1. Floral Industry Background

2. The Three Branches
There are three branches which make up the background of the floral industry:
The Grower--where the flowers are grown.
The Wholesaler--the middle person who goes between the grower and the retailer.
The Retailer--the local flower shop.

3. Quite often these three businesses are intermingled
Example:
The retail florist frequently will grow his/her own flowers in greenhouses and thereby omit using both the grower and the wholesaler.
Some larger flower shops use flowers in such quantities that they will order directly from the grower, omitting the wholesaler.

4. The Grower Commercial growers operate their plants scientifically
The grower not only has a great investment in education and training, but also in the physical equipment required for growing.
To take some of the gamble out of their business, growers insure themselves against fire, theft, wind and hail damage to their greenhouse and equipment. They cannot insure against crop and market failures.
The business of growing flowers commercially is not vested in the hands of a few companies, but is controlled by thousands of independent growers located in many communities.
They have, in most instances, studied floriculture, where they acquired a knowledge of entomology, plant pathology, soil chemistry and greenhouse management.
If their own background does not include this training, then they may learn from others who have been trained in these things.
Even the smallest grower, who operates without a greenhouse, has an investment in land, tools and equipment that amounts to thousands of dollars.
The cost of growing flowers under glass takes thousands of dollars more capital for greenhouses, heating installation, various equipment and planting stock.
Even under glass they are at the mercy of the weather to a large extent and yet must do everything possible to time their crops to meet the demand.
Their problems and methods of operation vary according to the climate, size of the community and type of growing.

5. The Wholesaler
Wholesale florists operate as distributors of all cut flower stock consigned or sold to them by growers.
It has been estimated that about two-thirds of the flowers on the market are consigned to wholesalers and the remainder are purchased outright.
It enables the wholesaler to have a steady supply at all times.
When some varieties are not available locally, flowers are shipped in from distant growers.
Growers might indicate to the wholesaler the price they would desire, but most often the price is left to the discretion of the wholesaler.
Retail florists rely on the wholesaler to fill their requirements for flowers of all kinds.
Many wholesale florists also carry floral supplies, such as ribbon, baskets, moss, frames, etc.
Some wholesalers handle a general line of cut flowers and supplies, whereas others handle only flowers of certain varieties or specialize in supplies
Supplies generally are purchased by wholesalers and rarely consigned to them.
Most wholesale houses obtain flowers from a number of growers, some of whom may be located in other parts of the country.
They are expected to obtain as much as possible for the stock consigned to them.
The wholesaler usually receives a fifteen percent commission for handling greenhouse flowers and collecting the accounts from retail florists.
It is customary for them to receive a larger commission on consignments from growers of outdoor stock, particularly when shipped from distant points.
This difference is offset by shipping costs and gives some protection to their regular growers.
Everything else being equal, the stock grown locally will sell first.

6. Grower-Wholesalers
Many growers are also wholesalers, in that they sell flowers direct to retail florists, without the facilities of an established wholesale house.
Most pot plant growers deal directly with the retail florist.
Commercial growers of foliage plants also sell directly to retail florists, although some distribution of their stock is made through wholesale houses.

7. The Retail Flower Shop

8. Types of Flower Shops Full Service, Professional Specialty
Limited Service
Flower Merchandisers

9. Full Service Florist provides everything customer needs
Complete range of flower products, services, flower-related producst and consulting

10. Specialty Flower Shop Examples: silk flower dried flower designs
Specialize in one specific aspect of floristry
Examples: silk flower
dried flower designs
wedding flowers

11. Limited Service Flower Shop
Has a narrow range of services and products
Designed for impulse buying
Provide little service
Pre-fabbed mostly
Found in grocery stores and larger hospitals

12. Flower Merchandisers
Sometimes referred to as cash and carry or stem shops
Located in high traffic areas
Specialize in loose cut flowers sold by the stem or bunch
Provides no delivery or design services

13. Flower Merchandisers

14. Locations
Some consider it the most important factor in the success of a flower shop.
Free Standing
Strip Center
Shopping Mall
Business Complex
Downtown
Floral Department

15. Free Standing Flower Shop
A shop in a single unit building

16. Strip Center Flower Shop
Combines several businesses that adjoin one another and make up a small shopping complex.

17. Shopping Mall
Hardest location to make a profit
High rent

18. Business Complex Immediate customer base
Often are full service operation catering to the business needs of the other businesses in the complex
Also combines mass merchandising for convenience of employees in the complex

19. Downtown Location
Usually are older, established businesses with loyal customer base
Often focus on high-style design and motel business
Market to other types of businesses

20. Floral Department Located in supermarkets Usually mass merchandisers
May offer limited services
Examples: Alberton’s, Walmart

21. Shop Layout A shop usually has these areas:
Area for displays and sales
Work area for receiving and designing flowers
Office area
Area for processing orders
Loadout area

22. Showroom Layout

23. Work Area

24. Order Area

25. Visual Merchandising
Attracting customers to the shop and creating interest in the flowers and merchandise
Involves: lighting, settings, color
Uses visual communication to say “BUY ME!”

26. Visual Merchandising
An effective visual display will achieve four goals.
Attract Attention
Create Interest
Turn interest into desire
Generate sales

27. Methods of Visual Merchandising
Vignette – grouping similar types of merchandise together for maximum visual appeal
Examples:
Halloween/Fall
Valentine’s Day
Christmas Season

28. Methods of Visual Merchandising
Window Display – intended to attract attention to the shop

29. Methods of Visual Merchandising
In-Store Display- Product presentation should lead the customer through the store.
Example: Have cooler with live arrangements at the back of the shop.

30. Other Considerations Marketing
everything a flower shop does to find customers, serve them, maintain their loyalty, and convince the to buy more often
Advertising
paid media always directed to selling
may be radio, TV, newspapers, direct mail, web pages
Promotion
process of advancing the awareness of the flower shop
Open house
Providing flowers for door prizes

31. Questions?

32. Enrichment Activity Marketing a Flower Shop
For the next class, come up with a name for your flower shop and create a sign that would hang outside of your store.
The sign should include, store name, hours, phone number, a graphic, and color. It should fit on a 8 1/2 by 11 piece of paper. The computer may be used.

33. Items sold in a Flower Shop
In groups brainstorm items sold in a flower shop

34. Equipment needed in a Flower Shop
Coolers
Cash Register
Work area
Sinks
Phones
Restroom
Display area

35. Floor Plan
On a 8 by 11 piece of paper sketch a floor plan for your floral business. Include sales area labeling product placement. Also show work area with equipment labeled.