Many Florists Say Holiday Sales Up

Fifty percent of retail florists had increased sales for the December 2006 holiday season, compared to the year prior, according to SAF's 2006 December Holidays online survey. The average increase was 12.4 percent.

Thirty-seven percent noted sales were down and 11 percent said sales were about the same as the 2005 season's. (One percent said they didn't know.) Decreases in sales averaged 14 percent.

Florists attribute the increase in sales to a number of factors: an increase in the reputation of the business (56 percent), word of mouth (46 percent) and store advertising (36 percent). See "Positive Influences on Sales" graph below.

Florists who report declines in sales attribute it to the regional economy (50 percent); fewer wire-in orders (46 percent); competition from online floral vendors (46 percent), mass marketers (46 percent) and online (non-floral) vendors (28 percent); and a decrease in corporate gift orders (about 31 percent).

Other survey highlights:

Top holiday promotion methods used:
• window displays (more than 70 percent) 
• indoor signage, posters or displays (70 percent) 
• statement stuffers or mailers (more than 50 percent) 
• newspaper/magazine advertising (more than 40 percent)

Most popular items sold: 
• seasonal floral offerings (almost 90 percent) 
• baskets (fruit, gourmet, etc. -- about 80 percent) 
• wreaths (about 80 percent) 
• home decorations and accent pieces (more than 70 percent)

Poinsettia sales compared to 2005:
• sales remained the same (45 percent) 
• sales declined (31 percent) 
• sales increased (24 percent)

Watch for more complete coverage of the results on www.safnow.org.

To be included on SAF's holiday sales surveys, send your email address to surveys@safnow.org.

--Ira Silvergleit
isilvergleit@safnow.org

 
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Valentine's Day Media Primer

If a reporter called and asked you why consumers should buy flowers on Valentine's Day, would you know what to say? If not, don't despair. SAF wants to help prepare you for unexpected questions you may get from the media around Valentine's Day. We created a list of potential media questions and answers on the Valentine's Day Resource Center  so you are never at a lost for words.  For example:

Q: Aren't Valentine's Day flowers passé?

A: Absolutely not. Flowers and romance go hand in hand, which is why they are one of the most desired gifts for Valentine's Day. Almost everyone can remember the last time they got flowers, which demonstrates the powerful impact they have.

Q: I saw roses advertised for much less elsewhere. Why are your roses more expensive?

A: When comparing prices, it is important to know what you're buying. The price of a dozen roses will vary based on the rose variety, design style and the level of service. For example, long stem roses arranged in a vase and delivered to your sweetheart's doorstep will cost more than an unarranged bunch of medium-lenth stems. Most of our customers find the added services and superior quality to be well worth it.

Read more questions and answers.

--Vanessa Machir
vmachir@safnow.org

 
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Poinsettia King meets Governator

Ecke poses with Schwarzenegger, and wife Julie Hampton.

Paul Ecke III of Paul Ecke Ranch in Encinitas, Calif., got it in his head about four years ago that it might be amusing to present one of the 8- to 12-foot poinsettia trees he grows around Christmas to California's towering Gov. Arnold Schwarzenegger. This year, he finally realized his vision.

Ecke, his wife, Julie Hampton, and three of his trees, as well as his standard poinsettias, were all guests at the "Governator's" recent Christmas tree-lighting ceremony.

"I thought it would be fun to present him with one of these pumped up trees," Ecke says. "He's this big, tough guy, and these are larger-than-life trees."

Ecke, however, didn't want to settle for just the presentation.

"I wanted a photo with him, that was my goal" he says. "I like his politics ... I am very pleased that he has been so supportive of farmers and ranchers in California."

After several years of working to arrange a meeting, going through local politicians and "getting stuck at the gatekeeper's door," says Ecke, he finally got a call this year from the governor's office -- they needed poinsettias for the annual tree-lighting ceremony. After a few weeks of back-and-forth, Ecke got an invitation to the ceremony and the opportunity to have his picture taken with the governor.

"It was one of those special nights for horticulture," Ecke says. "He and his wife are very charming people."

--Vanessa Machir
vmachir@safnow.org

 
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Rose Parade Names FTD's Float No. 1

Butterflies seemed to come to life, on FTD's "Jewels of Nature" float, which was named the No. 1 float in the Rose Parade.

A swath of giant butterflies with 13-foot wingspans, hummingbirds and seemingly endless floral displays helped earn FTD -- for the second year in a row -- the Sweepstakes Trophy in the 2007 Rose Parade. This award honors the float that demonstrates the "most beautiful entry with outstanding floral presentation and design." FTD's "Jewels of Nature" float featured a collection of springtime flowers,  Children's Miracle Network co-founder Marie Osmond and two children served by Children's Hospital in Los Angeles.
 
The "Jewels of Nature" float was 30-feet high, 18 feet wide and 55 feet long, used more than 45,000 roses, as well as the widest selection of springtime flowers ever used in the Rose Parade, according to FTD's Megan Buchanan. The flowers came from six continents and were imported from Africa, Israel, Egypt, Spain, Holland, Colombia, Ecuador, Australia, New Zealand, Thailand and Hawaii. 
 

--Kate Penn
kpenn@safnow.org

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Congress Reintroduces 'AgJOBS'

Last week, a bipartisan group of members of Congress reintroduced SAF-supported legislation intended to fix the country's faltering immigration system.

Sens. Dianne Feinstein (D-Calif.), Larry Craig (R-Idaho), Edward Kennedy (D-Mass.), Mel

Sen. Larry Craig (R-Idaho), co-sponsor of the AgJOBS bill, speaks at Wednesday's press conference.

Martinez (R-Fla.) and Barbara Boxer (D-Calif.), and Reps. Howard Berman (D-28-Calif.), Mike Thompson (D-1-Calif.), Jim Costa (D-20-Calif.) and Chris Cannon (R-3-Utah) held a news conference Jan. 10, to announce the reintroduction of the Agricultural Job Opportunities, Benefits, and Securities Act of 2007 (AgJOBS).

AgJOBS began its development nearly 10 years ago and continues to enjoy broad political support among Republicans and Democrats as well as broad constituent support among growers, producers, farm workers and immigrants' rights advocates.

According to SAF's Government Relations Department, the bill will: reduce illegal immigration; provide earned adjustment of status or a way to legalize the current undocumented but trained workforce in agriculture; and reform the broken H-2A guest worker program which is unreliable, expensive and litigious.  

"Agriculture is facing a worsening labor situation," says Jeanne Ramsay, SAF's senior director of government relations. "Specialty crops, such as flowers, as well as fruit, vegetables and nursery crops account for half of the value of American crop production. If Congress fails to address the labor shortage, some growers are facing painful decisions to either reduce their planting, not plant at all or, in the extreme, shift production offshore."

It is estimated that 70 percent of the industry's labor force is made up of immigrants working without the proper authorization. Feinstein said at the press conference, "The reality is that Americans have come to rely on an undocumented migrant workforce to harvest our crops ... We must bring those workers out of the shadows and create a legal and enforceable means to provide labor for agriculture."

California is the single largest agricultural state in the nation with over $34 billion in annual revenue and about 76,500 farms, according to Feinstein.

Last year, the Senate included AgJOBS in its entirety in the Comprehensive Immigration Reform Bill of 2006. It passed, but the bill stalled due to opposition in the House.

Learn more about industry issues at SAF's Legislative Resource Center.

--Vanessa Machir
vmachir@safnow.org

 
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Careless E-mails Pose Potential Threat

E-mails that you or your employees send are increasingly subject to legal scrutiny, according to the Society for Human Resource Management in Alexandria, Va.  "Like junk in the attic, work e-mail often is hastily stored and forgotten," according to a recent story in the group's magazine, Workforce. "But amendments to the Federal Rules of Civil Procedure, effective on Dec. 1, mean that now more than ever those e-mails may pour out of the woodwork and crash on employers during litigation, unless employers adopt systems to organize and keep tabs on them."

Under the amended rules employers must give plaintiffs' attorneys access to electronic documents that might be used in litigation even before a discovery request has been made. Employers and plaintiffs in litigation must disclose all documents, electronically stored information and tangible things that may used to support claims or defenses.

Getting lost in the legal jargon? Don't worry. The message, be careful with e-mail, is clear, says attorney John S. Satagaj, who works with SAF on legal issues and is available for 15-minute phone consultations with members.

"This (news) is more like a signpost than a major turn in HR evolution, because what's been going on increasingly for half a dozen years is that litigation as it affects HR has been more and more about electronic communications -- e-mails," he says. "The larger story is that when you're dealing with an HR problem, you need to think twice before you touch the keys. If you send an e-mail, down the road if there is a problem, it's likely to find its way into litigation."

That doesn't mean you can't e-mail information on the job -- just be prudent about the information you send and how you send it.

"People are more casual with the way they prepare emails; they treat it more like a conversation," Satagaj says. "If you're terminating someone or something, even if you're using e-mail, make it formal."

Another tip from Satagaj: Keep e-mail conversation threads to one or two topics. If the conversation diverges, compose a new message, with a new subject line, rather than responding to previous messages.

"People mix things in e-mail," he says.  "So then you have a complicated thread," which is harder to organize down the road if a lawsuit or legal situation should arise.

Of course, the best advice, Satagaj says, will come from your own attorney; however, if you need help understanding a legal issue, members can contact him regarding employment-related issues at 202-639-8888.

--Mary Westbrook
mwestbrook@safnow.org

 
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City Finally Repays Florist

About a year and a half ago, Carolyn Joe of A Rose's Petal in Paterson, N.J., began seeking compensation for more than $2,000 worth of arrangements ordered from her store by a city official. This December, she finally got paid.

Paterson Director of Community Development Marilee Jackson began ordering flower arrangements from Joe to celebrate her employees' birthdays and to send condolences about two years ago. The city sent payment for the first bill Joe sent to Jackson's office, and then abruptly stopped. At first, Joe assumed city bureaucracy was slowing payment, and she didn't worry. But after about a year of receiving no payments for her services, she began to investigate.

She called Jackson's office, which reported that they had submitted all of the invoices she had sent to the city financial controller. She then called the city financial offices, and was told she would not be receiving payment from them -- they considered the flowers sent to employees as Jackson's personal expense that should not be paid with the city's money. They said the first payment she had received from them had been a mistake.

Last spring Joe went to the mayor's office, and was then subpoenaed by the county prosecutor's office, which analyzed all of her records of business dealings with Jackson.

"Florists, keep good records," she warns. "You never know what will happen!"

In mid-December, the county prosecutor ruled in her favor, and she was paid.

Joe says she feels no animosity toward Jackson, who was suspended in 2004 for attempting to funnel federal housing construction funds to her landlord. In fact, she applauds Jackson's practice of sending flowers to employees.

"I think more employers should look for ways to [acknowledge] their employees -- it is so important," she says.

Give your opinion on pursuing payment for accounts in arrears on this week's E-Poll.

--Vanessa Machir
vmachir@safnow.org

 
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Keep Business on Track with FloraTrac

After taking over management of Best of the Bunch in Highlands, N.C. a year and a half ago, Jeff Pratt was looking for a way to show the progress of the shop to his boss. So, he turned to FloraTrac, SAF's new market share reporting system.

"I think it's really great," he says. "It helps me to aim higher for the business."

Pratt is one of more than 100 industry members who have enrolled in FloraTrac, which currently features free enrollment. 

"There was no reason not to do it," says Keith Hill of Beaverton Florists in Beaverton, Ohio.

Hill particularly likes that FloraTrac will give participants month-to-month and year-to-year comparisons of businesses against operations with similar revenues or geographic locations, as well as against all program participants. "There is nothing else like it," he says. 

Florists who have enrolled, however, are calling on fellow industry members to participate in the program.

"As a collective base, if every flower shop did it, it would add up to something," Hill says. "The more people use it, the more meaningful (the analysis) will become."

For more information on FloraTrac, visit the Web site or contact Michael Berk at TopLine Group at (520) 861-8731.

--Vanessa Machir
vmachir@safnow.org

 
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ConsumerReports.org Rates Online Flower Vendors

ProFlowers.com and Hallmark.com got the highest marks in a recent ConsumerReports.org "Quick Ratings" of so-called mail-order roses. The short overview rated four companies (the other two companies were Organic Bouquet and JungleRoses.com) on vase life and consistency. The Web site also reported on the companies' average next-day delivery fees, price per dozen roses and whether flowers had a scent.

On a five-point scale that ranged from "Excellent" to "Poor," Proflowers.com and Hallmark.com scored "Very Good" on vase life and consistency. Organic Bouquet also received a "Very Good" rating for its consistency; however, the flowers rated only a "Fair" for vase life. JungleRoses.com was given a "Good" for vase life and a "Fair" for consistency. Only Proflowers.com and Organic Bouquet were singled out for scented blooms.

The good news for traditional retailers: ConsumerReports included a recommendation that buyers use their local florist when possible to order flowers.

The Web site did not detail its methodology in choosing the companies or rating the flowers.

With Valentine's Day coming, more reporters could become interested in rating flowers from florists, wire services and online vendors. Get tips on how to prepare for those test-order stories, talk to the media about Valentine's Day and promote your shop for the holiday online at SAF's Valentine's Day Resource Center.

--Mary Westbrook
mwestbrook@safnow.org

 
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African Floral Farm Uses Geothermal Energy

The largest flower producer in Kenya is using geothermal energy to provide warmth and carbon dioxide to its greenhouses.

Oserian Flower Company  at Lake Naivasha, which  exports about 400 million stems a year to Europe, built its own geothermal power plant to save money (electricity in Kenya costs around 12 cents per kilowatt hour compared to two to five cents per kwh in developed countries). The company's geothermal power plant, at 1.5 megawatts, meets more than 60 percent of the farm's total power requirement, and the heating plant covers 50 hectares of rose and lisianthus production.

"The heating of the greenhouses reduces humidity from 100 to 80 percent, which in turn reduces the amount of chemical application that would normally be sprayed on the crop to prevent fungal diseases such as downy mildew and botrytis," says Managing Director Ron Fasol.

Using geothermal energy contributes to "significant results of higher yields, stronger stems, larger head size, higher bloom count, stronger colors as well as a 20 percent reduction in chemical usage, decrease in leafchemical residue and a safer environment for our employees to work in," according to the company, which employs about 5,000 workers.

The investment in both the heating and power generation was entirely made up of private funds, using a mixture of debt and equity, with no government funding, Fasol says. The total capital expenditure on the power and heating plants including heating reticulation to greenhouses amounted to $10.5 million.

Geothermal energy, sustainable energy drawn from wells dug in the ground, is a natural for the area where Oserian is located -- near a dormant volcano in a valley noted for its deep underground fissures that provide the heat necessary for geothermal energy.

--Mary Ann Barton
maryannbarton@msn.com

 
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More Employers Give Paid Time for Civil Rights Holiday

If you noticed more customers lingering in your shop beyond their lunch hour Monday you probably weren't alone. More Americans are getting paid time off in observance of Martin Luther King Jr. Day (Jan. 15), according to a new survey, as reported by the Society for Human Resource Management in Alexandria, Va.

Thirty-three percent of U.S. employers gave employees a paid day off for the holiday, which became a national holiday in 1983, according to a BNA survey. That's an increase, albeit a small one, from 31 percent in 2006. Less than 15 percent of employers surveyed offered it as a paid holiday when it was first introduced.

Other survey highlights include: 
• 55 percent of non-business employers (nonprofits and government groups) are likely to observe the day as a paid holiday. 
• 27 percent of employers in the services/non-manufacturing sector offered it as a paid holiday in 2007. 
• 6 percent of manufacturing firms will offer it as a paid holiday.

--Mary Westbrook
mwestbrook@safnow.org

 
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SAF, Hortica Offer Long-Term Insurance

 It is important to protect your family's future by looking into long-term care insurance. SAF has a discounted long-term care program available to its members.

"I decided to get coverage after I saw first-hand the dollars spent on my father's care," says one San Francisco policyholder.

This John Hancock Life Insurance program is being offered through SAF's official insurance carrier-broker, Hortica Insurance.

Did you know: 
• There are long-term insurance plans available for every budget.  
• The earlier you apply, the more options you will have and the less expensive the coverage will be. 
• Coverage for care given in the home is readily available.

Our families are the main reason we should consider coverage -- protect their inheritance. 

"My family medical history pointed me toward purchasing a policy. Since I'm young and healthy, I knew now was the time to buy!" says a Florida policyholder.

To learn about the program, contact Malinda Bentley, Hortica's long-term care consultant, at (800) 851-7740.

--Vanessa Machir
vmachir@safnow.org

 
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Product Spotlight: The Marketing Edge

Need some advice on how to jumpstart your sales in the New Year? Look no further --"The Marketing Edge: SAF's Guide to Selling More Flowers" (click How-to Marketing Kits and scroll down) will help with all of your marketing needs. This complete guide to local marketing features a 32-page booklet that details marketing options, steps for developing a marketing plan and tips on building effective campaigns. The two accompanying CD-ROMs include marketing plan worksheets, 100 holiday and non-holiday ads, a complete library of floral photography and illustrations and more. The Marketing Edge also features a new low price of $69.95 for members.

--Vanessa Machir
vmachir@safnow.org

 
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Talk on The Forums

One member is looking for a company in the United States to manage a drop-ship program and is wondering if any other members have a recommendation. Want to contribute?

Also on the Forums:

Wedding Coordination

Industry statistics

Start your own discussion

--Vanessa Machir
vmachir@safnow.org

 
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Sales Prediction

Sixty-seven percent of readers responding to last week's e-poll predict that their 2007 sales will be down, compared to 2006 sales. About 19 percent predict their sales will be up, about 13 percent think their sales will remain the same and one percent have no opinion.

--Vanessa Machir
vmachir@safnow.org

 
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Positive Influences on Sales

Florists attributed positive changes in their holiday sales this year to a number of factors, including an increase in the reputation of the business (56 percent), word of mouth (46 percent) and store advertising (36 percent).

Source: SAF Zoomerang Online Survey of Retail Florists with E-mail addresses. Based on 358 responses; Response rate 9 percent. Conducted January 4 to 15, 2007

--Ira Silvergleit
isilvergleit@safnow.org

 
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