HEADLINES

Florists Get Ranked, Pay Fees, Based on Rejected FTD Orders

Concern about late deliveries and poor quality product has prompted FTD to launch two new initiatives, one that ranks florists based on rejected and refunded orders and another that charges a fee for orders not rejected in a timely fashion. 

The Quality Star Program will monitor and evaluate a shop's rejected orders and refunds and divide that dollar value by the total volume of orders filled to come up with a "star quality rating," according to John Higginson, vice president of Mercury Technology. Retailers ranking in the top-third of FTD florists will receive a "quality star," which will be indicated in the member statement, as well as how they are ranked relative to FTD florists overall.

Higginson says the program, set to launch later this summer, is designed to give retailers an opportunity to see how their shop is performing compared to others in the industry. "They can see how well they're doing and what changes they want to make," he says.

The initiative that's creating even greater "buzz" in the industry, because it directly impacts a shop owner's wallet, is the Delayed Response Program, launched June 1, in which FTD will assess penalties on behalf of the sending florist for orders not rejected or fulfilled in a timely matter.

"Thousands and thousands of orders are rejected after the holiday," says George Kanganis, executive vice president of sales at FTD. "A lot of florists never do it, they work hard to [respond right away and either fill or reject orders]. But many florists hold onto the order and then reject it when it's too late for another florist to fill the order on time.

For instance, during Valentine's Day 2008, 459 FTD orders went undelivered until after Valentine's Day, according to Kanganis. "That's what motivates this," he adds. "If you can't handle the order, just tell us, there are people who can."

Under the new program, florists who fail to reject an order within two hours of receipt (or an order by 10 a.m. local florist time if the order is received after 5 p.m. the previous day) will be assessed a $10 penalty, which gets credited to the sending florist. After 24 hours, the penalty goes up to $20, and florists who reject the order after 2 p.m. local time (1 p.m. on the weekends) on the date of the delivery will be charged two times the value of the order, "which is usually what the sending florist has to pay out in order to make it right with the customer," says Higginson.

One issue that's particularly frustrating to some florists is that the program is based on a shop that's open from 8 a.m. to 5 p.m. on weekdays and 8 a.m. to 1 p.m. on Saturday and Sunday — which doesn't mirror every florist's hours. In a series of "frequently asked questions" posted on its Web site, FTD responds that the program is designed to provide "the most value to consumers by ensuring that shops are available to take and fill orders; and it reflects the operating hours of the majority of shops in the FTD network."

"You will not be assessed a fee on orders for Sunday delivery as long as you are not codified for Sunday delivery," FTD says. Shops also have the option to suspend their system after hours and resume it when they open. Officials warn, however, that simply turning off the system or printer does not suspend your shop from receiving orders; florists must set their system with the "SUS" message.

Some florists E-Brief editors spoke with say meeting the two-hour deadline might be difficult when a florist has questions about an order. In its posted responses to the FAQs, FTD says "filling the order with a quality product" should be the florist's "ultimate goal," and florists who don't think they can provide the right container, flowers, etc., should reject the order. "If you are confident that you can fill the order, but need clarification, you can wait for a response," according to the responses to FAQs. "However, if you end up having to reject the order and it is two hours after receipt of the order, the fee schedule will apply."

Rod Saline, SAF president, says that florists will naturally be concerned about the fees but acknowledges that the "motivation [for the delayed response program] is about improving customer satisfaction and confidence, and that's good."

Rejecting orders after they're "too late" is a major problem in the industry, Kanganis reiterates. "If someone doesn't do something about this problem today, this category might be in a lot of trouble" down the road, he says.

--Kate Penn and Kori Kamradt
kpenn@safnow.org
kkamradt@safnow.org

  
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California Tour and Fundraiser Help Build Relationship with Lawmaker

Stuart Kitayama (left) of Kitayama Brothers, Inc. in Watsonville, Calif. gives a bouquet of flowers to Rep. Sam Farr after he toured greenhouses and attended a fundraiser at the Kitayama farm.

A tour of two greenhouses and a reception raised about $10,000 for an influential member of Congress last Friday. Kitayama Brothers Inc. in Watsonville, Calif., hosted a fundraiser for Rep. Sam Farr's (D-17-Calif.) election campaign at the family's business, which was founded in 1948 by four brothers. 

Scott Kitayama, president of Greenleaf Wholesale Florist, first suggested showing off the Kitayama farm to Rep. Farr, a floral-friendly congressman, after SAF encouraged its members to reach out to their local lawmakers. Farr, a fifth generation Californian serving his eighth term in Washington, sits on the House Appropriations Committee and the Agriculture subcommittee, which makes all funding decisions for USDA.

The Kitayama family started the visit by taking Farr and his legislative aide on a tour of two greenhouses. "One thing that made this event was that Sam Farr was very easy going," Stuart Kitayama explained. "He pulled up in his pickup truck, ready to take the tour."

Head grower, Jimmy Zheng, conducted the tour of the rose and gerbera greenhouses. Kitayama says Farr asked very technical questions about the plants and production processes during the tour.

The Kitayamas turned a packing warehouse into an inviting and welcoming area for the reception, where the 40 guests could mingle and speak one-on-one with Rep. Farr over a glass of wine and hors d'oeuvres. Guests also were treated to a brief presentation by Rep. Farr, during which he touched on some of the most pressing issues on Capitol Hill affecting growers including immigration reform and the Farm Bill.

"Rep. Farr has been a friend of the floral industry for many years," said Lin Schmale, SAF senior director of government relations, who was at the event. "It was exciting and gratifying to be part of the interaction in California as he met with old and new friends at the Kitayama farm and understood how much the floral industry supports him."

Farr was influential in founding the California Cut Flower Commission and has been a lead supporter of the SAF Floriculture and Nursery Research Initiative, which is currently providing $6.25 million a year in research funding specifically for projects targeted to floriculture and nursery research.

Hosting a tour of your business is one of the best ways to develop or strengthen your relationship with your lawmakers, says Schmale. "They will remember you and appreciate real face-time with constituents. It also provides them a chance to learn more about your business and the floral industry in their district or state," she says. Although putting together a tour and fundraiser may seem overwhelming, Kitayama says SAF's Government Relations team offers a lot of assistance.
 
"My advice to others is that this is not as difficult to do as it might first seem and SAF will help you," he says.

Hosting an event/fundraiser for your representative or senator helps SAF be more effective in Washington.  "When SAF staff is backed up by politically active members, our voice is louder and stronger," said Jeanne Ramsay, SAF senior director of government relations.

It helps the businesses hosting the events, too. "I think we feel more comfortable that if we need something, we could pick up the phone and call," Kitayama said.

SAF members interested in hosting a political fundraiser or tour of their facilities can contact Brian Freedman, bfreedman@safnow.org.

--Morgan Schimminger
mschimminger@safnow.org

  
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AFE Selects SAF

The trustees of the American Floral Endowment (AFE) recently announced they have selected the Society of American Florists as the Endowment's new management team.

"This is a win-win for AFE and the horticulture industry," says AFE Chairman Mike Mellano Sr., AAF, of Mellano and Company in San Luis Rey, Calif. "AFE will be able to take advantage of SAF's resources while remaining a wholly separate entity."

Since 2004 AFE offices have been located at Hortica Insurance in Edwardsville, Ill., during which time Hortica contributed administrative services during a period of AFE's restructuring and growth. "We're very pleased with the decision," says Bob McClellan, retiring president of Hortica Insurance in Edwardsville, Ill.

"We want to thank Bob McClellan and all of the great people at Hortica for their help and generosity in providing a home for the Endowment for the past four years," says Mellano. "It is support like theirs, and that of so many others in our industry, that makes the future bright for funding research and scholarships in horticulture and floriculture."

The decision to move to SAF was made at the end of an extensive, four-month-long process during which the AFE board requested and evaluated several different management proposals.

"The SAF team is extremely excited about this opportunity," says SAF CEO Peter J. Moran. "We're looking forward to getting started.  I am also excited to announce that Debi Aker, a former nine-year employee of SAF, has agreed to return to manage AFE's day-to-day operations."

AFE offices will be relocated to the SAF building at 1601 Duke Street, Alexandria, Va. in July.

--Kori Kamradt
kkamradt@safnow.org

 
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Teleflora Partnering with Injured Marines

Red, White, True Arrangement An arrangement of red roses mixed with white blossoms and blue delphinium, delivered in a cobalt glass sweetheart vase, is available at Teleflora.com to help support injured Marines.

To help support the U.S. military, Teleflora is partnering with a non-profit until the end of 2008 and donating a percentage of sales from its new patriotic arrangements.

Right before Memorial Day, Teleflora announced its collaboration with the Injured Marine Semper Fi Fund, which grants assistance to wounded Marines and their families.  As part of the partnership, Teleflora is offering a variety of new arrangements that can be found in its "patriotic bouquet" category at Teleflora.com, Flowerclub.com and USAA.com, through the end of the year.

Every time a consumer purchases one of the red, white and blue arrangements, the company will donate 10 percent of the purchase price to the Injured Marine Semper Fi Fund. Since its start in May 2004, the Semper Fi organization has provided over 8,000 grants totaling more that $21 million.

"We expect these arrangements to help drive consumer awareness of an important and worthy organization," says Shawn Weidmann, president of Teleflora, in the announcement.

--Kori Kamradt
kkamradt@safnow.org

 

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Web-Based Design Contests Kicks Off this Month

At press time, a handful of florists already had entered a Web-based floral design contest sponsored by JTV,  uBloom and Vans Floral Products. The contest began June 1 and will extend to the end of the month, at which time uBloom members will vote on the entries and award one lucky florist the grand-prize package: an all-expenses paid trip to the JTV studios to co-star with J Schwanke, AAF, AIFD, PFCI, during a JTV episode. Other prizes include Vans Floral Products Supply Dollars, and an Ipod Nano.

For Vans, a wholesaler with eight locations in the Midwest, the contest was a chance to reach out to the industry and work with uBloom, a site geared toward professional florists, hobbyists and consumers that provides educational content, including access to Schwanke's JTV, says Marian Hussey, a Van's representative.

"UBloom provides an innovative platform to encourage our industry to come together as a community," she says. "We see our involvement with uBloom and JTV as a unique opportunity for us to voice our support for floral professionals coming together as a community in a way that can only help our industry as a whole."

UBloom launched March 15, and since its inception, it has about 1,167 members, according to Schwanke, whose JTV is available free of charge to uBloom registered users. Schwanke is one of uBloom's founding members.

Find out more about the design competition and sneak a peak at the entries.

--Mary Westbrook
mwestbrook@safnow.org

  
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NEWSMAKERS

Brand Flowers Becomes Farmers' West

One of the largest U.S. lily and dahlia growing operations is expanding and changing the name it's held since it was founded. As of July 1, 2008, Brand Flowers will become Farmers' West Flowers & Bouquets, Inc. "I wanted to 'go back to the farm' (when considering the name)," says Wilja Happé, owner of Brand Flowers. "We grow the flowers, we touch the flowers. I wanted to transfer that more to our customers . . . And 'West' shows that we're California."

Brand Flowers was established in 1990 and currently employs more than 300 year-round employees. "Most of Farmers' West managers and key employees have been with the combined companies for 15 years or longer," remarks company CEO Maximino Santillan. "Their dedication and hard work over the years has been instrumental in helping us reach this exciting new milestone."

Farmers' West has four growing locations on the Central Coast of California with more than 1.5 million square feet of cut flower production, including lilies, tulips, dahlia and gerbera among other specialty cut flowers, Happé says. It's also known for its hand-tied, spiral woven European bouquet lines, marketed to the mass as well as traditional wholesale market.

"We are thrilled to move into the future with a new name, continuing to be a leader in our industry," Happé says, adding that the business's largest growth area has been from the mass market. "Supermarkets are demanding quality, we can ship in water and follow the cold chain, so our flowers look fresher and last longer." As far as overall industry growth, Happé says it all gets down to price. "We need to demand a better price for our product. Poultry goes up, beef, rice, why not flowers?"

--Kate F. Penn
kpenn@safnow.org

  
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TRENDWATCH

Divorce Offers New Target for Marketers

Some marketers are looking at a new and growing target audience: Divorced Americans. According to Adweek.com half of first marriages in the United States  are expected to end in divorce, and many advertisers are starting to market directly to those separating couples.

Divorce360.com is one Web site that's benefiting from the country's high divorce rate. The social-networking site draws 72,000 unique visitors a month, according to Adweek. Other industries are getting in on the trend with divorce-related products, including "break-up cakes." WTSP-TV in Tampa reports that a local bakery has made at least five "anti-wedding cakes," featuring an upside down tiered baked-good on top of a plastic groom.

Are florists game for marketing to divorcees? Some say, 'no thanks.' "Sorry, but I draw the line occasionally," says Dottie Pannepacker of Penny's Flowers in Glenside, Pa., when asked about marketing to divorcees. "No, I would not be part."

Some in the advertising industry see it differently. "I find that needs-based marketing is a much more solid, strategic way of marketing than just demographic marketing," Ken Toumey, account integration director for mcgarrybowen, an ad agency based in New York and Chicago, said to Adweek.  "Divorce is clear, rampant and is in many ways the great, unspoken target out there. It's not shameful; it's a very large market."

BJ Dyer, AIFD, AAF, and Guenther Vogt, co-owners of of Bouquets in Denver, Colo., "regularly sees orders for flowers going from friends of newly divorced," Dyer says. "'Congratulations on the big split! Finally!' was the message on one card.  'I'm thinking about you during this transition. I know it's for the best. Keep your chin up' was another. Some have had small parties to celebrate the split, for which we've provided flowers, but since the events are rarely large, this isn't a major source of income."

Nonetheless, Dyer says the flowers can play a part in the process, especially when they're part of celebrating the future, not divorce.

"If flowers can help ease the pain of death, they can certainly help show support from friends during a divorce," Dyer adds.  "It's about accentuating the positive emotions that come with flowers to help folks through pain.  Of course flowers should be a part."

--Kori Kamradt
kkamradt@safnow.org

 
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Wal-Mart Customers Prefer Green Products

One of the country's biggest retailers recently announced that, for certain products, more customers are choosing "green" options.

After tracking consumer purchase decisions in five product categories — light bulbs, baby food, milk, paper products and laundry detergent — for about a year, Wal-Mart found that, when given the choice, more customers will choose environmentally friendly options.

In fact, the company recently reported a 66 percent increase in its sustainability Live Better Index, which tracks the shopping decisions of the chain's annual 200 million customers by comparing eco-friendly products to other products in the same category.

The Index data for April 2008 shows a 47 percent increase in the adoption of compact florescent light bulbs and that the average adoption rate of extended life paper products (such as bathroom tissue) is 67.5 percent, up from 50.77-percent adoption rate in April of last year.

"This is a surprising statistic," says Lane DeVries, CEO of The Sun Valley Group, which prides itself on practicing sustainable floriculture. "We hear among customers a desire to look at sustainability, but these are dramatic numbers. It's very surprising."

To read more about how green customers shop online check out this story in the May 14 issue of E-Brief.

--Kori Kamradt
kkamradt@safnow.org

 
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MARK YOUR CALENDAR

FLORAL DESIGNERS... Sign Up for the Sylvia Cup Competition Now

Ian Prosser, AAF, AIFD, PFCI, NDSF, of Botanica International Florist in Tampa, Fla., won last year's competition.

Are you a floral designer who enjoys fellowship and the thrill of competition? Then be sure to enter the 41st Annual Sylvia Cup Design Competition, set for Thursday, Sept. 18 during SAF Palm Beach 2008. The oldest annual live national floral design competition in the industry, the Sylvia Cup draws top designers from across the country. The event is sponsored by Eufloria Flowers. Cash prizes of $2500 for the winner and $250 each for two honorable mentions are provided by Smithers-Oasis. Participation in the popular event is limited to the first 25 designers, so if you're interested, sign up now before the Aug. 1 entry deadline.  Click here for Sylvia Cup details or contact Jenny Stromann at 800-336-4743; jstromann@safnow.org.

Coming to SAF's 124th Annual Convention in search of fresh design ideas? Don't miss the Sylvia Cup's live-action commentary. You can watch the competition and hear experts from Professional Floral Communicators - International — Vince Butera, AIFD, PFCI, and Tina Stoecker, AIFD, PFCI — talk about the fresh and hard-good products being used as well as design tricks that can make arrangements more profitable.

Click here to get full program details and register for SAF Palm Beach 2008, or contact  Laura Weaver, CMP, 800-336-4743; lweaver@safnow.org for more information.

--Shelley Estersohn
sestersohn@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 Five

The update on FTD being bought by United Online, Inc. was far and away the top story from last week's E-Brief. The corresponding article initially reporting the acquisition also drew a lot of clicks. Flowers and florists getting positive PR, a Baltimore florist's spin on a Mother's Day contest and the piece on how the younger generation of workers has less of an issue with cheating rounded out the top five.

1. United Online Gives Insight on FTD Acquisition

2. April 30 acquisition of FTD

3. Flowers, Florists Get Positive PR

4. Baltimore Florist has its own Favorite Mom Contest

5. Future Workers Are OK With Cheating

 
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Product Spotlight; Wedding Calculator

Planning a wedding can be a stressful time for your customers. Help your brides-to-be make their wedding planning less stressful with SAF's Wedding Flower Calculator. Just download the calculator from the Sales and Business Tools page on SAF's Web site, enter your shop information and flower prices into the simple Excel spreadsheet, and load it onto your Web site. Brides enter the quantities they need and the worksheet calculates approximately how much they can expect to spend. They can even compare three different budget levels (Economy, Most Popular, and Premium). Requires Microsoft Excel. You can also find additional wedding tools on SAF's Web site such as customizable wedding ads, fliers and more.

 
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On the Discussion Boards

It's wedding season and that subject dominated the discussion forum this past week. In response to a post looking for advice on how to handle wedding consultations, a detailed list of suggestions was offered. The response also pointed out that nothing is set in absolute stone with every bride. Want to see how the poster recommends handling consultations?

Another helpful response was posted regarding how to make money on weddings. The poster testified that he had "raised my standards in types of flowers used and designs and what I can offer." The poster admitted it might take awhile for other consumers to catch on and added that by offering tuxedo rentals and upscale linen rentals, his shop has seen an increase in business. Want to read more about his success?

When it comes to how to handle a "no-show" for a wedding consultation, a poster states that his shop secures the appointment with a credit card and charges a $50 consultation fee if they do not show up for the appointment. Curious what other pre-consultation requirement he requests from his potential clients?

There were also posts on wire services, phone systems as well as holiday planning and advertising. Go ahead and post your responses to any of these discussions or start your own.

--Morgan Schimminger
mschimminger@safnow.org

 
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Employees' Summer Vacation Plans

A majority of employees will be packing their bags and taking a summer vacation this year, according to last week's e-poll results. Almost 73 percent of employees responded that their employees were intending to take a summer vacation. A little more than 10 percent replied that only a select few were planning a summer excursion. Slightly more than 12 percent indicated that no, their employees would not be taking a summer vacation. The "I don't know" category garnered slightly more than 5 percent of the vote.

--Morgan Schimminger
mschimminger@safnow.org

 
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Survey Says: Who's Raising Delivery Fees?

Eight out of 10 florists have raised their delivery charges and/or implemented a fuel delivery surcharge in the past 12 months, according to preliminary results of SAF's online survey of retail florists. The chart below shows how many times they have done so in the past year. More than half (55 percent) have raised them once; almost a quarter have done it twice (23 percent) and a few have done it three times (2 percent). One in five (20 percent) have not raised these fees at all in a year.

Number of Times Florists Raised Delivery Charges in the Past Year

Source: SAF Online Survey of Retail Florists, 2008, preliminary data. Based on 593 responses (response rate = 16 percent).

 
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