Joe, I'm convinced that you were probably a magician in a previous life. While everyone is watching the right hand, the switch is being done with the left. I'll admit that you are extremely good at it and no disrespect, but can we stay on subject just for a little while anyway.
It is funny that you criticized the 30,000 florists as an old number. I never mentioned only US florists. I'd like to think that the Canadian florists are still part of this situation. And besides, BOSS used that number just the other day and no one batted an eye. The truth of the matter once a florist leaves the WS, they sort of drop off the radar and I'm not sure anyone is really sure just how many are still in operation.
Joe, I really don't care to argue what's a fixed or variable expense. The problem is very simple. Many florists today have trouble paying their bills. Their monthly revenue doesn't meet their monthly expenses.They really don't need a balance sheet to tell them that.To solve the problem, you either find ways to increase your revenue or find ways to cut expenses. And to a vast majority of florists today, a WS has become a very uncontrolable expense. If that 8 pct figure works for you as a profitable window, then great for you. But we all know that florists always have to offset any incoming wire business with outgoing and for most today, the pickin's are very slim. If your outgoing exceeds your incoming, I'm again glad for you, but that's not the case for most. If the rebates from you outgoing are sufficient to pay for your monthly membership, that's great too, but how many florists do you think can do that today?? What pct? Joe, put a number on it.
Joe, I'm not trying to argue against your numbers and your company being able to be profitable with a WS. I'm just trying to point out that the vast majority of florists today aren't working with the same numbers you are.
When florists findly come to the conclusion that increasing their revenue numbers is going to become even more difficult in the short future because of the economy and realize that there isn't many expenses that they can reduce such as rent, utilities, gas, insurance, etc, then finally maybe the light will go on when it comes the true costs of the WS. It is not only the expense of the monthly dues and the "Wiz Bang" machine, but also the additional gas and vehicle expense that sucks money out of your company.
Like Joe says, wire service is profitable for some florists. However, many florists will be alot more profitable without them.