co-branding agreement

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mlou

mlou

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Nov 27, 2003
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That is really sad that a well known name in the floral industry feels it must co-brand with someone as "buy cheap" and "here's many alternatives to fresh flowers" like 800Flowers. Don't or didn't they have full page ads in the FTD Directories?????? probably the Teleflora directories too.
 
Here we go again!!!

Mlou,
Thanks for posting this!! I heard about this a couple of weeks ago. In fact there are 2 more big ones coming.

From what I am hearing, over the next 14 months we will be seeing the most acquisitions, conversions, take over and buy-outs that the retail florist industry has seen since the days of Gerald Stevens.

The true signs of the sad state of this industry are beginning to surface. When large well known established Brand Named Florists have no other choice for survival other than to assume the name of their competition. The worst part is they are willing to do this based only on promised order volume to secure their future employment.

One thing has not really been thought out using this model. After they convert all of their signage and truck decals to their new co-branded name, who do you think their old time customers will call? Veldkamp’s or 1-800-Flowers.com.

We are witnessing the saddest state of affairs ever. The desperate are getting even more desperate!!
 
Gerald Stevens blew such a big opportunity...I can only wish the same on these idiots.

Sad state of affairs indeed...
 
Mikey the Flower Guy said:
than meets the eye...watch for it in the near future....
Click to expand...

There's GOT to be more... They must have gotten an offer they couldn't refuse...

$$$ talks, BS walks... If they got some good dollars from whatever deal they cut, then....who knows...

I know that when GS approached us, we were VERY tempted...they were throwing all kinds of $ at us. The deal-killer was that they could not guarantee myself or my father's "future" employment after 3 years...
...nooo way... BUT, I know of 2 guys who did well after all with selling to GS and then buying back their biz for pennies on the dollar...

- H
 
PhillyPhlorist said:
There's GOT to be more... They must have gotten an offer they couldn't refuse...
Click to expand...
Herb,
Their deal was the same as Keith's deal from OC in your market. It is no deal at all!!! They are at the mercy of 1800.

It's that old saying, All that glitters is not gold!!

Rob
 
ROBSWF said:
Herb,
Their deal was the same as Keith's deal from OC in your market. It is no deal at all!!! They are at the mercy of 1800.

It's that old saying, All that glitters is not gold!!

Rob
Click to expand...

Rob - if that's the case, you're RIGHT! No deal at all...Keith nearly lost his shirt over the past few years. From what I know now, he's found a way to make some money...how, I have NO idea...

- h.
 
Rob, Rhonda, et al, have you ever met Ben Veldkamp??

ROBSWF said:
Herb,
Their deal was the same as Keith's deal from OC in your market. It is no deal at all!!! They are at the mercy of 1800.

It's that old saying, All that glitters is not gold!!

Rob
Click to expand...

He is probably the most brilliant florist I have ever spoken to about how to run his floirst as a business. His ideas and implementations are progressive to the scary point. I will have to say if 800 flowers comes to me tomorrow, I'll make 1 phone call, to ben Veldkamp and ask him why this would be a good deal for me, because I KNOW it is one for him.

Speak of that in which you know.

His branding and co-branding all all profitable. He reads Accounting and Business books like we read menu's. Truly a blessing to my business.

HERO

p.s. I would be afraid if I was in the Denver CO market. VERY AFRAID.
 
HERO said:
He is probably the most brilliant florist I have ever spoken to about how to run his floirst as a business. His ideas and implementations are progressive to the scary point. .
Click to expand...



Obviously, Lehrer’s in Denver has taken their toll on Veldkamp’s and I see this as nothing more than waving the white flag. But hey, it’s my opinion so who really cares.



Smart? I don’t think so. We’re all entitled to our own opinion, I sure have mine.
 
ROBSWF said:
Obviously, Lehrer’s in Denver has taken their toll
Click to expand...

It's that secret weapon they have....(blonde, last I remember?)...
 
Is Lehrer's a MAS user?

ROBSWF said:
Obviously, Lehrer’s in Denver has taken their toll on Veldkamp’s and I see this as nothing more than waving the white flag. But hey, it’s my opinion so who really cares.



Smart? I don’t think so. We’re all entitled to our own opinion, I sure have mine.
Click to expand...

That will answer my question.

HERO
 
Hey Hero

Hero,

You say smart? I say NOT!! Just wait for the press releases. Stick with me here.

Xyz shop has been filling for corporate public giant's orders for years in a large metro market. Along comes ABC that expresses interest in becoming a multi unit franchisee & LFC. So public giant goes to xyz and asks if you want to maintain your order volume, here’s what it’s gonna take. ARE YOU FOLLOWING ME?

This is the way big business operates!! So now the public giant can force the mid size guy into following the leader, cause no matter how smart you think they were, they were never smart enough not to get hooked on the drug!!

I would suggest that anyone sending orders to Denver, to use someone else!!! Have we not built up enough brands that made their way back to bite us???

Smart you say? I say very stupid!!

No body got rich off this deal!!! No one will get rich off any other deal like this that they are pushing all over!!! Everyone one looses, but the one who looses most is their customers!!!

Silly rabbitt, tricks are for the clueless!!!!!!!!
 
ROBSWF said:
ARE YOU FOLLOWING ME?
Click to expand...

Yes Sir!!! Loud and clear...

Thing is, I doubt any money exchanged hands on this one...it would appear as a "Save the volume" move to some...

Time will tell, but I would think that this was perpetuated to some point, by a company becomming used to a certain volume of business (all be it discounted) and needing to keep employees busy.

It may have been, an "Either you do this" or were going to get someone else to do it (all the while 800 knew they had someone else willing) and Veldkamps not wanting to give up control of that business took the deal.

That said, their "Image" will soon be gone from the Denver market, in my opinion moving more sales to other Denver florists...and then God forbid, 800 gets pissed off, finds a more wiling sucker, and pulls the plug and POOF Veldkamps ceases to exist overnight... not a position I would put my businesses name into willingly!!!
 
BOSS said:
That said, their "Image" will soon be gone from the Denver market, in my opinion moving more sales to other Denver florists...and then God forbid, 800 gets pissed off, finds a more wiling sucker, and pulls the plug and POOF Veldkamps ceases to exist overnight... not a position I would put my businesses name into willingly!!!
Click to expand...

You have got the picture VERY VERY clear!!!!!!!!!!
 
One other thing....

**Disclaimer** these types of deals depend on many factors... one would question the financials of any company that decides to take this approach. If you were doing well on your own, what would be the incentive to go this route. Then on the other hand, if you are not perhaps this would be seen as a way to "survive".

I have it on pretty good authority that we will see more of this. 800 want's to kill Proflowers more than anything, and McCann has a plan to do that. The various LCF's have moved or are moving into providing direct ship direct from the LFC's instead of doing it all out of the BethPage NY center. Gong this router, adds volume and value to the LFC bringing another revenue stream, while at the same time cutting 1-2 days off shipping time by having the Chicago LFC ship the Mid-West, the LA LFC ship the West Coast...and so on...

I know many don;t believe me when I say that 800 is most likely more of a threat than TFDT is, but it is true, and the thing is McCann has both the killer insticnt and the plan, coupled with a huge dose of impatience...

Now, if ProFlowers were to.... um, I guess thats a topic for another thread...never mind
 
BOSS said:
**Disclaimer** these types of deals depend on many factors... one would question the financials of any company that decides to take this approach. If you were doing well on your own, what would be the incentive to go this route. Then on the other hand, if you are not perhaps this would be seen as a way to "survive".
Click to expand...

Boss, did you sleep thru the Advisory board meetings with Ben Veldkamp? They guy is a numbers genius. Now I'm sure that there are other great florists in Denver, however seeing most of them, Veldkamps had the most impressive all around operation.

I guess I will take the wait and see, however I see this as two friends being able to help each other, not that either need the help, however they could start something that could move into something HUGE. 800 knows they need the florist. The florist doesn't really need 800, but if 800 make it worth while, which I know they did it really could change the industry. I'm pretty sure Veldkamps wasn't hurting, but I really don't know.

Rob, I'm sure you don't know anything more about this topic other than your gut feeling and resentment towards 800. There isn't a bigger tormentor or 800 than me, I have treated them like a red headed stepchild, however if they gave me a deal I couldn't refuse, I too would have the 800 flower on my door.

HERO

p.s. Time will tell, but this is a BIG deal.
 
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