But why are they still recruiting if Preston theory is even close to reality? It doesn't fly that they are raising costs to members to weed out members. Rubbish.
WS Petition?
- Thread starter Dorothy
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prestonway
Well-Known Member
First, it's not a theory. It's paraphrasing comments made by CEO's of FTD over the last number of years.
And if you're getting calls from both, they must think you can make them some money.
PERIOD.
Now where's my gold star...
You actually heard that from FTD? Maybe he could tell me why they keep calling. I will give him the gold star if he can explain it to me.
Anyway, you are right, if I would cause them to lose money they wouldn't call. They call because they want to rape another filler. I feel slightly violated every time they call.
I will at least dance for you for getting partial credit. :ballet:
Anyway, you are right, if I would cause them to lose money they wouldn't call. They call because they want to rape another filler. I feel slightly violated every time they call.
I will at least dance for you for getting partial credit. :ballet:
prestonway
Well-Known Member
Doug Munro
Well-Known Member
Wow, this just goes on and on...
I have never bought into the old argument that you can not make money belonging to a wire service. Lets look at both sides
Sample Order
Retail Price - $ 60
Actual COG - $ 15
Gross profit - $ 45
Incoming Wire (Same Retail Value)
Paid by WS - $ 44
Actual COG - $ 15 ( Based on a markup of 3x-4x COG)
Gross profit - $ 29
Before I get skinned alive don't worry I realize that I have not allowed for labour costs, or transmission fees for recieving, or delivery.
Labour, in the case of small shops with minimal staff the labour is there whether you take an order or not. As well if your shop needs anymore than a maximum of $8-$12 worth of labour to put together a $60 dollar sale your labour cost is far far too high. ($8 - $10 equates to a labour cost of 13%- 20%)
Consider the $1.25 transmission fee as advertising.
Lets assume that delivery is over and above the numbers I use, since I don't know what everyones delivery is.
Outgoing Wire
Don't need the math for this one it is a no-brainer.
No inventory cost
Minimal Labour Cost
The use of someone elses money for a month
$12.00 Commission
$ 3.25 Bonus
$ ?.?? Service Fee (If you charge one)
I am not saying that the average flower shop should run out and build a business on wire orders, but there is no reason whatsoever that they can't play a role in day to day business.
It is also important to keep in mind, margins don't pay the bills, cash does!
As for the membership fee's, come on now. How many of us have spent thousands on marketing hoping that we will see the business pour in the door, only to be frustrated with the ROI. At least with the wire services for a couple of hundred bucks if you send out 10 or so orders and recieve as many back you have probably recovered your investment if nothing else.
Bottom line is that despite all the talk there really is not a good Florist2Florist alternative. Its a grass roots movement and hit and miss at the best. Never mind the fact that without wire services there would be no common "Selection Guide" . I suppose though it wouldn't change much as based on statistics 2-3 orders out of every 4 don't look like the picture the consumer purchased from anyways.
Again, just my thoughts
I have never bought into the old argument that you can not make money belonging to a wire service. Lets look at both sides
Sample Order
Retail Price - $ 60
Actual COG - $ 15
Gross profit - $ 45
Incoming Wire (Same Retail Value)
Paid by WS - $ 44
Actual COG - $ 15 ( Based on a markup of 3x-4x COG)
Gross profit - $ 29
Before I get skinned alive don't worry I realize that I have not allowed for labour costs, or transmission fees for recieving, or delivery.
Labour, in the case of small shops with minimal staff the labour is there whether you take an order or not. As well if your shop needs anymore than a maximum of $8-$12 worth of labour to put together a $60 dollar sale your labour cost is far far too high. ($8 - $10 equates to a labour cost of 13%- 20%)
Consider the $1.25 transmission fee as advertising.
Lets assume that delivery is over and above the numbers I use, since I don't know what everyones delivery is.
Outgoing Wire
Don't need the math for this one it is a no-brainer.
No inventory cost
Minimal Labour Cost
The use of someone elses money for a month
$12.00 Commission
$ 3.25 Bonus
$ ?.?? Service Fee (If you charge one)
I am not saying that the average flower shop should run out and build a business on wire orders, but there is no reason whatsoever that they can't play a role in day to day business.
It is also important to keep in mind, margins don't pay the bills, cash does!
As for the membership fee's, come on now. How many of us have spent thousands on marketing hoping that we will see the business pour in the door, only to be frustrated with the ROI. At least with the wire services for a couple of hundred bucks if you send out 10 or so orders and recieve as many back you have probably recovered your investment if nothing else.
Bottom line is that despite all the talk there really is not a good Florist2Florist alternative. Its a grass roots movement and hit and miss at the best. Never mind the fact that without wire services there would be no common "Selection Guide" . I suppose though it wouldn't change much as based on statistics 2-3 orders out of every 4 don't look like the picture the consumer purchased from anyways.
Again, just my thoughts
Doug Munro
Well-Known Member
Almost missed this one
Here are some numbers I recently heard quoted by senior management for one of the wire services
There used to be 44,000 florists in North America
Today there are 22,000
Of those 22,000, 50% (11,000) do 92% of the retail business
So as I read this the bottom 11,000 could close and it wouldn't change the overall retail sales much (maximum 8% drop in overall sales). However the chances are very good that a large percentage of that 8% of retail sales would simply move on to another florist.
So if I was a wire service I might view the bottom 50% of flower shops as more grief than they are worth. After all , I suspect that many of the problems (overdue recievables, etc) come from the low volume shops.
Food for thought
I agree that it's happening, but I don't agree as to why...
Do you think MAYBE that the WS want their memberships to decline?
Do you think MAYBE there are member shops that don't make them any money?
MAYBE upwards of 50% of members?
Do you think MAYBE these shops are being "helped" out the door, with fees & non-negotiable (higher) membership fees?
Not saying it's necessarily right...but it certainly "is what it is"...
(now did I throw in enough "maybe's" & "not necessarily's"?...:tongue
Here are some numbers I recently heard quoted by senior management for one of the wire services
There used to be 44,000 florists in North America
Today there are 22,000
Of those 22,000, 50% (11,000) do 92% of the retail business
So as I read this the bottom 11,000 could close and it wouldn't change the overall retail sales much (maximum 8% drop in overall sales). However the chances are very good that a large percentage of that 8% of retail sales would simply move on to another florist.
So if I was a wire service I might view the bottom 50% of flower shops as more grief than they are worth. After all , I suspect that many of the problems (overdue recievables, etc) come from the low volume shops.
Food for thought
The reason I think it will not work is because FTD and TF are two of the big OG's. Why would they listen to us little guys. The thing that might be effective is to challenge them competively. e.g. real florists joining together to advertise co-operatively nationally...and controlling participation to real florists only!
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