About five years I stated an internet business
http://www.funcarepackages.com I stated that website out of my home and did a pretty good business. But as the business grew I knew I need to move it out of my house. So I went in search of an existing business that would support my existing care package business. I found that many of the local florist (flower shops) were for sale and that I could by my local florist for a very reasonable price. When I first bought my first flower shop I found it exciting. All of the wire services seemed very helpful, the competition across the street even came over and offered some advise on where to get supplies. I had become a florist and was very happy with the experience.We bought all of the codified items, attended all of the florist seminars, and religiously followed all of the suggested marketing. I did notice that the codified items were expensive and the fees to belong to the wire services were also very steep. But the reps. Kept saying if you buy it the orders will come and every time the rep came into my flower shop (to sell me more things for my flower shop) telling me that I had to have it, I bought it. Through it all the orders (and profit) never came. Meanwhile, my web site was doing great so good that I started another site
http://www.devynns.com and started to expand the products I offered including cookies, cakes, brownies, gift baskets, and much more.We infact had become order gathers? An order gather is a business that typically does not own a flower shop, is not a florist, or is not even very familiar with the flower business. Typically these order gathers are web designers, or people with a marketing degree that spend a lot of money going out and promoting a brand or name. They typically make money in volume, selling hundreds or thousands of orders a week and wire these orders out to local florist. To an outsider more orders means more business for the local florist. But this is not the case, actually many of the orders actually cost the local florist more money to deliver than they make. (Example: if you buy $29.95 roses from a order gather and them pay for delivery you spend about $40.00 for that order but how much does the Florist that actually delivers the flowers get about $21.00) that's right HALF!!! Here is why:
If you spend $29.95 for Roses then $9.95 for "Delivery" with an order gather.
The order gather keeps the "delivery" fee (for their time).
The order gather also keeps 20% of the order in this case about $6.00 so they made a profit of $16.00
The Wire Service keeps about 10% of the order in this case they made a profit of $3.00
The florist delivery the flowers gets $21.00 but how much of that is profit?
The Roses cost about $8.00 Wholesale, the Filler and Greens cost about $2.00, a $10.00 an hour employee to put the order together cost about $2.50, and the delivery driver cost about $7.00, so it cost the florist $19.50 to do this order so the local florist makes a profit of $1.50!
Recap
Order Gather Profit - $16.00
Wire Service Profit - $3.00
Local Florist Profit - $1.50
*Now I know why so many local florist are going out of business!!!
As you can see it pays to sell the order, it does not pay to do the order. So I ask my self why not close my florist business and just keep my websites? The answer? Because if something is not done to save the local florist then their will be none left!!! Then my websites will not be worth anything. Also local florist are one of the LAST truly small business, many florist work long hard hours to achieve the American dream and it is time that someone stands up and helps (truly helps) the 25,000 local flower shops that are still in business.
So now that you know why I am fed up, I am here to say I am committed to helping florist take back the industry, take back the profits, and protect small business. With this blog I hope that other florist will join me in an online discussion. I hope that all florist will post their ideas, and suggestions. Feel free to link to this website and also let me know what you think....Thanks, Mitch
1 comment:
I would love to link to tour blog,,,,,,,,,but I don't think I know how.....Here goes..
www.amanacts@blogspot.com
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