FTD's Research Flawed?
FTD's Research Flawed?
This is mostly commentary on my part, but if you are a member of SAF the Society of American Florists you can read the complete article online or in Floral Management Magazine.
Back in October, Mike Soenen FTD CEO explained FTD-sponsored research, where consumers ranked price first and service last. The second part of the FTD research found that florists rank service first, design second, and price last.
Mr. Soenens comments eluded to the theory that florists should offer more lower-priced boxed flowers (single stems) to consumers in lieu of high end floral designs.
A well respected Columbus Ohio research firm, Prince and Prince, also did their own study. Prince and Prince: "some observations we at Prince and Prince have made over the last decade support different conclusions". The P&P research showed that providing "value" was the top priority, followed closely by quality, and then sales assistance/courtesy. Price was the FOURTH most important.
The P&P research also found that since 1998, florists involvement with single stems has declined more than 25%, with the decline most pronounced among larger florists.
*************************Commentary
It seems that FTD's question format may have been somewhat responsible for the outcome of their research, since they appear to have asked the cost question directly, rahter than utalize research methods such as trade-off anaylisis and structural equation modeling, to generate more accurate resullts.
One can not help but wonder, if this was FTD's attempt to convince florists to lower their prices, and be willing to accept the lower price points offered by FTD on their own site. I assume this was part of their battle plan to try and take on Proflowers in a low price war. Again FTD's thinking is somewhat flawed, as I do not see them hurting Proflowers in any way.
All we Real Florists can say, is good luck FTD, you're going to need it.
BOSS
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Obviously FTD wants florists to lower their prices to compete with ProFlowers. ProFlowers is a tough competitor. Instead of trying to get florists to lower prices, they should be trying to inform the public about the difference between an arangement hand delivered by florists, and a bunch of flowers sent in a box.
I agree, but I also doubt that we will see FTD do anything along these lines under the current mamagement, that seems to be hell bent on trying to take on ProFlowers, something I do not feel they have a chance in doing.
Florists for the most part will not help them compete, as it's not really in their best interests to lower their pricing structure.
I look for Proflowers to perhaps even offer something in the future that may even bite at the buttocks of FTD, and even turn their model inside out. Time will tell.
FTD wants the florists to lower their prices to the consumer, while FTD is rising prices for the florists to be a FTD member. Something isn't right here.
At you the excellent site, a lot of useful info and good design, thank.
Perhaps we,the florists should not rely on wire service orders,cultivate your local customers...get a site on the internet,get an 800 number....you can survive with out a wire service...reconnect with your local customer.
Ellen, exactly. No florist should rely on incoming orders to base their business on, and in fact many may not have a need for any type of wire service at all. Local, direct customer contact will generate the best potential growth for any florist.
I read an interesting article in the latest super floral retailing about FTD. It is now affiliated with a chain of stores known as Price Choppers.I believe Price Choppers is an outgoing only member. It seems that being an outgoing only member, is reserved for everyone except the "real" florist.