comming this fall to a grocery store near you..

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twiggy

twiggy

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Jun 5, 2006
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Yerington
www.yeringtonflowers.com
State / Prov
NV
bloomnet/800-flowers. the manager at our grocery recieved the BloomNet selection guide and workbook last week and is getting a computer sometime this fall. (she perdicts the busy Thanksgiving week!) They are also Teleflora and i wonder if they will continue. all stores within this chain are recieving the BloomNet network. anyone else hear anything?
 
so is this a sending station only or will they be filling those bloomnet orders?
 
I don't see how a grocery store can do better being profitable with filling these types of orders.

If most offer flowers for convenience for their customers this could really have in impact on there profitability.

Wishful thinking on my part would be that the effect could mean grocery stores giving up on stocking flowers. Or is this a sign that there sales are declining in the floral department and they are looking for other source of revenue to either increase sales or profitability.

What do you think?
 
Eric, I think with the buying power of the supers, they get product at 1/4 the cost we do...I'm sure the grocery chains don't pay much more than 10cents a rose.

With that for COGS, and with some volume, I am pretty sure profit can be made. The only thing is that this "rumor" has been surfacing for years now, and so far its been nothing but talk.

I think the WS are trying really hard to get this off the ground, but the grocer's are hesitant because they are worried about direct shippers...
 
I've always felt that, today, if you see anyone sign up for 1800, that is the first step down the slippery slope. Maybe I'm wrong on the bigger groceries, but I don't think so.

The florists in my area that are 1800 now, are not the florists I would pick to fill an order for my customer. Simply because I know they OWE vendors alot of money. Robbing Peter to pay Paul in this industry only means, someones getting screwed.

I feel your right on Eric.
 
Mark I don't think they get that big of a price cut on there volume. Having some experience with working with a large grocery store I can honestly say that convenience is the real issue behind having the product in the store.

Using venders to supply the store with flowers and expecting them to eat anything that goes bad is really the only low risk issue for the grocery store.

Looking at the quality at most (not all) I would say that there price break comes from buying old flowers that have been sitting in a wholesellers cooler that the florist didn't buy. Its a great way for the growers and the wholesellers to move unwanted product.

I would love it if someone came in and supplied me with flowers every week and then picked up the old product and I didn't have to eat it.

I say let bloomlick and FTD sign up more grocery stores so that the grocery stores can do all the undervalued work and make their pennies on the dollar while they have to pay their high wage employees.
 
WELL, just consider that the largest grocery chain in our area quit doing both 1800 and FTD orders last spring, cause "they weren't making any money"!!!
Doubt it will last long in your area either.
 
We are from a rural area and our Food Lion only carries wrapped bouquets seasonally. I was wondering if the large chains that you are speaking of that send and receive wire orders deliver? If so I wonder how good their customer service is? :soapbox: I find it troubling that wire services are courting these chain stores.
 
12BucksFor2Dozon said:
Eric, I think with the buying power of the supers, they get product at 1/4 the cost we do...I'm sure the grocery chains don't pay much more than 10cents a rose...
Click to expand...

I think you're pretty close...I saw an invoice for Randall's (one of Houston's biggest chains owned by Safeway)....12 cents per rose. They are selling them for $9.95 for 14 stems sleeved (large heads too) or $29.95 arranged.

At 12 cents X 14=1.68, no greenery, just a clear sleeve maybe 5 cents on the high side, total $1.72...profit $8.32.

.
 
Daaag Tammy!

I heard you all the way down here!
Whew...I never knew words could be used in that way:):soapbox:

:fdevil:
 
Florida....

'specially South Florida, is a whole different marketplace Lorrie!! We, ourselves, after scouting out your wholesalers, PLUS all the fresh "flea markets" PLUS the brutal competition, FROM chains like Publix is NOT your problem!!....the problem IS, in the "perception" of the customers in that part of the world, and they bring home (as in snowbirds) all these expectations of the same variety, and inexpensive supply here!!
Though you've "learned" how to cope, ADD to YOUR expenses the extra shipping, distribution, "tariffs" and exchange, and YOU'VE gotta wonder how WE cope!!
 
watching and waiting

One of the large florists in our area (top 10 in wire services) announced he is moving his hub operation to a new location. This new store will have a huge warehouse in the back.

Speculation is that he will become either a hub for one of the .com companies or filler/supplier/delivery service for one of the big grocery chains based in the biggest city in western Michigan.

One of the second larger florist in said biggest wm city already produces those holiday centerpieces you see in the Spartan stores around Michigan.
 
I really feel that if those numbers are correct how would it be that profitable for any grower to sell rosess for that much?
Then you take the fact of how much product doesn't get sold? It really dosen't make any since to be the supplier of the flowers unless the whole process was automated and you know thats not happening yet.

If you take the price increase that we have seen over the summer that has effected almost everything it still dosen't jive. There is a problem and I think that is why we are seeing more growers calling florist by phone or even email about direct shipments so that they can make more on the investment.

I think the growers are becoming more dispointed on how many wholesellers have contributed to the under value to their product and we will see the growers start to bypass those envolved with the supper market suppliers.

Has anyone thought about how much effort goes into growing a single rose? Let alone 25 roses. The time it takes for a mature enough product (sometimes years) to produce reliable blooms and healthy stems? The care and the resources involved to grow and maintain? All that work and time for 12 cents. Won't last long or we will see more land converted from growing flowers to condos.

Oh yea that has already been happening!!!
 
Eric, I think you need a lesson in the "economies of scale"
...

Economies of scale tend to occur in industries with high capital costs in which those costs can be distributed across a large number of units of production (both in absolute terms, and, especially, relative to the size of the market). A common example is a factory. An investment in machinery is made, and one worker, or unit of production, begins to work on the machine and produces a certain number of goods. If another worker is added to the machine he or she is able to produce an additional amount of goods without adding significantly to the factory's cost of operation. The amount of goods produced grows significantly faster than the plant's cost of operation. Hence, the cost of producing an additional good is less than the good before it, and an economy of scale emerges. Economies of scale are also derived partially from learning by doing.​

Have you ever grown roses?? They grow *very* fast in the right conditions...I think 45-60 days or so is all they need to grow to full size. Large out-of-country farm operations have a very low labor costs, and can grow 100's of thousands of roses on a couple acres every 60 days.

Proflowers pays much less then 12cents for the million of roses they buy every year.
 
Mikey

You are sooo right- I just don't get how you in the north make a living. Last year I was looking at a shop in New Jersey to buy-thinking I might be moving there- I was floored with the wholesale prices paid, never mind all the extra hassles with freezing weather etc. Have also looked into a shop in Alaska-ya gotta be kidding- talk about tough going!
The problem here seems to be over population of floral outlets so to speak. Nearly every corner has some Tom Dick or Betty bringing the price to the lowest common denominator. With Publix and Winn-Dixie, Walgreen and Walmart it ain't easy. Seems like every part of the country has it's issues.
Looking forward to retirement!
 
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