Teleflora, worth it?

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gr8vet said:
You obviously can't train the years of experiance we have in 5 - 7 days.
NO doubt!!!! Me either :)

And yes, Hal, I concur with the support fee structure, I was not bashing MAS, more over RTI, as MAS and Advantage are comparitive support wise...
 
PhillyPhlorist said:
Forgot... TECHNOLOGY should NOT be paid for entirely by your wire service revanue. You should choose technology that will AID your business as a WHOLE, and not throw $150+ a month down on a machine the JUST transfers wire orders out. That's a waist. Instead, spend about 300 and STREAMLINE your ENTIRE shop with something that will do more than just x-mit an order for you... I treat my Advantge system like an employee: it processes orders, c-cards automatically, prints cards, routs drivers, runs payroll completely with timeclock, etc. All for about 4 bucks an hour. Pretty cheap employee, huh! The monthly payment is it's salary, and the support is it's medical! (get it!!! - support=medical....err...never mind...)

- Herb

Very well said !!! But I bet its safe to say you were able to cut labor as with MAS... Then in time hopefully add labor due to increased business.
 
gr8vet said:
But I bet its safe to say you were able to cut labor as with MAS... Then in time hopefully add labor due to increased business.
Yep I did too!!!

In fact, I eliminated a full time bookkeeper (32K/yr) because of added functionality with Advantage. It amazes me how many people think they can not afford technology...

How can they afford not to?? The correct technology package, should pay for itself in 2 years or less, if used correctly...and thats not even adding in increased sales due to more efficient marketing...
 
Lost track of what the average florist is these days

From reading many of the posts on both boards these days, the one fact the stands out, at least to me, is that so many florists have forgotten "what is the AVERAGE florist"!

The last time I saw any numbers, the average florist in the USA and Canada does $300,000 in sales annually or less<us dollars>, has 4 employees or less, has one van and DOESN'T have a full time or even a part time account on staff. So when a florist asks a question about to handle something, the florists responding always seem to use their company as the example. The problem is, most who are responding are NOT the average florist! The Philly Phorlist talks about his $8 sending fee and everything he said works for him. That's great! Many florists have gone to sending fees while still enjoying 20% commissions and rebates, but it isn't always going to work the same for everyone.

Let's say that a florist does $250,000 annually and approximately 20% of that is wire business - $50,000 and the ratio is 1 to 1.

The florist sends out 40 orders< $2000> this month and pays the WS $150 membership dues and $60 for sending machine. This florist also charges $8 sending fee. His high tech accounting system shows him that he earned $400 commission, $120 in rebate and $320 on sending fees for a total of $840. He paid out to the WS $210 so he is still ahead. However, the incoming $2000 in orders is discounted $540. The net of all this is, and remember this is 20% of your business, you have now converted those discounted orders to full margin and you still have $90 left. In rough terms the overall profit on this $4000 of business is about $750 or 19%. Many florists will be jumping up and down over this number and yet you have to have a 33% COGs or lower to pay your bills. We are not talking about any additional costs, just dues, machine and commissions.

Now do the same math but this time increase the incoming orders for the month to $2500 <10 more orders than last month>. If everything stays the same, this florist doesn't have enough money anymore to convert all the incoming to full margin business and the % of profit drops even further.

The larger, well established floirsts can handle their monthly "boogey number" with the other 80% of their business. The average or smaller florist needs almost 100% of their monthly sales at full margin to pay the bills.

For those of you that say, but what about all those florists who keep asking for more incoming, I can't speak for all of them and their reasons, but I'm willing to bet that most of these florists are just trying to keep their people busy. If you consider that almost 50% of our annual sales happens within 3 months of the year and probable 40% happens with 6 weeks of the year. It is little doubt that many florists are trying to keep everyone on board just for those periods of time. However, what may be OK for these large florists, is suicide for the average florist.

And as for the technology conversation, the average florist would have to do a lot of sole searching to arrive at the conclusions some have posted for reason to buy all the "wiz bang" high tech computer systems. Afterall, quickbook Pro for $300 or less will solve the vast majority of they customer tracking problems. You buy a new Dell these days and they will even install it for you. And Quick books now even has a POS system and none of this is controlled or rented or leased from a WS. What most are really talking about is attempting to keep as many people on the team as possible. The more people that leave the team, the more the costs go up for the remaining members and the smaller the popluation they will have to send their orders to for commission and rebates. And based on the continual growth of order gathering and consumers ordering direct, there will be less outgoing orders for all of us to send.
 
Which is why....

many of us here have stated time and agin, that IF more than 10% of your shop business is wire service, in THIS day and age, your business will NOT perform profitably....those that "rely" on a cheque from a ws to augment cash flow, are already at the wall, AND, IMMEDIATE action is required, BEFORE this business goes on life support.
Getting a check from a ws is NOT "being ahead" whether you have a small business, or otherwise.
Mike
 
QB Pro...???

Grif - QB pro can NOT compare to ANY of the GOOD designed-for-florist systems out there. Yes, QB Pro has a POS, and I have seen it work. However, when it comes to multi-users, wire service recon., fully integrated Payroll/Timeclock, A/P, G/L, all seemlessly linked together, QB Pro stops there.

I agree with your assessment above (especially about keeping wire in orders around inorder to keep people busy!), however some shops are BUILT on high-volume. The NEED those wire-ins to keep the "flow" flowing. A slow down, and you have build up in stock (arrangements, flowers, boxs, too many vans, etc.) all produced with the least amount of GOGS as poss, and with the most efficient use of labor. Been there, done that. Up until about 8 months ago, we were one of those shops. Now, the wire-in volume has started to drop below the min. we need. So, when it came time to replace that designer who left, we didn't. All drivers are now p/t status. Overtime - NOT! Also, cut A LOT of standing orders from the wholesalers. NOW...starting to go through the w/s books and cut out those ASB towns that we get little or no business from (can your QB Pro give you that info???). Turning some of those dollars saved into new advertising (web site for one), an agressive "propaganda" campagne to our existing customer base (30,000 and rising) and so on...

So, as MANY of you have stated, 'time's are-a changing!' and you have to go with the flow. The $$$'s are just no there, so time to change the tune!

- Herb R.
 
First response is to Mike

Mike, you commented that today that you shouldn't have more than 10% of your shop commented to WS. The Wire Services used to tell florists that "it is not reccomended to exceed 20% of you business with wire business".

One might say that that what you are saying and what they said is the same thing. Afterall, no florist is going to feel badly about doing as much outgoing wire business as possible. Agree? Especially today with rebates and sending fees included. So if wire OUT business is 10% of monthly sales, who is going to tell a florist they are wrong? And if you have a ratio of incoming to ourgoing of 1 to 1, what's is wrong with that? Florists have been telling other florists that is what makes them different from ordergathers is the fact that florists send and fill orders. And we have heard all sorts of reasons why all sizes of flower shops want to encourage incoming wire orders. Some will even tell you that making a little money on an order is better than no order at all. Silly idea.

The fact of the matter is that if outgoing is 10% of monthly sales and you have, what is considered an industry acceptable ratio of 1 to 1, then you will also have 10% incoming monthly for a total of 20%.

Mike, you are not wrong, but the "numbers" or "industry standards" make no sense to anyone anymore. I can't imagine a florist telling a customer, "no, I'm sorry I can't send out your order this month because I have already reached my quota for outgoing or I can't fill your order today because my accounting system tells me I already have too many incoming orders".

So for the "average florist" out there today, who are you going to believe - the WS or another florist? May no one!
 
Response to Herb R

I mean no disrespect when I say this, but you big city florists have to get out of the city more often and take a good look at an average flower shop these days. Mr R, you are a 4th generation florist and your customer base is twice the size of my whole town. There are communities around here where the total population is half of your customer data base and there are TWO flower shops. Quick Books Pro is a small business system for small businesses and the average florist is a small business. What you are using works fine for you and fills your needs nicely, but is over-kill for the vast majority of florists today. I have always challenged these large "wiz bang" systems and said that when they are hooked to a robotics systems that will "stuff" the flowers in an arrangement, package them and deliver them without a driver, THEN I'M INTERESTED. Otherwise, they are merely order sending systems with elaborate score boards. Some even fire off fire works when you have a big sales day! Just kidding.

The floral network across the US and Canada are made up mostly of "average sized" florists. You are right that if florists don't change with the times they may not be around much longer and that goes for everyone large and small.
The original question on this thread was about asking if a WS was worth the investment. In my opinion, to the very large flower shops, they can't afford to leave any WS because they need that incoming business and the dependancy on their "wiz bang" system. But that technology system is also a "boat archor" in some ways because they can't afford to leave any WS without tech support. Today, an average florist needs as much flexibility as possible to meet any business situation that might arise. Commiting to any long term lease and tech support payments is not my idea of flexibility.
 
Griff,

Just an observation, but I'm sensing a bit of an anti-technology sentiment in your postings. You don't see the value in a website for a small florist, you don't see the value in a floral POS package for a small / medium florist ...

I do respect the amount of thought you put into your posts. You always give us something to think about when you write. I just happen to think you're pigeon holing the average florist and not giving them their due.

Just because a shop is small doesn't mean they won't benefit from a POS system. I am in shops from coast to coast and most fit the profile of "your" average shop. Some of the people who can benefit most from a proper POS platform are the 1-3 person operations that only have one computer running. Labour is at a premium for them, and having a system that eliminates almost completely the need for a bookkeeper and accountant saves $$$ in time and fees, not to mention even the smallest operation needs to market their product.

Given the relatively low cost, their is no excuse NOT to have a website for your company. It can be the most cost effective form of advertising you do, and most people expect it.

I'm afraid you could be discouraging people from employing some of the most valuable tools available to them out of a lack of perceived value in your eyes, or - dare I say it - the heart of a Luddite?

Ryan
 
Ryan....Griff is a well hardened Business Person

What he see's and what he talks about is just the Basics of Business....

You young pups don't know crapola about Marketing as Griff knows...

Don't fear the Reaper........
 
Griff, we are a typical small shop, family owned and operated. I felt the same as you did less than four years ago until we attended our first convention . Well to make a long story short, my daughter orderd Advantage while I was looking at chocolate bars and other gourmet items. I thought I would bust a gasket over it.thought she had totally flipped out but you know what? We came home, had it installed and within less than three months, we stopped ordereing invoices to take orders, reduce the staff hours by an average of 8 per day, and increased our ability to market like the big guys but on a scale we could afford. I could send out 25 postcards a week or 2500, whatever I could afford. Now there is never "cash" misplaced from the register for "gas" or fruit, cause it is all tallyed. The customers are amazed when they call, becasue we can tell them what they sent the last time, or remind them of an upcoming birthday etc, and we have their CC on file. A lot of our orders are placed while they are driving ( and probably eating and putting on make-up) but they love not having to scrounge around for a card.They love getting an email confirmation and the Clients that use to have to be billed at month end and then took 30 days or more to pay, are now accepting the email confirmation as an invoice and the money comes in faster than it ever did before.
The biggest reduction in cost ha been "the CPA".........actually he has been replaced by a much more cost effective service because we can produce the reports that the big guy use to do......that saved us over 4 grand a year. Yep that is what we paid and we are small potatoes. So don't discount the value of a POS system,for us, we liked the idea of the tech service and support. We look at any of the cost as a reasonable business expense.
It may not work for you now but keep an open mind ,it may not "cost" you as much as you might "save". Take care, Sher
 
The thing is, most everyone replying to this thread is right...

Grif is right from his point of view. The average florist that wants to stay average in a market where there is more than 2-3 florists does not need a full blown OE/POS platform. They could get by with QB and do many of the things others do with other systems. Qb handles, very nicely, payroll, taxes, invoicing and more. However it requires additional data entry over and above the day to day operation of a shop.

Full FLORAL SPECIFIC systems allow for much more technoligical intergration into the business to accomplish more with less. When I say more, I mean customer service, marketing, shop management, and so on. And the less part is, less time involved, fewer man hours (read employee costs) and less owner time too.

No, floral systems are not for everyone, but they are for those that chose to reduce expenses (including system cost in the long run) payroll, marketing expense, and to increase productivity, customer service, and shop efficiency.

Honestly, I can show anyone where technology of various types could save them money and generate a return on investment that would go straight to their bottom line. All too often florists are stuck in the past (not you Grif) and do not really want to get bigger and work smarter...and for those there is little hope, but for progressive, forward thinking florists that want to dominate their market there is no other choice.

Why pay Kinkos to produce your post cards when you can do it yourself?

Why hire a payroll company when you can do it in less than 5 minutes (slow peinters).

All too often owners do not put a dollar value to their time, however if they were to do this, and be honest about the time they spend "after hours" they would see, that if they were to pay themselves what they are truely due, they could not afford themselves. Technology balances this out.
______________________________________________

I'm not a "big city" florist, my pop is only 40K, guess that makes me average, but I do know, I market and work like I am, and I couuld not do what I do without a full blown floral specific platform. Sher too is a good example, she has, with the right technology taken herself from a smaller florist to one that is growing, and now attracting corperate clients because of her ability to give them what they expect, as well as being a good florist, with a smart daughter for a partner.
 
Not against technology

Ryan, I'm not against technology, but I am unhappy with the over use of the term. When someone is questioning the need for a WS, somehow the discussion always comes down to technology and how it can benefit the individual florist. Well, ask all the florists who invested in Rosebud only to find it wasn't Y2k friendly. I was one of those people. That was just an accounting system, but at the time was sold as the ultimate package for the industry. Or ask the florists who bought a Terra system which got bought by a WS which converted it to Daisy which has gone many changes so it can be connected to Dove and all the costs connected to it. All for the sake of technology. All with the same pitch that these programs will save labor and manpower. First of all, technology is only as good as the people or florists that are using it. Most of these packages are geared for the very large florist and ordergather. Nothing wrong about that, but selling some of these packages to the average size florist is like trying to sell florists a school bus or 18 wheeler as a delivery vehicle. As AFS found out, most florists that invested in Rosebud used it only as a way to create and send invoices to their customers. Florists don't want to be accountants or bookkeepers. Someone is still going to do their taxes for them at years end.

As for websites, I think every florist SHOULD have a website. I just think that every florist should have THEIR website under THEIR control and be willing to maintain it themselves < no third parties> and should use only THEIR pictures to show what they can provide. When they are ready to do that, then they should ahve a website. Do that and you could have some interesting solutions for this industry.

And Michael, easy boy! I don't have any more knowledge than the next person. We are all searching for answers. One of the reasons I'm so much against some of the comments for technology being the answer is the large ordergathers already have these "wiz bang" systems and all they are looking is to have easy access to other florists on the same WS system. For all the reasons we have already talked about: WS order ratios, uncontrolled discounted business, the florist who actually invests in this technology may find that have to add people, not use less and I can give some examples of that if anyone is interested.

Just to set the record straight. I don't think I'm anti-anything. Just want florists to have as much information as possible and then make their own decision based on THEIR business.
 
Griff said:
Just want florists to have as much information as possible and then make their own decision based on THEIR business.
And once again Grif, I concur!!
 
Griff and Boss - Excellant Points!

This wide Florist arena is full of Great Biz Florist trying to find the answer for their next step.

The Step is always a more profitable Biz.

Your guys are both Right on Target with your Statements, and these statements HELP to drive the Biz Florist in this Arena to the next step!

This is Teamwork, together to bring everyone forward, and that is the GOAL!

>T O G E T H E R<


with you all..


Fred D.
 
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