An important part of a professional florist’s skill set is to understand the role wire services play in his or her company’s finances. For florists who offer their customers the ability to send flowers nationally and internationally, wire service membership can be a useful tool to easily transfer orders to distant locations.
At our school, we discuss the role of wire services in shop operations in our basic Floral Designer course.
With all the changes in the role of wire services, it’s important that shop owners and managers take the time to assess the financial relationship between sending outgoing and fulfilling incoming orders. According to a 2005 study conducted by Prince and Prince, ‘order gatherers’ (non-local marketing agencies) have dramatically eroded local flower shop outgoing order sales by approximately 48%. This means local florists are generally filling far more orders than they are sending.
To help shops assess the affects of wire services on their bottom lines, and to calculate the contributions to overhead of outgoing and incoming wire orders, we’re offering an easy-to-use Excel spreadsheet tool free to download.
You will need to download the form and insert the following data from your Point of Sale system or wire service statement(s):
(The corresponding letters below appear in red on the spreadsheet.)
a) Enter the number of months of data you’ll use on this specific report. Months can be entered individually or can be grouped together. If your company is a member of more than one wire service, I recommend you calculate each service separately.
Incoming Orders
b) Enter the quantity of orders received.
c) Enter total dollars of orders filled.
Variable Costs
d) Enter your cost of goods sold. The sheet defaults to 28%. Use your actual number by expressing it with a decimal point i.e. .35 for 35%. The US average has historically been reported to be 30% for fresh arrangements.
e) Enter the percentage of payroll from your shop’s P&L. Be sure to include payroll taxes and benefits to establish your actual payroll cost. The sheet defaults to 25%. (Express numbers with a decimal point.)
f) Enter commissions and fees given. The sheet defaults to 27%. Enter the appropriate higher number if you have been hit with an ‘unequal sending percentage.’ (Express numbers in dollars.)
g) Enter your wire service per order ”receiving fee”.
h) Enter your cost per delivery in a dollar amount excluding driver salaries. (They are included in item e). Expenses include vehicle cost (per amortization schedule), maintenance and insurance. (Express numbers in dollars.)
Membership Expenses
i) Enter monthly dues. Note: This number will be divided in half with 50% moving over to the Outgoing Order column automatically. (Be sure to add any ‘unequal sending fees’ if applicable.)
j) Enter monthly technology interface fee. This number will be divided in half with 50% moving over to the Outgoing Order column automatically.
k) Enter monthly Wire Service Directory and ASB advertising. Do Not Include co-op or other consumer ads. Enter 0 if you do not use this type of advertising.
Outgoing Orders
l) Enter the quantity of orders sent.
m) Enter the gross amount of dollars transferred to other shops for fulfillment.
n) Enter commission earned. Defaults to 20%
o) Enter rebate level per order.
p) Enter your shop’s outgoing relay service charge per order.
Results:
“Net Profit (Loss) Wire Svc” will tell you the average dollar value of each incoming and outgoing order remaining to cover business overhead (rent, utilities, advertising, insurance, office expenses, tech…).
To see the effect of a simple 1% lowering of COGS or payroll, reduce item d) or e) by 1.
If you have a question about the tool, please post it in the comment section here.
It’s important for florists to evaluate their relationships with national relay organizartions and understand the costs, benefits and net effect on the bottom line. Happy calculating.
A couple years ago, I provided care and handling tips and floral design ideas for a video produced by the Hawaii Tropical Flower Council. The Council recently gave me permission to upload a clip of one of my design ‘how-to’s’ to YouTube so I could share it with florists and students.
I hope you enjoy this 5 minute clip about how to make a contemporary tropical arrangement.
The California State Floral Association (CSFA) received word that the CA Assembly’s Business and Profession’s Committee will be holding a hearing regarding AB 1282. The proposed bill would prevent geographic misrepresentation where fictitious florists include local communities in their business names and purchase local phone numbers which are then forwarded to out-of-area and out-of-state call centers. The hearing will take place on Tuesday, April 24.
Florists are urged to fax letters in support of the legislation to:
Assembly Member & Committee Chairman Mike Eng at (916) 319-2149 and Business and Professions Committee Members: Bill Emmerson (916-319-2163), Karen Bass (916-319-2147), Wilmer Carter (916-319-2162), Mary Hayashi (916-319-2118), Edward Hernandez (916-319-2157), Shirley Horton (916-319-2178), Bill Maze (916-319-2134), Curren Price, Jr. (916-319-2151), Alberto Torrico (916-319-2120) and Business and Professions Committee Consultant Pablo Garza (916-319-3306). Please also fax a copy to the CSFA office at 916-446-1063 – Attention: Ann Quinn.
A sample letter from CSFA concisely states these important florist issues:
“California florists and consumers of floral products alike are currently being shortchanged by sellers of floral products who are misrepresenting themselves as “local” businesses when in fact they are not.
“Out of state marketers are “stealing the identity” of local florists. They buy ad space in various local telephone directories throughout the state, use the local community name and provide a local number for consumers to call. California florists are losing income, California workers are losing wages, the state of California is losing tax revenue and finally, California consumers are losing their ability to choose to buy a local product from a local vendor.
“I believe that the sellers of floral or ornamental products or services should be truthful about their business locations. AB 1282 simply requires sellers of floral or ornamental products or services to include in their advertising and telephone listings their business address if their name would imply the business is in a different locale.
“Twenty-two states have passed legislation against deceptive phone listings. It is time for California, the number one flower growing and selling state, to do the same. AB 1282 will help prevent out-of-state businesses from stealing the identity of our local businesses. This issue needs to be addressed and I believe AB 1282 is the necessary means to do so. Therefore, we respectfully ask for your “AYE” vote on AB 1282 which is supported by the California State Floral Association, the Society of American Florists, and the Master Florists Association.”
Your letters and support are urgently needed at this time.
We just completed one of our Special Events/Decor Designer classes so I’m posting photos of just a few of the projects made by students. The class features hands-on floral design projects for weddings, parties and entertaining and we create centerpieces and display arrangements based on on a variety of popular themes.
Sunflower Centerpieces
The designs seen below showcase sunflowers in two different styles. The tall centerpiece, a hand-tied grouping with curly willow woven as a support material, creates color impact and lends a contemporary interpretation to classic garden flower. The lower centerpiece features sliced lemons, white hydrangea and looped lily grass and adds vibrancy and a light, fresh fragrance to the table. Used together or separately, these centerpieces make a bright addition to any special event.
Sunflowers Centerpiece
Moss Urn Centerpiece
The garden-inspired moss covered urn (seen below) was designed with abundant groupings of roses, orchids, lavender hydrangeas and seeded eucalyptus. Liatris were highlighted in a vertical statement, which gives a candle-like effect. Loops of lily grass and accents of Aranda orchid blossoms added interest, lending a more modern interpretation to this traditional garden form.
Moss Urn Centerpiece
Tropical Contemporary Centerpiece with Wine Gift
Students learned how to encase and highlight a wine or sparkling cider bottle and integrate it into a contemporary centerpiece. The design below featured ginger, anthuriums, roses, seafoam statice, ti leaves and woven commodore tee pee and the base of the arrangement was accessorized with votive candles.
Wine Bottle Centerpiece
Bubble Bowl Centerpiece with Floating Flowers
Students learned how to incorporate a wreath base and showcase a large glass bubble bowl. Roses, asters, Florigene carnations, limes, hydrangeas, dendrobium orchids and fresh ivy were featured in the base design, with an open rose and orchid florets floating in the water.
Bubble Bowl Centerpiece
The course covers a variety of styles, from classic to romantic to contemporary, allowing attendees to get hands-on experience completing a large variety of projects.
Join the AIFD South West Region for ”A Prelude to… The Edge of Paradise” design show featuring Phil Rulloda AIFD & Song Ki Yun AIFD,
About the Design Show Presenters:
Phil Rulloda AIFD
A true “Ambassador of Sentiment”
Phil is the Director/Owner of the Southern California School of Floral Design and co-owner with his wife Cathy Hillen-Rulloda AIFD, PFCI of Avante Gardens – Florals Unique, both located in Anaheim, CA.
Song Ki Yun AIFD
Song, alongside his wife Abbie Bostrum-Yun AIFD, owns
Fontana City Florist in Fontana, CA. He approaches each design as if he were in competition. Excellence is his hallmark. Those closest to Song call him “Mr. Excellent” because of his meticulous attention to detail.
A Prelude to “The Edge of Paradise” is in connection with the Spring Garden Show at South Coast Plaza West,
3333 Bear Street, Costa Mesa, CA 92626
When: Sunday April 29, 2007
2:30 to 5:30 PM
Admission and Parking is FREE!!!
Visit South Coast Plaza everyday of the Spring Garden Show April 26-29, 2007 to see AIFD designers in the design gallery on the Third Floor near Macy’s Home Store.
Featured Gallery Designers:
Audrey S. Lee AIFD
Song Ki Yun AIFD
Marisa Perring AIFD
For Information Call Sherine Iskander AIFD
(949) 551-6093 or (714) 536-7101
Trend spotters note the return of cascading wedding bouquets as wedding gown trains lengthen this year. Our advanced wedding floral design class students created this contemporary design, which features ‘Stargazer’ lilies, white and pink roses, dendrobium orchids, tropical foliages and beagrass woven with raspberry-colored ribbon.
Tropical Contemporary Wedding Bouquet
Perfect for a tropical wedding or a contemporary, clean line gown style, this feminine, exotic bouquet breaks out of the traditional mold.
Students watched Phil demonstrate this hand-tied wreath bouquet. The frame was constructed of fresh curly willow, with the roses and ivy entertwined to fill the form. Dendrobium orchid accents were added and a pale green hydrangea anchored the focal area. Large ivy leaves finshed the look.
In this photo, the stems were left natural to allow the bouquet to continue to drink water. They would be wrapped in ribbon and trimmed with decorative accessories for the wedding itself.
This bouquet style can be carried upright for a classic look or held low on the gown for a more natural effect.
Symbolizing eternity, the wreath ring bouquet is a wonderfully romantic wedding design.
We were fortunate to have a visit from Bo Kuszyk of Florigene last week. A resident of Australia, Bo promotes the unique MoonSeries carnations (available in shades from deep plum to pale lavender) developed by the genetic breeders at Florigene’s labs.
Her passion for purple and championing of carnations earned her a title on our building sign.
