HEADLINES

Restaurant Pushes Fondue Over Flowers

The Melting Pot stands firm on its recent use of negative remarks about flowers in a promotion, despite SAF efforts to dissuade the company.

The national restaurant chain, known for its fondue-filled menu offerings, distributed a press release on April 17 referring to flowers as "typical gifts" that stand as "cliché sentiments" on Mother's Day. Kendra Sartor, vice president of brand development for The Melting Pot, is quoted as saying: "Flowers just sit there and look nice. ... With as busy as families are today, we want to give moms the time and opportunity to slow down, talk with their families and just enjoy spending time together." The company cites SAF data that more than 35 percent of Americans purchased flowers for the holiday in 2007.

SAF sent a letter urging the Melting Pot to highlight the company's own merits in its promotions, rather than disparaging the floral industry. In an e-mail response, The Melting Pot's PR agency defended its approach.

"Our intention in the release was not to slam the flower industry, so I apologize if this was your interpretation. We merely used flowers as an example of a 'staple' associated with Mother's Day and just wanted to provide an alternative," writes Sandy D'Elosua, senior account executive for RFB Communications Group, Inc.

This is the first of what's bound to be several efforts by competing industries to promote their own products for Mother's Day by disparaging flowers, and SAF is prepared to tackle each one. Alert SAF to negative floral publicity by faxing (703) 836-8705, e-mailing jstromann@safnow.org or calling (800) 336-4743.

--Morgan Schimminger
mschimminger@safnow.org

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As Colombian Peso Grows Stronger, Prices Go Higher

Industry buyers can expect lower supplies and higher prices as the Colombian peso continues to appreciate against the U.S. dollar. Inflation and peso re-evaluation is forcing exporters to look for solutions to stay in business.

The Colombian peso recently reached its highest point since July 1999: the exchange rate reached 1,773.05 pesos per dollar yesterday, according to Bloomberg, and is expected to rise to 1,750 pesos per dollar within the next month.

This is bad news for flower exporters whose revenue has been steadily decreasing due to the re-evaluation of the peso, inflation and rising fuel costs. According to a recent report presented by The Association of Floral Importers of Florida (AFIF), prices in the U.S. flower market have decreased by 3 percent per year (on average) since 2002, creating a cumulative 13.7 percent decrease in revenue received by farms.

"What that means is that all exporters get less money for their exports," says Jose Azout, president of Transflora in Miami, explaining the product that was once worth $100 in the U.S. is only now worth about $62.

At the same time, inflation in Colombia — which by law dictates labor costs — has driven a 31.4 percent increase in production costs. 

Further eroding margins, freight costs have also increased 61.5 percent between 2002 and 2007 due to rising global oil prices and less "players shipping boxes to the U.S.," Azout says.

All these things compounded have made it difficult for Colombian flower growers, causing some to go bankrupt, and leading others to possibly follow in their footsteps, explains Augusto Solano, president of Asocolflores, the Colombian Association of Floral Exporters. "Income has decreased, costs are going up and then there's the oil prices," he says. Farms "have already shut down this year. The situation has been hard."

To make ends meet, exporters are searching for alternative solutions. This includes increasing their production with more and newer varieties as efficiently as possible using available technology and exporting more to Europe, Solano says.

"People are trying to get better prices wherever they can," Solano explains. "People are looking at other markets willing to pay a little more to help with costs."

The bottom line, says Christine Boldt, executive vice president of AFIF, is that prices are going to be raised and that members of the industry need to understand why. "The price of getting product to the United States has increased significantly," she says. "The cost of production has gone up multiple levels, multiple times. We're not just raising the prices, the prices need to be raised."

The time for raised prices is already here, says Kevin Priest, AAF, of Cleveland Plant & Flower Company in Parma, Ohio. "So far [I haven't seen] a shorter supply but [have seen] some price increases, especially in the cost of airfreight," he says. "This is definitely affecting our landed costs and so [it is] passed along as higher selling prices."

And the consumer, adds Azout, will have to take some of the increase, because "no one in the industry can afford to absorb all the costs themselves."

--Kori Kamradt
kkamradt@safnow.org

 
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SAF Brings Business Education to AIFD

The American Institute of Floral Designers (AIFD) is adding business education to its historically design-dominated National Symposium, and SAF is a part of the new lineup.

"We wanted to offer a well-rounded assortment of educational programs," says Kim Oldis, 2008 Symposium Coordinator. "After all we are in the business of flowers and it was decided that it was time to bring together the two sides of the industry, creativity and business. And what better place to do it than at AIFD Symposium?"

The lineup includes more than a dozen floral design educational programs and a few business-building programs from SAF.

"Collaboration ... Floral Education," July 3-7, 2008, at the Chicago Hilton and Towers, will cover a wide range of topics from cutting edge design techniques sweeping through Asia and Europe to forecasting wedding and special events trends taking place throughout the United States. AIFD anticipates almost 1,500 floral design artists from around the world will attend.

"Featuring an impressive lineup of programs and presenters from around the globe, we've tailored the program to amaze, inspire and rejuvenate our attendees' passion for design," says Tom Simmons, AIFD president.

The lineup also includes these programs presented by SAF:

• The Outstanding Varieties display throughout the Symposium will feature some of the "Best in Class" and "Blue Ribbon" winners from the Outstanding Varieties Competition held during the last SAF convention.

• The July 5 Symposium luncheon program, Professional Lifesaving Lessons, features Tina Stoecker, AIFD, PFCI, who will offer ideas to enhance one's professional image; Deborah De La Flor, AIFD, PFCI, will address ways to rejuvenate the shop environment; and Joyce Mason-Monheim, AIFD, PFCI, AzMF, will present advice for becoming a positive leader. The session is hosted by SAF's Professional Floral Communicators-International. Jerome Raska, AAF, AIFD, PFCI, CAFA, MCF, is emcee.

• Kate Penn, Floral Management editor-in-chief and SAF's vice president of publishing and communications, will present "Are You Indispensable?" during the Symposium luncheon on July 6. She'll divulge successful strategies from shops across the country on how to go the extra mile to proactively increase sales, profits and, consequently, their value to the business.

• SAF's PFCI is presenting "Keys to Communication" on July 7. Sharon McGukin, AIFD, PFCI, AAF, will share tips and techniques to make better presentations to garden clubs, business groups, school career days, staff and customers. It covers how to improve your speaking style and develop a winning presentation.

A full schedule of events, along with registration and hotel information, can be found on AIFD's Web site. Symposium registration is open to all floral industry, special events and interior décor professionals.

--Morgan Schimminger
mschimminger@safnow.org

 
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Moms Vie for Orchid Plants

Rocket Farms of Salinas, Calif., is hoping to get some media and consumer attention at Mother's Day, with its "Who's Your Momma" contest. The potted orchid grower is holding a contest that asks consumers to submit a photo of their moms with an orchid, and the grand-prize winner will receive an orchid plant each month for the upcoming year.

Contest entries received so far range from a photo of a mom holding an orchid to a mom sporting an orchid tattoo on her back, along with many other variations on the orchid theme, according to Connie St. John, media relations representative for Rocket Farms. St. John says the campaign "was inspired by the Dove soap commercials that show real women in their ads rather than models. We wanted to depict real women and appeal to the entire spectrum of possible recipients," she adds.

Earlier this year Rocket Farms was in the news for its acquisition of Pajaro Valley Greenhouses in Watsonville, Calif., but the grower has also made headlines with other inventive marketing campaigns. This past Valentine's Day, Rocket Farms unveiled its "Be a Babe Magnet" campaign, an idea that originated from a first-hand experience involving Marc Clark, the company's executive vice president. It all started, St. John explains, when Clark was walking through the airport, carrying an orchid for his wife — "he received a lot of female attention because of it," she adds. The campaign's message then became "Be a Babe Magnet," advising men that they could appeal to the ladies if they, too, like Clark, toted their purchased orchids.

"We love doing light-hearted promotions," says Clark. "Everyone has fun, and our orchids generate a lot of smiles from their recipients."

--Cassandra P. Foster
cfoster@safnow.org

 
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1-800-Flowers Launches Video Production Company

1-800-Flowers.com recently launched a new production company that will create broadcast commercials, corporate videos and original programming for 1-800-Flowers and, for a fee, corporate clients and retailers.

"If a store is looking for a new way to train employees, Connect 7 can help them meet that need with video," explains Yanique Woodall, director of public relations for 1-800-Flowers. "If the public relations department (at a corporation) wants to show highlights at a board of directors meeting, Connect 7 is available to make that happen."

The idea to begin Connect 7 originated with 1-800-Flowers founder and CEO, Jim McCann, who saw it as a way to better serve the brand's advertising and programming needs, Woodall says.  It was also seen as a tool for launching new initiatives, such as original programming for a new brand, Celebrations.com, and for working with external companies not part of the 1-800-Flowers.com enterprise.

--Kori Kamradt
kkamradt@safnow.org

 

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NEWSMAKERS

Florists Battle to Become Nebraska's "Iron Florist"

It may not have taken place in "Kitchen Stadium," but the Nebraska Florist Society's (NFS) take-off on the Food Network's Iron Chef television show had just as much intensity.

The "Iron Florist" competition, held April 13 during NFS's spring meeting, involved six steadfast competitors challenged to create three floral arrangements with only two buckets of flowers and that "Iron Chef" staple: the secret ingredient (equisetum, or horsetail, for the competing florists). 

The competitors had to design, on the spot, a garden-party centerpiece, a bridesmaid's bouquet and a freestyle arrangement, while the host commented on the flurry of activity. To add to the pressure: the original 90-minute timeframe was cut in half, due to spring meeting announcements, according to challenger Craig Boetger, NAFD.

NFS's "Iron Florist," Craig Boetger, NAFD, of Piccolo's Florist & Gifts in Omaha at last year's Sylvia Cup Design Competition.

That didn't stop Boetger from designing all three pieces and snagging the top prize, as "Iron Florist." "I spent half of my time doing my bridesmaid bouquet," says Boetger, of Piccolo's Florist & Gifts in Omaha.

Boetger is no stranger to design competitions — he competed in the Sylvia Cup Design Competition at SAF Palm Springs 2007.

Julie Hoffman of Greens Greenhouses & Treasure House in Fremont went all-out for the occasion: Donning a chef's hat and apron, she created a floral version of sushi for her freestyle creation with flowers and grasses configured into sushi shapes and plated to "serve" to the judges.

"I thought, what would the Iron Chef do? Make sushi," Hoffman explains.

Florists looking for competition at the national level should consider the Sylvia Cup, the longest running, annual, live, national floral design competition in the industry. To compete, contact Jenny Stromann at jstromann@safnow.org or (703) 836-8700.

--Morgan Schimminger
mschimminger@safnow.org

 
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LIFE AT WORK

Survey Says Companies Are Playing for Keeps

Can't figure out why your new hires keep slipping away after less than a year? You're not alone, according to Workforce Week, an e-newsletter published by Workforce Management.

Vurv Technology, a Jacksonville, Fla.-based human resources software company, conducted a survey asking companies what hiring factors they believe were most important. "Getting people acclimated to their new jobs, and bolstering the odds they won't jump ship, are the top concerns of organizations for 2008," the survey states. Out of the 440 survey responses, 40 percent of participants say that developing a solid retention plan and "on boarding process" is vital.

"New hires decide how long they will stay in a company within the first 30 to 90 days of employment," states the report. In addition, the results of the survey "correlate with the wider industry trend of HR departments worldwide shifting their focus to more strategic initiatives." Lay a foundation in your company policy where you roll out the giant welcome mat from day one for new employees; this can go a long way in improving retention, according to the article.

Read more on this subject in "Recruiting: A Year-Round Job," published in the April issue of Floral Management, and "Recruit and Retain Great Employees" in E-Brief.

--Cassandra P. Foster
cfoster@safnow.org

 

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BUSINESS BUILDERS

Honing in on Happy Hour

Trying to figure out a way to take advantage of her shop's location off a main drag in Pittsburgh, Cheryl Bakin, owner of Parkway Florist, reached back to her youth for ideas. It paid off, she now sees a couple hundred dollars more in cash and carry purchases every week.

"In my younger days, Happy Hour was always something we stopped for on Thursdays and Fridays," Bakin says. "A number of restaurants and bars around here offer 'buy one, get one free' and 'half-off' specials, and we wanted to figure out a way to use that to drive cash and carry sales our way."

So about four years ago, Bakin started placing a sign near the busy street that brings people from the west and south suburbs into the city. It advertises "Happy Hour 4-7 p.m. Buy One, Get One Free," and features specially-priced product from wholesalers.  

Despite the major thoroughfare, getting people into her store isn't the easiest of feats, Bakin says, because the store is in a "very vanilla, industrial-looking building," that passersby may otherwise miss if it weren't for the special. 

 "Generally once people stop in the store, they stop in again the next week and some turn into regular customers," she says.

Parkway Florist features its Happy Hour specials on Fridays from April until November, because winter is "ugly and people just want to get home," Bakin says.

Although it starts off slow each year, "We've had pretty good results," Bakin says. "Generally we get a couple of hundred dollars a week; it varies, you always know when it's payday." She adds that with the increasing fuel prices and the current situation with the economy, her customers appreciate being able to save a buck.

--Kori Kamradt
kkamradt@safnow.org

 
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TRENDWATCH

Poll Says Consumers Plan to Buy Flowers for Mom

Twenty-two percent of U.S. consumers whose mothers are still alive will buy flowers for mom this Mother's Day, according to a Harris Interactive poll.

Commissioned by Teleflora, the poll, conducted Feb. 27-29, included 2,521 U.S. residents, ages 18 and older — 1,594 of the respondents had a living mother and, of that number, 354 planned to give flowers to their moms for Mother's Day.

In addition, Teleflora reports the following results from the survey:

• Nearly twice as many men as women (43 percent) will spend $50 or more on bouquets; only 24 percent of women are likely to spend the same amount.
• Nearly half of all respondents (47 percent) who are planning to buy bouquets for moms this year will spend between $25-$50 on their purchase.
• About 46 percent of respondents said they would choose roses for their Mother's Day bouquets over other floral varieties.

Teleflora is promoting the results of the poll in conjunction with its "America's Favorite Mom," contest and bouquet, in honor of the 100th anniversary of Mother's Day holiday.

--Cassandra P. Foster
cfoster@safnow.org

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MARK YOUR CALENDAR

Why You Should Attend SAF's Convention

Wondering what to expect at SAF's Palm Beach 2008? Here's what last year's attendees had to say about the experience:

• "Well organized, good location, great seminars that pertained to key aspects of business. Outstanding Varieties Competition was one of the best of all."
Chad Nelson, Eufloria Flowers, Nipomo, Calif.

• "Lots of great, useful topics and information. I was impressed that all sizes of shops could utilize and benefit from the subject matter... introduced lots of new promo ideas...I will try several of them."
Karen Gantz, Flowers by Pro Sports Club, Bellevue, Wash. (first time attendee)

• "GREAT idea-oriented programs with lots of applicable stuff...I am a wholesaler and I've already shared LOTS of the retailer information with our customers...super!"
Tina Rojahn Elsafy, Rojahn & Malaney Co., Milwaukee, Wisc.

• "Very smooth...well planned...lots of variety...plenty to do...[education session] planners kept a pulse on concerns and provided ways to explore answers to relevant questions."
BJ Dyer, Bouquets, Denver, Colo.

• "Lots of thought went into planning this event. I like the emphasis on marketing, business and profits [in the educational sessions.]"
Michael Trogdon, AAF, Burge Flower Shop, Inc., Asheboro, N.C.

See what more 2007 attendees had to say. 

SAF Annual Convention, Sept. 17-20, 2008, The Breakers, Palm Beach, Fla. For more information, contact Laura Weaver, CMP at 800-336-4743/ lweaver@safnow.org.

 
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On the Horizon

• "Keys to Communication" by SAF's PFCI featuring Sharon McGukin, AAF, AIFD, PFCI: July 7, 2-3 p.m. in Chicago, in conjunction with the AIFD National Symposium.
• SAF Palm Beach 2008: Sept. 17-20, 2008, at The Breakers in Palm Beach, Fla.

 
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REGULAR FEATURES

E-Brief Top 5

Topping E-Brief's "most-clicked" list last week were stories about congressional legislation proposed to address the issue of rising credit card interchange fees, and another about a wholesaler's very successful 10th anniversary event. Click the links below to read them and other news items that captured the most reader interest.

1. Bill Addresses Credit Card Fees

2. Standing Room Only at Wholesaler's Open House

3. $50,000 Diamond Earrings Mark First Valentine's Day

4. Positive Effects of Flowers Still Grabbing Headlines

5. Survey Says: Who's APW for Anyway?

 
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Product Spotlight: MagnetMail E-Marketing and Newsletters

Electronic marketing is at your fingertips with MagnetMail E-Mail Marketing and Newsletters! Create and send professional, vivid, branded e-mail promos and newsletters. Here's how it works: You just insert text into a customized e-newsletter or promotional template, upload your customers' e-mail addresses and click "Send." Messages are transmitted and can be tracked instantly. Special tools help you find and remove common "spam triggers," so your messages get through. There's even an online library of ready-to-use floral articles and photographs. SAF has negotiated discount member rates on this exclusive professional e-marketing tool.

 
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On the Discussion Boards

On the discussion boards this week are quite a few responses to posted queries. One post asked for help on planning a successful landmark celebration. The respondent suggested getting media involved, having a catered affair and treating it as a "customer appreciation day." Have any more tips on landmark celebrations?

A recent post asked if Web sites improve revenues. The post received an emphatic "yes!" in response along with the name of a company specializing in helping florists set up professional looking sites. Want to know more about the company?

There were also discussions on looking for the right POS system, how to properly care for hydrangea, packaged wedding deals, e-mail marketing, setting up a central operations center and minimum delivery charges. A new post was added to the forum looking for suggestions on how to handle wedding consultations. Go ahead and post your responses to any of these topics or start your own discussion.

--Morgan Schimminger
mschimminger@safnow.org

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March Revenue Expectations

March revenues were worse than expected for almost 60 percent of respondents to last week's e-poll. A little more than 40 percent said their March sales figures were not worse than anticipated.

--Morgan Schimminger
mschimminger@safnow.org

 
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Survey Says: Fresh Flowers for APW

Fresh cut flowers win over green and flowering plants for Administrative Professionals Week (APW) Week, according to the results of last year's post-holiday survey of retail florists. Eight of 10 orders for the holiday (80 percent) were cut flowers, with the remaining 20 percent evenly split between green and flowering plants.

Preferred Types of Plants and Flowers for APW/PSW

Source: SAF Post-holiday online survey of retail florists. Based on 307 responses (9 percent response rate). Data rounded to sum of 100 percent.

 
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