Local Cut Flower Prices on Web Site

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Ok, I am confused. What is the advantage of selling my flowers to my customers at a wholesale level? Does that not just give the basement bettys an easier way to operate? I guess for me the biggest cost for us is labour, so therefore I want to sell design. Thats what makes me different than the other shops, great design and great service. I save my cash and carry for just that, a loss leader to get people in my store in hopes that they buy something else while they are here. I am not sure I would make that same offer on the net??? Am I way off in my thinking here?

HI Missy,
Your on a good thread to find out.
 
Ok, I am confused. What is the advantage of selling my flowers to my customers at a wholesale level?

Capturing the customers who would otherwise go to Costco/Supers to buy their flowers.

Does that not just give the basement bettys an easier way to operate?

They are already getting their flowers from someone else. Why not get a cut in their business?

I guess for me the biggest cost for us is labour, so therefore I want to sell design. Thats what makes me different than the other shops, great design and great service. I save my cash and carry for just that, a loss leader to get people in my store in hopes that they buy something else while they are here. I am not sure I would make that same offer on the net??? Am I way off in my thinking here?

The main idea behind DIY/wholesale pricing, as far as I'm concerned, is to capture additional customers who have been ignored by traditional florists.

I also wanted to be clear on our prices upfront, so that no customer would think (using Randy's words) we are hiding something.

Many consumers are afraid to call a florist because they think they would be ripped off. This is at least part of the reason why OG sites are popular. They show the prices and pictures (not that consumers would get what they see, but that's another story).
 
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I can see this being profitable in a larger city where there is a lot of foot traffic on the street already. But in a small town, where almost every pedestrian is "destination" driven (drugstore, hardware store, deli, etc.), I'm not sure it would work. In our town competing with the grocery stores for cut flower sales might be as crazy as fighting the OGs for local orders!

Another thing we have going against us: weather. In the winter, it's too cold to put out fresh flowers; in summer, too hot. There is a short window of time in the spring and fall when this is possible.

We get quite a few customers who buy cut flowers already but in order to attract more, we'd have to convince people to make an extra stop over to OUR store for fresh flowers, instead of conveniently picking them at the grocery store. I think most people who do buy them at the grocery store don't expect the flowers to last. They're not buying quality and longevity and they know it. And do they care? Likely not because it's the 'first impression' they're after when they give them away. They know "you get what you pay for" and they're fine with that. Also, we would never be able to compete with grocery store prices - that just won't happen without a healthy volume of actual sales. Although....I was surprised to see one grocer advertising a doz carns with green and BB for $14.99 at V-day. Now that's more like it! Wish they'd properly price all their flowers all year round. Like that's ever gonna happen....

Many customers do care about quality and longevity and that's why they come to us for flowers. One of the things we need to do better is encourage our existing customers to tell others about us.

Whatever we do, we have to think of the marketing aspect of any idea before getting in a whack of flowers that we can only *hope* will sell.
 
Dorothy,

With all due respect, nothing frustrates me more than fine florists, like yourself, saying we can't compete with (fill the blank).

The question is NOT whether we can or cannot compete. That's really irrelevant. The question is how we could compete and the feasibility of each strategy we come up with.

People have this tendency to make a blanket judgement based on conventional wisdom and stop thinking. This might be OK, when things are going well and we don't have to think. But now, I think we must start thinking about te validity of each conventional wisdom more critically.

If we can't think of any way of effectively competing with supermarkets, I think it's probably because we (I mean independent florists as a whole) are intellectually lazy or because we don't have guts to try new "crazy" ideas. Most likely both.

That's too bad, because eventually someone else will figure it out.

Our local grocery stores are selling a bunch of tulips for $6.99. We sell the same thing at $7.99. People buy those things.

It didn't come easily. Initially no one bought our DIY flowers. It tested my resolve and self-doubt. But I was (and still am) determined to make it work, no matter what.

I really want to see more florists at least try something.
 
The question is NOT whether we can or cannot compete. That's really irrelevant. The question is how we could compete and the feasibility of each strategy we come up with.


I really want to see more florists at least try something.
How about this, all the retail florists band together, and stop supporting the local wholesalers until they choose to support the local retailer 100%. Then the wholesalers stop supporting the importers, until they support the wholesalers 100% and thus the retailers 100%.

Next, the importers pick and choose the exporters and farms they will support, those that choose not to support non-retail florists. Once this flows backwards through the supply chain we bring pressure on the system to have all flowers flow through traditional retailers, thus cutting out the groceries and 7-11's leaving the direct-shippers to deal with farms that have no retailer/wholesaler support.

Never mind....
 
How about this, all the retail florists band together, and stop supporting the local wholesalers until they choose to support the local retailer 100%. Then the wholesalers stop supporting the importers, until they support the wholesalers 100% and thus the retailers 100%.

Next, the importers pick and choose the exporters and farms they will support, those that choose not to support non-retail florists. Once this flows backwards through the supply chain we bring pressure on the system to have all flowers flow through traditional retailers, thus cutting out the groceries and 7-11's leaving the direct-shippers to deal with farms that have no retailer/wholesaler support.

Never mind....

I was with you right until the part after "How about this,"!
 
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Ok, so I buy all my flowers from growers that come to my door everyday. This may make my reasoning a little different than others. I have about 15 suppliers through out the week. I still struggle to see how I am going to profit(and this may be because such a large portion of my business is corporate and phone) from selling those flowers to the general public at the same price I just paid for them. I guess if you have a great walk in trade and can do volume it would work, but I have already paid my buyer/ designer to hand pick them off the truck and then prep them for sale, so I would be losing if I made no mark up on them. I guess my shop does not fit the mold that this would work in. But thanks for all the input....it's great to have other ideas
 
Ok, so I buy all my flowers from growers that come to my door everyday. This may make my reasoning a little different than others. I have about 15 suppliers through out the week. I still struggle to see how I am going to profit(and this may be because such a large portion of my business is corporate and phone) from selling those flowers to the general public at the same price I just paid for them. I guess if you have a great walk in trade and can do volume it would work, but I have already paid my buyer/ designer to hand pick them off the truck and then prep them for sale, so I would be losing if I made no mark up on them. I guess my shop does not fit the mold that this would work in. But thanks for all the input....it's great to have other ideas

Who says make no mark up??? You can still mark them up just don't triple, maybe do a 2x mark up, (no labor involved)...
if the tulips cost you $6, sell them for $12 as is.
 
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Who says make no mark up??? You can still mark them up just don't triple, maybe do a 2x mark up, (no labor involved)...
if the tulips cost you $6, sell them for $12 as is.

And, if you can make the concept work for you, you may ultimately be able to place SO for some of these products at much lower prices. My SO tulips (that I split with another shop) are $3.75 bu/25 bu. We sell them at $10.00 bu as a Spring Special.

This is a market I've been thinking of pursuing as buying in quantity really lowers your COGS. It's also an area that no florists around me service so it's a great way to differentiate my shop. Gotta put my brain to thinking some more on this...proper marketing of this would be essential , maybe try it out in tandem with Flowers for Kids or to Garden groups? Hmmm...
 
Dorothy,

With all due respect, nothing frustrates me more than fine florists, like yourself, saying we can't compete with (fill the blank).

The question is NOT whether we can or cannot compete. That's really irrelevant. The question is how we could compete and the feasibility of each strategy we come up with.

People have this tendency to make a blanket judgement based on conventional wisdom and stop thinking. This might be OK, when things are going well and we don't have to think. But now, I think we must start thinking about te validity of each conventional wisdom more critically.

If we can't think of any way of effectively competing with supermarkets, I think it's probably because we (I mean independent florists as a whole) are intellectually lazy or because we don't have guts to try new "crazy" ideas. Most likely both.

That's too bad, because eventually someone else will figure it out.

Our local grocery stores are selling a bunch of tulips for $6.99. We sell the same thing at $7.99. People buy those things.

It didn't come easily. Initially no one bought our DIY flowers. It tested my resolve and self-doubt. But I was (and still am) determined to make it work, no matter what.

I really want to see more florists at least try something.

I hope you didn't take my post as negative. I'm all FOR trying new things but the immediate and long-term costs, AND VIABLITY in doing so have to be considered as well. I think marketing to DIY-ers is a trendy thing to jump on right now but it still has to be cost effective in the long haul when things ARE better again, too.

I totally agree with you on this: The question is NOT whether we can or cannot compete. That's really irrelevant. The question is how we could compete and the feasibility of each strategy we come up with.

In my area, the question is how to convince people to make an extra stop at our store instead of picking up that convenient "bouquet" at the supermarket? Challenging to say the least.

I'm writing a blog write now about Flower Shop vs Grocery Store and I'm NOT focusing on price, other than "you get what you pay for".
 
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How about this, all the retail florists band together, and stop supporting the local wholesalers until they choose to support the local retailer 100%. Then the wholesalers stop supporting the importers, until they support the wholesalers 100% and thus the retailers 100%.

Next, the importers pick and choose the exporters and farms they will support, those that choose not to support non-retail florists. Once this flows backwards through the supply chain we bring pressure on the system to have all flowers flow through traditional retailers, thus cutting out the groceries and 7-11's leaving the direct-shippers to deal with farms that have no retailer/wholesaler support.

Never mind....

Yeah and maybe the growers will bypass us all and sell it all to Russia. What we gonna do then? Sell cupcakes, yeah thats were da money at!
 
We have a psuedo wholesaler/flower shop here in Austin that does gang buster business. They carry flowers that you don't usually find at costco or the grocers and mark them up about double. The key for them, I think, is their location. They are smack dab in old money town where rich bored house wives thrive creating florals for their coctail hours and fund raisers. This company does few designs and doesn't belong to a wire service.

Thom
I was sitting here reading your posts, and a PEAPOD (peapod is a company that delivers groceries from grocery stores) truck drove by. A thought came into my head: Has anyone ever thought about developing a fresh flower market direct to your home. Im thinking for shops that have little or no walk in traffic.
That is so funny. I was thinking a Peapod the other day and wishing they were still around. They left town around 2001 I believe. So much for that concept here in Austin, but maybe in DC?
 
BOSS, your end result (direct-shippers having to deal with farms that have no retailer/wholesaler support) could be achieved, if you and like-minded retailers formed a co-op that import flowers for yourself. You choose which growers you do business with.

There's no need for all the retailers banding together at all. They will simply join any such co-op.
 
I signed my contract with Strider today to get my site Striderized. Don't know what took me so long. Mostly I'm just irritated with myself because I've been a professional web designer for over 10 years and couldn't keep up with it. Now that I'm healing from licking my wounds after kicking myself, I'm open to all of these possibilities and new freedoms.
So, I'll give the loose bunches/stems a shot.
I do have the same concern as Chez though that customers are gonna wonder how 7.99 turns into 49.00, but Ill give it a shot.
 
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Who says make no mark up??? You can still mark them up just don't triple, maybe do a 2x mark up, (no labor involved)...
if the tulips cost you $6, sell them for $12 as is.

Right.

Another tactics we use is 'Pre-order special' for no-frill holiday plants (such as Poinsettia, Easter Lilies, etc). Before the season, you simply send out an order form to individuals and businesses.

Since there is no inventory risk, you can offer a very steep discount, almost comparable to Home Depot prices.

See, we can compete on prices. It just needs a little bit of unconventional tactics.
 
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I think its a good idea but hope that people don't ask why a bunch of 10 Tulips is $7.95 and a vase with 10 Tulips & greenery is so much more.

The simple answer is: it shouldn't cost so much more. There's no justification for charging like $3-4/stem for tulip arrangement, when it costs, what, ~50 cents a stem.

10 tulips in a vase should be about $20 or less. We sell 20 tulips in a vase for $29.99, which happens to be one of our best sellers.

Then you have to explain the whole, vase, labour, greens aspect to them. Still, its a good idea for a "Fresh Picks" for Pick up only at our store" sort of thingy.

I think the truth behind ridiculous pricing you see by many florists is that they aren't manking enough sales.

In other words, consumers are forced to pay for their inefficiency, idle time, etc. You aren't gonna win this game just by hanging onto a higher profit margin.
 
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I signed my contract with Strider today to get my site Striderized. Don't know what took me so long.

Mostly I'm just irritated with myself because I've been a professional web designer for over 10 years
Off topic... but a ringing endorsement of Strider!!

Back to the pricing debate...

Carry on...
 
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I signed my contract with Strider today to get my site Striderized. Don't know what took me so long. Mostly I'm just irritated with myself because I've been a professional web designer for over 10 years and couldn't keep up with it. Now that I'm healing from licking my wounds after kicking myself, I'm open to all of these possibilities and new freedoms.
So, I'll give the loose bunches/stems a shot.
I do have the same concern as Chez though that customers are gonna wonder how 7.99 turns into 49.00, but Ill give it a shot.

Just take it slowly, ask you wholesaler what are some hot deals, and start off with a limited low cost supply, everyone loves daffodils and tulips. If anyone asks just say that your offering seasonal specials direct from the farm, say it's grower overstock specials that you are passing to your customers. Chances are no one will ask.

Here is a link from my ex girlfriend in DC who I'm surprised to find has a website. Sheffica came to DC from Turkey with 500 dollars to her name back in the early 90's. She knew about 2 english words. She made a small fortune on a double mark up cash and carry neighborhood flower shop. Now it looks like she is expanding into full service. But I'll tell you of the nights I used to spend hanging out in her shop. She has such a loyal base of people who come in weekly and pick and choose for personal use. I remember her counting a shoe box full of cash at the end of the night.

It really works, especially for those who don't know the rules.

http://www.dcnet.com/littleshop/

That's her on the left, look at how much produce she has on the floor.
 
Right.

Another tactics we use is 'Pre-order special' for no-frill holiday plants (such as Poinsettia, Easter Lilies, etc). Before the season, you simply send out an order form to individuals and businesses.

If we didn't have the local schools - yes, even public schools! - churches & youth groups, in cohorts with the local greenhouse guy, doing this already, for years and years now, we *might* have a chance with this idea. The greenhouse guy also generously supplies all the downtown businesses and corporations with FREE poinsettias every Christmas. The line between "wholesaler" and "retailer" when it comes to greenhouses is far too blurred in my community. I stopped doing business with him a few years ago when I realized he was my main local competition for plants, and was giving his retail customers a better break than he was me. Primulas? Get 'em from the auction. I don't shop with him anymore. "Floral grade quality?" Ya, right.
 
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