WF&FSA netWORK, 10-5-04 Issue
10-5-04 Issue
FLORAL EXPO REGISTRATIONS RISE
Wholesale distributors from 35 U.S. states, four Canadian provinces and Jamaica have already registered to attend Floral EXPO Oct. 28-30 in Atlanta. Have you registered yet? If not, AWSLinkToForm[24,5] The WF&FSA website also includes a list of registered wholesalers. And when you register for Floral EXPO, Sales Camp is free. There is no separate registration for Sales Camp.
More than 155 exhibitors are planning to share sales ideas, demonstrate new products and offer joint marketing opportunities to wholesale distributors during the three days at Floral EXPO. These exhibitors, representing 14 countries, have contracted for a total of 340 booths. To see a current list of exhibitors, click here.
FCC EXTENDS DO-NOT-FAX DEADLINE BY SIX MONTHS
The Federal Communications Commission (FCC) has voted to postpone the new "do not fax" regulations for six months, according to the National Association of Wholesaler-Distributors. They will now take effect July 1, 2005. This summer the full House and the Senate Commerce Committee passed the Junk Fax Prevention Act, which would allow faxes for companies with "established business relationships," but it hit a snag last week in the Senate, according to bizreport.com.
PROFITABILITY DIFFERENCES PERSIST, 2004 REPORT SHOWS
The 2004 WF&FSA Operating Ratio Report shows once again that there are major profitability differences within the industry. While typical firms have a profit margin of 1%, the high-profit companies produced a profit margin of 5.5% this year. Dr. Al Bates of Profit Planning Group explains where typical companies need to place their efforts and suggests an improvement plan that will help to close the current profitability gap. To read his report, "Changing the Profit Equation," click here.
WHOLESALERS STILL FOCUS ON RETAIL FLORISTS
Although wholesale distributor sales to retail florists have dropped slightly, from 77% last year to 73% in 2004, they still represent nearly three quarters of all wholesaler sales dollars, according to the recent WF&FSA Best Practices Survey on "Wholesaler Sales by Customer Segments." What's more, 47% of the respondents said they intend to increase their sales to retail florists during the next five years, compared with 38% a year ago. For complete survey results, click here.
NOMINATE BEST RETAIL CUSTOMERS BEFORE OCT. 31
Wholesalers: Let your best retail florist customers know how much you value them and their business by nominating them for the 2005 Retail Florist of the Year contest. Entry forms, wholesaler evaluation forms and examples of best practices from the 2003 and 2004 winners are available by clicking here. Encourage customers to enter this month! The contest ends Oct. 31.
STUDY HIGHLIGHTS SUPERMARKET FLORAL SALES
Supermarket floral departments reported $5.2 billion in total sales for 2003, according to Progressive Grocer's 57th annual Consumer Expenditures Study as reported by the Produce Marketing Association.
WHOLE FOODS JOINS SUPPLIERS IN CERTIFICATION PROGRAM
Whole Foods Market has joined with growers and distributors to create a standardized cut flower certification program to address "social and environmental issues that have long plagued the cut floral industry," reported supermarketnews.com. The program, which is scheduled to be launched soon under the name Veriflora, was developed by Scientific Certification Systems in Emeryville, CA. For more information, click here.
WF&FSA ANNOUNCES REGIONAL ELECTIONS
David Garcia of Pete Garcia Company and Jeff Piscitelli of Younger and Son, Inc. will end their three-year terms on the WF&FSA board as regional directors this year. Nominees for the position of Southeast Regional Director are Colleen Taber, president of Gardens America, Inc., and Nick Trujillo, president of Rio Roses-Equiflor Corporation, both in Miami. The nominees for the Mid-Atlantic Region are Barbara Bishop, president of Diamond Line Containers in Akron, OH, and Clay Sieck, partner of Claymore C. Sieck in Baltimore, MD. Ballots will be mailed to all WF&FSA members in mid-October.
LTK NOMINATIONS CLOSE OCT. 15
WF&FSA will continue to accept nominations for the 2005 Leland T. Kintzele (LTK) Distinguished Service Award until the Oct. 15 deadline. The LTK award is presented each year to one individual who has demonstrated dedication, ability and initiative while making significant contributions to wholesale distributors and the floral industry. To nominate a candidate, email a letter detailing the individual's accomplishments to Jim Wanko at jwanko@wffsa.org.
HAUNTED HOUSES NEED FLOWERS, TOO
Halloween is the second largest holiday for decorating, following Christmas/Hanukkah, with an estimated $1.5 billion spent on decorations, according to the Oct. issue of Florists' Review. In fact, nearly 62% of consumers plan to purchase some kind of Halloween decorations, the National Retail Federation discovered in a recent consumer survey.
RISING FUEL COSTS HIT FLORAL INDUSTRY
The national average for diesel fuel continued to set a record high for the third straight week, causing transportation companies to increase their fuel surcharges. Continental Airlines recently announced its third fuel surcharge on cargo this year, according to the Houston Chronicle. Both Armellini Industries, Inc. and Wilsey Bennett, Inc. announced increased fuel surcharges last week. The per-gallon price of $2.053 this week is 42% higher than it was a year ago, reported Transport Topics.
PRESIDENT BUSH EXTENDS HOS RULES
President George Bush last week signed a highway spending law that included a one-year extension of the new truck driver hours-of-service (HOS) rules, said Transport Topics. The extension keeps the rules that were passed in Jan. 2004 in effect until the Federal Motor Carrier Safety Administration (FMCSA) issues new rules or until Sept. 30, 2005, whichever comes first. Earlier this year, the U.S. District Court of Appeals had nullified the new HOS rules, sending them back to FMCSA for review. Congress then acted to include the one-year extension in the recent spending bill.
MEXICAN TRUCKS MUST MEET U.S. STANDARDS
Two weeks ago, the House of Representatives approved a measure to require foreign trucks operating in the U.S. to meet the same safety standards as domestic carriers, Transport Topics reported. The measure was attached as an amendment to a fiscal 2005 funding bill. The Senate has not yet considered its version of the bill. Last week, California Governor Arnold Schwarzenegger signed similar legislation for the state, where drivers must provide evidence that their trucks meets U.S. standards.
DATA FOR WF&FSA BENCHMARKS REPORT DUE OCT. 30
Have you sent in your data for the WF&FSA Third Quarter Benchmarks Report? These reports provide quarterly updates on several key indicators, such as revenue growth, gross margin, operating expenses and profits, which will help you measure your performance. If you're already registered, forward your data to the Profit Planning Group. If you haven't registered but would like to participate, click here. Only participants are eligible to receive the quarterly reports.
MICHAELS CLOSING IN ON NEW YORK
Following Wal-Mart's expansion strategy of "surrounding a city and then entering it," Michaels plans to establish stores in the New York boroughs of Queens and Brooklyn before "conquering Manhattan" in a year or two, according to a recent article in The New York Times. Michaels sells more than 85 million silk flowers a year, the article said.
FTD TO SPEND $5 MILLION ON CABLE ADS
FTD has chosen MediaMixNet to handle its estimated $5 million national cable TV media buying account, according to mediapost.com.
TRUMP SAYS "YOU'RE HIRED" TO 1-800-FLOWERS.COM
1-800-FLOWERS.com has branched out into the event business, including the Republican National Convention in August, a party for magician David Copperfield and a recent bash for Donald Trump to celebrate his new magazine and the second season of "The Apprentice," according to Newsday.com.
SAF ELECTS NEW BOARD MEMBERS
The Society of American Florists (SAF) recently elected two board members and appointed a new treasurer at its annual meeting in Maui. Terry Campbell of Hill's Floral Group in Richmond, IN, was elected wholesale representative to the board. Bob Luthultz of Pittsburgh Cut Flower Co. in Pittsburgh, PA, was elected to serve a second one-year term as president-elect. Bob Williams of Smithers-Oasis N.A. in Kent, OH, and current SAF board member was appointed treasurer. For more information, visit www.safnow.org.
CAFG&S CONFIRMS NEW PRESIDENT, ALTERS FUN N SUN
The California Association of Flower Growers & Shippers (CAFG&S) confirmed Julie Walker of Obra Verde Growers in Valley Center, CA, for a one-year term as the association's president. CAFG&S also announced plans to replace Fun N Sun Weekend next summer with a member meeting on education and services. Starting in 2006, CAFG&S will establish a convention/trade show to be held every other year.
ICFG TO MEET IN MIAMI
The International Cut Flower Growers Association (ICFG) will hold its annual meeting Oct. 13-16 at the Crowne Plaza Miami International Airport. For more information, write to ICFG@voyager.net.
FLORIDA WHOLESALERS CONSOLIDATE OPERATIONS
Southwest Florida Wholesale Florist has announced the purchase of Edward H. Howell Co. and plans to consolidate operations for both companies in one facility at 2744 Edison Avenue, Fort Myers, FL, 33916. Edward Howell recently retired after 40 years as a wholesale florist and opted to sell the business.
WF&FSA TO PUBLISH 2005 DIRECTORY
WF&FSA will publish a printed version of the Association's Membership Directory in 2005 as an addition to the online directory that is now available at www.wffsa.org. Members will receive requests for updates from WF&FSA later this month, but you can always update your directory listings online. The deadline for updating your information for the printed directory is Nov. 5.
COLORADO COUPLE TO ENTER HALL OF FAME
Bob and Shirley Briggs have been chosen as 2004 Colorado Floriculture Hall of Fame Inductees. They will retire this year as executive officers of the Wholesale Florists of Colorado.
WF&FSA WELCOMES NEW & RETURNING MEMBERS
Association of Floral Importers of Florida, Miami, FL - Association; Tomono Orchids Hawaii, Honaunau, HI - Grower/shipper; Premier Companies / Hold Plus, Diamondale, MI Service provider.
YOUNG EXECS NETWORK ADDS MEMBERS
Michael Hanson, Smithers-Oasis NA; Annie Perera, Direct Farms, LLC.
Please Visit the WF&FSA Website: www.wffsa.org
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