BOSS
FlowerChat Administrator
sFox...are you paying attention??? :>Fox, are you familiar with loss leaders? A business strategy in which a business offers a product or service at a price that is not profitable for the sake of offering another product/service at a greater profit or to attract new customers.
The problem is, and Susanne you eluded to it, but I think you're a bit off in your analogy, the wires have indeed used the florists as "loss leaders" over direct consumer sales. They are willing to lose up to 110% on that first sale to get the customer information away from the local florist, no matter that florists size.
"Small shops", while they can try to emulate larger operations have little hope of actually doing so. They do not have the same clout when it comes to almost every item it takes to survive this industry. Larger operations can and do negotiate seriously low fees, they demand and get extremely large rebates (upwards of $8-10/order), we can buy in bulk, like (and I'm not that big) 10-15 full boxes a week, or like some, 40-50 boxes. Small shops can not do that...it just does not work.
The wires have and continue to pit shop against shop, driving the machine in the direction they want it to go. Not much will change until the florists follow Nancy's words, and "Just say NO!"...but thats happening, all though slowly, and the trend will continue.
Loss leader....yep, the wires are selling us out, just like that case of toilet paper, that's "free after mail in rebate" at Walmart.