I gather TF has started offering Groupon "savings" in certain markets. The offer is pay $20 and get $45 of flowers although, perhaps incorrectly, I assume that also includes what TF claim to florists is a delivery allowance of $7.00.
TF just about break-even on this assuming:
- $20 + $14.99 as their service charge to the buyer = their initial revenue of $34.99;
- less 73% max to florist on the $45.00 = $32.85;
- results in $2.14 before;
- TF sending charge to filling florist of $1.75 (? still) = $3.89 revenue to TF.
TF then have related cost of credit card fee but still probably leaves them with $3.00+.
What I find "scary" is that TF (or even the other 2) can make such a public offer and still have revenue from it. For all of us, whether with or without accepting WS work, we really can't manage to give away so much revenue...and yet we're out there, on the Internet attempting to compete. Meanwhile, think back a little over a week to FFC in Atlanta and TF, in particular, were saying how much they work with the florist.
On a related matter, I see that Groupon themselves have had to re-submit their revenue figures having more than halved them after making accounting classification errors. Such errors do not look good for Groupon's IPO prospects.
TF just about break-even on this assuming:
- $20 + $14.99 as their service charge to the buyer = their initial revenue of $34.99;
- less 73% max to florist on the $45.00 = $32.85;
- results in $2.14 before;
- TF sending charge to filling florist of $1.75 (? still) = $3.89 revenue to TF.
TF then have related cost of credit card fee but still probably leaves them with $3.00+.
What I find "scary" is that TF (or even the other 2) can make such a public offer and still have revenue from it. For all of us, whether with or without accepting WS work, we really can't manage to give away so much revenue...and yet we're out there, on the Internet attempting to compete. Meanwhile, think back a little over a week to FFC in Atlanta and TF, in particular, were saying how much they work with the florist.
On a related matter, I see that Groupon themselves have had to re-submit their revenue figures having more than halved them after making accounting classification errors. Such errors do not look good for Groupon's IPO prospects.
