WF&FSA netWORK, 4-15-08 Issue
WF&FSA's Free Electronic Newsletter
4-15-08Delivery Charge Survey
Over 40% of wholesalers are charging $10.00 or more as a delivery charge compared to only 26% a year ago, according to a WF&FSA survey . WF&FSA has conducted these surveys since 2005. There is little change on policies. 89% of wholesalers have delivery charges. 14% charge by the day and 86% by the delivery. Only 20% have a fuel surcharge. Over half the floral wholesalers surveyed have a minimum delivery.
Management Institute Doubles Return on Investment
Participants in the WF&FSA Management Institute will learn time tested methods to increase sales, and how to bring this information home to their sales team, doubling the ROI (Return on Investment) for attending Management Institute.
"Maximize Your Sales Team's Potential - Train the Sales Trainer by Dale Carnegie"is the title of this year's WF&FSA Management Institute. The program is specifically designed for sales managers and branch managers.
Management Institute will be held August 14-16, 2008 at the Embassy Suites Downtown Cleveland, OH. The program starts at 6:00 pm, Thursday, August 14 and ends at 1:00 pm, Saturday, August 16, 2008. For more information or to register, visit www.wffsa.org.
Direct2florist.com Gives Florists Instant E-Commerce
Florists that already have a website but do not have e-commerce capabilities can place a link from their existing site to their page on Direct2florist.com. This effectively gives the florist's site instant e-commerce - with the added bonus of all their own products, their own prices, instant payment, and their own delivery areas. Check out these sites to see examples of florists who have linked their own websites to their Direct2florist e-commerce: www.gloriosaflorist.co.uk, www.florist-jersey.com, www.cascade-lampeter.co.uk
Dillon Floral Finds Success with Direct2florist.com Gift Certificate
Dillon Floral Corporation successfully used the easily customizable Direct2florist.com gift certificate created by WF&FSA to sign up two of their retail customers. Dillon's customized the certificate with their logo and offered $25 towards the sign up fee for their customers. In this case, the retail florist sends WF&FSA their payment information for the discounted price then WF&FSA invoices Dillon's for their contribution toward the fee. To see an example and use start using this tool with your customers, contact Robin Beers at rbeers@wffsa.org or by calling 888-289-3372.
Thank You to Recent President's Club Contributors
WF&FSA would like to thank the most recent contributors to the President's Club. The latest Platinum level ($1,000+) contributions came from Ocean View Flowers and A. Perri Farms . As Platinum members, they have their name, logo and a link to their website placed on the WF&FSA website.
Other recent contributors include Gold level ($500+) members Staalduinen Floral Ltd. and Stevens & Son. All President's Club members receive a mention on the WF&FSA website and special recognition at WF&FSA events. To make your contribution today, AWSLinkToForm[17,5]
Cut Flower Consumption in U.S.
The per capita consumption of cut flowers in the United States in 2006 according to the Flower Council of Holland was $32.60. See more facts and figures .
Cut Flower Imports Down Year-to-Date
The U.S. Department of Agriculture is reporting a downward trend for imported flowers into the U.S. for the period January to April 2008 vs. January to April 2007. The trend line for domestics and all imports is down 8.7% year over year. The imported bouquet number is way down, but many of those bouquets could have been made in the U.S.
The reason for the decline is unclear. What part of this decline is weather related from Valentine's Day 2008 and what part of this is related farms going out of business or farms sending product to countries other than the U.S. is unclear.
To see the numbers for yourself, go to the Agricultural Marketing Service website .
Colombian Free Trade Agreement Faces Fight in Congress
President Bush sent the Colombian Free Trade Agreement to Congress with a specific time frame for completion. Action taken by the Democrats in the House of Representatives removed the time frame. It will be a fight to get Congress to approve the Agreement. Without approval of the agreement, the duty free status of Colombian flowers could go away at the end of 2008.
Economic Stimulus Act Provides Tax Benefits to Businesses
In addition to providing stimulus payments to individuals, the Economic Stimulus Act of 2008 provides incentives to businesses. These incentives include a special 50% depreciation allowance for 2008 purchases and an increase in the small business expensing limitation for tax years beginning in 2008. Read more .
Airline Collapse Concerns Hawaii's Flower Industry
Aloha Airlines declaring bankruptcy followed by the sudden and unexpected collapse of ATA created much concern for the floral industry in Hawaii. "Although we expect increased rates in the future due to increasing fuel costs and reduced competition for inter-island cargo, we do not anticipate any significant difficulty getting our products to market", said Grayson Inouye, President, Pacific Floral Exchange, Keaau, HI. "FedEx and UPS continue to offer attractive outbound rates from Hawaii. And national carriers such as United, American, Delta, etc are still able to service our freight needs out of Kona, Maui, Kauai and Oahu." Read more .
Wire Service Mother's Day Flowers
Flowers offered by the wire services for Mother's Day can be viewed on the internet. While on the wire service site, click on the arrangement and it most often will describe precisely what is in the arrangements.
Martha Stewart and 1-800-Flowers.com Launch New Arrangement
Martha Stewart Living Omnimedia, Inc. and 1-800-Flowers.com have launched a co-branded line of fresh, seasonal flower arrangements and plants available now exclusively at www.1800flowers.com/marthastewart.
ProFlowers & 1-800-Flowers.com Internet Leaders in Converting Visitors to Sales
Based on the results from a recent report conducted by Nielsen Online (Internet Retailer), ProFlowers and Lands' End tied for third at 15.2 % in converting visitors-to-sales among high-traffic e-retailers for the month of February. 1-800Flowers.com was in the top ten with 14.2%.
ProFlowers celebrated its 10th anniversary last week.
Online Sales to Jump in 2008, Despite Sluggish Economy
Experts predict retail industry sales will take a hit this year due to the struggling economy, but a recent report from Shop.org indicates that frugal and affluent shoppers alike are open to making purchases online. Based on this interest, the online category will jump 17%, putting the channel on track to hit $204 billion by the end of 2008, according to Chain Store Age.com.
Amy's Orchids Makes News as Supplier for Celebrity Wedding
Amy Vongpitaka, owner of Thailand-based Amy's Orchids, made several national television broadcasts with the news that she provided flowers for music star Beyonce and entertainment mogul Jay-Z's lavish wedding. They used a total of 200 workers to cut and process 100,000 Dendrobium white orchids, and then hand-chose the best 60,000 for the wedding.
Credit Crunch Increases Reliance on Trade Credit
Trade credit is likely to emerge as the new growth area of debt, according to warnings from a leading credit insurer.
Because of restricted availability and rising costs of bank finance, businesses are reviewing their payment relationships with suppliers to see them through the "credit crunch". Management of both new and established firms will increasingly need to seek alternative sources of funding to maintain working capital and reduce dependency on their finance providers, according to analysts. Read more .
Tesco Halts U.S. Store Expansion for Three Months
Tesco Plc, Britain's biggest supermarket chain, has put the expansion of its Fresh & Easy stores in the U.S. on hold for three months to allow the business time to ''settle down,'' according to Bloomberg . Tesco opened its first U.S. store last November and planned to add 50 outlets in California, Arizona and Nevada by February.
Ethiopia Second Largest African Flower Exporter After Kenya
Ethiopia may export $186 million in flowers to Europe, Asia, and the Middle East this year, the Ethiopian Producer Exporters Association said. Exports last year are estimated at $125 million. Ethiopia is Africa's second-biggest exporter of the flowers after Kenya. Flower production is increasing since the government offered farmers incentives to start flower farms, including waiving duties on imported machinery and grace periods for tax payments. Read more .
Pennock Company Honored for Longevity as ESOP
The Pennock Company has been named a Silver ESOP Award winner by The ESOP Association, who represents companies with Employee Stock Ownership Plans, in recognition of the company's sustained 25 years as an ESOP. The Pennock Company is based in Philadelphia, PA and is 100% employee owned. "We are proud to have been named a Silver ESOP Award Winner and are pleased to have our employee owners recognized for their efforts, "said Robert P. Billings, President and CEO.
John Van Hanford Dies
John Van Hanford, Jr., 85, WWII veteran and a leader in the floral and gift industry, died of heart failure on April 7, 2008 at his home in Charlotte. He had been struggling with cancer for the previous year and a half.
Hanford was President of WF&FSA from 1975-1976 and received WF&FSA's highest award, the Leland T. Kintzele Distinguished Service Award, in 1981. He was one of the founders of WF&FSA's trade fair, "Wares of the World", which became one of the largest 40 trade shows in the country during the 1980's.
Laura Kantakis Dies
Laura Kantakis, co-owner of Associated Wholesale Florist in Rochelle Park, N.J., died March 25, 2008. She was an active supporter and participant of the WF&FSA Young Executives. Kantakis was born on Aug. 29, 1952, in Astoria, N.Y., and graduated from Concordia College in Bronxville, N.Y. She served on both the Member Services Committee and the Wholesalers Council for SAF and was a former board member at WF&FSA.