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HEADLINES
Skyrocketing Health Insurance Costs Prompt SAF/Hortica to Create First Industry-wide Plan
As employers deal with increasing health insurance premium costs — 6.1 percent, twice the rate of inflation in 2007 — it's no surprise that fewer employers are offering health insurance to employees — 30,000 fewer in 2005, compared to 2001, according to The Robert Wood Johnson Foundation. In response to this growing need, SAF and its longtime partner, Hortica Insurance & Employee Benefits, have created the first Health Insurance Association plan available to all segments of the floral industry, exclusively to SAF members. Any type of floral industry business — retailer, wholesaler, grower or supplier — is eligible to participate as long as it belongs to SAF.
The program uses a trust established by SAF, allowing participating member companies to join together to obtain coverage under a single policy of insurance. The resulting larger risk pool may lower insurance premiums for many businesses that would otherwise have to buy insurance individually.
"We continually look for ways to enhance our membership's array of services. The advent of this health plan gives us the opportunity to make vital services available and provides an alternative for those searching for help with their health insurance programs," says Peter Moran, executive vice president and CEO of SAF.
Together with the underwriter — Trustmark Affinity Markets, a division of Trustmark Life Insurance Company — SAF and Hortica have prepared a unique set of health insurance products custom-designed for SAF members. The plans are structured to help members better manage health insurance costs and to soften the impact of continuing health insurance inflation.
The program became available Tuesday, July 1 (some states may take longer to accept it) with Hortica as its first participant.
"Hortica is honored to be the first member employer to be insured under this plan. Like our fellow members, we are faced with the challenge of providing affordable health insurance to our employees. We firmly believe this plan will help us contain these costs in the long term," says Hortica president and CEO Mona Haberer.
For more information about the SAF Health Insurance Plan, contact Hortica at (800) 851-7740.
--Shelley Estersohn
sestersohn@safnow.org
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Country Living's Foregone Florist Conclusion Prompts SAF Reply
SAF recently responded to Country Living magazine's Web site, on which a slideshow and related copy urged readers to skip the flower shop and do it themselves. In "Forgo the Florist: Artful arrangements in under an hour" the slideshow encourages consumers to make their own floral arrangements and offers suggestions on how to do so without the guidance of a florist.
SAF sent an e-mail on June 24 to Country Living's editor-in-chief asking the magazine and its affiliated Web site to "promote floral decorating projects without negative references to professional florists." The e-mail also encourages the publication to contact SAF when in need of floral advice to offer its readers. Country Living had not responded at press time.
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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New Deal Allows More Flowers from Kenya to U.S.
U.S. and Kenyan officials have come to an agreement that could bring more African flowers into the states, but some industry officials say they don't expect an immediate effect on the market.
Last month, transport ministers from both counties signed an "Open Skies" deal. The deal allows for direct flights between the two countries within a year and could facilitate an increase in Kenyan imports, according to Reuters.
Currently, Kenya is the biggest exporter of cut flowers to the European Union, with a market share of about 32 percent, according to the Fresh Produce Exporters Association of Kenya (FPEAK). The U.S. imports a much smaller amount from Kenya, bringing in about $1.1 million in flowers in 2006, a figure which only contributed 0.2 percent to the U.S.'s total market, according to the U.S. Department of Agriculture.
The trade balance, however, could change with the new Open Skies policy. FPEAK officials told Reuters they expect the U.S. market to account for 2 to 5 percent of Kenya's exports at the start of the direct flights. That number, they say, could rise gradually over time.
Red Kennicott, AAF, CEO at Kennicott Brothers Company in Chicago, says even though many wholesalers already purchase some African flowers through Dutch auctions, transitioning to more direct sourcing might take time.
"I don't anticipate any immediate dramatic impact with the Open Skies policy," Kennicott says. "It will take a little while for relationships to be established between customers and vendors. It does open opportunities in the long run."
The effect of the new agreement ultimately will depend on perceived value within the U.S. industry, says Kurt Schroeder, AAF, AIFD, PFCI, of Delaware Valley Floral Group.
"It's a borderless world, and everything can be traded, but it all comes down to value," he says. "If they are going to grow flowers that can be purchased in this country at or below the price range already available here it would be a viable option."
In the end, whether U.S. industry members begin to sell more Kenyan roses depends on other factors as well, Schroeder says, including exchange rates with South American growers and flower preferences — Kenya typically produces roses with smaller heads.
--Kori Kamradt
kkamradt@safnow.org
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AIFD Symposium Features Four SAF Programs
If you're planning to do a design demonstration in your town but are terrified of public speaking, Sharon McGukin has a tip for you: Before you take on your first demo, research your audience in advance before you step on stage and meet and greet as many people as possible. McGukin's program, "Keys to Communication" is one of four events SAF is bringing to AIFD's annual Symposium in Chicago this week.
During the event, industry experts will cover a range of topics, from cutting-edge design techniques sweeping Asia and Europe to U.S. wedding and special events trends. Symposium attendees also will get a chance to attend SAF seminars on industry-specific presentation skills, "extra-mile" customer service and leadership techniques for small-business owners. Program highlights include the following:
• The SAF Outstanding Varieties display will feature 25 of the top ribbon winners from competition in 2007. This year's display includes entries from 11 different companies.
• During "Professional Lifesaving Lessons" July 5, Tina Stoecker, AIFD, PFCI, will offer ideas to enhance one's professional image; Deborah De La Flor, AIFD, PFCI, will suggest ways to rejuvenate the shop environment and Joyce Mason-Monheim, AIFD, PFCI, will present advice for becoming a positive leader. The session is hosted by SAF's Professional Floral Communicators-International. Jerome Raska, AAF, AIFD, PFCI, is emcee.
• Kate Penn, Floral Management's editor-in-chief and SAF's vice president of Publishing and Communications, will present "Are You Indispensable?" July 6. During the session, Penn will talk about employees at florists across the country who have gone the extra mile to proactively increase sales, profits and, consequently, their value to the business.
• SAF's PFCI is presenting "Keys to Communication" 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. McGukin will cover how amateur presenters can improve their speaking styles and develop professional presentations.
AIFD expects almost 1,500 floral design artists from around the world to attend its Symposium this week. Registration is open to all floral industry, special events and interior décor professionals. A full schedule of events, along with registration and hotel information, can be found on AIFD's Web site.
--Morgan Schimminger
mschimminger@safnow.org
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Number of Retail Florists Continues to Decline
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Source: County Business Patterns, U.S. Census Bureau.
| The number of retail florist establishments continued to contract in 2006 according to just-released data from the U.S. Census Bureau's County Business Patterns. The number of retail florist establishments declined 4.3 percent in 2006 to 20,227, down from 21,135 in 2005. As shown in the figure, the survey has documented a decline in the number of florists each year since 1996. From 2006 to 1996, the number of florists fell 24.3 percent.
County Business Patterns is an annual series that provides economic data in the years in-between the five-year national economic censuses. The series excludes data on self-employed individuals and thus may differ from other counts provided by the government.
-- Ira Silvergleit
isilvergleit@safnow.org
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Deadline Nears for Sustainable Agriculture Committee Applications
Floral industry members and others interested in helping develop the first national standard for sustainable agriculture have less than a week to apply to be on the committee leading the effort.
The deadline for Standards Committee and subcommittee applications is 5 p.m., July 7. Applications should be sent to the Leonardo Academy via e-mail, fax or mail.
The Draft National Standard for Sustainable Agriculture Production, which would certify a company's products as sustainable, is being considered by the American National Standards Institute (ANSI) to become a national standard by 2010. As part of the process, representatives from all segments affected by the standard are invited to offer their input to the process.
The Standards Committee will have the final say on the wording of the standard that is submitted for approval as an American National Standard. However, all applicants will be able to participate on subcommittees addressing the key issues outlined in the current draft, as well as other issues identified by stakeholders. Keeping that in mind, Leonardo Academy also encourages stakeholders interested in working on specific advisory subcommittees to submit applications.
All applicants will be notified of the committee status no later than July 28, 2008, and the first Standards Committee meeting will be Sept. 10.
To learn more about the proposed National Standard for Sustainable Agriculture and other facts and news regarding sustainable agriculture, visit SAF's Sustainability Resources Page.
--Kori Kamradt
kkamradt@safnow.org
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NEWSMAKERS
National Magazine Promotes Flowers Not Once, but Twice
Sleep-deprived readers of Women's World magazine recently got some flower-friendly advice when the national consumer magazine featured the positive, emotional impact of flowers in two separate issues.
In the June 30 issue, Woman's World ran a piece called "Sidestep a surprising sleep stealer" citing the results of the Emotional Impact of Flowers Study, which was conducted at Rutgers University on behalf of the SAF PR Fund. The article divulges that the hidden culprit behind readers' sleep-deprived nights could be hassles at work. To ease work-related stress, the article recommends a fix sure to please any florist: "Treat Yourself to Flowers! Not only do they perk up your workspace, they banish anxiety, a Rutgers University study of 147 women found."
Woman's World also reported on the Emotional Impact of Flowers Study in its July 7 issue. The article, "Simple ways to a gorgeous bouquet!" states: "A recent study at Rutgers University showed that flowers have an immediate, universal positive impact on happiness!"
The articles generated more than 4.5 million consumer impressions each.
SAF launched the Emotional Impact of Flowers public relations program in 2000, and editors continue to report the good news.
"Hometown newspaper and magazine editors and local TV and radio news producers thrive on turning national news items into community stories," says Jenny Stromann, SAF's director of marketing. Make headlines in your town by generating local news coverage for your shop with customizable press releases from the SAF Web site.
--Morgan Schimminger
mschimminger@safnow.org
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Connecticut Florists Association Names 'Florist of the Year'
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Sylvia Nichols, AIFD, PFCI, accepts her award from John Tornatore, President, Connecticut Florists Association (far left) and Bob Sabia, AIFD. | A former winner of Floral Management magazine's Marketer of the Year award can add a new accolade to her resume: Connecticut Florist of the Year.
The Connecticut Florists Association (CFA) surprised Sylvia Nichols, AIFD, PFCI, a self-professed "personal trainer for florists," with its highest honor during the association's 75th anniversary dinner party last Saturday, in Cromwell, Conn.
"She's known not just in Connecticut, but nationwide, as one of the most positive, can-do florists," Bob Sabia, AIFD, chairman of the CFA Awards, said before presenting the award to Nichols. "She's helped educate thousands of florists from Maine to the West Coast. Her message continually is 'educated florists are profitable florists.'"
When she accepted the award, Nichols, who has been told she often has too much to say, found words hard to come by. "You have finally rendered me speechless," she informed the gathered crowd.
The award is bestowed upon a CFA member who has exhibited outstanding accomplishments in the floral industry.
Nichols, a freelance designer and educator in Cheshire, Conn., has been working in the industry for 35 years. She is the campus director and design instructor for the CFA Design School, the state's only florist trade school.
The CFA award is the latest in a string of awards Nichols has achieved in the industry. A past CFA president, board member and convention chairwoman, she received the organization's 1997 Marketer of the Year and 1989 Designer of the Year awards. In 1996, she was honored with Floral Management magazine's Marketer of the Year award in recognition of her "Simply Said" campaign, an initiative that lured in customers with an inexpensive impulse item generating a 14 percent sales increase for Window Box Inc., the retail shop she owned for 28 years.
Although Nichols admits it is nice to be recognized, she points out that she is fully committed to "an industry that has been very good to me for many years."
--Morgan Schimminger
mschimminger@safnow.org
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BUSINESS BUILDERS
Eugene Shop On Track with Olympics
The runners at the Olympic track and field finals in Eugene, Ore., aren't the only ones thinking and moving fast on their feet. The team at Dandelions Flowers & Gifts has been in full sprint since they were tapped to provide victory bouquets just three days before the first starter gun fired on Friday, June 27.
The last-minute notification wasn't for lack of trying on Dandelions' part, says owner Shirley Lyons, AAF. Since the U.S. Olympic Team Trials Track & Field event site was selected to be in Eugene a year ago, Dandelions' staff has been in training, working with local running clubs and other sporting events, trying to connect with the organizers. The shop did the flowers in June for the Prefontaine Classic, warming themselves up to the sweaty and swift crowd. But no one seemed to know who exactly was handling flowers for the trials, held at the University of Oregon. And Lyons worked every connection she had to track down the track officials.
"My daughter is getting married this weekend on campus, so just a few weeks ago, I asked the head of catering if she knew who was doing the flowers," Lyon says. "She didn't even think they were going to do flowers!"
Finally, the grapevine-nurturing paid off and on June 17, Lyons got an e-mail from the organizers asking for a bid. No details about the quantity or color. Nothing. She put one together in a hurry, keeping the dollar figure conservative after talking with a florist who'd done similar Olympic-related events.
A week later, with the clock ticking, the week's wholesale order done and no word, Lyons e-mailed her contact ("I didn't even have a phone number!" she says) to see if Dandelions was still in the running. "They called on Tuesday, and said, 'You got it. Go!' she says. "It was thrilling and crazy all at once. This is a big event for the entire community, so everyone wants to be part of the action."
The next day, two days before the trials began, the staff found out exactly what "it" was: 120 bouquets over 10 days. Lyons went for bold colors and heat-hardy flowers: Fiji mums, carnations, eucalyptus and filler. Although the event has been sold out for a year, Lyons has seen her bouquets — in their logo-ed wrapping — in the newspaper, on TV and on the Eugene 08 Web site.
"It's been a scramble but we got their attention" by pulling this together so quickly and handling the daily deliveries smoothly.
Lyons plans on keeping that attention. Eugene will host the 2012 Olympic trials.
--Amanda Long
along@safnow.org
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More Marketing Encouraged During Tough Times
As gas prices go up, wallets snap shut and the dollar weakens, many businesses see marketing as extra fat to cut, but one expert says it's not about eliminating programs, it's about making them smarter.
"Marketing is very hard to turn on and off like a faucet and keep that same flow," Kevin McLaughlin of Resound Marketing in Princeton, N.J., told U.S. News & World Report. "You really have to maintain some sort of momentum. That's hard to do when you're just picking it up every now and then."
Marketing is especially important to small business owners, who should never let themselves fade from the local media's radars, McLaughlin says. To keep the focus, owners should worry less about making news and more about leveraging their power as an expert source.
"You have a better chance of building a relationship with editors when you're less about pitching to them and more about being a resource for them," McLaughlin says.
To build your resource reputation, consider sending out a bulleted list of topics on which you routinely speak, especially when those topics are in the news, McLaughlin suggests. Look for upcoming events, perhaps through your Chamber of Commerce, for speaking opportunities and start a blog — and assign someone to keep it fresh — to make your business more accessible.
To see how one New York shop launched a public relations campaign, check out "Freedom with the Press" from Floral Management's April 2006 issue. Get advice on how to generate local news coverage for your shop by accessing customizable press releases on the SAF Web site.
--Kori Kamradt
kkamradt@safnow.org
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GREEN HOUSE
High Gas Prices Put Brakes on Five-Day Workweek
While many Americans will celebrate their life, liberty and pursuit of a relaxing day off of work this Friday, thanks to the Fourth of July, a growing number of employees don't need a holiday to get a four-day workweek. High energy costs, not high-flying fireworks, are why Utah recently joined the ranks of private and public sector employers telling workers to stay home (and off the roads) on Friday.
When the Working 4 Utah initiative begins in August, state government service hours will be extended from 7 a.m. to 6 p.m. Monday through Thursday. State administrative offices will be closed on Fridays, with the exception of essential public services. The governor's office estimates that 1,000 of 3,000 state buildings will be closed on Fridays, cutting energy costs by about 20 percent, according to a statement.
Those kinds of cost-savings calculations are also being considered in Arkansas and Oklahoma. Small cities in Virginia and Florida and bigger ones including Birmingham, Ala., have already taken Friday's payroll and energy costs off the books and added the hours to the other four weekdays.
Even professional sports teams are cooling it when it comes to cutting air conditioning and transportation costs. The Buffalo Sabres hockey team usually offers employees a half-day Friday in the summer, but because of high fuel costs decided to bench the fifth day completely this season.
While closing shop may not be an option, be aware of schedule changes your corporate customers are making and how to accommodate them. Also consider letting some salespeople telecommute to get them off the roads but keep 'em on the clock, like Walter Knoll Florist of St. Louis does. For tips on how to cut fuel costs, visit the Department of Energy's Web page. For more floral specific advice, check out past E-brief coverage.
--Amanda Long
along@safnow.org
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TRENDWATCH
Loss Numbers Hit 17-Year Low
The economy may be bleak, but according to a new survey conducted by the University of Florida, a thin silver lining has emerged for profit-minded retailers: Loss from shoplifting, employee theft, administrative error and vendor fraud is at a 17-year low.
Preliminary results from the National Retail Security Survey (NRSS) indicate "retailers lost more than $34.3 billion or 1.4 percent of overall sales [in 2007] compared to $40.5 billion and 1.57 percent of overall sales in 2006," according to a press release from ADT Security Services, the company that funded the survey.
Researchers say the downturn can be credited, at least in part, to retailers' increased use of anti-theft technologies, including in-store cameras and Internet-based video surveillance systems.
"The study shows there is good evidence that anti-theft technologies, properly implemented, are having a positive effect on reducing crime in the retail environment," said University of Florida criminologist Richard Hollinger, Ph.D., who directed the survey.
Still the picture painted by the survey is not entirely rosy: "More than half of the 124 retailers questioned to date believe that organized retail crime is increasing, and 19 percent say that they now have their own organized retail crime task forces," according to the release.
The problem of organized retail crime is still very real and something we need to take on as an industry," said Joe La Rocca, the National Retail Federation's vice president of loss prevention. "We need stronger laws to crack down on this type of crime and make it more difficult for criminals to resell stolen goods."
Have you seen a decrease — or an increase — in shoplifting or employee theft? Send your story to ebrief@safnow.org.
--Mary Westbrook
mwestbrook@safnow.org
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LIFE AT WORK
Satisfaction Trumps Big Bucks
Small-business owners with limited payroll budgets rejoice: If a new survey is any indication, the vast majority of Americans say "fulfilling" work is more important to them than a big paycheck.
The Monster.com survey found that 82 percent of U.S workers, and 76 percent of workers worldwide, are willing to work for smaller paychecks as long as they're pursuing their ideal career path.
"We see a general consensus among workers around the globe that people are open to pursuing more fulfilling careers, not just a fuller wallet," says Norma Gaffin, director of career content at Monster. "It's interesting to note that despite some notions of a skittish economy, U.S. workers are still willing to be compensated less for a job that they are really passionate about."
So what qualities make a fulfilling job? According to an unrelated story from CareerPath.com, several factors come into play when a candidate is searching for the perfect profession. Position seekers are looking for variety, a work/life balance, a place to grow, vacation time and part-time flexibility.
What better place to find all this than a florist shop, says Phyllis Kennedy, owner of The Enchanted Florist in Alexandria, Va., voted one of the "Best 50 Places to Work" by Washingtonian magazine in 2004.
Kennedy says working for a floral shop offers a creative environment, flexible schedules, a sense of camaraderie and most important, something new everyday. "Even though you have a lot of the same events each week, such as birthdays and weddings, each one is different," she says. "Each day you start off creating something new."
For ideas and tips about finding the employee who would consider your shop a "dream job," check out "Recruiting: A Year-Round Job" from the April issue of Floral Management.
--Kori Kamradt
kkamradt@safnow.org
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MARK YOUR CALENDAR
Survive-and-Thrive Advice Comes Alive at SAF Palm Beach 2008
Who doesn't want their business healthy and competitive in today's economy? Learn how to get and keep it that way at floral industry financial expert Paul Goodman's session "Thriving in Today's Economy, Part 1: Survival Tool Kit" on Friday morning during SAF Palm Beach 2008. He'll tell you what you should and shouldn't be doing to keep your business financially secure. You'll leave with a list of things to check, tweak and update to keep your financial practices in touch with the times. That afternoon, catch Goodman again — this time moderating an industry panel of SAF members ready to share the cost-cutting and revenue-building tactics that keep their businesses in shape at "Thriving...Part II: Survival Tactics." You'll take home tips for reducing overhead, building business, low-cost marketing and more. SAF's 124th Annual Convention is set for Sept. 17-20 at The Breakers in Palm Beach, Fla.
Get complete convention details now. Read about it online or download the full brochure using the links below:
Retailer Brochure
Wholesaler/Importer Brochure
Grower/Supplier Brochure
Questions? Contact Laura Weaver, CMP at (800) 336-4743 or lweaver@safnow.org.
--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 5: Tennessee Ban and Midwest Floods
Ongoing interest in deceptive Internet listings put our story on Tennessee's new ban on top of the E-Brief list last week, followed by up-to-the-minute news from the flooded Midwest. Click the links below to catch up on what you missed.
1. Tennessee Bans Deceptive Internet Listings, Strengthens Existing Phone Law
2. Amid Muck, Flooded Florist Wrings Out Fresh Start; Wedding Orders
3. MSNBC Show Springs Makeover on Greenhouse
4. Family Thanks Funeral-Flower Senders in Newspaper Ad
5. Reader Feedback: If You Don't Want Same-Sex Couples, I Do
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Reader Feedback: Same-Sex Wedding Consultations Are a Piece of Cake
E-Brief's article on same-sex marriages is still generating feedback. Georgianne Vinicombe, president of Monday Morning Flower & Balloon Co. in Princeton, N.J. and Yardley, Pa., sent E-Brief editors an e-mail about how performing wedding consultations for same-sex couples can be gratifying. She wrote about her positive experiences working with same-sex partners in her blog. Vinicombe also mentioned E-Brief's uncanny ability to cover topics she was in the midst of discussing with her husband.
"I wrote a blog about how much I enjoy doing same-sex weddings. I find the experience extremely rewarding and I am honored to be the friendly florist that can make their wedding dreams come true."
--Morgan Schimminger
mschimminger@safnow.org
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Product Spotlight: Business-to-Business Kit
Looking to reach out and capture profitable commercial accounts? SAF's Business-to-Business Kit can help you do just that! This powerful package of step-by-step advice, promotional ideas and creative materials will help you pursue and preserve commercial clients, and in turn, increase your sales. The Kit includes a six-page brochure of step-by-step advice and promotional tactics on establishing and maintaining business clients; sample pitch and follow-up letters to prospective and current clients; a sample telephone pitch script; customizable camera-ready flier promoting the benefits of flowers and plants in the workplace; customizable camera-ready Rolodex card; customizable camera-ready customer satisfaction survey; a sample postcard and a sample Sales Presentation Portfolio. Members pay just $34.95 for this beneficial kit.
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On the Discussion Boards
Access to a pre-wedding consultation form and the search for the perfect delivery vehicle were just some of the topics buzzing on the discussion boards this week.
There has been a lot of discussion regarding how to handle wedding consultations in the past few weeks. A poster offered to share his pre-wedding consultation form and has received quite a few requests for copies. To better meet the growing demand, he posted his Web site address where the form is readily available. Want to know where to find the form?
A self-proclaimed rookie florist is looking for help deciding on what to buy for her shop's "first 'real' delivery vehicle." According to her post, the perfect vehicle would include decent cargo capacity and efficient miles per gallon. What vehicle would you recommend?
There were also posts on new wiring systems and tracking down replica FTD delivery boxes. 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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Retail Florists Feel the Impact of Phony Listings
Deceptive listings significantly impact the business of slightly less than 59 percent of respondents to last week's e-poll. A little more than 34 percent are only somewhat affected by the practice of deceptive listings. The "Don't know" category garnered close to 7 percent of the vote.
--Morgan Schimminger
mschimminger@safnow.org
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Survey Says: Limited Exemptions from Delivery Fees
Like most vendors offering delivery, florists charge delivery fees to most of their customers. However, there are some exceptions. Less than 20 percent (18 percent) of florists don't charge delivery fees to funeral homes; 12 percent spare wedding customers; nine percent omit hospitals and three percent don't charge nursing homes or assisted living facilities.
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What Event Do You Charge Delivery Fees For? |
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Source: SAF online Fuel/Gasoline survey of SAF member retail florists, May/June 2008. Results based on 603 responses (17 percent response rate). |
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