbook as well?

Went back to my archives and the Quarterly publication from Redbook Florist Services, Volume V, Number 1 for January, February, and March of 1991 was entitled: " CHANGES IN FISCAL YEAR 1990-91"

The article was written by Mack Harbour, President and CEO of Redbook Florist Services.

I will post his entire article at a later date, but here's a few excerpts.

" A major change implemented with the beginning of the new fiscal year was elimination of a sending bonus on orders of under $30.00 "

" Research uncovered that 90% of all orders that brought complaints from the customer at the sending florist side and from the recipient at the receiving florist side were orders under $30.00. After identification of this bench mark figure, it was evident that to promote elimination of order complaints, it would be expedient to bring the minimum order for qualifying for a sending bonus (rebate) to $30.00 "

" It is incumbent on the sales staff of a shop to learn more about the dynamic profession of selling. "

" I encourage subscribers to teach basic sales training to their sales force. "

This article, my Real Dear Florist friends, was written back in 1991, a full 17 years ago. And here WEE BEE in 2008, and some of us are discussing a price point of $39.95 regarding an order which, they had to send through RETRANS, only to have them DO THEIR SKIM with the FILLER FLORIST NEEDING MO MONEY to DOO THEIR DOO!

Can anyone say: OH MY? Not only is our industry NOT MOVING AHEAD, the fact is that now, we're all expected to MOVE BACKWARDS and revisit the price points which were an industry standard over 20 years ago.

That PROBLEM is the courtesy of all of the OGs, DOGs, Non-Local Phonies, and the WSs, who either SLEEP WITH OUR ENEMIES, or in fact, have decided to emulate our enemies in their efforts to COMPETE WITH THEM, albeit at the EXPENSE of their very own FLORIST MEMBER FILLER FOOLS! :FTDme

 

[bloomz]

Agreed about the cheapest orders cause the most problems, but - I am thinking you're thinking I undersold that order.

I'm not.

If I can't get someone a spring mix for $39.95 total (local customer - no relay charge) - they'll buy something else.

And I wouldn't blame them.

Sorry but I'm also not going to price myself out of the game.

And - there was no complaint on it - nor did I expect one. Now had I falled for the sucker ploy and called the customer to get the monies they were asking for, only to actually GET a $40 bouquet - then there should have and could have been a complaint.

Hence I posted this as a warning to my fellow florists that you WON'T get good value going thru retrans any more.

It was news to me. I learned something new to better serve my customers.

opinions vary