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Are you receiving your value

Article Three of Six. “Are you receiving your Value?”

An Overview of Articles to discuss Consumer Fraud as a result of the Internet. We at Griffin’s Floral Design have become so alarmed by these deceptive practices that we have decided to begin a series of articles to discuss, educate, guide, and help consumers make wise flower purchasing decisions when ordering on-line.

The hardest thing for a consumer to understand is value perception when purchasing on-line flowers. As a general rule a consumer only has a few items to go by; a picture, a price, and a description. Today’s article is going to focus on what you get, for what you pay when buying on-line. We will break down who makes what in the process of your on-line purchase and why the consumer often walks away with less. We will start by showing you pictures of on-line designs from various vendors at the same price level with the vendors names removed. We will offer a price break down as it relates to labor, delivery, containers, and stems. We will offer you the profit margins on who is really making the money. You may be shocked!

Special note: All of these designs are one-sided designs to offer a perception of value to the consumer. The photographs are being produced by a professional photographer under strict lighting conditions.

 

$39.99 – Break down of Item 2

 

lilies, roses, daisy poms, button poms, waxflower

The FTD Precious Heart Bouquet

Delivery $9.99

$9.99

 

Labor 25% after delivery

$7.50

 

Container –Glass vase ,rocks, ribbon

$10.00

 

Amount left for Flowers

$12.50

 

Calls for 6 daisy stems @ $1.50 each

 

$9.00

Calls for 3 roses at $3.99 each

 

$12.00

Calls for 3 stems lilies at $5.00 each

 

$15.00

Salal foliage & wax flowers  at $7.00

 

$7.00

In the scenario of item 2 the sale price is $39.99.  After the delivery, container & labor, only $12.50 is remaining for the florist to complete the design.  It calls for $43.00 in flowers as shown on their website.  As a result the florist will be forced to short stem the design in order to remain profitable.  The difference is them not forwarding the delivery fee of $10 & under pricing the design to guarantee a sale.  Had they kept the delivery fee & priced properly, the florist would have had enough to complete the design as pictured.   Instead the client receives only one fourth of the product recipe.

 

To test this scenario, we urge you to copy and paste  this design into an email and forward it to any five US wide local florist, in various regions. Ask them if they can complete it for $39.99 to include a $10 delivery in the $39.99 price.  Let them know that  you expect  the exact stem counts and flowers that the design calls for, color substitution allowed.

 

Below is an example of how the profit share works out and is an example of a real order that I shared with you in Article 1. “Consumers and Florists are scammed”. This is what happened to a consumer purchasing from a Call-Center just after Mothers Day.

Glass Vase With Roses, Lilies, Daisies

Total cost

Call

Center

Wire Service

Florist

 

Order Value & Amount To Florist

$80.96

 

 

$39.99

 

Percentage Of Order Paid

 

20% (7.99)

7% (2.80)

73% (29.19)

 

Rebate received

 

$6 – $7

 

0

 

Order fee

 

$0.00

$1.50

-$1.50

Order Fee

Delivery Fee

 

$10.99

 

-9.99

Delivery

Expedited Delivery Charge

 

$14.99

 

-$4.17

COGS

Order Service fee

 

$10.99

 

-$7.50

Labor

Total Profit After all Fee & Costs

 

$50.96

$4.60

$6.04

$-4.12

If  to Order  Value

If to Recipe/Picture

As you can clearly see the Call Center charged a delivery fee and charges an expedited delivery fee to guarantee that the order would be delivered the same day. They kept both fees plus the convenient service fee for shopping on-line. We received a total of $39.99 to work with; oblivious to the other charges the consumer was charged.  Our suggestion is that you be aware of where all the money is going.

That same design if ordered locally would have only cost the client$49.98 with same day delivery, and a complete value for the amount spent. They would not have been shorted stems; the design would have been all the way around and full, not one sided and skimpy.

Our next Article will speak exactly about this subject, why should you shop local? We will offer insight for the reasoning to use your local florist vs. a call center or a wire-service company.

Please post your comments, questions, and article  you would like to see.  We promise to respond.  As always, thank you for supporting your local Central Ohio Florist when buying Columbus Flowers.

The Flower Box Gift

Article Two of Six.  “The Flower Box Gift”

An Overview of Articles to discuss Consumer Fraud as a result of the Internet.  Consumers are being cheated and ripped off, generally paying as little as 20% more and as much as 50% more for their floral gifts when purchasing on-line.  We at Griffin’s Floral Design have become so alarmed by these deceptive practices that we have decided to begin a series of articles to discuss, educate, guide, and help consumers make wise flower purchasing decisions when ordering on-line.

So you found a website with great prices, a free vase, and guaranteed next day delivery.  Is it really that “great” of a deal and gift?  Things to consider when having a flower gift delivered to the Columbus Ohio area from an on-line company sending via FED-EX next day.  After thinking about these key notes, see the video that offers what that special someone will experience.

  1. That special someone will have to design their own gift, a gift that could be professional designed for the same cost.
  2. That special gift will need to be unpacked; it’s not ready for immediate enjoyment.  Kind of takes the excitement away from of receiving flowers.
  3. That special gift will be placed on a truck with no water for 24 – 48 hours. Sometimes much longer.
  4.  A Fed-Ex or UPS driver will be delivering “flowers”?  Seems a little strange.
  5. That gift will be left on the door step, winter, summer, spring, or fall, in all weather conditions if no one is home.  There is no second or third delivery attempt.  Your local florist will often attempt multiple deliveries and phone calls to schedule a time that is convenient for the recipient, not what’s convenient for the driver or courier service.
  6. Finally, Service, Service, Service.  Who will offer you better local service?  A company 300 miles away from where your gift is being delivered or a company 5-20 miles away?  A local florist will go to the extreme to take special care of both you and that special person you are sending a gift to.

Griffin’s Floral Design, your local Columbus Florist, Pataskala Florist, and Central Ohio wide florist is working harder than ever to bring our customers quality products, top notch customer service, and ongoing floral education for the Columbus Ohio market.  I will soon be posting another article on our Local Florist Insight to focus on, Local Florist vs. Order Gatherers, see you soon.

Please post your questions, concerns, comments, or articles you would like to see.  We promise to respond. As always, thank you for supporting your local Central Ohio florist.

Sincerely,

Russ Griffin

http://www.floristdetective.com/

http://aboutflowers.com/

http://www.safnow.org/

http://www.aifd.org/

http://www.ofa.org/

Customers & Florists Are Scammed!

Article One of Six.

An Overview of Articles to discuss Consumer Fraud as a result of the Internet.  Consumers are being cheated and ripped off, generally paying as little as 20% more and as much as 50% more for their floral gifts when purchasing on-line.  We at Griffin’s Floral Design have become so alarmed by these deceptive practices that we have decided to begin a series of articles to discuss, educate, guide, and help consumers make wise flower purchasing decisions when ordering on-line. 

Over the years we have noticed a considerable increase in customer complaints as a result of customers feeling they aren’t receiving the value for the floral gifts they are paying for.  So what’s the deal, are we not doing a good job?  Are we not giving the customer the value they paid for?

The answer is no! This simply isn’t the case.  The colossal increase in complaints is always related to what florists call “Wire-In Orders”; orders coming from other florists.  Around 95% of the complaints we receive are a result of orders received by what the floral industry calls “Order Gatherers or Call Centers”.  Companies that simply aren’t florists; many of these companies are sitting in a cubical gathering orders and then farming them out to real florists such as Griffin’s Floral Design.

To offer you an example, I will tell you a story about a woman I recently spoke to regarding an order she placed with a company called “XXX” (name deleted).  We received an incoming order early in the morning from “XXX” going to the customer’s daughter here in Columbus, Ohio.  The order was for birthday flowers that are national advertised by Teleflora, a gift called “Cotton Candy”, and selling for $39.99 on “XXX’s” website.  We received a total of $39.99 from “XXX” for the order.  To complete the order, we deducted our delivery fee of $10.00 on the order leaving us a total to work with of $29.99, $10.00 less than what the item sells for on “XXX’s” web-site.  If we asked for an additional $10.00 for delivery, “XXX” would cancel the order and find another florist to complete the order for the $39.99.  When she was placing the order the “Order Gatherer” informed the customer that the delivery fee for the Columbus Ohio area was $14.99 in addition to the $39.99.  Further, they asked her if she would like to purchase expedited deliver for an additional $10.00, they would guarantee her that it would be delivered the same day.  She stated to me that “XXX” truly made her feel that they were a local Columbus Florist.  She paid a total of close to $70.00 for the order and received a flower arrangement that was worth $29.99.  The company at question, retained $24.99 profit for the overcharges in delivery fees, plus an additional 20% from Teleflora for making the sale, as well as a $6.00 rebate for sending it through the Teleflora family of florists.  The profit for “XXX” was $38.98, the profit for us the Real florist was $3.48, and the recipients received a gift for $29.99, not $39.99.  How is it that “XXX” profited more than the customer even paid for the actual gift? 

Seem Extreme?  Not at all, she is the 3rd person in just the last week I spoke with being tricked, lied to, and deceived. 

Is there an answer?  I’m really not sure; however, I do believe that education is the best defense to all things. I will offer in a future article the exact cash flow on these orders to help customers better understand how the margins work and where the money actually goes.  The problem for many florists is that they need orders (any orders) to move product out of their coolers and to help create some cash flow for their company.  As a result, they find themselves behind the eight-ball, filling orders that are cutting their own throats.

Please post your questions, concerns, comments, or articles you would like to see.  We promise to respond. As always, thank you for supporting your local Central Ohio florist.

Sincerely,

Russ Griffin

Websites of Interests and further education.

 http://www.floristdetective.com/

http://aboutflowers.com/

http://www.safnow.org/

http://www.aifd.org/

http://www.ofa.org/

 

 

 

 

 

 

 

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