January 2007
BIZ TIPS: Bring ‘em on! Developing a Competitive Spirit
by Terry Johnson
“If only the floral business weren’t so darned competitive!” I can’t count how many times I’ve heard that comment (or something a bit spicier) from retail florists, some of whom I’m sure would rather just spend their time creating and selling beautiful floral designs to appreciative customers willing to pay whatever the retailer charges. I don’t blame them for thinking that way, but the reality is that every day more and more competition makes it increasinglydifficult for retail florists to be profitable and to survive. There are many retail models competing for consumers’ dollars and this series of articles will hopefully help retail florists develop the ability to successfully compete with them.
Competing with supermarkets and other mass market retailers.
Supermarkets (or other mass marketers) selling flowers is certainly a “Good News; Bad News” scenario for florists. OK, first the Bad News. Consumers are in the markets daily and can see flowers every time they shop. They have good selections of products, and prices are attractive. Shoppers can take their purchases home immediately. All of these factors are in their favor. Now, for the Good News. Florists can successfully compete with mass market retailers, but not by trying to duplicate what they do, but by being what they are not. Here are a few suggestions for developing strategies for competing with supers:
- Know your competition. Many times, supermarket floral departments are run by people far from your market. They also have to buy for all of their stores, regardless of what a particular market might want. Supermarkets have great difficulty properly training floral clerks. As a result, consumers aren’t likely to hear correct information about floral products and how to take care of them. Floral clerks also tend to over-water plants, which causes root rot and leads to dissatisfied consumers. In addition, floral products are exposed to very high levels of ethylene gas, which harms plants and flowers and shortens their life. Visit stores in your market and verify if these issues are relevant. Then, make sure your community knows the advantages of buying floral products from you.
- Know your products. How are you perceived by your community? Are you thought of as an expert in floral products? You should be. Make sure you and every employee stay current on flower and plant varieties, their care and handling, and what consumers should do in the home to maximize the enjoyment of their floral purchases. Satisfied customers are much more likely to be repeat customers. With rare exceptions, consumers in your market won’t be getting that valuable information from the mass market.
- Know your market. Develop ways to discover what your community is looking for in floral products and what they are willing to pay. One thing you can count on - consumers want value for their purchases. In floral, value can mean many things, such as freshness, vase life longevity, service, unusual varieties, and quality design. You might be surprised what your market is prepared to pay for value. Take Kathy Bauldree, owner of Stayton Flowers, Stayton, Oregon. “We sold out of $50 poinsettias this Christmas and next year we’re going to order more,” explained Ms Bauldree. “If people want to buy $15-$20 poinsettias at the grocery store, let them. But more and more customers want to make a statement with a beautiful, showy plant, and they’re willing to pay for it.” Ms Bauldree also believes that she has to be a detective and a problem solver, seeking out what opportunities will make her more competitive within her community. This is the “competitive spirit” that will help retail florists survive and thrive in a profitable future.
See Pricing Pointers and Strategies