Floral Industry Background

The Three BranchesThere 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.

– 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.

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.

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.

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.

The Retail Flower Shop

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

Full Service Florist provides everything customer

needs Complete range of flower products,

services, flower-related producst and consulting

Specialty Flower Shop Specialize in one specific aspect of floristry

Examples: silk flower

dried flower designs

wedding flowers

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

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

Flower Merchandisers

Locations Some consider it the most important

factor in the success of a flower shop.o Free Standingo Strip Centero Shopping Mallo Business Complexo Downtowno Floral Department

Free Standing Flower Shop A shop in a single unit

building

Strip Center Flower Shop Combines several businesses that adjoin

one another and make up a small shopping complex.

Shopping Mall Hardest location to make a profit High rent

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

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

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

Shop LayoutA 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

Showroom Layout

Work Area

Order Area

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!”

Visual Merchandising

An effective visual display will achieve four goals.

1. Attract Attention

2. Create Interest

3. Turn interest into desire

4. Generate sales

Methods of Visual Merchandising

Vignette – grouping similar types of merchandise together for maximum visual appeal

Examples:

•Halloween/Fall

•Valentine’s Day

•Christmas Season

Methods of Visual Merchandising

Window Display – intended to attract attention to the shop

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

Methods of Visual Merchandising

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

Questions?

Enrichment ActivityMarketing 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.

Items sold in a Flower Shop In groups brainstorm items sold in a

flower shop

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

Floor PlanOn 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.