BOSS
FlowerChat Administrator
In "theory" Luc
Let's say FTD raises the bar to be a member to $250.00 a month (guess), (Griff?), thus a reduction in membership of 30% becomes a moot point dollar wise. Those remainning, which will be mostly the larger members, will still have their same outgoing volume, and in "theory" their incomings would increase as there are fewer members to disperse the orders between.
Then, an increase in order value becomes easier to maneuver thru the larger shops, that are most likely already sending out higher value orders to begin with. (NOT talking OGs here) This in part could lead to and overall higher dollar ratio flowing thru the clearinghouse, and with fewer members, it would be easier to raise the bar SRP wise.
Next, the remaing members, by curtailing the orders they allow the OGs to funnel thru their shops increase their profitability, all the while growing their outgoing business because they are "members" and the consumer has fewer choices thus the volume increases.
While the remaining members do this, the low dollar orders now must find a home. All that is left are the unsuspecting (not "connected") smaller shops. This will only eat away at their bottom line, and while the volume looks good on paper, overtime it eats them alive, and one by one they close up shop.
And lastly, since the OG's must now either raise their prices to get their orders filled, or find alternative methods, begin sending to NON-members direct, cloaked as direct orders on a credit card. Yes they are now 100% orders, but the value does not increase. Or they must direct ship (limited market).
As time goes by, more and more are educated, and the OG's begin to find they can not find a home for their orders, and they are the next to go.
What will be left, is a stronger industry, less the OG's and sadly many smaller shops. But also stronger member groups with more clout to control the wire services to some extent, or at least get them to work more for the greater industry good.
____________________________________
Of course this is only MY scenario, and only time will tell if it will play out. But we all know things are changing, and we are still waiting for the other shoe to drop.
Ok, lets try this one on, and remember Luc, it has nothing to do with coverage...that will never again be an issue, for anyone, as most all, have figured out alternative methods.Luc said:
Let's say FTD raises the bar to be a member to $250.00 a month (guess), (Griff?), thus a reduction in membership of 30% becomes a moot point dollar wise. Those remainning, which will be mostly the larger members, will still have their same outgoing volume, and in "theory" their incomings would increase as there are fewer members to disperse the orders between.
Then, an increase in order value becomes easier to maneuver thru the larger shops, that are most likely already sending out higher value orders to begin with. (NOT talking OGs here) This in part could lead to and overall higher dollar ratio flowing thru the clearinghouse, and with fewer members, it would be easier to raise the bar SRP wise.
Next, the remaing members, by curtailing the orders they allow the OGs to funnel thru their shops increase their profitability, all the while growing their outgoing business because they are "members" and the consumer has fewer choices thus the volume increases.
While the remaining members do this, the low dollar orders now must find a home. All that is left are the unsuspecting (not "connected") smaller shops. This will only eat away at their bottom line, and while the volume looks good on paper, overtime it eats them alive, and one by one they close up shop.
And lastly, since the OG's must now either raise their prices to get their orders filled, or find alternative methods, begin sending to NON-members direct, cloaked as direct orders on a credit card. Yes they are now 100% orders, but the value does not increase. Or they must direct ship (limited market).
As time goes by, more and more are educated, and the OG's begin to find they can not find a home for their orders, and they are the next to go.
What will be left, is a stronger industry, less the OG's and sadly many smaller shops. But also stronger member groups with more clout to control the wire services to some extent, or at least get them to work more for the greater industry good.
____________________________________
Of course this is only MY scenario, and only time will tell if it will play out. But we all know things are changing, and we are still waiting for the other shoe to drop.
