what's up with Rio Roses?

[Mikey the Flower Guy]

Luc....

NOT to overstep my boundries, BUT, AGAIN, Bill has ALREADY STATED, that Rio Roses are DIRECT SHIP to REAL FLORISTS ONLY!!
Rio has "partnered" with the necessary infrastructure to get this job done, AND, has made arrangements for BOTH FTD and Teleflora, to "codify" REAL FLORISTS that carry the Rio "Brand".
My understanding IS, this product line is sold TO REAL FLORISTS ONLY....please give Bill, and Rio the chance to PROVE, that good things WILL COME from this!!

 

[BOSS]

Bill,

Can you also confirm that FTD.com will be selling RIO roses on their website?

We're waiting for your answer.

Bill went to the airport this morning (far as I know) for a long flight to LA...most likely won't be around till late tonight (our time)...

 

[Paul]

I personally believe RIO when they say they only will sell to "real" florists. I also think RIO is a quality organization. Their research into the care of their product and the psychology of selling roses is second to none. I felt surprised when I heard RIO roses would be offered to the public on FTD.com. I can understand how that would be good for RIO and FTD...but I found myself wondering how that might affect their florists? So before I wear my brain out wondering, I thought I would ask if they WILL be on FTD.com or not. Might save a lot of energy.

 

[bill schodowski]

just landed.....

ladies and gentlemen,
i can only update you on things that i know to be correct. i know of no plan to sell rio roses on any wire service e-commerce site. to my understanding...we will continue to supply our traditional retail florist segment through our wholesaler distribution network.
i can understand that there is a great deal of speculation...but i can only comment on the things that i know to be true.
bill schodowski

 

[Paul]

Bill: How about checking with Rio's owners, particularly the gentleman who was at the Trade Show at OFC and spoke on behalf of the company at a Westbrook/RIO product launch event in Toronto the Wednesday following? (I think his name was Raul...but I may be wrong.) He may be able to bring you up to speed on the FTD.com piece, and then you could update us on this board.

Perhaps there has been some re-thinking on this point, but at that meeting I got a definite yes on my question about whether they will be offered on FTD.com. There was no speculation involved. I not only got a yes, I got the reasons why this would be good for the florists. 1) Bring in more orders to my shop for RIO roses (from FTD.com) 2) Help in a huge way to imprint the brand name in the public's mind because of the huge number of flower-buyers who use the site. My recollection also is that the same type of RIO rose page would also be made available to RIO rose florist partners to put on their own websites to help bring in RIO rose orders with no middleman. I personally liked the matter-of-fact way my questions were answered.

 

[flowerknife+us]

Right up there

With those we will not compete quotes.

It seems that every time someone comes up with a grand scheem professing to help the florist. You can expect to see the exact opposite.

 

[nonbitter]

ladies and gentlemen,
i can only update you on things that i know to be correct. i know of no plan to sell rio roses on any wire service e-commerce site. to my understanding...we will continue to supply our traditional retail florist segment through our wholesaler distribution network.
i can understand that there is a great deal of speculation...but i can only comment on the things that i know to be true.
bill schodowski

November 2004 -August 2005
Is this what Rio is doing now????? Very confusing.
Thanks Chr for these links, kinda lookin forward to next month's plan :treadonme

 

[Griff]

Spin Control

Before this thread dies or gets buried, maybe we all should ask some questions.

The article I spoke of prior mentioned that their <Rio's> website would include about 70 arrangements of FRESH CUT FLOWERS and Rio roses in the $50 and up range and orders will go through the wire service system to filling florists. Does anyone not thing this sounds like order gatherering??

The article also stated that, "to fill a RioRoses.com order, florists must have consistent, weekly orders for Rio Roses through their wholesalers". It also states that, another 7,000 florists carry Rio Roses, but NOT consistently enough to receive the Web orders". Does anyone really think that you can create a national program when you are relying on the wholesalers to honestly tell the grower who they have for standing orders and how much they are buying? Florists are allowed to codify in the various WS directories of they own free accord without having to prove anything. What the article just pointed out is Rio is going to recognize florists that just order Rio roses inconsistently, but only ones with STANDING WEEKLY ORDERS. So who gets those orders they can't send to florists with STANDING ORDERS?? Again from the article, quote "when a wholesale/retail florist partnet is not available to fill the order in a market, the ARRANGEMENT is designed in a Miami design center and drop-shipped to the recipient." I ask again, IS THIS NOT AN ORDER GATHERERING SCHEME??

And finally, if you have a grower who offers more than 25 different varieties of roses, would you not expect that they show as many of those varieties on their website as possible. Look at the Equiflor now. If so and the consumers picks a dozen Pickaboo roses arranged <example>, are you the filling florists going to be able to substitute with a second or third choice.Does anyone think that the consumer will accept possibly a Donna rose for Pickaboo? Then how many varieties would you have to carry or have on hand? If these orders are run through a WS, is the quarantee not still in effect and the florist would have to replace the arrangement if the customer is not happy? Is this not a receipt for suicide??

At what point will florists finally figure out that all programs like this could never have been created if not for the WS commission program. Every outsider wants a piece of your labor, driver and your business. As Mr Fox stated, most of this rhetoric is very similiar to how the WS pitches their containers. "Buy our containers and we will drive the customer to your door". When will florists stop relying on VENDORS who tell them that "they can drive customers to your door?"

 

[Dazeal]

At what point will florists finally figure out that all programs like this could never have been created if not for the WS commission program. Every outsider wants a piece of your labor, driver and your business. As Mr Fox stated, most of this rhetoric is very similiar to how the WS pitches their containers. "Buy our containers and we will drive the customer to your door". When will florists stop relying on VENDORS who tell them that "they can drive customers to your door?"

I love this board, I learn so much. Once again Girff, your wisdom is always apprieciated and has given me food for thoguht today.

 

[sfox]

Why Rio?

This big plan RIO has will not fly? It's a bit of the "chicken and the egg." They need florists to commit to these potential orders. The word to remember is "potential". But florists won't commit without the orders. So their solution is direct ship to the consumer. The forces more florists not to commit.

And keep in mind that they win the game even if they don't generate a lot of orders, if they can convince a good amount of florists to carry their product on a weekly basis. The florists are paying a premium price for the roses with the hope of getting those orders.

Their plan is flawed. It's the old FTD, hold a big enough carrot in front of the florists, tell them a whopper of a story, and they will bite.

 

[Griff]

Yes, it is flawed badly, Mr Fox. But can someone please tell me why florists continue to believe any of these ideas that promise "big orders" in return for the purchase of vendors products? How many times can anyone "sell" these concepts and get florists to believe that any results will justify the price? This is like watching the info commercials that tell you how you can buy houses for no money down and no work or how you can be a millionaire by just investing in a special course. How many times will florists be gullible enough to keep chasing those carrots - afterall they are only plastic.

Here's an alternative. A rose grower goes to the 50 major markets in this country and finds ONE florist in every market and makes a deal. A standing order of roses every week and for a special price. That florist is connected to a delivery pool. In return, the grower will send orders DIRECTLY to those florists by FAX or whatever means without having to use a WS. The grower's website does not charge a sending fee to the consumer and the order goes to the florists including delivery and only less a 7 or 8% fee for advertising. The florist is only paying per order.The grower has the ability to cooridnate everything with these designated florists every month or week if necessary and the florists have a rose source and a "partner" that has a vested interest in selling and delivering the product. Then the grower then goes to the next 50 markets in size and does the same thing. It is a win win situation for both parties. No 20-80, no membership, no monthly fees, no B.S. Just basic business.

Now let's see how long it takes for this to get buried.

 

[BOSS]

Warning

Now let's see how long it takes for this to get buried.

Any off topic posts will be removed from this thread...except this one

 

[Paul]

In your plan the grower loses his 20% from the wire service, the $6 rebate, plus whatever else gets negotiated in the deal. No way Jose. Buried.

(But if your plan does move forward, I'll bid 15% to the grower or maybe 35%... I just want to get "my" product into all those homes)

 

[Griff]

Depends on which you prefer to be..

In your plan the grower loses his 20% from the wire service, the $6 rebate, plus whatever else gets negotiated in the deal. No way Jose. Buried.

Paul, sorry, but some might want to look at this differently. It depends are what or who the grower really wants to be. Does the grower want to sell more roses or does the grower want to become an order gatherer?

As I mentioned in the plan above, the grower sells the product to the florist and makes profit off the sale and the additional 7-8% toward the advertising expense. If his intent is to sell more roses, the grower now has a true partner and both have a stake of making the market for a specific brand of roses grow.

If on the other hand, the grower, would prefer to be an order gatherer you have to look closely at what the FLORIST gets out of this "partnership". The florist is paying a premium price for a product and can only expect more discounted orders. What kind of deal is that? The WS gets 7% plus the transmission fee and the grower gets 20% of the order and says they will rebate 7% to the florist. That still means the florist only gets 80% for supposedly a premium rose arrangement. Now you, Paul, might be willing to give up as much as 35% just to get an arrangement into local homes, but I doubt if many others are. Hence any grower that is going to attempt this kind of program had better come up something more beneficial to the florist or it ain't going to fly!!

 

[nonbitter]

Before this thread dies or gets buried, maybe we all should ask some questions.

The article I spoke of prior mentioned that their <Rio's> website would include about 70 arrangements of FRESH CUT FLOWERS and Rio roses in the $50 and up range and orders will go through the wire service system to filling florists. Does anyone not thing this sounds like order gatherering??

The article also stated that, "to fill a RioRoses.com order, florists must have consistent, weekly orders for Rio Roses through their wholesalers". It also states that, another 7,000 florists carry Rio Roses, but NOT consistently enough to receive the Web orders". Does anyone really think that you can create a national program when you are relying on the wholesalers to honestly tell the grower who they have for standing orders and how much they are buying? Florists are allowed to codify in the various WS directories of they own free accord without having to prove anything. What the article just pointed out is Rio is going to recognize florists that just order Rio roses inconsistently, but only ones with STANDING WEEKLY ORDERS. So who gets those orders they can't send to florists with STANDING ORDERS?? Again from the article, quote "when a wholesale/retail florist partnet is not available to fill the order in a market, the ARRANGEMENT is designed in a Miami design center and drop-shipped to the recipient." I ask again, IS THIS NOT AN ORDER GATHERERING SCHEME??

And finally, if you have a grower who offers more than 25 different varieties of roses, would you not expect that they show as many of those varieties on their website as possible. Look at the Equiflor now. If so and the consumers picks a dozen Pickaboo roses arranged <example>, are you the filling florists going to be able to substitute with a second or third choice.Does anyone think that the consumer will accept possibly a Donna rose for Pickaboo? Then how many varieties would you have to carry or have on hand? If these orders are run through a WS, is the quarantee not still in effect and the florist would have to replace the arrangement if the customer is not happy? Is this not a receipt for suicide??

At what point will florists finally figure out that all programs like this could never have been created if not for the WS commission program. Every outsider wants a piece of your labor, driver and your business. As Mr Fox stated, most of this rhetoric is very similiar to how the WS pitches their containers. "Buy our containers and we will drive the customer to your door". When will florists stop relying on VENDORS who tell them that "they can drive customers to your door?"

BRAVO griff

 

[nonbitter]

This big plan RIO has will not fly? It's a bit of the "chicken and the egg." They need florists to commit to these potential orders. The word to remember is "potential". But florists won't commit without the orders. So their solution is direct ship to the consumer. The forces more florists not to commit.

And keep in mind that they win the game even if they don't generate a lot of orders, if they can convince a good amount of florists to carry their product on a weekly basis. The florists are paying a premium price for the roses with the hope of getting those orders.

Their plan is flawed. It's the old FTD, hold a big enough carrot in front of the florists, tell them a whopper of a story, and they will bite.

More BRAVO FOX
The reason I keep quoting these posts, hopefully it will sink in. My resentment to all this is the direct to consumer idea. Saw the growers go direct to wholesale years ago and all it's done is ruin the chain and cheapen the market. Just plain old ugly business in a beautiful flower world.

 

[Joe Mioux]

Onward....

Griff you point out exactly what is wrong with this model. There is no incentive to the florist. Car manufacturers have dealers, Anheuser Busch have independent wholesalers, these two manufacturers provide a very healthy profit incentive to their sales outlets. Rio/FTD/TF or who ever eliminates any sales incentive for the fulfilling party.

JOe

 

[Joe Mioux]

Onward....

Griff you point out exactly what is wrong with this model. There is no incentive to the florist. Car manufacturers have dealers, Anheuser Busch have independent wholesalers, these two manufacturers provide a very healthy profit incentive to their sales outlets. Rio/FTD/TF or who ever eliminates any sales incentive for the fulfilling party.

JOe

 

[12BucksFor2Dozon]

.... Rio/FTD/TF or who ever eliminates any sales incentive for the fulfilling party.
JOe

Then why aren't we seeing a mass exodus from these companies? Everyone's analysis is right on target, yet many/most are still terrified of LAW (life after wire). What good is understanding the game if players are still playing it?

I guess many of us here are on the leading/bleeding edge of the floral industry, but to be honest when I see the thread counts on the wire specific groups here, there seem to be just too many florists that still embrace the very system that is trying to eliminate many/most of us.

 

[Paul]

The only reason many of us are not wire service free (I am FTD) is because I still have corporate clients who expect me to take care of ALL their business and they pay me for it. If a RELIABLE alternative comes along with COVERAGE (not an outdated FTD directory, thankyou) I am gone. I would love to see a new co-op started by the florists for the florists (remember that concept?) but I have neither the time nor the money to do it myself.