Valentine's Day is over, for many florist was a good day, good
volume of sales and so on, but the real winner here were the flower importers
due to they have more clients besides only florist. More flowers were sold this
year than last year. (According to statistics from Colombian flower producers).
Among the importer clients, there are the usual grocery stores,
supermarkets, convenient stores etc. But this time also special clients were present: big retail stores and
many individuals who saw the opportunity to make extra bucks.
To bring some examples:
1800flowers works directly with Kohl’s.
Wal-Mart was selling dozen of roses for $15.
But the best part, is that a lot of people had sold roses
using craigslist and Facebook. After one month, finally I have the opportunity to talk with
one of them, and the fallowing he said:
I’m Jim, first year on Miami College, I started last year
with this flash business, the idea is to buy roses at discount price on the
importer warehouses in Miami; also, in nearest dollar store, get adorns, you
know… colored papers, balloons, adorns etc.
I Advertise on Craigslist and Facebook, sell the flowers at a cheap price,
accept payment by Paypal or cash, and make delivery. All the communication is
by text or Whatsapp; Easy money.
What was your cost?
For example, a dozen of roses with delivery we charge 17.99.
The cost was $5 per dozen of roses, $1.5 in adorns (paper, green foliage, card
etc) optional balloon $1, Delivery $3. The total cost was $10.5 for a first
class dozen of roses with balloon and delivery; nobody could beat our prices
not even Wal-Mart. For something similar the cheapest price in a florist was $29.99 without delivery, balloon or ornamental foliage. We did not have competence. My
profit was $7.5.
How many dozen did you sell?
About 1027
How was your operation?
I went early to buy flowers, with the help of my sister, we started
to prepare the bouquets, I had planned and made ready the orders that the
clients made days earlier or moments earlier. I hired one friend from college
and three others that my friend brought. I paid $3 per delivery, was a good
deal for them because at the end for 2 days of work they made each one $700 to $800,
plus tips, my friend told me that he and his van partner make $1.500, he is anxious
waiting for the next year.
Each driver has to deliver at least 8 orders per hours, which
was not complicated because almost all orders were destined to the same area,
South Broward and North East Dade, Fl. The day started at 6 AM until 9 PM, some
of the drivers had partners who help then during the deliveries.
So your net profit was $7.500?
Well, I have to pay my sister $1000. So my profit was around $6.500, and everyone was happy, my sister, my drivers, even my father who
was so proud of us. Next year we will sell almost the double.
How was your promotion or advertising?
That was so easy it started on Facebook groups, all related
to Broward, Miami, Dade, celebration of Valentine's Day on South Florida etc. all the promotion start
there, also 5 days before Valentine’s we started on Craigslist, you know a lot
of people use that, looking for something cheap.
Our promotion was… don’t spend your hard ear money on
overpriced products from florist. Also, why spend on ice cold flowers
from the grocery store…. you can have delivery, balloon, card etc for only $17.99….
we place a lot of sentences of the same sense.
How was the logistic?
It was not complicated, everything was in our garage; we put
the MAX AC, also we use a portables AC from my uncle’s house helping to
preserve flowers, also the weather was child, so…
We use my father van; the balloons were inflated in the
garage using a pipe of helium…. No worries at all in the logistic area.
How about payment?
The payment was so easy, people can pay using Paypal, or by
phone; Paypal has a service to make order by phone, so the clients called my sister and she processed it. No problem at all.
Any Complaints?
Four, the reason was that the roses died fast, we promise
them free roses for the next Valentine's Day. They
were happy with our offer. And two of this complainer told us that they will
make more than two orders for that day.
Plans for your flash business?
Yes, now I’ll bring stuffed animals from China, at cheapest price ever,
at 86 cents, the same are sold here at discount for $7. Ill add those stuffed
animals to the roses, for almost a symbolic price, ill made more advertising,
maybe get more drivers etc, next year I will sell more than double of this year. But for now, I'm doing the logistics for the upcoming Mother's Day.
Finally, I did thank Jim for his time chatting with me.
My question… why do Jim, Wal-Mart,
FTD, 1800FLOWERS, tend to sell cheaper than real brick and mortar florists?
Should be nice that florists only make business with an importer or
wholesaler that only deal with them (exclusivity).
.
