Wire Services Are Buying Your Customer

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safeguy

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Oct 19, 2007
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West Columbia
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SC
In Teleflora’s “Flowers & Profits” March 2008 edition, there is an article titled Pay Per Click Ads: Are They Right for You? While I am not sure that PPC works for the "typical" local florist, the article does a very nice job of explaining how PPC ads work. But there is one statement hidden in this excellent educational article that frightens me:

“…General words on the search engines, such as “wedding flowers,” “corsages,” and “sympathy flowers” are the most expensive because they attract thousands and even millions of consumers. National advertisers such as ProFlowers and FTD will pay $15 to $20 per order to get business away from the local florists…”

Before I go further, I must stress that Teleflora is conspicuously absent from this statement but I have knowledge that Teleflora also uses Pay Per Click services. (Could it be because this is a Teleflora publication? "Let him who is without sin cast the first stone." Jesus Christ)

My point is that our wire services and other order gathers (OG) are willing to pay $15-$20 EACH for our customer. They know that once they have established a relationship with the customer and market to them regularly, they will get repeat business. It is time to look at our wire services and OG’s in a different light…as adversaries. These companies are taking the advertising dollars that the local florists pay to them each month and yet they spend it to drive our customer directly to the wire service. The wire services are spreading everywhere…Wal-mart, Aldi and most of the retail grocery stores and now on-line, you can become a wire service affiliate without even becoming a florist. Today, the consumer is being offered drop-shipped merchandise – straight from the distributor, bypassing the florist all together. It is my opinion that retail florists are in for the fight of their lives. So what do we do?

First, the local florist must be proactive. I recall many years ago when the wire services were our friends. “Back in the day”, they had standards for their members, including requirements for a brick & mortar store, a clean and well-kept sales area with quality in-store inventory. Today, I have a real hard time taking an order from an OG that has no inventory and from a sales person with very little knowledge of the floral industry (and some with little understanding of the native language!) Quite frankly, my store has more problems with an incoming OG order than any other type of order. Therefore, in my store, we refuse to take an order from an OG...no exceptions. Several callers have asked me why we won’t take their order and our answer is “you guys are our direct competitor…why would we support your business?” The key is that we don’t need them…they need us. If florists are not available to fill their orders, then the OG's cannot fulfill the order. Each shop is different but I encourage each florist to seriously consider their relationship with the OG’s.

Secondly, the local florist must be vocal. Speak out – loudly! Talk about this issue with the wire service reps and regional directors…make them uncomfortable if you must and insist on real answers. Don’t take their typical spiel seriously. (I had one FTD rep who told me that "florists should be grateful that his wire service was willing to take the internet orders so that 1-800 Flowers couldn’t have it. Therefore, FTD would transfer it to a FTD florist instead of just any old florist." I should be grateful?!!!! -And he actually expected me to buy this garbage? Let me repeat, we don’t need them, they need us!) Talk with your fellow florists at your local and state wide association meetings. Many florists seem too timid to start the conversation but are willing to chime in after some brave soul brings up the subject.

Lastly, re-evaluate your relationship with your wire services. If you have more than one, do you need them all? Who can do the most damage to your business? Look at your statements…who costs the most? Better yet, ask yourself: Do I really need a wire service at all? Some will argue that you need a relationship with at least one and I tend to favor that thought. The professional relationships, educational benefits and the camaraderie from a wire service organization are all important to me. However, none are without sin. Numerous florists have discontinued their membership in all wire services and use their credit cards, and yet they indicate that they have not had a significant loss of business since taking this bold move. My store, for one, discontinued our FTD membership before Valentine's Day, yet our sales were up. And we didn't order a single nationally advertised Teleflora Valentine container (sales rep: "everyone's gonna want one...") yet we didn't even get one request for this container from any customer or wire service.

The bottom line is that there is an elephant in the room and few people are willing to speak above a whisper, lest they disturb him. It is time for florists to take back the industry. If we are not careful, instead of business owners, we will be employees of the wire services. Now, who wants that?

I welcome any comments.

Rex D. Rish
President
Rish Florist
West Columbia, SC
[email protected]
 
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In a nutshell, it appears that FTD, TF and Bloomnet are the three Wire Services that basically are destroying this industry. That is only my humble opinion. So, the only way to compete is to QUIT being a member. You can try to scan the orders to weed out OG's but the orders will then come in cloaked from Headquarters etc. I think the wire services also own tons of OG's that we don't even know about. I find weird non brick and mortar OG's TF hosted websites all the time, many with fake address listed in Google but when you get to the website there is only a 1-800 number and no address. They are everywhere like stink on a pig. A stinky pig.
 
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Wire Services and OG'S

:fdevil::fdevil::fdevil:Read my opinions on Wire services and Order gatherers.
There is a lot of talking and writing about the subject but a very few florists have the guts to say""""""""Bye bye suckers"""""""
I am getting bored of reading the same thing again and again.
I am loosing interest in the subject, as long as we are concerned here, the WS and OG's are History.
We do the 80/20% and it works great for us.
Thank you very much!!!!!!!!!!!!!!!!
Hollywood:wallhead::wallhead::wallhead::wallhead::wallhead::wallhead::wallhead::wallhead:
 
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It can't be any other way

:fdevil::fdevil::fdevil:Read my opinions on Wire services and Order gatherers.
There is a lot of talking and writing about the subject but a very few florists have the guts to say""""""""Bye bye suckers"""""""
I am getting bored of reading the same thing again and again.
I am loosing interest in the subject, as long as we are concerned here, the WS and OG's are History.
We do the 80/20% and it works great for us.
Thank you very much!!!!!!!!!!!!!!!!
Hollywood:wallhead::wallhead::wallhead::wallhead::wallhead::wallhead::wallhead::wallhead:

I have often felt the same way, but when you folks came on, you were new and subjects that had been worked over pretty well come back when there are new members. Hang on for the sake of new members.
 
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Dear Tom,:bouquet2:
You were our sponsor for this very interesting site.
As you recall we respect and cherish your ideas and opinions of a real PRO in the flower industry.
We are not giving up or going anywhere.
We will be watching every day and see what is new and constructive.We will be there unless booted out.
All our respect to you, Sir.:dearbob::dearbob::dearbob::dearbob::dearbob:
Sherry and Henry,
 
We too burned that bridge, and do the 80/20 split. Our software tracks this history for us and we also keep a spreadsheet. We found that many of our customers send to the same places so once you find a florist(friend) in that area then It's a breeze. You usually only have to do the legwork once. and those friends are often willing to send you recipricals from the other end of things. We also sent out mailers to our customers(recipients) letting them know that we could save their famioly/friends significant $$$ if they called our 800 # directly. You know it hasn't hurt us, and we get to find our own cute little containers at about 1/2 the cost of codified. We take the fees and turn it around into local advertising to build that business. When we get calls asking do you do ftd we say no but we do send flowers out of the area through a network of dedicated local florists who don't take 27% off the top. Most people are shocked to learn the truth and call back saying it was the most beautiful bok we've ever sent for them. so burn the bridge and join the battle against the Ivory towers. best wishes, Kevin
 
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Hey Bloomzie,

could you get your consultant to draft a comment on this issue and post it?

Whenever this subject pops up, the complaining is always the same.

There is nothing wrong with WS's as wireservices.

Each flower shop needs to find its balance between in vs outgoing, membership fees and rebate checks, and most importantly keeping the WS business (some would call it discounted business) at a manageable level of overall sales.

We had a discussion about that a year or so. I think the concensus around here was that WS business can help improve your net profit if it stays around 10-20 pct of total sales.

Last year my WS business dipped to 8 pct of Gross Sales, once that happened I rejoined FTD (at very reasonable member fees!). I want that incoming business around 10-15 pct, ideally at 12 pct.

My motives are driven by Net Profit, not emotion.

Joe
 
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Flying in the face of flowerchat convention - in the Red corner we have The Carlyle Cruncher - JOOOOOOE MIOUX!!!
 
One other thing.

If you don't belong to a WS anymore stop @@@@@ing about them.

Joe

p.s. I don't mean that to be rude, but if your not playing that game anymore stop worriying about it.
 
We had a discussion about that a year or so. I think the concensus around here was that WS business can help improve your net profit if it stays around 10-20 pct of total sales.

“The general consensus” is not necessarily true. Many urban legends, for example, are accepted on the basis of “the general consensus”. “The general consensus” is also often seen as an obstacle to introducing new theories, explanations, and so as an obstacle that must be overcome. Despite new information to the contrary, “the general consensus” has a property analogous to inertia that opposes the introduction of contrary belief, sometimes to the point of absurd denial of the new information set by persons strongly holding an outdated “the general consensus” point of view. This inertia is due to “the general consensus” being made of ideas that are convenient, appealing and deeply assumed by the public, who hangs on to them even as they grow outdated. The unavoidable outcome is these ideas will eventually not match reality at all, so “the general consensus” will be violently shaken until it doesn't conflict reality so blatantly.
 
“The general consensus” is not necessarily true. Many urban legends, for example, are accepted on the basis of “the general consensus”. “The general consensus” is also often seen as an obstacle to introducing new theories, explanations, and so as an obstacle that must be overcome. Despite new information to the contrary, “the general consensus” has a property analogous to inertia that opposes the introduction of contrary belief, sometimes to the point of absurd denial of the new information set by persons strongly holding an outdated “the general consensus” point of view. This inertia is due to “the general consensus” being made of ideas that are convenient, appealing and deeply assumed by the public, who hangs on to them even as they grow outdated. The unavoidable outcome is these ideas will eventually not match reality at all, so “the general consensus” will be violently shaken until it doesn't conflict reality so blatantly.

Is this why you are a top 100 FTD florist?
 
Probably so.

Never being in "flower industry circles" ..and now reading florist forums, it is very apparent to me my business philosophies differs greatly from the industry's conventional wisdom.

I think that's one of the keys to my success.


RC

so would you say, you like to think differently from the crowd?

i know i do. that is why i have the signature line that I have. see below.

joe
 
And that's what some of us like about you RC, you Rebel you.
 
One other thing.

If you don't belong to a WS anymore stop @@@@@ing about them.

Joe

p.s. I don't mean that to be rude, but if your not playing that game anymore stop worriying about it.

But you see, the only way this civil disobedience deal works is if you can convince everyone to join you.

Otherwise griping about what others do is just pissing in the wind. :hammer:
 
It's an old point, but I do always enjoy hearing people complain about OGs stealing "our" customers.

If they were OUR customers, they would be ordering from us.

If someone orders from a different business, it's because we did not give them a good enough reason to order from us in the first place, or keep ordering from us. That's our fault, and has nothing to do with the wallet size of the competition.

Ryan
 
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It's an old point, but I do always enjoy hearing people complain about OGs stealing "our" customers.

If they were OUR customers, they would be ordering from us.

If someone orders from a different business, it's because we did not give them a good enough reason to order from us in the first place, or keep ordering from us. That's our fault, and has nothing to do with the wallet size of the competition.

Ryan

As I have found, by keywords...google and yahoo local entries....their customers are finding ME now!! I'm taking their customers and making them my own!! But then again, I am a very oddly spelled town....
Point and case, this a.m. I opened to find 4 web orders...yes that is a great daily number for our website. And then took 3 back to back phone calls with people looking at our website (as basic as it is)....
little by little, step by step...
 
As I have found, by keywords...google and yahoo local entries....their customers are finding ME now!! I'm taking their customers and making them my own!! But then again, I am a very oddly spelled town....
Point and case, this a.m. I opened to find 4 web orders...yes that is a great daily number for our website. And then took 3 back to back phone calls with people looking at our website (as basic as it is)....
little by little, step by step...


Say it again sister. To misquote Maya Angelou - " I did the best that I knew how to do, and when I knew better, I did better." Not the exact quote, but close. And what I tell myself as I figure out my path in this business.
 
reply to "Mister" Joe MIOUX

Hey Joe,
icon10.gif

You handle your business the way you see fit.
I am not worried about anything.
I have studied the Wire Services and Og's for the last few years and decided to get rid of the pest.
I am also tired of this arguing back and forth like old folks, who don't have anything else to do..
I can see you write a lot on this site, I wonder if it is the only thing you do.
As long as getting emotional, when I look at my check book I do not get emotional
I get real.
When one of my animals die, then I get emotional, very emotional, Brother.
So , accept the fact that wire services are not good for MY business, may be good for you, but not for us.
I have been reading all your stuff............not impressed.
We all have our ways, yours seems to want to ask for extra help to take care of this issue.
Obviously it seems to be hard for you alone. It's alright, it's your way, I respect it.
We just simply dropped the issue ( WS & OG'S) and feel much better about it.
I have more time to go fishing and keep my check book in check.
You have a wonderful day working hard.
I wish you all the best.
I guess I won't be seeing you on the river.:porttopor:porttopor:porttopor:porttopor:porttopor
Life is way too short Bud......................
Hollywood!!
 
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