The landscape will change drastically

[Hal Conklin]

McCann also noted that the Company will make investments to grow its business-to-business operations in the floral gift category. "The strength of our Bloomnet Network of fulfilling florists and our Bloomlink communications system positions us well to begin to grow our market share in the B2B side of the floral industry. We believe that, over the next several years, we can add significantly to our revenue and profitability in this area through sales of an expanding range of products and services to our floral network members. We are also investing in our recently acquired wine gift business to enhance its technology platform and its marketing and personnel to expand its winery services capabilities and its direct-to-consumer wine gift and wine club businesses. We believe the wine gift market is poised for significant growth over the next several years and the investments we are making in this platform will enable us to build a leadership position in this business." said McCann.

With that said, seems sameday delivery of gifts(other than fruit,plants and flowers)is not far behind.

Hal

 

[Rhonda]

as for wine, I know here in Maine you have to have a malt/wine license to sell/deliver wine. Just another license you have to obtain.
Pet license for bettas, malt/wine license for wine, agriculture license, to sell brewed coffee a victulars license, sheesh.

 

[BOSS]

I have heard that the 800LFC's will be stocking many "hard-goods" and Wine products to deliver same day. I do not think this will work for the majority of their Bloomlink members...I mean how many folks are going to send wine to some of the little bergs, even Midland Michigan.

If you read about some of the sales figures for online wine sales directly from vine yards, they are not all doing that well. Some do, soem do not.

Obviously this is an attempt to bolster sales, that they are losing to non-floral items. Alot of these items work OK when direct shipped from a central location, as only one place has to stock them, but do you think many of the Bloomlink florists will want to stock wine for that once a year order?

 

[CHR]

Profit Skids at 1-800-Flowers.com

From yesterday's San Jose Mercury News

WESTBURY, N.Y. - 1-800-Flowers.com Inc. Tuesday posted a 36 percent drop in profit in the latest quarter from last year, when it was not required to reserve for taxes, but results met Wall Street's lowered expectations.

Net income came to $8.7 million, or 13 cents a share, for the second quarter ended Dec. 26, compared with $13.7 million, or 20 cents a share, a year ago, the Westbury-based company said.

Pretax net income for the quarter was $14.9 million, or 22 cents a share, up from $14 million, or 20 cents a share, a year ago.

A week ago, 1-800-Flowers warned that profit would fall because of marketing expenses. The average estimate of analysts polled by Thomson First Call had been for second-quarter earnings of 15 cents a share, but they adjusted it downward to 13 cents a share.

Revenue rose 7.9 percent in the latest quarter to $230 million from $213.2 million.

The company sells flowers and plants from its toll-free number, Web sites, catalogs and franchised and company-owned shops, mostly in California.

In the latest quarter, online revenue jumped 19 percent to $107.7 million, telephone revenue fell 3.4 percent to $109.6 million and retail revenue soared 43 percent to $12.8 million.

It said a strong finish in December allowed it to achieve double-digit percentage gains in sales in several gift categories.

The company said it plans to increase investments in marketing, infrastructure and technology. As a result, it is targeting revenue growth of about 10 percent in the second half of the fiscal year, third-quarter pretax earnings at a break-even level and full-year pretax earnings about even with the fiscal 2004 level.

Shares of 1-800-Flowers fell 18 cents, or 2.3 percent, to close at $7.68 on the Nasdaq Stock Market.

For the second half ended Dec. 26, net income came to $6 million, or 9 cents a share, compared with $8.5 million, or 13 cents a share, a year earlier.

Second-half revenue came to $327.5 million, compared with $308.3 million in the same period a year earlier.

They must lick their lips when they see the profits generated by the florist services segment of FTD. Problem is, the weakening of the florist side doesn't portend well for 1800 or the WS... B2C growth comes at the expense of the B2B customers, the florists.

 

[BOSS]

I feel that this trend will continue, even with their attempts to prop up revenue with the addition of same day delivery of non-floral products.

I can see where in the VERY near future I will be dropping FTD.com from my "allowed list" (THANK"S HERO) as they have migrated into not only my competition but more so every florists.

Yes many will say I should have done this some time ago, but I waited until MY numbers made sense to do so. That evidenced by the fact that Da Dot now accounts for more incoming business than traditional florist to florist orders. Something that is counter productive to the Real Florist movement.

 

[Hal Conklin]

not just wine

I have heard that the 800LFC's will be stocking many "hard-goods" and Wine products to deliver same day. I do not think this will work for the majority of their Bloomlink members...I mean how many folks are going to send wine to some of the little bergs, even Midland Michigan.

If you read about some of the sales figures for online wine sales directly from vine yards, they are not all doing that well. Some do, soem do not.

Obviously this is an attempt to bolster sales, that they are losing to non-floral items. Alot of these items work OK when direct shipped from a central location, as only one place has to stock them, but do you think many of the Bloomlink florists will want to stock wine for that once a year order?

Mark it wont be just wine... Actually wine wont be the main thrust due to different liquor laws in every state. You will see them with some brand items also and force those vendors to do the advertising. Just like the model we had 6 years ago. Only differance we were a delivery company providing products and driving the consummer to the florist. Never in competition.

 

[BOSS]

Never in competition.

True enuf, and that continues today in your current endevour....

Will be interesting to watch... I think we did a thread here some time ago about Bloomlink, and nobody admitted being a member...**if** there are they must be to embarrased to say so...

I think they'll pull their old change the percentages at a holiday again soon too, it goes right to their bottom line...

 

[carol]

Bloomnet %% 37%

I tried Bloomnet 2 years ago.. they promised alot and had a clause that if they sent less than 20 orders your membership was reduced..I kept them 1 year .. doing the figures monthly.
Year figures totaled a 37% revenue to them.. and I can not make money if I give away 37%.. and of course many times it was people from my area calling to 800 to send the flowers to their wives etc. so the flowers came from the upscale florist for the low scale price.. lose lose for us..
also their promises of order #'s and prices did not pan out.. our average at Christmas & Valentine was $45... not the promised $65. and up..
Other florists told me they would get orders on feb 14th for $100.& up .. and we still got $29.99 ones..
so..it did not work for us.
When we left they got 29% on orders, then there was the monthly charge and the fee for bloomlink technology (on my computer no less.. they just sent the cd for me to put on a windows computer & I still had to pay for the sending/receiving orders)
I really don't understand the florists who agree to put on 800cards on all their orders.. and 800 decals on their vans.. where is the benefit to them??

 

[BOSS]

I really don't understand the florists who agree to put on 800cards on all their orders.. and 800 decals on their vans.. where is the benefit to them??

I agree...with what you said Carol, as to the 800 Logo...I think in the begnning some folks saw Bloomlink as a way out of the BIG2 and in doing so, being able to continue with a national brand and national advertising.

However, 800F turned into perhaps a bigger threat than the BIG2 because they often run their take at holidays to 31%, PLUS the associated fees for using the logo etc...

But these days, even the FTD logo is tarnished, and has morphed into the competition, thus many that are members do not display it much. Co-branding is a truely good thing, **if** the company you co-brand with does not turn into your biggest competition...

We'll see alot of florists making changes this year, having just down loaded the latest directory, I can already see some in my area...nd once all the "tools" (sharp ones) are in place, I will not be far behind myself...

 

[LORRIE]

From bloomlink yesterday:
"Valentines early delivery incentive-Once again this valentines day 1800 flowers will be repeating the successful early delivery program to encourage customers to place their orders for delivery between Feb 9TH AND 12TH.OUR desire in offering the Program is to maximize the utilization of these early delivery dates so as to increase our Val-day delivery capacity and in turn generate more sales. The Program will focus on a select group of our products whose retail price excedes $50.00 and will be available for purchase by cusomers at a discount of 20% off the advertised merchandise value. In the coming days we will announce the products involved in theProgam. As we did last year we are asking our Bloomnet members to share in the cost of this incentive by absorbing seven (7%!!) of this discount. Please contact you BBC with any questions"

Give them 34%!!! On v-day week-They have got to be F****** kidding!

The orders are underpriced already and now they have codified containers too.

 

[BOSS]

Give them 34%!!! On v-day week-They have got to be F****** kidding!

The orders are underpriced already and now they have codified containers too.

Ummm... isn't Bloonlink at 29% regurlarly, making that a WHOPPING 36% ???

See what did I tell ya'll in my last post below...

I wonder...is this an OPT OUT program? I doubt it, be better off to OPT OUT of 800Floozie all together...

 

[BOSS]

However, 800F turned into perhaps a bigger threat than the BIG2 because they often run their take at holidays to 31%, PLUS the associated fees for using the logo etc...

better make that 36%...SHEESH

 

[bloomz]

From bloomlink yesterday:
"Valentines early delivery incentive-Once again this valentines day 1800 flowers will be repeating the successful early delivery program to encourage customers to place their orders for delivery between Feb 9TH AND 12TH.OUR desire in offering the Program is to maximize the utilization of these early delivery dates so as to increase our Val-day delivery capacity and in turn generate more sales. The Program will focus on a select group of our products whose retail price excedes $50.00 and will be available for purchase by cusomers at a discount of 20% off the advertised merchandise value. In the coming days we will announce the products involved in theProgam. As we did last year we are asking our Bloomnet members to share in the cost of this incentive by absorbing seven (7%!!) of this discount. Please contact you BBC with any questions"

Give them 34%!!! On v-day week-They have got to be F****** kidding!

The orders are underpriced already and now they have codified containers too.

Oh that's huge, talk about counting on your customers being fwoac's?
Also get them to put THEIR logo on your van and advertise for them at the same time? Anyone do this please raise your hand???

 

[BOSS]

Oh that's huge, talk about counting on your customers being fwoac's?

Last year it was 10%. They got some flack from the LFC's so this time around they are going with the 7%.

They even have a way of spinning this to make it sound good... I should post the numbers for Griff... but all things said, they are selling roses at $69.95 (2/1--2/12) with a total COGS of $14.00 for the roses, vase and filler (high quality there) plus 10 for delivery and we all know labour (for my Canadian friends) on a DZ vased is minimal...

Supposedly realizing a 30% margin of $21.00 per DZ. For 2/13-14 they go to $79.95 for the same roses...