| Florists question an old arrangement
About a week before Mother's Day, one of the busiest holidays for florists, a Google advertisement for George's Flowers in Roanoke read: "Real Local Roanoke Florist. But the cost structure used by the flower services can be a disadvantage for florists, and the relaying of orders from customer to flower service to florist presents opportunities for blunders for which local florists are blamed, several florists said. Competition from the large flower services is not all that is troubling the industry. Florists were hit by the recession, leading to some closures, said Jennifer Sparks, vice president of marketing for the Society of American Florists. While those challenges have affected the overall number of retail florists, they have also encouraged positive change, Sparks said: Florists are finding their niche and learning to be more efficient. Teleflora, then the Telegraph Delivery Service, started in 1934 as a means to connect florists across the country. In 1958 the company changed its name to Teleflora. Without those benefits, the retail floral industry would be in worse shape, he said. "The florists are the lifeblood of our industry," Apatoff said. Without that it would be a much tougher road for them. Several florists provided an example of how the cost structure typically works: A florist in North Carolina who takes an order for a $100 arrangement to be delivered in Roanoke gets $20 for taking the order. 9 million the same period last year. The companies declined to reveal their cost structure. "We follow an industry model for pricing," Apatoff said. Last year a group of 30 florists formed Florists for Change, a nonprofit with plans to start a marketing campaign that will educate consumers about the problems florists face and encourage consumers to shop locally. The organization also has sent a proposal to a number of the flower service companies asking them to amend their cost structure, said Dirk Lorenz, a florist in Fremont, Calif. In the meantime, some of Florists for Change's 200 members are turning to each other to fulfill orders across the country. The organization hopes its efforts will enhance the industry. "As time has gone on and more and more of these non-brick-and-mortar retailers are gathering orders, we've seen more and more florists go out of business," Lorenz said. The companies act as a go-between for florists taking orders to be delivered in different cities, states and countries. The business model is clearly a success for the flower services. FTD also reported increased earnings for the quarter that ended March 31. Locally, at least one florist also is trying to educate consumers. Blumen Haus-Dove Florist in Roanoke has a page on its website urging customers to use local florists and avoid national online or phone ordering services. Teleflora also has launched a "Save the Florists" campaign to educate consumers about "drop shipping," or ordering flowers from a service that bypasses florists and ships flowers in a box. "Teleflora is dedicated to making florists successful," spokeswoman Missy Miller said. FTD said it also supports florists by providing them with marketing and software. "We spend a tremendous amount of money on marketing and technology that they couldn't afford otherwise," Apatoff said. "Local florists, we all work extremely hard to supply good customer service and a quality product," Blumen Haus manager Cindy Rice said. The floral shop still works with all of the flower services, Rice said. "The best thing these companies do is process the credit card. Mixed bouquet The plight of the floral industry has prompted positive changes which will help florists sustain their businesses, said Sparks, of the Society of American Florists. For instance, included in the coupons that were part of the May 6 Roanoke Times was a two-page advertisement for Teleflora that listed the Roanoke-area flower shops it works with. Debbie Haynes, who formerly operated Twig and Berry floral shop in Roanoke, decided to refocus her business by relocating to Salem and sharing a Main Street space with a wedding gown consignment store and a stationery business. "I just felt like we needed a different way to make it work," Haynes said. The floral shop is now called the Flower Shoppe on Main. Some florists, such as Clements, also point out that they are in competition with the large flower services for orders, because the services keep a larger share of the profit on orders that come in via the Internet or telephone, as compared to those placed with a florist who transmits the order. Ruth Valentine of Fallon Florist in Roanoke sees those benefits. Her shop uses FTD, and Valentine has noticed it gives her business an opportunity to reach new customers who have been the recipients of her work. "It happens enough to know that it's not just a flukey sort of thing," she said. Florists for Change Some florists are beginning to push back. Clements, of George's Flowers, decided three years ago to stop working with the large flower services. He worries that issues with late deliveries and wrong orders are tarnishing the industry. The large flower services say they support florists by creating sales for local shops through marketing and merchandising. "We really try to be partners with our florists and champion their business," FTD president Rob Apatoff said. Some florists agree, saying that working alongside the flower services gives them a chance to reach new customers. Reynolds said her group's members are increasingly turning to each other to fulfill orders within the state. "A lot of people go store to store to prevent the wire service fees," she said. She also encourages consumers to use the Internet to find a florist in the city where they need flowers delivered and work directly with that florist. |
Monday 14 May 2012
Florists question an old arrangement
