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HEADLINES
CustomInk Apologizes for Negative Portrayal of Flowers
A recent e-mail promotion sent out by CustomInk LLC encouraged recipients to "forget about chocolates & flowers" for Valentine's Day. A member brought the e-mail to SAF's attention and SAF contacted the company's corporate offices on Jan. 31. Within a few hours, SAF had an e-mail response from CustomInk President Marc Katz.
"Thanks very much for the constructive criticism," Katz stated. "We were, of course, aiming for tongue-in-cheek and did not mean any harm or offense to florists or other businesses (especially those who are our customers!) but we didn't fully appreciate how the e-mail could come off. I'm sorry, and we will remember this lesson for future campaigns."
SAF is the voice of the industry and responds to instances of harmful floral publicity. Alert SAF to negative floral references by faxing (703) 836-8705, e-mailing jstromann@safnow.org or calling (800) 336-4743.
--Morgan Schimminger
mschimminger@safnow.org
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Floral Expenditures Stay Stagnant for Valentine's Day
Consumers may be shelling out more for Valentine's Day this year than they did in 2007, but florists won't necessarily be the ones to benefit. The National Retail Federation (NRF) predicts the actual amount spent on flowers will remain almost stagnant at around 36 percent of the total Valentine's Day budget (see chart below).
According to the NRF's 2008 Valentine's Day Consumer Intentions and Actions Survey, consumers will spend $122.98 for their loved ones, up from $119.67 in 2007.
The federation's annual poll, conducted by BIGresearch, indicates a little more than 61 percent of respondents plan on celebrating the holiday this year, down slightly from the previous year's 63 percent. Slightly more women than men, almost 63 percent versus close to 60 percent respectively, are set to mark Valentine's Day in 2008.
Candy, cards or an evening out seem to be the top choices for 2008, with flowers ranking fourth, according to the survey. Nonetheless, the male population as a whole seems to favor giving flowers on Valentine's Day: More than 58 percent of men are counting on showing love to their sweeties by sending flowers.
The dollar amount respondents are willing to shell out this year for the non-romance categories of recipients such as friends ($23.89), family ($38.27), classmates and teachers ($22.18), co-workers ($25.93) and pets ($15.37) is slightly higher than the past year with the exception of family members which stays about the same.
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Who's Planning on Buying Flowers for Valentine's Day? |
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Source: The National Retail Federation's 2008 Valentine's Day
Consumer Intentions and Actions Survey (8,447 consumers polled
from Jan. 2-8, 2008). |
--Morgan Schimminger
mschimminger@safnow.org
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I've Got Five on It
 The Bureau of Engraving and Printing is offering tips for business owners and banks for recognizing the new $5 bill, which is set to be issued on March 13.
Businesses that deal in cash should "start training employees on what security features to look for in the new $5 bill, before they start seeing it in their cash registers," Dawn Haley, chief of the Office of External Relations at the Treasury's Bureau of Engraving and Printing, says in a release. Businesses that operate machines that take $5 bills should have the manufacturer adjust the machine to accept the new design.
The new bills include two new watermarks and an enhanced security thread that will help businesses and consumers validate the new bills, according to the bureau.
To download educational materials or explore an interactive presentation to become more acquainted with the new $5 dollar bill, visit http://www.moneyfactory.gov/newmoney/.
The announcement of a new $100 bill is also expected, although an official date has yet to be set.
--Kori Kamradt
kkamradt@safnow.org
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1-800-Flowers Updates 2008 Revenue Outlook
1-800-Flowers.com, Inc., has adjusted its 2008 revenue outlook thanks to a "challenging consumer economy." Despite lowering its revenue expectations, the company still plans to see the earnings per share grow anywhere from 30 percent to 35 percent from 2007's earnings of 26 cents per share.
"Based on a weakening consumer environment, we reduced our revenue gross expectations for a range from 2 to 4 percent for the full year," states Joseph D. Pititto, vice president of investor relations for 1-800-Flowers.
The new estimate suggests revenue of $930.9 million to $949.1 million. Valentine's Day and Easter are included in the current third quarter and typically represent 23 percent to 25 percent of the company's full-year revenue.
--Morgan Schimminger
mschimminger@safnow.org
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NEWSMAKERS
CNN Report Features SAF/FPO Home Ecology Study
CNN referenced a sizable chunk of the Home Ecology of Flowers Study in its Feb. 2 report, "Health for Her: Shaking off morning blahs." Reporter Judy Fortin states that having fresh flowers in the home is "a surprisingly easy way to improve not just your morning, but your entire day."
The story also mentions looking at bright lights, drinking coffee and getting seven to nine hours of sleep as ways to make mornings better. The last section of the story focuses heavily on the benefits of flowers and includes an interview with the Home Ecology Study's lead researcher, Nancy Etcoff, Ph.D., of Massachusetts General Hospital and Harvard Medical School.
"We found that after living with flowers for just a few days in the home, people felt more compassionate, they felt less anxious, less worried and less depressed," Etcoff says in the report. "Interestingly, people loved to look at the blooms first thing in the morning."
The CNN report even highlights the study's coverage on SAF's consumer Web site, www.aboutflowers.com, and encourages viewers to take some time to "stop and smell the roses." Click here to watch the CNN report.
The Home Ecology of Flowers Study and media pick-ups of its findings are a direct result of strategic public relations conducted by an alliance of SAF and the Flower Promotion Organization (FPO).
Hometown newspaper and magazine editors and local TV and radio news producers thrive on turning national news items into community stories. Capitalize on the Home Ecology of Flowers Study to generate local news coverage for your shop. SAF members can access customizable press releases on the Home Ecology of Flowers Study.
--Morgan Schimminger
mschimminger@safnow.org
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Media Says: Flowers Lead Toward "Better Bottom Line"
Flowers can be a great workplace "stressbuster." That's what an article in The Morning Call newspaper, in Allentown, Pa., told readers on Jan. 29.
"Naturalizing the workplace can lead to more productive workers and a better bottom line," Joanna Poncavage tells readers, touting SAF's Impact of Flowers & Plants on Workplace Productivity Study.
"Recent scientific research at Texas A&M University found that ideas, creative performance and problem solving improve substantially in places with flowers and plants," Poncavage says.
In 2003, SAF partnered with an internationally recognized research team at Texas A&M University to learn how flowers and plants in the workplace impact productivity and problem solving.
"The Texas A&M research is a great sales tool to help convince businesses why they need flowers," says Jennifer Sparks, SAF's vice president of marketing. "Commercial accounts represent a profitable market for florists, and while they do require some upfront efforts, the long-term rewards are significant."
Sparks adds that members can capitalize on the Texas A&M study, along with other research with digital tools, customizable press releases and professional materials available for order such as the B2B Kit, B2B Portfolios, and B2B Postcards.
--Kori Kamradt
kkamradt@safnow.org
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Florist Uses Home Ecology Study, Promotes Flower Initiative
Joyce Gubata is a woman on a mission. The owner of Leaf and Petal in Massachusetts is determined to make consumers realize that flowers should be a daily part of their life. So she's investing around $3,600 in product and labor to get her point across, by delivering a free single rose to each of the more than 8,000 households in Walpole, Mass.
"We really wanted people to try to think about flowers differently," Gubata says. "For what you spend on coffee, you can have flowers in your house 365 days a year."
The single roses come with a pamphlet proclaiming "Flowers are for everyday." The pamphlet also promotes the "Flower Fund," a new organization Gubata created to spread cheer and provide encouragement to people facing troubled times. The fund also raises awareness of the positive health benefits of fresh flowers. Gubata and her team have just begun delivering the roses and so far, the response has been great. She estimates the campaign should wrap up by the summer solstice, June 21, when she'll hold a Flower Day raffle at her Walpole store (one of her two locations, the other is in Medfield, Mass.) to benefit the fund.
Tickets for the raffle are available at each of Gubata's two locations, and the winning prize is 12 monthly deliveries of flowers. Change collection boxes will also be set up on the counters of her flower shops and Gubata is working on putting together a volunteer committee to run the Flower Fund.
Gubata used the SAF/FPO Home Ecology of Flowers Studyto develop a whole marketing campaign around the positive effect of flowers. Gubata has also relied on SAF's Flowers and Seniors Studyand Plants in the Workplaceto help propel her business. Visit the Industry Promotionsection of the SAF Web site for more information.
--Morgan Schimminger
mschimminger@safnow.org
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LIFE AT WORK
New Option for Healthcare Expenses
A new healthcare option might provide an alternative for the estimated 77 percent of small business owners, according to washingtonpost.com, that do not offer their employees health insurance plans.
Visa has introduced the first-of-its-kind Healthcare Gift Card, a card that employers can buy for their employees, or for anyone who wants to buy someone health insurance.
Dollar increments for the gift card range from $25 to $5,000 and it can be used to cover co-pays at: “doctor’s offices and pharmacies; dental care, including braces and teeth whitening; vision care, including eye exams and prescription sunglasses; memberships at health clubs; and elective procedures such as Lasik and cosmetic surgery.” (According to the gift card’s Web site, http://www.givewell.com/.)
The cost of the card is $4.95 and it can be ordered online; shipping and handling charges are not included.
SAF members should also keep in mind another form of healthcare expense savings: SAF’s participation in the ScriptSave healthcare savings program, which affords SAF members and their employees a discount on prescriptions that are either: a) not already covered by their health insurance; b) if they do not have health insurance; or, c) their health insurance does not include prescriptions. The ScriptSave discount card gets members a reduced rate on eye exams and lenses at participating locations such as Lens Crafters and other big chain eye care stores.
--Cassandra P. Foster
cfoster@safnow.org
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BELIEVE IT OR NOT
Actor Ashton Kutcher Discovers His Inner Florist
RTE Entertainment reports that actor Ashton Kutcher has successfully pitched Columbia Pictures on a modern-day version of the film 'Shampoo'— set in the world of a florist.
Kutcher, who pitched the idea with 'Hitch' writer Kevin Bisch, will star in and produce the film, which RTE describes as a "romantic comedy." According to the Internet Movie Database, the film is slated for 2008 and it is tentatively called "The Arrangement."
--Kate F. Penn
kpenn@safnow.org
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VALENTINE'S DAY NOTEBOOK
Flowers Are a Guy's Best Friend
Your male customers who may be feeling clueless about how to use flowers to get on a woman's good side now have a new tool at their fingertips. Just in time for Valentine's Day, the Netherlands Flower Bulb Information Center (NFBIC) has created http://www.savedbythebud.com to help men navigate through the flower-buying process, with flash video demos, information, illustrations and a dose of common sense to men in need of assistance.
Citing SAF data, Sally Ferguson, director of the NFBIC, says that, although men make more than 60 percent of floral purchases at Valentine's Day, compared to 22 percent overall, "they still don't know what they're doing, and they're not getting the idea that flowers can be their friend year-round."
Savedbythebud.com is filled to the brim with practical advice, including real-life scenarios such as "You're in the Dog House" or "She's Visiting You." The NFBIC site emphasizes popular bulb flowers, but also provides information on a variety of other flowers. Ferguson says its ultimate goal is to promote flower awareness while helping men better interact with women.
--Morgan Schimminger
mschimminger@safnow.org
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TRENDS AND TIPS
Eco-Consciousness Continues to Expand
Eco-friendliness continues to move more and more into the mainstream, as indicated by last week's coverage of Sam's Club's fair trade flowers and now, mega-housewares-retailer Crate&Barrel's rollout of its bamboo collection. An e-promotion for the new line touts that its "eco-friendly bamboo is more than a cutting board" and includes decorative and furnishing items for the home and office.
This is likely no surprise to the National Retail Federation, which, in a special insert to its January issue of Stores magazine, cites "social responsibility" as the No. 1 among "10 Trends in Global Retailing." With increased media attention on the topic, the author writes, some consumers are willing to pay a premium for products produced or distributed in a socially responsible way. At the same time, many governments are providing tax incentives to companies for "going green," and some companies, hopeful to get ahead of the competition on the issue (and be prepared should the government start taxing carbon emissions) are adopting eco-friendly practices.
That article also points out that, with increased globalization and reduced trade barriers, retailers of perishables are becoming increasingly concerned about safety in their supply chain. Having a reputation for social responsibility "will likely enhance the brand equity of retailers."
--Kate F. Penn
kpenn@safnow.org
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Answers to Your Burning Tax Questions
As tax time approaches, and the new Earned Income Tax Credit (EITC) has employees scrambling to see if they’re eligible for a refund, take advantage of the IRS’s online resources to help you answer your tax-related questions:
• 1040 Central
You’ll be able to look up changes to the tax laws, specifics on the alternative minimum tax, and advice on how to select a tax preparer. Also, this page links to a variety of the most frequently used tax forms and their instructions.
• Earned Income Tax Credit
This link spells out the criteria needed for the EITC and provides information specific to individuals, employers, partners and tax professionals about the refund.
• EITC Information for Employers
Employers can search through many EITC resources here, including marketing and communication tools and payroll advice.
• Telephone Excise Tax Rebate
This page explains the rebate on collected taxes for long-distance telephone services, which was “a one-time payment available on your tax year 2006 federal income tax return.”
• Split Refund
Business owners will find information on how to have the IRS directly deposit your 2007 federal income tax refund into your multiple checking or savings account.
• Where’s My Refund?
Employers can track their refund on this page and get the answer to the question, “I paid my taxes, now where is my money?” (This tracking service is available in English and Spanish.)
• Electronic IRS
This is the IRS’s one-stop shop for everything you can do online including completing forms, searching IRS.gov, paying electronically, and more.
--Cassandra P. Foster
cfoster@safnow.org
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Louisiana Florist Markets Kiosk, Network
Milton Vallaire wants to reconnect the local retail florist with its customers.
During the last 20 of his 45 years in the floral industry, Vallaire, of Weathers Flower Market in Slidell, La., has seen the customer gradually pull away from the local retail florist, something he hopes to change with his new kiosk.
"Something I realized about 15 years ago is that the floral industry was going to the pot," Vallaire says. "I thought, there has to be a better way for florists to sell flowers."
So in 1999 Vallaire, who has one location and six employees, got a patent for an idea he had been pondering since the mid-1990s: an automated vending cooler that could be placed in hospitals, airports, malls, hotels and other strategic locations offering both cash and carry arrangements and delivery options.
After testing out the kiosk (called the "24HourFlorist") and working out all the kinks, he began marketing it, along with his florist network, Worldwide Flowers Direct, to other florists in September 2007. The kiosk costs $20,000, which includes shipping and set-up fees, plus $69.95 a month for support, including automatically downloaded promotional videos which change seasonally.
The kiosk features a 17-inch touch screen monitor that shows instructions for buying an arrangement to go or for delivery. Customers who opt for delivery put in the recipient's ZIP code and the kiosk searches a database for a florist in that area.
"If there is no florist (with a kiosk or in the network) in that ZIP code, our system pulls up a general price list from our main office," Vallaire explains, and he sends it directly to a florist in the ZIP code. "We hand process the order and use it to try and bring in a new member from the desired ZIP code." Members of the Worldwide Flowers Direct network pay $29.95 per month, three months at a time, or $89.85 a quarter.
Vallaire says the three florists who've purchased the kiosks do, on average, about 75 percent cash and carry sales and 25 percent for local delivery and outgoing orders. He adds that location of the kiosk can make a major difference on this ratio however, explaining sales at an airport would skew heavily toward delivery, while sales at a hospital would be mainly cash and carry.
Kiosk owners receive 100 percent of cash and carry orders and orders for delivery in their ZIP code, and 20 percent of orders sent to delivering florists outside of their ZIP code (the filling florist gets 80 percent). Customers are charged a $10 processing fee on top of the arrangement price; the owner of the kiosk will receive $6, while Worldwide Flowers Direct will receive $4.
"It's all very simple. There are no hidden fees," Vallaire says.
Vallaire's network is small — just 15 member florists in the U.S. But he is hopeful that number, as well as well as the number of kiosks in use, will grow. "We'd hope to see by year's end, 15 to 75 coolers roll out and 500 florists in our order-filling network," he says.
For the past 15 months, Suzette Callais of Especially For You, LLC, in Hammond, La., has been operating a kiosk at a local hospital and she says it's done "wonders" for her business.
"Anywhere I get the Internet, I can go on to see what's been sold, how long product has been in the cooler, and I can print orders out and hand it to my delivery guy," Callais says. "I haven't had any problems." She restocks the kiosk coolers regularly, from at least once a day to a few times a week.
Though she declined to say exactly how much business the kiosk has brought the shop, Callais says she's already recouped her investment. She says it's also helped get her name out locally because potential customers walk by the kiosk at the hospital everyday and see her store's name, address and telephone number.
"It's like having a billboard that sells flowers for you," Callais says.
--Kori Kamradt
kkamradt@safnow.org
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MARK YOUR CALENDAR
On the Horizon
• Valentine's Day: Feb. 14, 2008 — prepare by visiting SAF's Valentine's Day Resource Center.
• SAF's Congressional Action Days: Feb. 25-26, 2008, in Washington, D.C. Register online.
• SAF's Pest Management Conference: Feb. 28-March 1, 2008, in Atlanta. Register online.
• SAF Palm Beach 2008: Sept. 17-20, 2008, at The Breakers in Palm Beach, Fla.
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REGULAR FEATURES
Reader Feedback
Early Success for ‘Black Market Designs'
In case you were questioning the viability of marketing floral arrangements that start at $150, Manny Gonzales of Tiger Lily Florist in Charleston, S.C., says his new premium collection, “Black Market Designs” — as reported in the Jan. 30 issue of E-Brief — is showing some early signs of success.
He says that although the new line’s scheduled released date was Friday, Feb. 1, he received an inquiry from a customer who “begged us to do [an order] on Wednesday.” The client purchased a $150 pavé style arrangement, and Gonzales says he received a thank you from the customer saying: “Thank you for the wonderful weekend in Paris.”
That’s proof, Gonzales says, of the program’s success. “That’s the client we were wondering whether they were out there ... they begged” for us to meet their needs early because they couldn’t wait until Friday, he says.
Fair Trade, Fair Treatment
Sue Morgan, a student in floral design in Minnesota and a part-time employee at a local flower shop, read the “Sam’s Club Now Offers Fair Trade Roses Online” story we ran in the previous issue of E-Brief, and she says that fair treatment of workers in United States should be of primary importance — not just those of workers in other countries:
I read some of the information related to Fair Trade Flowers in your latest edition of the SAF newsletter. I do consider myself a proponent of Fair Trade, and human rights advocate, however I make an effort to support our local U.S. economy and citizen well-being foremost. As I break into this floral industry, having been in the corporate world for over 30 years, I’m appalled at the conditions U.S.A. floral shop owners and workers work in, and that few provide health and retirement benefits to their workers.
The wages of the U.S. floral industry are depressed, with most floral workers making less than $10 an hour, most positions are part-time, unless you own your own shop, then the hours are overwhelming. Health and retirement benefits are almost non-existent. The value of additional floral education is rarely supported with increased wages or with reimbursement by small floral shops.
I feel it is an injustice that large corporations such as Wal-Mart (whose own U.S. employees make barely over minimum wage), are supporting an effort to give workers in another country paid maternity leave for over 12 weeks, and are concentrating on improving foreign work conditions. Few floral shops in the U.S. make basic benefits available for their U.S. work staff.
Below is an excerpt from an article from one of the links to your article.
“Over 90 percent of gift flowers in the US are given to women. In addition to fair wages, Fair Trade certification requires the farms provide employee benefits including 12 weeks paid maternity leave and childcare. In response to the required guidelines, some Fair Trade Certified flower farms have given many supervisory positions to women, which represents an enormous shift. Thanks to your purchase of Fair Trade Certified flowers, women worldwide have the opportunity to equal access of employment.”
I believe we need to concentrate on improving the wage and benefit levels of the floral jobs at home, prior to improving those of another country.
Response to Rachel Ray Show
After reading the previous week’s coverage of Valentine flower-buying advice given on “The Rachel Ray Show,” Jody Brown-Spivey, OCF, of Expressions Floral Design Studio in Columbus, Ohio, wrote to Rachel Ray and her staff to thank them for suggesting florists as a source for a quality, dependable Valentine’s and year-round gift giving experience. She also took the opportunity to clarify some information given during the show:
“Even though Rebecca [a gardening expert who was a show guest] did speak very well for the florist, she is not totally correct in saying that tight buds are the best. Sometimes they are cut immature and will never open, or droop due to improper conditioning, but could be great for those who love rose buds. However my customers have grown accustomed to the special variety we carry here in the store. The most beautiful red roses that customers (even the men) come back for due to their capacity to open up and hold for 7 to 10 days. So I would say that color is a personal choice and that the best advice is to ask your florist, that hopefully you have had some experience with other that just this one day of the year."
--Cassandra P. Foster
cfoster@safnow.org
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Product Spotlight: ScriptSave
 Looking for a better way to offset prescription drug costs for you and your employees? SAF members have the option to enroll in ScriptSave, a premier prescription savings program. This no-cost prescription drug savings program is available to SAF members, their employees, and even employee's families. The program can save members an average of 22 percent on brand name and generic prescriptions with the possibility of saving up to 50 percent based on national program savings data!
The SciptSave card is accepted at more than 53,000 participating chain and independent pharmacies nationwide. ScriptSave is a great way to enhance your employee benefit package, which will help attract and retain qualified employees.
Click here to download and then print the necessary document materials.
(DISCOUNT ONLY - NOT INSURANCE. This program is not an insurance policy and does not provide insurance coverage. Discounts are available exclusively through participating pharmacies. AR, KS, SC, SD and TN residents: You may cancel your registration under this program within thirty (30) days from the date your discount card is issued).
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Discussion Forums
On the discussion board, a member was looking for "cool, modern containers" at a good price. A fellow member suggested she try www.vasesource.com. If you have another suggestion, click here.
Another member is trying to track down jewel picks that look like snowflakes to be placed in a bouquet. Have an idea where she can look?
A great interchange occurred on the discussion forums when a member posted a request for a formal contract or information sheet because their wedding business had increased. This member was also wondering if there was a software program for wedding quotes. This plea garnered a generous response from a member who offered to fax a wedding proposal. The kind gesture led several other members to ask for a copy of the same proposal! See how the members helped each other by clicking here,
Or go ahead and start your own discussion.
--Morgan Schimminger
mschimminger@safnoworg
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Florists Prepared for Bad Weather Last Valentine's Holiday
Last Valentine's Day many florists heeded the warnings of weather forecasters and took the following actions to make sure customers would get their Valentine's deliveries: Three quarters (76 percent) suggested delivery the day before Valentine's Day and nearly a third (30 percent) suggested delivery the day after the holiday. Almost half the florists in the affected areas requested alternative addresses to make deliveries, such as homes instead of work. About a third secured access to four-wheel vehicles while one in five suggested customers take orders with them or pick them up themselves. Despite weather problems, 90 percent of businesses affected reported being able to satisfy all or the vast majority of their customers.
Source: SAF Online Post Valentine's Day Survey of Retail Florists, 2007 (Based on 511 responses; response rate 14.5 percent). About 290 respondents replied to the questions concerning poor weather in their areas at Valentine's Day.
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