Unit B2-12

Floriculture

Horticulture CD

Problem Area 2

Floral Design

Lesson 12

Managing the Flower Shop

Interest Approach

On a sheet of paper, list as many flower shops as you can that are in your area.

What do the shops have in common? How are they different? What does it take to run

a flower shop?

Student Objectives

1. Describe the qualifications to be a florist.

2. Describe the types of flower shops.

3. Explain the basics about good location and starting a floral shop.

4. Describe the importance of marketing, promotion and sales.

5. Describe effective packaging and delivery.

6. Explain the major areas of an effective flower shop floor plan.

Vocabulary

Bucket shop

Carriage trade shop

Clearinghouse

Demographic study

Displays

Empty nest couples

Fictitious name statement

Filling florist

Franchise

Gray market

Marketing

Marketing mix

Promotion

Resale license

Satellite shop

Sending florist

Stem shop

Tax number

Up-selling

Visual merchandise

What Skills Must I Posses If I Am Going to Become a Florist?

Most people who become florists do so because they enjoy flowers and plants

Opening a business, however, requires: knowledge about the industry, floral training, and ability to keep up with new trends

Skills can be acquired through college courses, working in a shop and attending training sessions

Qualifications of a Successful FloristFloral Knowledge Business Skills Personal Attributes

Flowers Advertising Honest

Care/handling Marketing Trustworthy

Design Personal management Consistent

Display techniques Buying & inventory management

Self starter

Creativity Pricing knowledge Motivated

Trend watcher Computer skills Energetic

Bookkeeping/accounting skills

Patient

Salesmanship skills Tactful/compassionate

Major skill areas include:1) business knowledge

Knowing how to advertise, market, buy, do inventory control, effective pricing strategies, computer skills, bookkeeping, accounting and employee relations

Having a partner provides added experiences2) personal skills

Honesty, trustworthiness, drive, energy, patience, tact, compassion, consistency and integrity; Basically a “people person”

Will result in ethical business operation

3) must possess knowledge of floral products

Understanding of plant care and handling, design principles, display techniques and overall creativity

Flower Shop Categories

Full-service shop

Large-volume shop

Party/wedding shop

Carriage trade shop

Stem shop or bucket shop

Satellite shop

Franchise shop

What Are the Various Types of Floral Shops?

A. Full-service shop: The traditional floral shop Offers a wide variety of services to meet the

consumer’s needs Usually a member of one or more wire services

(such as FTD or Teleflora) Does wedding and sympathy work and fills various

other needs Owner is usually a good businessperson and

prominent member of the community

B. Large-volume shop:Sells large quantities of design work due to

a well-executed marketing plantOwner is an expert in planning, budgeting,

financing and trainingOffers many of the services that a full

service shop offers but does mostly large quantity orders

Often found in big cities and work with corporate accounts such as hotels and businesses

C. Party/wedding florist:Considered a specialty shop that has

restricted its work to event planning for weddings and parties

One caution in this business is that the market area must be able to support the specialization if it is going to survive

Owner must be a good communicator, creative and dramatic in carrying out the plans requested by the consumer

D. Carriage trade shop:Provides extensive personal service to a

limited, elite clienteleOffers the services of a full-service shop,

but in a lavish, upscale manner to a limited customer base

Key to success is developing a name and reputation with the desired clientele

Communication is extremely important

E. Stem shop: It is a cash and carry operation that

offers a variety of flowers & foliages by the stem or bunch

Often called a bucket shop because the flowers are sold directly out of the buckets

Key to success is to be in a high traffic area

Often found in grocery stores, malls or airports

F. Satellite shop:A second shop operated by a full-service

shop, commonly found in a strip mall and shopping malls

May also be found in hospitals and office buildings

Might be opened due to increased exposure and traffic

Owner must have skill in planning and organization if both shops are to survive

G. Franchise shop:A flower shop purchased from and

operated according to a parent company for use of its name and business service

There are not many shops of this type because the initial cost of purchasing the shop can be quite high

Advantage is the name recognition and demonstrated services and products in the marketplace

Where Should a Flower Shop Be Located and What Are the Basic Legal

Requirements?The trick to finding a good location is to do some research about the area where you are interested in to start the businessResearch should include potential state, city

and neighborhoodCompetition, population, traffic flow, parking,

visibility, and wholesale florist locations must also be taken into consideration

Prospective owner must also evaluate the economic and demographic information

A demographic study is a report of the size and distribution of population in a specific area

It will include information on age, education, income levels and other information about the community

Community information will allow the future florist to see if there are trends like empty nest couples - people under 65 who no longer have children at home; They are likely to spend money on flowers

The gray market, people over 65, typically spend less because of their fixed incomes

There are some basic legal requirements to be met before operations beginLicenses and permits must be obtained

from state, county and local governmentsFlorist must gather five licenses as follows:

1) A fictitious name statement is a document that must be filed with the county to register the business name and prevent another business from using that name in the county

There is a filing fee and a notice must be published in county newspapers

2) A federal employer identification number (FEIN) must be obtained if there will be employees

Number is used by both the internal revenue service and the social security administration for tax return purposes

• If there are no employees, the owner’s social security number is used

3) A resale license or tax number is a number obtained so that the required sales tax can be collected and wholesale items can be purchased without paying sales tax

Applied for through the state’s revenue department A county license might also be required

4) professional licenses are issued by the sate agriculture department, registering a business to meet certain state regulations

Not required by all states

5) special licenses are issued for special services that might be provided by a florist, such as a liquor and pesticide application license

Often same as those with helium tanks

How Does One Market and Sell Floral Products?

Marketing is the process of selling a product and providing a service the consumer wants or needs It is essential in the retail business world

Goal is to determine the most effective market mix and market strategy for a given consumer base

A marketing mix will vary from shop to shop; There are five guidelines

Guidelines For Effective Marketing

Define specialties or strengths of the particular floral businessDefine the targeted customers or target marketDetermine the products the customers want to buyDetermine how to communicate the messageDecide the specific products and services to offer the target market

Promotions encompass a variety of activities that lead to public name recognition Include advertising, community involvement,

contests, punch cards, coupons, demonstrations, educational articles, logos/image development, window displays, publicity, signs and effective selling techniques

Advertising is the biggest promotional activity of a business; It occurs on a daily basis Varies from print, to voice, to video, to the internet Yellow pages are used heavily because many

orders occur over the phone Helps to be affiliated with a wire service, such as

FTD Sending florist – a florist who sells a wire service

order; Orders are sent via telephone, fax or computer

Filling florist – is a florist who takes the order, fills and delivers it

Billing of the order is based on the order activity and is settled by the clearing house

Smart selling is invaluable to the retail florist industry Salesperson must be versatile in handling a

variety of situations, from weddings to funerals Salespeople must have knowledge of flowers, be

friendly and personable – this will project a positive image of the shop

Should also be good listeners and effective communicators; Also develop up-selling – a technique of persuading a customer to make a larger purchase than originally planned by offering a range of prices, not just the lowest, and suggesting the purchase of related products

How Should Effective Packaging and Delivery Be Handled?

Packaging plant material has a two-fold purpose: protect the flowers from the outdoors and provide a shop image promotion and advertising On cold days, flowers should be double wrapped

and the vehicle pre-warmed

Packaging materials to protect flowers include sleeves, bags, cellophane, tissue paper and any combination of these Should be neat and held together with tape or

staples Ribbon and accessories may be included and the

package should be finished off with a shop sticker

Delivery is an essential part of the floral industry Link between the designer and the customer Efficient routing and delivery schedules must be

maintained Delivery person must be good at maintaining the

vehicle and loading items He/she must be timely and safe, neat in

appearance, and courteous Items should be secured in the vehicle

Use sandbags, bricks, boxes, and plastic carriers Place tall items on the side and shorter ones in the

middle will help in effective loading There are several categories of deliveries

Types of Deliveries1. Regular deliveries: those that are made in an area predetermined by the shop owner2. Out-of-the area deliveries: are those outside the predetermined area and carry a larger delivery charge3. Timed deliveries: are those that are to be delivered at a time determined by the customer (usually for birthday’s or anniversaries)4. Special deliveries: are for those customers that forgot, or were not aware of a floral need, and a last-minute delivery trip must be made. Additional charges could apply

What Primary Areas Are Needed in a Floral Shop Floor Plan?

There are four major areas to consider when developing a floor plan:A) the sales area should contain a display

window and have a good entry spot that invites the customer into the store

Need room for display units, coolers, tables, shelves, a sales counter, cash register and possibly a plant area

Taken into consideration lighting, floor coverings, and the ceiling

Sales area continuedTraffic patterns should encourage the customer

to look at all available merchandise before making a purchase

Effective displays in the sales area will promote a greater volume of sales

Visual merchandising is a coordinated plan to attract customers to the flower shop and to make a purchase

Displays are one component of visual merchandising

• Attract attention,create interest, and motivate the customer to want to buy the items displayed

B) the design area, or workroom, needs to include design benches, easy access storage for containers and supplies, receiving and delivery area for incoming flowers, and outgoing area for deliveries

A storage cooler should be located in this area It should be large enough to hold the increased

volume of flowers during the busy seasonsGood lighting, accessible water, drainage, and

good shelving are important to a design areaDesign benches should be at a comfortable

height while standing

C) wedding or funeral consultation areas should be located where conversations will be undisturbed by phones or other people

A table and several chairs should be provided An area that is neutrally decorated and furnished can

serve the needs for both types of consultationsSome funeral ordering will take place

over the phone D) the final area is the office; This area should be

convenient for supervision of both the design area and sales areas

It should be equipped with as much modern office equipment as possible

• Including computers, telephones, fax machines and internet capability

Summary

What are some areas of skill that are required by a florist in order to run a business?

Give some examples in the area of flower knowledge that are required by a florist.

How is a full-service shop different from a stem shop?

What makes a carriage-trade shop different from a full-service shop?

Why would a florist open a satellite shop?

Summary Continued

What is the purpose of doing a demographic study before opening a floral shop?

Explain the importance of a fictitious name statement.

What is a federal employer identification number used for?

How does one market and sell floral products?

Name some ways to package floral material.

Why is it important to wrap all floral products?