Pennsylvania Governor Signs 'Phony Florist' Bill

Pennsylvania Gov. Ed Rendell signed hard-won legislation Nov. 29 that makes it tougher for

Governor Ed Rendell

order-gatherers to masquerade as local florists. The Pennsylvania Senate passed a bill last year, and the House followed after some members were convinced that the law would not restrict competition.

"It's pretty exciting -- it's taken us eight years," says Chris Drummond, AAF, owner of Plaza Flowers in Norristown, Pa., who was president of the Pennsylvania Floral Industry Association (PFIA) when the push began to pass legislation.

The new law establishes "a private cause of legal action" against out-of-state businesses that pretend to be local florists, PFIA noted in a press release. Drummond says it's possible that florists in the state may now band together to pursue a class-action lawsuit against a New Jersey company that frequently passes itself off as a local florist.

According to a news release from the governor's office, the law, Act 164, prohibits a supplier from misrepresenting its geographic location by listing a fictitious or assumed business name in a local telephone directory that: 

• fails to list or identify the locality and state of the supplier's business; and

• forwards or transfers calls to a business location outside the calling area covered by the local telephone directory; or where

• the supplier's business location is located in a county which is not contiguous to a county covered by the local telephone directory.

The law "grants an aggrieved person the right to petition a court to stop the practices listed above, and the court may impose a civil fine of up to $500 a day until the supplier complies with the order."

The law applies to telephone listings in a local telephone directory published or updated for the calling area at least 90 days after the effective date of the act. "Florists are not against competition, however people should be able to choose between a local or out-of-state business," says PFIA lobbyist Vince Phillips. "The problem occurs when consumers do not know the real identity and location of the business."

The law will "provide more checks and balances for the consumer," says Bethany Davis, PFIA communications spokeswoman. It "will require that [order gatherers] have an address associated with their phone number. We'll see how well it works."

--Mary Ann Barton
mbarton@safnow.org

 
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Congress Approves Andean Trade Act

Late Friday night Congress approved a six-month extension of the Andean Trade Preference and Drug Eradication Act (ATPDEA) for Colombia, Peru, Ecuador and Bolivia. Therefore, duties will not be assessed on importers of record as of Jan. 1, 2007.

Under the new bill, the ATPDEA will be extended for six months for Colombia, Peru, Ecuador and Bolivia, followed by another six-month extension for each country only if the United States and that country complete their legislative processes to approve a free trade agreement (FTA).  The additional six months could be used to finalize implementation procedures.

Peru and Colombia have completed free trade agreements with the United States, but the U.S. government has not yet approved them. Once the president submits a free trade agreement to Congress, lawmakers have 90 days to ratify the agreement with no amendments. It is almost assured that the FTA with Colombia will be ratified next year, granting permanent duty-free status to flowers from Colombia.

Ecuador and Bolivia have not completed FTAs with the United States. It took the United States and Colombia almost two years to reach an agreement on an FTA, therefore prospects for an FTA with Ecuador in six months appear slim. The recent election of Rafael Correa as Ecuador's new president makes the chance of an FTA even more remote, since he has expressed opposition to an agreement. If an FTA is not ratified with Ecuador, importers of record will have to pay duties on Ecuadorian product on July 1, 2007.

--Vanessa Machir
vmachir@safnow.org

 
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Wanted: Your New Year's Resolutions

It's the season to share with friends and family. Why not share your business resolutions with fellow E-Brief readers? Send us your best ideas and we'll print them in our special year-end edition of E-Brief. And, if you made a business-related resolution last year, tell us what it was and how it turned out.

E-mail your resolutions to mwestbrook@safnow.org. Please include your name, business name and location.

After the holidays, if you still need a little inspiration, check out "Resolve to Be More Profitable" by Kevin Murray, CPA, in the January issue of Floral Management magazine, arriving in your mailbox during the first week of January.

--Mary Westbrook
mwestbrook@safnow.org

 
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AFE Launches New Web Site

The American Floral Endowment (AFE) recently launched a redesigned Web site, which has been two years in the making. The new site will be easier to use and will put more emphasis on the group's research, according to AFE representatives.

"We needed an identity makeover," says Paul Bachman, an AFE trustee, who sees the Web site as a way to heighten AFE's profile.  "We need to clarify what we do, and make sure that people understand that this is the place they can go to support research and education, and find out what is going on."

In the redesign/launch, AFE, a non-profit funding source for floricultural research in the United States, focused on expanding the site's Scientific Research section, which contains information on currently and previously funded research, as well as detailed research reports. 

To make the Web site more user-friendly, AFE also added a page dedicated to links to floriculture research -- www.flora-links.org.

"The Web site can be kind of a cornerstone for both the endowment's image and the dissemination of information," says Bachman. "It's a step in the right direction."

--Vanessa Machir
vmachir@safnow.org

 
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Students Craft Business Plans for W.J. Cowee

Eight high school students in Berlin, N.Y., are getting a chance to tackle problems usually handled by MBA students, thanks to a partnership between a local school and W.J. Cowee, a manufacturer of wooden floral picks and plant stakes.

Through the Cowee Program at Berlin High School, the students have been developing strategic business plans to expand sales of Cowee products into the United Kingdom and New Zealand next year. The students, who are divided into two teams, will present their plans live on local radio station WAMC in January. The winning team will split a $1,000 college scholarship, courtesy of Cowee.

"Sometimes, we miss a simple and elegant solution to issues because we are jaded, or we are using our prior experiences, which in turn forces us to limit our creative thinking for new challenges," says Brian E. Suslak, president and CEO of Cowee. "A student that is not limited by 'history' has the opportunity to hatch a fantastic idea."

The annual program began three years ago after "educators in the district challenged W.J. Cowee to recommend how they might best help their students establish skill sets for jobs of the future," Suslak says. "We came up with this program so that today's students could employ their basic skill sets in data gathering, writing, math, geography, comparative cultures, etc., and tie them all together in a real world case study involving international commerce."

Educators from Williams College and Rensselaer Polytechnic Institute teach most of the course, although Cowee executives have been guest lecturers for three to four specific classes, Suslak says. The school selected the participating students, who take the course as part of their normal curriculum, based on their interests and academic credentials. This year, the course's focus was more international than it has been in the past, with students researching global commerce to market Cowee's Kolor Stix, 18-inch design stakes that come in six colors, internationally.

"We have modified the course objective from two years ago so that it is more broad-based as a business class on international trade and commerce, and not just oriented to U.S. manufacturing/engineering," Suslak says.

If the ideas stick, Suslak says Cowee is prepared to put its corporate name behind the student-generated plans.

--Mary Westbrook
mwestbrook@safnow.org

 
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IRS Increases Number of Small-Business Audits

It's not your imagination: The Internal Revenue Service (IRS) is paying more attention to small-business owners, according to Commissioner Mark Everson, as reported by the Chicago Tribune.

In a telephone news conference in late November, Everson explained that the IRS has increased audits of so-called S corporations by about a third, to almost 14,000. S corporations, generally, are small businesses in which profits "pass through" to the owners, who report them on their personal tax returns.

The trend means that florists need to be even more aware of their financial processes, says Kevin Murray, CPA, a frequent contributor to Floral Management magazine.

"They (the IRS) really in the last couple of years have increased the number of audits of S corporations substantially, because those are the ones who have the potential to take money out of the business in an undocumented manner," he says.

Taxpayers who make more than $1 million also are being audited slightly more frequently, according to the story. Audits of those people rose from 12,835 to 17,015; however, since the number of millionaires is growing the change reflects only an increase from 6.1 percent to 6.3 percent.

About 1 percent of all taxpayers face audits.

Read about one florist who got audited -- and survived.

--Mary Westbrook
mwestbrook@safnow.org

 
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Home Depot CEO Denies Buy-out Rumor

Home Depot representatives are denying rumors that the company is about to be bought out by two private equity groups, according to a recent story in the Atlanta Journal-Constitution.

"It's simply not true" Home Depot CEO Robert Nardelli was quoted in the newspaper as saying at a meeting in Atlanta, adding that, "On any given day, we are running the numbers on lots of other companies. Somebody is probably running numbers on us, too."

Reports have been circulating recently that Kohlberg Kravis Roberts & Company (KKR) and Texas Pacific Group Ventures are exploring a $100 billion leveraged buy-out of Home Depot, whose common stock rose nearly 4 percent on Friday. The Financial Times reported that these speculations have been circulating for weeks following a slump in Home Depot's shares, due to a slowdown in the U.S. housing market.

Private equity firms such as KKR and Texas Pacific buy and sell companies, paying with a small amount of their cash and borrowing the rest. Large buyout firms, with funds of $10 billion or more, often crunch numbers on large companies to see if they are viable buy-out candidates.

Should the buy-out take place, it would be more than twice the size of the largest private equity deal in history, last month's $36 billion takeover of Equity Office Properties by Blackstone.

Media representatives of KKR and Texas Pacific declined to comment.

The Home Depot, the world's largest home improvement retailer, has 2,104 retail stores throughout the U.S., Canada, and Mexico.

--Vanessa Machir
vmachir@safnow.org

 
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For Branding Tips, Look to Santa

Consumers around the world can tell you in a heartbeat what color fashions he wears (red and white). His catchphrases are simple to remember: "Ho, ho, ho." His service (delivery around the world, all in one night) rivals Nordstrom. You haven't guessed whom we're talking about? 'Tis the man of the season: Santa.

Santa's got branding -- that all-important marketing tool -- down, according to a tongue-in-cheek story in Forbes magazine. How does he do it? Let us count the ways (courtesy of Forbes):

• He builds positive brand loyalty by consistently delivering a brand promise. (He doesn't tell his customers that their request is on back order, he delivers.)

• He meets high-performance standards by maintaining a pool of happy elves. (He keeps current on human resources practices to retain top talent.)

• He knows his audience, through that all-important "naughty and nice list" as well as personal letters from his customers. (He practices a bit of niche marketing, too -- delivering only to the good little boys and girls.)

• He makes himself visible in the marketplace, not only by making personal appearances and teaming up with retailers, but with frequent appearances in movies and TV.

And, one of the most important branding tips from Santa? Service with a smile.

--Mary Ann Barton
mbarton@safnow.org

 
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Chaplains Join Corporate Workforce

To help with employee problems and human resource issues, corporations are bringing chaplains into the workplace, according to a recent story in The New York Times. While no official statistics exists -- chaplain programs are voluntary and confidential -- David Miller, executive director of the Yale Center for Faith and Culture, told the Times he estimates that 600 to 700 U.S. companies now have chaplains, twice as many as five years ago.

"Someone who has never thought about this might assume they pray with people, but the majority of the job is listening to people, helping them with very human problems, not one big intensive religious discussion," Miller, the author of the book "God at Work," said to the Times.

The most popular programs mimic the military's model, with chaplains who are able to serve a religiously diverse workforce. The programs, experts say, are less costly than more traditional employee assistance programs, such as referrals and counseling. Many chaplains, too, are available to help employees with hospital visits, emergency housing needs or family troubles. Most corporate chaplains are local, ordained ministers, retired community members or church pastors. A smaller segment is made up of imams and rabbis.

The programs are particularly popular in the South, but the idea is spreading, according to the Times story. Tyson Foods, for instance, headquartered in Springdale, Ark., has 127 chaplains at about 250 of the company's more than 300 plants in North America.

Kim Bobo, executive director of Interfaith Worker Justice, an advocacy group for low-wage workers, told the Times that her group "had no qualms with what chaplains do, but she questioned the issues they did not take up."

"The thing that is challenging when working in meatpacking and poultry is that you're talking about places that have major violations in labor law," Ms. Bobo said. "The chaplains do absolutely nothing to challenge those laws and stand with workers -- and they can't because they work for the employers. I do think they could do more to put themselves in an ombudsman role."

--Mary Westbrook
mwestbrook@safnow.org

 
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Florist Dave Ferrari Leaves Star-Studded Legacy

Florist -to-the-stars Dave Ferrari died Dec. 1 in his Santa Cruz Home. He was 92.

Ever loyal to his trade, the announcement for the founder of Ferrari the Florist's memorial service read, "Flowers only, please." Ferrari did not begin his professional life as a florist, but as an accordion player who entertained at local weddings and dances, according to the Santa Cruz Sentinel. He was drafted into the army during World War II; upon his return, he took a nine-month apprenticeship with a florist in San Francisco and then opened his floral shop in 1946.

Although going into business "scared the hell out of me," as he told one Sentinel reporter, he had a knack for it.  He catered to celebrities like Alfred Hitchcock, and when he retired in 1978 his shop was rated among the top florists in the country. 

Now called Ferrari Florist & Gifts, and owned by Sharon Richardson, the shop celebrated its 60th anniversary this September.

--Vanessa Machir
vmachir@safnow.org

 
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California Florist Adelaide's Raises Funds While Celebrating 70 Years

Gina and Harry Phillips

Adelaide's Florists & Decorators of La Jolla, Calif., tweaked the store's annual anniversary open house last month. In a tribute to her father, Harry W. Phillips, Jr., AAF, forced to retire last year due to the onset of Alzheimer's, owner Gina Phillips donated 10 percent of the store's open house sales to the local Alzheimer's association. Adelaide's is named for Harry's mother, Adelaide Phillips, who started the business.

Nine neighboring business owners, who have piggybacked onto Phillips' open house over the years, caught the fund-raising spirit. "This year I approached each merchant," Phillips said, "and told them that we were going to add a twist." The only way they'd be able to participate was to agree to donate a portion of their day's revenue to a local charity. They all agreed.

Adelaide's donated more than $2,000 to the local Alzheimer's chapter, and an anonymous donor was inspired to give $50,000 in honor of Phillips' father to help with respite care for the people that can't afford it. In addition to the open house proceeds, Adelaide's customers donated in amounts from $100 to $1,000 (she set out a bubble bowl with envelopes and information about the disease). A story published the day of the open house, in the San Diego Union-Tribune, helped ensure a great turnout of more than 5,000 people, who visited Adelaide's and the other nine shops. Getting her story in the newspaper "was not easy," says Phillips, who said that because she doesn't advertise in it, "I didn't think they'd give us the time of day."

Phillips combed through the paper for weeks prior to the event, "to see where we might be a good fit, since we were adding a charity twist...and it was our 70th year in business, three generations and 57 years in La Jolla (it got started in nearby Encinitas)." She phoned a features editor and followed up with an e-mail and a press release.

"After about a week, the editor called me back and told me that they were going to have [reporter] Ozzie Roberts do an article in the paper and he would be calling me. I just about jumped out of my skin and thanked him profusely," Phillips says. The reporter told her he did not like writing stories that promoted businesses, but he came out to interview her and ended up staying for four hours, Phillips says. She also contacted the paper's society columnist. When she didn't get a response, she thought nothing would be published, but an item about Adelaide's open house came out the day before the event.

"It was a lot of work, but worth every bit of time," Phillips says. "People still stop me in the street and in other stores to ask me about my dad and how he is doing. This was truly one of the best open houses we have ever had."

Have you added a charity twist to any recent events? Send your news to mbarton@safnow.org.

--Mary Ann Barton
mbarton@safnow.org

 
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SAF Responds to Real Simple Magazine

In the "Your Guide to Gifted Giving," the December issue of Real Simple magazine advises consumers: "What not to give: foil wrapped poinsettias are clearly passé."
 
Dot Perry of Gordon Florist in Baltimore, Md., spotted the remark and contacted SAF. In turn, SAF sent a letter to the magazine's editor: "While SAF understands and appreciates the need to provide readers with a variety of new and interesting gift choices, the remark seems unfair and unnecessary as your advice could have stood on its own without the negative comparison. You may also want to consider that the remark may offend other readers -- those who enjoy giving and receiving poinsettias. The festive plant is a longstanding favorite, with between 70 million and 80 million typically sold for the holidays." 
 
At press time, SAF had not received a response from Real Simple.
 
To report negative publicity, email jstromann@safnow.org, or fax it to (703) 836-8705.

--Vanessa Machir
vmachir@safnow.org

 
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Member Uses SAF Research to Promote, Enlighten

Looking for a new way to reach out to corporate customers? Maybe Joyce Gubata of Leaf & Petal in Medfield, Mass., can help. About a year ago she started her "Welcoming Spaces" program, which aids in improving office atmosphere through floral decorations.

Companies that think their offices need more personality call Gubata, who goes to the office for a consultation. Once the company decides what it likes, she brings in a combination of fresh and permanent flowers and plants to lighten the mood. Prices run from less than $100 to more than $1,000, depending on what the company wants.

Gubata says an SAF study -- Flowers & Plants on Workplace Productivity -- inspired her to start the program, along with a desire to expand her corporate client base.

"I really leveraged SAF research," says Gubata, who uses the study's findings -- that the presence of flowers improves workplace performance and efficiency -- to help promote the program.

She also has found SAF research to be useful in helping others realize the power of flowers. During a talk she gave on the overall value of flowers as gifts at a networking group, she cited SAF's Flowers & Seniors Study, mentioning that giving flowers to the elderly helped improve mood, socialization, and memory, and that the best way to give flowers was as an unexpected gift. Directly after the presentation, one member of the group sent his grandmother flowers.

"He reported to the group at the next meeting that she was overwhelmed upon receiving the flowers and even cried," Gubata says. "She was so touched that he was thinking of her and took the time to do something for her."

--Vanessa Machir
vmachir@safnow.org

 
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San Diego Readies for Poinsettia Bowl

It may not be the biggest game of the college football bowls, but the San Diego County Credit Union Poinsettia Bowl will be the first: It's scheduled for Dec. 19 at 8 p.m. EST and will be televised nationally on ESPN-2.

ESPN is calling this year's game -- between the University of Northern Illinois Huskies and the Horned Frogs of Texas Christian University -- "one of the most intriguing match ups in the non-BCS (top 8 teams) bowls."

The National Collegiate Athletic Association (NCAA) announced in April 2005 that it would bring the Poinsettia Bowl to San Diego, which also hosts the Holiday Bowl. The late Paul Ecke Jr., AAF, of the Paul Ecke Ranch in Encinitas, Calif., wanted the first San Diego bowl game in 1978 to be the Poinsettia Bowl, but the NCAA picked "Holiday Bowl," instead, according to the San Diego Union-Tribune.

Last year, Paul Ecke III told E-Brief: "We're proud that the NCAA chose a name which reflects the important role our plants have played in creating an identity for San Diego County during the holiday season. Everyone at the ranch is excited about this opportunity to showcase our poinsettias to a national audience through such a high-profile event."

Each year, SAF gives the Paul Ecke Jr. Award to a person in recognition of exemplary devotion to profession, industry and community. For more information contact Debi Aker at daker@safnow.org.

- Mary Westbrook
mwestbrook@safnow.org

 
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Oops.... we made a mistake.

In the November 28 issue of SAF's Dateline newsletter, we incorrectly listed the price for the new FloraTrac program. After the initial free enrollment period (which runs through early next year), a low monthly fee of just $9.99/month will apply. Find out more about this powerful easy-to-use new business measurement tool for retail florists.

 
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Product Spotlight: Retail Pricing Worksheet

Without accurate pricing, your designers may be overstuffing arrangements, and that costs plenty. Let SAF do the math for you. With SAF's Retail Pricing Worksheet, you just plug in your flowers, their wholesale prices, and your markup into a Microsoft Excel spreadsheet file and the worksheet calculates the prices for you. Easy-to-follow instructions walk you through the process. Many florists have used this tool to significantly reduce their cost of goods sold  (COGS), saving thousands of dollars a year. Best of all, it's free to all SAF members. Try it out.

--Vanessa Machir
vmachir@safnow.org

 
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Talk on The Forums

One member asked the following questions recently on SAF's Discussion Forum:

"I was wondering how do other florists handle donation requests? Also, when doing centerpieces for charity events how do other florists handle requests for donated centerpieces politely. Some of these events are attended by people who we want to have as customers so I would like the exposure, but will donating pay off with paying customers down the road?" Have some advice?

Also on the forums:
Stargazer lilies

Terra Wholesale

Start your own discussion.

--Vanessa Machir
vmachir@safnow.org

 
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Where to Find Holiday Help

About 55 percent of readers who responded to last week's e-poll said that former employees are their best source for holiday help. Eleven percent said that students are their best source; 11 percent said that relatives are their best source; and six percent said that customers are their best source. Seventeen percent of readers reported that they use other sources for holiday help.

Read more about holiday hiring.

--Vanessa Machir
vmachir@safnow.org

 
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Who's Selling Painted Poinsettias?

More rural shops offered painted poinsettias than suburban and urban shops.

Source: January 2006 Online Zoomerang Survey. Based on 315 responses from retail florists with e-mail addresses--response rate of 13 percent.

--Ira Silvergleit
isilvergleit@safnow.org

 
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