TF's PRODUCT prices include $7 for delivery. Then they add an additional $14 delivery/shipping/handling. They keep that handling charge in a "normal market."
The 20% -- when viewed by the customer -- comes off the PRODUCT price. Actually, it comes out of the $14 handling charge.
That means that as long as the PRODUCT PRICE is $70 or less, they still make FULL MARGINS on the product and delivery fee. Since most orders are well below $70, they are home free.
In a little while, I'll be posting a new thread containing an idea for REAL FLORIST's re-branding AND re-pricing.