Online marketing why are florists losing out to relays! Thread

Charlie,  I THROUGHLY AGREE and I know there are many other florists who would agree also. For more than 15 years I have been warning Florists of the practice of the ORDERGATHERERS or the "Sending Arm" created by the once PERFECT RELAY ORGANISATION. This practice has been a take-over by stealth of the florist industry and the livlihood of florist.
How many florists actually check their accounts and check the payments in comparison to the order value. Here are examples of test orders placed on big name relays. Order was placed from America thru Internet to a Sydney website florist same day delivery australia wide. Recipient was in a northern suburb of Brisbane
Order Value Paid to an internet Florist             $100.00
Florist paid in back pocket                                 20.00
Balance                                                           80.00
Less Delivery                                                    10.00
less relay fee                                                     9.00
Order value received                                         61.00 flower value plus delivery equals $71.00
Commision 25% thru a Relay                                15.25
Less t/o fee for relay                                          1.12
Balance of flower value                                      44.63  plus delivery $10....Executing Florist received $54.63 out of $100 the customer spent.

And if that is NOT the end of the story the florists were queried by the sending florist of the content in the arrangement because the sender complained.
Lets say that was the only order received by the executing florist for the week, and,yes it does happen.
Overheads for being a loyal member with deposits held, computer leases, subscriptions etc.,etc. in this florists case is $55.00 per week.
Received $54.63 and spent  $55.00 to buy the order.

Without going thru the calculations again, imagine the sender is a local hubby in your suburb on the internet late at night, anniversary tomorrow, places an a rose order to be delivered to his home address in the morning. By the time the order arrives, morning delivery has left. order value only $71.00 and was paid 6 weeks later.
As a local florist , do you think you are going to win that family as a customer.

If that local customer knew their local florist and ordered direct from them the full amount of the sale would have been in the bank before delivery and would have known the sender and the recipient on a personal basis. Surely the florist would have been able to gain a local customer as well

It has never ceased to amaze me how florist spend thousands to learn floristry and open a florist shop without any business management training.
I spent four hours in a florist shop yesterday as the operator was not making money. A very busy shop with a good turnover for a one person operation. A very experienced florist of many years but lacking business skills in dealing with ordergatherers/relays literally ripping them off. Tens of thousands of dollars worth of work from ordergathers/relays has caused the operation to increase prices to cover the loss from these orders. Even then 10s of orders are rejected, not being able to execute for one reason or another.

Charlie, if this Flower Industry is to survive, then your age group has to forget the new modern technology being used against the florist and harness the same techniques to DIRECT the CUSTOMER DIRECT towards the front door of the LOCAL FLORIST. Please send an email to flowers800@optusnet.com.au  and we at EflowersAlive will forward our program to you which has been proven over the years.

The surviving florist is the florist who has personal contact with every order.

Thank you for bringing my 'hobby-horse' to the fore again, and I hope we can at long last turn this Industry around again
Cheers........................EFlowersAlive...............................Ron

I have spent a lot of time and effort worrying about the fact that Interflora competes against it's own members with PPC advertising. However, this advertising is very expensive and a small business like my own can not afford do it very effectively - so if Interflora shell out the bucks and I get the orders minus a commission it is not such a bad idea - particular as orders that come to me via the IF website have less of a commission deducted than if they came straight from another florist.

And while it is frustrating that order gatherers like easyflowerhave the money to spend on PPC and take orders away from real florists and sell them back to the florists minus a commission I am afraid that this is just free enterprise at work and complaining about it won't achieve anything. It would be great if every florist in the country refused to fill orders for these order gatherers but there are just too many of us that need them. We just need to keep doing what we do best - look after our own local customers as best we can.

At least with Interflora we have the chance to earn back some of that lost commission through sending orders back into the system.

Todd
www.hangingbasketflorist.com

Todd, Australia has some of the best florists in the world and deserve to be treated with respect for the personal care, time and expertise they give to our product of FLOWERS. Over the last 15 years or so the Florist Industry has been taken over by stealth and dishonesty and the Florist has let it happen. The sad thing about the florist shop operator is that thousands of dollars are invested in learning floristry in our colleges to get a certificate to become a expert florist, which is a very simple matter, compared to entering into the Business Management (Dog Eat Dog) World.
In most cases, this happens with NO BUSINESS MANAGEMENT TRAINING whatsoever. 
I was responsible for the first TAFE Floristry College in Queensland, a Level IV Trainer/Assessor, Level IV Small Business Management, National Interflora Judge and played a massive role in building the Florist Industry. In my 40 years of floristry, this Industry is at a rock bottom. As said, some of the best florists, but lacking horribly in Business Management. EFlowersAlive have been on this forum now for 20months trying to alert florists to the pitfalls of owning a florist shop. To answer your misinformed information on relay/order-gatherers commissions we will try to explain the complicated accounting system and the hidden charges taken for granted.

One of your Local Customers who knows you are a relay organisation member, orders on that organisations Internet thinking they are in contact with you. 
The delivery is for your suburb. How very wrong the customer is, as the order does not always go the florist in the delivery suburb. This costs the florist more for delivery.
Every $100 flower order placed on the Internet Relay Site costs the customer $28.79 out of the $100 spend. The florist receives $71.21 incl the $10 delivery leaving $61.21 flower value. This is not 20% comission you are lead to believe but the relay/ordergatherer collects 28.79%.
The payment of your account is dictated by the relay and the florists money held for up to 6 weeks.
Check your accounts but do not forget to deduct $11.55 relay fee instead of the $8.25 you are allowed to charge.
But before you get excited over receiving an order from the internet, do not forget all the other costs of being a relay member. If Holding Deposits, Subbscriptions, Equipment Leases, Insurances are calculated on a weekly basis, each member will have an outlay of $50 to $55 per week to be a member.

Florists are paying the relay/ordergatherer an enormous sum of dollars to advertise in competition against themselves, by luring the Florists Local Customer away from the LOCAL REAL LIVE FLORIST SHOP and charged up to 30% of their spend. The Florist is not promoted as a Local Florist by name and the Senders Name is hidden behind the Privacy Law Policy even though the order is LOCAL and do not need the services of a relay.
A 3 minute phone call from the local customer to the LOCAL FLORIST DIRECT would have grossed $100 in the bank before delivery was made. The florist would have had personal contact details on their database of two prospective satisfied customers. The customer would know what flowers and colours and prices are available in your shop and district. They would know delivery details and any other information necessary to gain another happy satisfied customer.
The successful florist shop operator SHOULD ONLY SPEND 6% to 8% of turnover on promotions of their own business, DEFINITELY NOT 28.79% per customer order.
These are just a few reasons why it is time for florists to do a Business management course before entering the Business World. A Florist Shop Operation is very unique and is one of the most difficult to manage. EflowersAlive will endeavour to answer any questions in the industry and guide the New Generation Florist to a profitable Business. If not through this forum be free to email  flowers800@optusnet.com.au
Cheers........Listen to the Flowers...........Lots of Blooming Luck........EFlowersAlive....Ron
 

Todd, the answer to "why deduct $11.55" is because that is what your local customer is charged as a relay fee thru the Flowerline or the Internet.
Secondly, on any one relay order from shop to shop 2% of the delivery charge  is deducted from the same $10 on both the sending florist and the executing florist.
Thirdly, I did not refer to you as a fool, but alerting you to facts that the relays are not honest enough to tell you. Any Business Consultant would tell you to find out the honest facts before you can do the maths. The fact you started this forum indicates you do have some concerns.
And last but not least, you would prefer to get your orders direct. All florists would hope for this, and, yes, it will never happen if you and the Florist Industry wil not make it happen. You and only you and your florist colleagues CAN MAKE IT HAPPEN.
Do you have a customer database? Do you record the sales of each customer? Do you reward your best customers with bonuses not discounts? Do you do mail-outs to your local customers with a newsletter?  Does every home in your suburb know you are the leading LOCAL INDEPENDENT FLORIST? Do you thank your customers on a personal basis for trusting you with their personal feelings? Do the potential customers in your district know where your shop is and do you keep reminding them?
Yes, Todd it can happen, but it needs every florist to answer all the above questions honestly and set about acting on their answers. It can happen for we are the proof at EFlowersAlive and we have a program that makes it happen. Email flowers800@optusnet.com.au if you are genuine about getting your orders direct with 100% payment with every order.
Cheers.........we are a local independent florist with 40 years experience.....we know how the relay works.....best of luck.......EflowersAlive....Ron

I don't know where the figures come from as when I calculate the same $100 customer spend it comes to

Order Value Paid to an internet Florist             $100.00
Less Relay Fee                                                   9.50
Less Delivery                                                    10.00
Order value received                                         80.50 flower value plus delivery equals $90.50
Sellers Commission 25%                                       20.13
Amount recieved from Relay                               60.37  plus delivery $10....Executing Florist received $70.37 out of $100 the customer spent.
Average Member Fee ($22/m) per order                1.37
Difference in profit                                         $11.50
But then as pointed out by others you also get a commission for something you don't have to supply, so take the previous example of customer spend $100 for a delivery overseas:
Order Value Paid to an internet Florist             $100.00
Less relay fee                                                    9.50
Less Delivery                                                    10.00
Order value received                                         80.50 flower value plus delivery equals $90.50
Suppliers Commission 75%                                   60.37 plus $10 delivery
Payment recieved for taking an order                 20.13

I don't expect or want a reply just putting a different perspective out there so those reading can look at it from all angles, as clearly some don't agree.
Cheers,
Annette
Flowerfusion - Flowers & Gifts