What is the value of flowers.

[Eric S]

Reading the thread about the WS needs I was reading the post about the grandmother complaining about the $30 arrangement that was to expensive. Since I have only been doing this for 4 years. What was the value of an arrangement that was sent before FTD was sold? Has the cost of our flowers become that more expensive then just 10 or 20 years ago?

Looking at the way things are now I was assuming the price had dropped considerable but perhaps this is not true.

Thanks

Eric

 

[Rhonda]

Eric, the lady stated it had been awhile since she had sent flowers, but it wasn't too many years ago that the holiday specials (which she had inquired about) had some $29.99 price points.......before the "designer containers". She specifically mentioned Teleflora products, which I had carried for many years. And that was also before adding specific delivery charges (the area she was sending to stated $10). She was way off today's prices anyway but I can see her point....a $60 price point for a plain centerpiece in our area is way out of line (we live in pine and fir areas....to them it's a freebie......and I pay $16.50 this year for a shank of brush-(fir)

 

[Joe Mioux]

I think you are looking at the difference between the Depression Era/WWII generation, and late model Baby Boomers.

Early model Baby Boomers (pre-1953 models) may have a closer affinity to the DE/WWII generation and their values.

Now I realize that grandmothers now come in late model Baby Boomer years, but I would be willing to bet that this grandmother is of a later vintage.

Hope I am correct

Joe

 

[steve]

Eric

Prices of flowers really have not raised in fact I am paying far less these days but cost of rents , labor , insurance, gas and auto have gone through the roof. That is why this industry is not what it once was.

 

[CHR]

IMO there are a few issues at play.

Inflation

Let's look at the value of the dollar in 2006 vs 1996. According to this site, $30 today is equivalent to $23.37 ten years ago. I don't recall any WS specials being sold at that price point in 1996. Even non-codifieds would have started at $25 for very simple arrangements of Christmas greens with a few bows, cones and a couple stems of pompons for national delivery - plus delivery and service charge.

I'm with Steve and agree the wholesale cost of flowers is the same if not lower on many products due to the expanding world market. BUT, wages, gasoline, insurance and overhead have increased substantially for flower shops while sales of many higher margin products have declined.

Competition

At the same time, competition from mass marketers, supermarkets and drop-shippers that run more efficiently than 99.9% of flower shops have reduced prices and increased convenience to consumers. Of course they don't offer all the custom services of most florists, but consumers remember the base product cost and use that as a comparison anyway.

PF is advertising 24 'Christmas Roses' with a free vase for $29.95 on So. Cal's most popular radio stations. I just heard 1-800 is going to push 1 Dz. florist-delivered roses for $19.95 next week.

No wonder the lady thinks $30 is plenty to get flower delivered.

And it is....

Both PF and 1-800 use those low price leaders to gain and retain customers and there's no reason florists can't, too. WS members earn a 20% commission on the sale plus a rebate in most cases. You could take her $30 order, charge $9.95 for service and delivery (which is less than PF, 1-800, FTD, etc...), wire the order to another florist for $40 and still have at least $11 from the sale - $8 commission, $3 or more rebate.

You've retained the customer and made a few bucks in the process. She should be able to get something delivered for that price unless it's going to a Metro area or far out into the boonies. Even if the filling florist needed $45, you're still in the plus and have kept one more shopper coming to your door.

 

[vasestuffer]

back to the original question -- there are many factors at work, what with worldwide overproduction of flowers, more supply than demand, etc., that affect our flower prices-- i'm not an economist and i don't wanna be, but....

here's what i know for a fact: 15 years ago,in 1991 when i started designing, we sold snapdragons for $2.00 a stem.

today we sell them for $2.00 per stem

so somebody splain this to me !!!

 

[Joe Mioux]

Cathy:
\
Did you study economics in college?

It has been along time since I heard anyone talk about "constant dollars".

 

[LORRIE]

Even though we've only been open 4 1/2 years I know my prices have gone up. Rent, ELECTRICITY, INSURANCE have made major increases. My flower buying has gotten much much better, but still not enough to conteract these forces-besides I want to be open next year not broke!
I recently sent flowers to my Dad who is 80 for his birthday. I paid $60 plus delivery by my credit card to a florist I know very well ( we went to HS together). Dad has been 'cultivating" a love for flowers the last few years and really loves them. So here is the kicker, my Mom told my sister that she thought it was very extravigant that I must have paid $25 for the bouquet!!!
Talk about a generation gap! LOL