Last Chance: Share Your Resolutions

Will this be the year that you lower your cost of goods sold? Will you finally update your 2000-era Web site? Has your talented but troublesome head designer really and truly pushed you over the edge this time? What changes will you make in your business this year? E-Brief editors want to know. Send us your business-related New Year's resolutions and we'll print the best ones next week.

Need an incentive? Each reader who submits a resolution will receive a complimentary copy of SAF's Flower and Plant Care Manual on CD-Rom, or SAF's Marketing Manual on CD-Rom -- your choice! So, what are you waiting for? Send resolutions to mwestbrook@safnow.org.

--Mary Westbrook
mwestbrook@safnow.org

 
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Md. College Examines Floral-Buying Habits

Want ideas about how to get more 18- to 30-year-olds to buy flowers?  Ask some 20-year-olds. Three teams of advertising students at Loyola College in Baltimore, Md., took on flowers and young adults for their final project this year. A survey of 150 Loyola students and young adults in the Baltimore metropolitan area, followed by research using the school's extensive marketing database, led some class members to describe 18- to 30-year-olds as "frugal, busy and preoccupied" consumers who possibly regard flowers as too old-fashioned, overly sentimental or simply "cliché." Some of the group's recommendations to the floral industry include:

• Advertise on billboards near college campuses and in neighborhoods with lots of young professionals.
  
• Utilize college newspaper and radio ads (including their Web sites). Try a message that suggests "Just Because" flowers or that an unexpected bouquet will "sweep that special someone off her feet."
  
• Go for drive-time radio to reach young professionals.
  
• Experiment with online placements,  "Facebook" fliers, ads on MySpace.com, YouTube and in the AIM buddy list window.
  
• Try hosting a college or shopping center flower sale showcasing unusual flowers. Let people build their own arrangements and offer a "secret admirer" delivery. Keep the purchase price low.
  
• Form a  "street team" passing out flowers, coupons and publications and urging people to take a flower to someone they love.

"It was a tough project, and I think they came up with some unique, fresh perspectives," says class professor, John Stack. "Hopefully they came up with some ideas that the floral industry can use. They are an amazingly creative and dedicated group and I'm proud of them all."

--Shelley Estersohn
sestersohn@safnow.org

 
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Floral Businesses Ride Out Pacific Northwest Storm

Wholesaler Washington Floral in Tacoma, Wash., cancelled many of its deliveries last Friday morning after a monster storm downed trees and flooded roads Thursday night. Drivers came in on Saturday to try to make deliveries.

"We wanted to service people, but keep my drivers safe," says company vice president, Mark Berglund, whose home in Gig Harbor was still without power on Monday.

The storm, which packed 90 mile-per-hour winds in some areas and dropped nearly 3 inches of record-breaking rain, killed six people, knocked out power to a million homes, closed freeways and cancelled flights at Seattle-Tacoma International Airport and Portland International Airport.

"Some of the hardest things we had to deal with were just not knowing if customers were open or not," says Washington Floral's Diane Lagerstedt. "Our first trucks leave between 5 a.m. and 6 a.m., so normally at those stores we don't get answers. We just didn't know. Many stores were closed. Once you did get out, there were no traffic lights. That created tremendous gridlock."

The power finally came back on Sunday morning at Bellevue Crossroads Florist in Bellevue, Wash., where owners Larry and Valeriy Arzumanov worked in the dark over the weekend to fill orders and do business after the power blew out Thursday evening. "We've been working with candles; I was making deliveries myself," says Larry Arzumanov, whose power was out at home, too. He estimates he lost between $3,000 and $4,000 in revenue.

When the power at Washington Bulb Company in Mount Vernon, Wash., went dead at 2 a.m. Friday, the generators were ready, says Leo Roozen, AAF, the company's president.

"When it's severe like this, we get everything running prior (to the power going out)," he says. "It's not a matter of 'if,' it's 'when.' Then we just flip the switches."

The company's power came back on at 5:30 a.m., but it also experienced delays getting its product shipped due to some cancelled flights.

--Mary Ann Barton
mbarton@safnow.org

 
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Teleflora Names New President

(from left) Teleflora Vice President National Sales Jack Howard, President Shawn Weidmann and Chairman Tom Butler, AAF.

A former vice president of Roll's International consulting group, a sister company of Teleflora, has been tapped to be president of the wire service. Shawn Weidmann's new position was announced via press release Dec. 18.

"We are delighted to have found a new president for Teleflora from within our Roll family of companies," says Tom Butler, AAF, Teleflora chairman. "Shawn has proven operations and leadership skills demonstrated during his tenure with Roll International and during his prior career. This experience is highly valued at Teleflora."

Last June, Phil Kleweno, who had joined Teleflora in 2004, stepped down as the company's president and CEO. Debbie Listman, who had been Chief Operating Officer (COO) of Teleflora's sister company, the Franklin Mint, took over company operations as COO during the search for a new president.

At press time, Weidmann could not be reached for additional comment.

Stay tuned to upcoming issues of E-Brief for coverage of Weidmann's plans for Teleflora.

--Vanessa Machir
vmachir@safnow.org

 
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Baja Fresh Sold to KaBloom Owner

A consortium of investment groups led by David Kim, whose company operates and franchises hundreds of Sweet Factory locations, Denny's restaurants and KaBloom flower shops, recently purchased Baja Fresh Mexican Grill for $31 million from Wendy's International, Inc.

The transaction made headlines in the business world: the Orange Country Register stated in an article that Wendy's recently reported its third-quarter, same-store sales dropped 6.1 percent at Baja Fresh, a fast food chain specializing in Mexican food with more than 300 restaurants in 28 states, including Washington D.C.

 "This transaction ... will allow us to sharpen our focus on the Wendy's brand," said Kerrii Anderson, Wendy's interim CEO and president, in a statement.

At press time, KaBloom could not be reached for a comment on the sale.

Founded in December 1998 by Thomas Stemberg and David Hartstein, KaBloom has had recent leadership changes of its own. Last March, Kim's group purchased the company, spurring speculation within the floral industry about what the leadership change would mean for the company's 108 franchise locations.  For Flora Burke, owner of a KaBloom franchise in Capo Beach, Calif., the shift has ushered in welcome change.  "I think it might be too soon to tell," she says, "(but) I can definitely tell leadership has improved."

For her part, Monica Kemp, owner of a KaBloom franchise in Washington, D.C., is cautiously optimistic. Although she says it is too early to discern any changes, as the annual meeting is scheduled for January, she hopes "that the new leadership will be sensitive to the needs of the franchisees ... and (the leadership) will provide the direction we need."

--Vanessa Machir
vmachir@safnow.org

 
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N.C. Newscast Puts Focus on Local Wholesaler

Hardin's Wholesale Florist Supply's mission was accomplished last week when the Liberty, N.C., company landed a spot on the local news broadcast.
 
"We really try to get flowers on TV, that is our No. 1 goal," says owner Billy Hardin, AAF.

The company routinely sends the local Fox TV station flowers to use on its news set. Last Wednesday, Hardin's diligence paid off when reporters interviewed him about holiday plants.

"Their focus was how to keep plants alive," says Hardin, who was careful to point out, on air, that poinsettias are not poisonous. He also talked about more non-traditional holiday plants, such as cyclamen and cactus.

Hardin says the station interviews him every year and usually comes to his operation on Valentine's Day and Mother's day.

 "Over the years we have had a good relationship with them," says Hardin.

SAF helped Hardin develop talking points prior to the interview. Need help handling the media? Contact Jenny Stromann at jstromann@safnow.org.

--Vanessa Machir
vmachir@safnow.org

 
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LA Times Reports Home Ecology Study

People feel less stressed and more compassionate toward others when they have fresh flowers in their homes, the Los Angeles Times reported on Dec. 14.
 
The article "A floral tweak on tradition" cites the "Home Ecology of Flowers Study." Conducted at Harvard University, the study and public relations campaign publicizing its findings are a result of a collective effort and strategic alliance by SAF and the Flower Promotion Organization (FPO).

The article also provides decorating advice from Mark Held, co-owner of Mark's Garden in Sherman Oaks, Calif., on how to create "that calming holiday ambience."

Generate publicity for your shop using the "Home Ecology of Flowers Study." Send local media a press release.

Read about the launch of the Home Ecology of Flowers public relations campaign.

--Jenny Stromann
jstromann@safnow.org

 
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NY Times to Readers: Poinsettias Not Poisonous

The New York Times is the latest major news outlet this year to endorse poinsettias as a safe, nontoxic addition to holiday decorations.

"Despite their toxic reputation, poinsettias are not poisonous," wrote Anahad O'Connor for the Times in a Dec. 19 story. "Experts say it may be a good idea to keep poinsettias out of reach of children and animals. But no need to cross them off the shopping list this season."

In the story O'Connor cited university research proving that poinsettias are not poisonous, writing that, "one study, at Ohio State University, found that in rats, poinsettia was not toxic even at very high doses.

"Another study, in The American Journal of Emergency Medicine, found not one fatality among 22,793 cases of poinsettia exposures reported to poison control centers nationwide. About 93 percent of the cases involved children. The majority of people exposed did not receive treatment at a medical center, and about 92 percent showed no signs of sickness."

While Jennifer Sparks, SAF's vice president of marketing, says the number of news reports about the alleged toxicity of poinsettias has decreased over the years, stories with incorrect information still appear. On Sunday, for instance, Parade magazine ran a story, "Healthy ways to eat, drink and  be merry," that told readers poinsettias are poisonous. SAF responded to the story online through a reader feedback section that runs below the story.  Read the response -- or post your own.

If you see or hear a news report that mistakenly labels poinsettias as toxic, contact Jenny Stromann at jstromann@safnow.org or fax information to (703) 836-8705.

--Mary Westbrook
mwestbrook@safnow.org

 
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Tax-Free Status Online to End?

Consumers who are hooked on online shopping because of the tax-free advantage may be spending their last Christmas online -- at least that's the speculation of a recent Forbes magazine story.

With Democrats in charge of Congress, "the stars are lined up better" than they have been in the recent past to support national legislation that would require online businesses to collect sales taxes for any states that meet standards set by the Streamlined Sales and Use Tax Agreement (SSUTA), Harley Duncan, executive director of the Federation of Tax Administrators, which represents state tax officials, said to the magazine. (As of Jan. 1, 15 states will be full participants in SSUTA, which is designed to harmonize and simplify sales tax laws, according to the story.)

Online buyers always have "technically" owed sales taxes to their home states, cities and towns; however, the Supreme Court has ruled that a state can't force a business to collect taxes unless it has a physical presence in the state. That hasn't stopped legislators, including Sen. Michael Enzi (R-Wyo.) and Sen. Byron Dorgan (D-N.D.) from introducing bills that would require merchants to collect taxes, but so far, they have been unsuccessful. 

George S. Isaacson, tax counsel to the Direct Marketing Association, which opposes any new state tax authority, told Forbes he thinks future bills are likely to meet a similar fate, if they find supporters at all.

"I would hope the Democratic leadership would say, 'We don't want to get tagged with a bad tax bill as the introduction to our leadership,'" he said.

SAF has been communicating with the Streamlined Sales Tax Project (SSTP) for several years, providing perspective on how the SSUTA could affect retail florists, says Drew Gruenburg, SAF's chief operating officer. "The primary concern," Gruenburg says, "has been how retailers collect tax on wire orders."  SAF supports allowing florists to source the tax on where the order originates -- the current procedure -- instead of the order's destination -- the procedure included in the SSUTA.  SAF continues to attend meetings and communicate with SSTP officials to lobby for origin-based sourcing.             

--Mary Westbrook
mwestbrook@safnow.org

 
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Eco-Friendly Pots Gain Traction

Just in time for spring garden sales, a Santa Rosa, Calif.-based company has unveiled a chic line of eco-friendly, sustainable flower pots. EcoForm pots, made from by-products of grain husks (rice hulls) and starch-based, water-soluble binders and biodegradable additives, last five years and decompose naturally into rich organic matter with a PH value of 7.

The company is garnering rave reviews already from Springwise newsletter, a British company that tracks international consumer trends: "Combining sustainability with eco-chic, the pots have a smooth finish and come in a variety of shapes and natural colors, in both decorative and grower lines," according to the story.

Distribution currently is limited to West Coast businesses. British, Canadian and Australian companies are working on similar products, but "sales networks are limited," according to the newsletter story.

--Mary Westbrook
mwestbrook@safnow.org

 
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Despite Best Efforts, Spam Flourishes

Taking a break from your e-mail during the holidays? When you return, your "in box" may be spilling over with unwanted gifts -- junk mail or spam. And, if it seems like these unsolicited messages are overtaking your regular e-mail lately, it's not your imagination.

Experts say that new technology used by spammers -- messages sprinkled with images -- is outsmarting spam filters. According to the Federal Trade Commission, the volume of spam has increased dramatically in the last few months, thanks to a new "image spam" which has quadrupled from last year and now represents up to 45 percent of all junk e-mail.

"You have to be really careful -- they're coming up with more and more creative ways to come through, it's out of control," says Art Conforti, president of Beneva Flowers in Sarasota, Fla. In addition to a spam filter used by his third-party Web host provider, Conforti added an extra layer of protection -- an extra spam filter (called Spam Arrest).

"I chose to double up," says Conforti. "They upgrade it and it's only $20 to $40 a year." Spam Arrest, he says, "holds" junk e-mail "so I can always go back and check it" to see if he wants to open it.

MessageLabs, a company that tracks spam, says spam has replaced viruses as the dominant menace over the last 12 months, a trend it predicts will continue through 2007.

Read an E-Brief story on the Can Spam act.

--Mary Ann Barton
mbarton@safnow.org

 
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Product Spotlight: FloraTrac

Stay ahead of the competition with FloraTrac, SAF's new market share reporting system. After submitting some basic data, you will be able to review your own sales data and trends and compare your numbers against the "national average" (all FloraTrac participants submitting complete historical data), as well as other businesses.

"I would recommend participating in this unique tool," says Karen Fountain, AAF, of Flowers 'n' Ferns in Burke, Va. "We all can see our own numbers at the end of the month, but how do we truly know where we are in the industry? FloraTrac gives us the opportunity to see just where we are and get a real comparison to truly measure ourselves with our peers."

Enrollment is free through early 2007.  A low monthly fee of just $9.99/month will apply after the initial enrollment period. Click here for more information.

--Vanessa Machir
vmachir@safnow.org

 
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Talk on the Forums

One member is wondering whether marketing to recipients (people who have received flowers from their customers but have never purchased themselves) is effective.  A few members responded, saying they routinely market to recipients. They advise sending a coupon with the delivery, or offering recipients a complimentary bouquet or discount. Read more.

Also on the forums:

Welcome Wagon

Privacy Issues

Start your own discussion.

--Vanessa Machir
vmachir@safnow.org

 
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Painted Poinsettia Sales

Painted poinsettias aren't much of an issue for E-Brief readers: 51 percent of readers responding to last week's e-poll answered "not applicable" to the question of whether painted poinsettia sales are higher, lower, or the same compared to last year's sales. About 21 percent said that sales were higher, 18 percent said they were lower, and 10 percent said they remained the same.

--Vanessa Machir
vmachir@safnow.org

 
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No. 1 Holiday: Christmas or Valentine's Day?

Christmas/Chanukah is the number-one floral holiday for flowers and
plants when all retail outlets are combined, but Valentine's Day remains
number one for retail florists. About 30 percent of holiday sales are
generated by Christmas/Chanukah overall compared to about 25 percent at retail florists. Valentine's Day contributes about a quarter of holiday
sales dollars at the combined outlets and about a third of holiday sales
dollars at retail florists. Individually the other holidays generate
less than ten percent of holiday sales. 

Source: Ipsos-Insight FloralTrends Consumer Tracking Study, 2005

--Ira Silvergleit
isilvergleit@safnow.org

 
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