Posts Tagged ‘wire services’

Keeping it Local….Part 4. Creating Jobs

Article Four of Six. Why Support Local Florists – “Keeping It Local” – Creating Jobs

This is Part 4 of Article Four on “Consumer Fraud” and deals with why we encourage consumers to support local business vs. Call Centers, Wire-Services, and Internet based companies.  Keeping It Local will offer insight that will encourage future local buying habits when it comes to gift purchases.

Local Means More…”Creating Jobs”

We are being faced with one of the worst job recessions in the history of the United States.  It is estimated that by the close of 2009 we will hit a 10% unemployment rate.  Why would I mention this?  Because this is in your community, this may even be you.  When you support your local florist, or any local company, you keep revenue inside of your community.  This creates the need for more local commodities which creates job opportunities.  Spend your money out of State and this creates job loss in your area.  This is common sense, when you purchase goods from companies outside of your community then the need for your local business to carry such products no longer exists.  This trickles downward, it forces others to make purchasing choices that save them money.  Maybe that local mechanic had his hair cut by a hair beautician every two weeks.  Now his spouse cuts it to save them that $20 that they no longer have and ordinarily would have spent locally.  Now your hair beautician has $20 less than before and the cycle continues downward until eventually jobs are cut and businesses close.  The proof is in the pudding, this is why we are in a recession.   By changing your buying habits to your local community you are creating jobs and opportunities, who knows, possible your own.

 

 

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/

Keeping it Local…Part 3. Supporting Local Community

 

 

Article Four of Six. Why Support Local Florists – “Keeping It Local” – Supporting Local Community

This is Part 3 of Article Four on “Consumer Fraud” and deals with why we encourage consumers to support local business vs. Call Centers, Wire-Services, and Internet based companies.  Keeping It Local will offer insight that will encourage future local buying habits when it comes to gift purchases.

 

 

Local Means…”Supporting Local Community

So you live in Belleville Michigan, Sarasota Florida, or Chicago, Illinois and you need an oil change.  Are you going to drive to Detroit, Elhurst, or Bradenton for that $25 oil change?  Of course not, they are too far away; you will find your local guy/gal to complete the job for you.  The same would hold true with your dry cleaning, dentistry, family physician, hair dresser, and other similar purchases.  So why wouldn’t/shouldn’t it hold true for your floral purchases, your florist is part of that same community and often lives and supports those same businesses in your community.  Supporting local community keeps the funds in the community, it allows others to earn the income to turn around and continue purchasing from such local businesses.  It’s what keeps the ball rolling.  You wouldn’t hire someone you don’t know to style Aunt Betty’s hair for her memorial service, as that is a very important moment for the family.  In other words,  a local florist will care more about your order hands down than any wire service, call center, or direct ship company.  They live in that community and are forced to face others in the community; your local florist has more to lose than all the rest combined.  All, local florists understand the importance of supporting local community and giving back to local community as they have been so greatly affected by the lack of local support as a result of “convenience” due to the internet.  Keep your money Local, Support Local so they are able to as well.

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/

Keeping it Local…Part 2. You get what you pay for

 

 

Article Four of Six. Why Support Local Florists – “Keeping It Local” – You get what you pay for

This is Part 2 of Article Four on “Consumer Fraud” and deals with why we encourage consumers to support local business vs. Call Centers, Wire-Services, and Internet based companies.  Keeping It Local will offer insight that will encourage future local buying habits when it comes to gift purchases.

 

 

Local Means…”You get what you paid for”

Flowers are much like produce and meats in the fact that they have fluctuating price from day to day.  Supply and demand, seasonality, and availability play into whether a particular flower like a rose is worth $2.00 today or $6.00 tomorrow.  When you purchase flowers on-line from a call center, direct-ship company, or wire service you are paying for cost average arrangements.  This means that the floral design was priced on year round averages.  For the consumer this is not good, this means that when product costs are low, you are still paying the escalated price.  As discussed in “Are you receiving your value?” , when prices are high, the florist will simple remove product from the design as a result of all the other companies taking their cut.  The 20% going to the call center, and the 10% going to the wire service.  Order from you local florist and they can tell you what is in the cooler at a great price, and what good buys are on the market at that time, especially with a couple of days notice.   A great example is Gladiolas; in the off season they can cost as much as $3.50 a stem, in the summer as low as $1.00 a stem.  What a great design to have 20 stems of Glad’s in a vase for only $30 in the middle of the summer.  If you look on-line, that same design would cost you $65 on-line year round.  You will always get more bang for your buck when picking up the phone and actually calling the local florist in that area.  The phone call takes no longer than completing all the fields of entry on-line.

 

 

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/

 

 

 

 

Keeping It Local. Part 1. The middle man

Article Four of Six. “Keeping it Local”  Why support your local florists?  The Middle Man

This is article Four on “Consumer Fraud” and deals with why we encourage consumers to support local business vs. Call Centers, Wire-Services, and Internet based companies.  Their will be five parts to this Article to allow for short and quick reading.  Keeping It Local will offer insight that will encourage future local buying habits when it comes to gift purchases.

Local Means …”Less Middle Men

                Flowers are commodities that require many middle men before they reach their final destination.  Years ago the chain of travel was; grower (Ecuador), broker (Miami-customs), wholesaler (Columbus), florist (Us), consumer (You).  The chain has drastically changed over the past ten years.  Now you see grower, broker, wholesaler, call-center, wire-service, florist, and consumer.  Two more middle-men have been added to the equation.  As discussed in “Are you receiving your value?” Consumers pay on average 30% more when using a call-center or wire service and receive 30% less as a result of “where the money goes”.  If you take out the middle man you will receive more products for your money.  This is a nothing new; it’s business 101, lower COGS results in higher profits and greater value for the consumer.  The game played by call centers, direct ship companies, and wire-services alike is that you are receiving fresher, product at a better cost eliminating the middle man (namely the florist), oh by the way,  you also get a free .99 vase that they say is $5-$10.  This is furthest from the truth; they almost always charge you both a delivery fee and a service fee, and sometimes and expedited delivery fee.  These charges often cost you double what you would have paid by just calling a “Real Local Florist”.  Save yourself some dough, factor out the middle man and call your local florist.

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 Columbus Florist.

Sincerely,

Russ Griffin

http://www.floristdetective.com/

http://aboutflowers.com/

http://www.safnow.org/

 

 

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.

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