May 2007

BIZ TIPS: Delivery
From Redbook Florist Services – Retail Floral Shop Operation

Delivery is a vital service that can distinguish the retail florist from other types of outlets which sell flowers. The delivery personnel and procedures are so important that they can make or break a shop’s image and profitability. On one hand, poorly trained drivers and disorganized schedules can discourage customers and result in wasted time and money. Conversely, educated, well mannered personnel and organized routes can enhance a shop’s image and reduce costs. To be a successful part of shop operations, delivery must involve training, organization, and cost-effective measures. The goal must be control - control over people and products - so the process will be completed in a timely, effective, and efficient manner. This chapter highlights delivery guidelines and provides pointers for several aspects of delivery, such as selecting a delivery vehicle and determining delivery cost.

Delivery Vehicles
Selection of a delivery vehicle or vehicles is one of the most important decisions a florist will make. The vehicle is a reflection of the shop’s image and will be continually seen by members of the community. It also serves as the final transportation step for many types and sizes of temperature-sensitive flowers and plants, plus accessories and gift items. It must accommodate a few arrangements or a massive wedding or party safely and comfortably in all types of weather. And finally, its use is a major expense that must be carefully controlled. There are four major decisions involved in vehicle selection: type, size, features, and financial considerations.

Vehicle Type and Size
The vehicle type and size are dictated by the shop’s image, size, type of work, and budget. Major categories of vehicles used as floral delivery vehicles are listed below.

Cars (sedan, hatchback, station wagon, mini wagon)
Vans (mini van, full-size cargo van or commercial van in 1/2 ton, 3/4 ton, and 1 ton
Trucks (pickup, cab and chassis models)

Vans are the most popular delivery vehicle for florists because of their capacity, versatility, and maneuverability. To save money, some florists consider starting out with a car. Experience soon shows, however, that limited space and accessibility create problems and make frequent trips necessary. If a car is selected, it should be a hatchback, station wagon, or one of the larger mini wagons. Florists who focus on large wedding and party work should have a full-size van or truck. A cab and chassis model truck is also a wise choice for shops that are involved in large plant deliveries, installations, and maintenance. To serve as a guide for consumers interested in purchasing a van, the Council of Better Business Bureaus, Inc., has published Tips on Buying a Van, as part of its consumer information series. Tips on Buying a Van explains the differences between mini vans, full-size vans, conversion vans, and recreational vehicles, while discussing the advantages and disadvantages of each type. For Instance, mini vans are basically 170 to 190 inches long, weigh less than 4,000 pounds, and come with front-mounted engines and rear-wheel drive. While gas mileage for a full-size van is generally less than that of mini vans, passenger room in full-size models is significantly greater. Tips on Buying a Van also offers factors to consider when selecting various features on a van, along with a chart which compares many different models. Noting that one of the most important features for any vehicle is that it feels right, the booklet suggests tips for test driving a van. Helpful hints on evaluating your budget, financing the purchase, choosing a dealer, and striking the best deal for the van of your choice are also included. The price of this booklet is minimal and other automobile related booklets available from the Council of Better Business Bureaus, Inc., include the following.

Tips on Automobile Insurance
Tips on Leasing an Automobile
Tips on Buying a New Car
Tips on Renting a Car
Tips on Buying Used Cars
Tips on Tires
Tips on Automatic Transmissions

The council’s Consumer Information Series offers helpful tips on more than ninety topics of consumer and business interest. For copies of Tips on Buying a Van or any of the other available publications, send $1.00 and a self-addressed, stamped business envelope to the Council of Better Business Bureaus, Inc., Department 023, Washington, DC 20042-0023. A major size indicator which should be considered, particularly for vans and trucks, is payload - the maximum allowable weight of people, cargo, and equipment. This is an especially important consideration if teams of people and equipment are carried with flowers and accessories for setup and breakdown work. Other size indicators include head room; leg room; and cargo area measurements, such as length, width, height, and volume. Extended length styles are available for some models.

Vehicles Features
The vehicle’s features are equally as important as type and size. Reviewing these features can be an overwhelming challenge. Following is a list of key items that should be considered.

• Brake Features (Power or anti-lock)
• Steering Features (Power steering or not)
• Two or Four-Wheel Drive (Consider four-wheel drive in mountainous areas)
• Engine Capability and Transmission (Check for horsepower, standard or automatic transmission, and overdrive or heavy-duty overdrive. Be sure the vehicle has enough power to carry frequent heavy loads on the local terrain)
• Temperature Control (Air conditioning is essential; high capacity air conditioning and auxiliary heaters are ideal. A deluxe insulation package is beneficial. Note the location of temperature controls and vents. Some companies manufacture vehicles especially for the floral industry which have specific climate-control features and vents for fresh air circulation. A rule of thumb is that temperature control systems should be factory installed for maximum efficiency)
  Windows (Rear cargo door windows may be an option for vans and are preferred by some people for easier driving. Windows on all sides may be an option; however, this lets sunlight in and leaves less room on the exterior for advertising)
• Door Styles (Hatchbacks are beneficial on cars, particularly sedans. More doors on vans and trucks make loading and unloading faster and easier. Sliding side cargo doors provide convenience in tight places)
• Seats (In cars, fold-down seats allow more cargo capability. In vans, rear seats are not always necessary, but if standard, they should be removable)
• Steps (In vans, steps on the rear cargo port area can get in the way. In large trucks, steps may allow easier access to the body)
• Shelving (Shelving brackets and shelves can help maximize space, particularly in large trucks)
  Construction (Some vehicles manufactured for the floral industry have fiberglass bodies for durability, easy cleaning, and low maintenance. Vans constructed for commercial use should be rugged, heavy-gauged, and reinforced)
• Color (A standard color can be selected and a full¬color logo added later, or a custom color can be ordered to maintain the shop’s dominant color scheme. Keep in mind that dark colors absorb heat and, thus, are harder to keep cool)
  

Many manufacturers offer special equipment packages and a variety of individual options; therefore, vehicles, particularly vans and trucks, can be equipped to suit particular needs. There are also conversion specialists, who are not affiliated with dealers, who can modify vans for specific uses. Important additions to the delivery vehicle are the company name, telephone number, address, and logo. These can be added by a sign specialist (look under “signs” in the Yellow Pages). This is a minimal expense that can yield maximum benefits by constantly reminding regular and potential customers of the shop. For maximum effect, have the sign painted in a color which contrasts strongly with the color of the vehicle, such as green on a beige truck. Utilizing an advancing color, such as orange on red, is another viable option. Another important addition is a communication system, such as a beeper, CB, or cellular telephone, for communication between the driver and the shop. A telephone, for instance, can actually save money by eliminating extra stops and trips back to the shop. The shop can call the driver and tell him to stop for a pickup instead of waiting for him to drive all the way back to the shop. Likewise, the driver can call the shop to clarify directions or other details instead of making time-consuming stops to use a telephone.

Financial Considerations
The financial aspects of vehicle selection can also be overwhelming, particularly when starting a business. Vehicles are no longer considered the investment they once were, because they decrease in value once driven off the agency lot. The vehicle must be considered an important art of the budget since, in many cases, it is a fixed and continuing monthly expense. One financial decision that must be made is whether to purchase a new or used vehicle. There are advantages and disadvantages to both. New vehicles are usually covered by a warranty, but the cost is higher; used vehicles are not typically covered by the same type of warranty, but the cost is less. Used vehicles may be in a price range that allows the florist to pay for it in full without financing, thus eliminating a monthly payment. This cost factor becomes more of an issue, because vehicles get increasingly expensive over time. As with any used vehicle there must be a thorough review of all systems. Knowing the previous owner and the usage of the vehicle can be beneficial. Cargo vans, in particular, are often used extensively and may have many drivers, both good and bad. Another decision is where to purchase the vehicle. The most common source is a local dealership, which is often selected because of convenience and service. For very specific needs, such as ordering vans with custom colors or options, particularly in quantity, the local dealership is usually the best choice. There are also manufacturers who specialize in delivery vehicles (check trade magazines, floral industry buying guides, and trade associations). These vehicles are designed specifically for floral needs; however, shipping costs, warranties, and service contracts should be reviewed carefully. There are also auto brokers who sell through catalogs. These brokers can offer savings but not necessarily service. Contacts can be found in the Yellow Pages under “auto brokers.” One of the paramount financial decisions is whether to purchase outright, finance, or lease. Once again, there are advantages and disadvantages associated with each option. Purchasing outright may be beneficial to companies that have “too much cash.” The companies can buy vehicles and add them to their assets. With the escalating cost of vehicles, however, fewer companies can afford this option. The escalating costs have also made conventional financing more expensive. Conventional 4-year (48 month) and 5-year (60 month) loan arrangements can add thousands of dollars to the cost of the vehicle.

Leasing
In many cases, the residual value (value after leasing period with normal wear and tear) is deducted from the purchase price. There is no down payment, and sales tax is added to the monthly payment rather than the purchase price. As a result, a lesser amount is financed and total monthly payments are lower. Leasing can help new businesses establish credit and secure lower monthly payments. Money that would have been spent on a down payment can be used elsewhere in the business. Certain tax deduction benefits are available with leasing. Overall, leasing has changed since first initiated. Open-end leases (which require that the vehicle had to be turned in at the end of the lease) are now illegal, and closed-end leases with guaranteed final options are common. Options can include turning in the vehicle, turning in the vehicle and getting another at a similar monthly payment, or keeping the vehicle and paying it off in one lump sum or financing the balance. Small shops or new businesses can use a combination of vehicles and options. For example, the company may purchase or finance a car for general deliveries and then lease a van for use during peak periods. Larger companies have money-saving options. Whether buying, financing, or leasing, companies with multiple needs can frequently obtain fleet rates. There is usually a savings when leasing multiple vehicles at the same time for commercial purposes. Requirements for obtaining a fleet number and rates will vary with manufacturers. Finally, before making any financial decisions, it is best to get some comparison figures from manufacturers and agencies and to review all options with an accountant. Items to evaluate include the following.

• Total payment
• Net cash outlay
• Tax savings and credit
• Time value of money
• Disposition of vehicle at the end of the term
• Renewal options
• Cancellation penalties
• Responsibility for maintenance and taxes, particularly for leased vehicles
• Tax Deduction Benefits
  

The florist should also review other vehicle-related accounting figures, including depreciation and mileage, so that the proper paper work and records can be kept.

Delivery Personnel
Delivery personnel are actually public relations representatives for the shop and, in a sense, guardians of the product. Their responsibilities are far-reaching, and they should be hired and trained with these things in mind. Most shops have regular full-time and part-time delivery personnel. In very small shops or new businesses, the owner or manager may also assist with deliveries. Extra help may be hired during peak periods. “Runners” or “jumpers” can also be hired during peak periods to ride with drivers and assist in reading the map, checking off delivery sheets, and carrying product to the recipient. These runners can go through a brief, abbreviated training session.

Hiring
When hiring delivery personnel, the following critical factors should be checked.

• Appearance - This is particularly important, because these people portray the image of the shop.
• Manners and Attitude - Is the person genuinely polite and pleasant?
• Speaking, Reading, Writing, and Spelling - The ability to speak, read, write and spell properly is critical. In some areas, bilingual ability is important. Do not hesitate to test for these abilities. Filling out an application form, delivery form, and route sheet are ways to check, along with reading a map.
• Driving Ability and Record - Find out if there have been any tickets or accidents; check any previous driving-related jobs.
• Knowledge of the Area and Experience Driving in the Area - It will generally take newcomers more time and more miles to make deliveries, because they are not as familiar with short cuts. People that are inexperienced in driving in a particular area may also be more inefficient, particularly when it comes to dealing with city traffic and a complicated maze of one¬ way streets.

As the labor market changes, it may become more challenging to find good delivery people, including part-time help for holidays. A potential source of part-time delivery personnel includes school bus drivers, off-duty firemen, and off-duty policemen.

Responsibilities and Training
The potential delivery employee should be made fully aware of all job responsibilities. Most people are not aware of all that is involved, particularly during holidays and when making funeral home and hospital deliveries. In these instances, a thorough job description which itemizes duties can be invaluable. The duties can include in-shop responsibilities, as well as delivery duties, which will help motivate the employee with a variety of tasks. Certain goals can also be cited, such as an average number of deliveries per day. A helpful rule of thumb is that in a large city, 20 minutes is the average length of time for a delivery. This number can be adjusted according to the geographic area. Once hired, the employee should be reminded of his duties, along with rules, regulations, and other procedures as part of a formal training program. The first few days of training should include the following. A review of rules and regulations which apply to all employees (see Chapter 10), plus those which apply specifically to delivery personnel, including alternate use of vehicles while delivering (no personal errands or visits) and dress code. A uniform, such as a shirt or jacket featuring the company logo, or other standard attire is strongly suggested for delivery personnel. They should be dressed appropriately when visiting homes and businesses in the community. A description and demonstration of delivery duties, including the following:

• Daily cleaning of delivery vehicle interior
• Weekly (or as needed) washing of delivery vehicle exterior
• Monitoring and filling vehicle with gas
• Monitoring and noting mileage
• A review of the shop’s layout
• An overview (explanation) of the ordering and delivery process
• An overview of vehicle operation
• A review of basic care and handling practices, flower and plant identification, and terminology (corsage, dish garden, etc.)
• An actual follow-through of an order from order taking and design to packaging and placement in the delivery vehicle
• A delivery, along with the shop manager or an experienced driver, to observe the actual delivery process

The Remaining training period can include the following:

• Follow through of actual orders
• Scheduling and routing of deliveries
• Demonstration and practice of preparing products for delivery (wrapping, boxing, sleeving, bagging). Some shops have delivery personnel actually wrap orders while others do not, particularly if decorative wrapping techniques are used. All personnel should be familiar with protection steps for temperature extremes
• Practice loading the vehicle to prevent damage to products
• Review and practice of actual delivery process to homes and businesses
• Review of rules and regulations for making deliveries to hospitals, funeral homes, and churches, and practice of actual deliveries
• Review response to potential trouble points as described in the delivery process section of this chapter
• Review and demonstration of in-shop responsibilities to perform when not on the road, including processing fresh products, organizing order and storage areas, sweeping the floor, and sanitizing floors, benches, and tools.

The manager or another trainer should ride along with the new employee for 1 or 2 days to observe his driving technique (particularly on major highways and in heavy traffic) and communication skills (interacting with recipients, funeral directors, etc.). Once the employer is comfortable with the new employee’s knowledge and skills, the new driver can drive alone.

Delivery Categories and Charges
Not all deliveries are the same. The florist must develop specific delivery categories for the sake of organization and cost. A suggested list of categories that accommodate major needs and situations is listed in the following sections.

• “Regular” Deliveries: These are deliveries which are handled through the everyday process and delivered within the regular delivery area as they fall into the organized delivery schedule. The regular delivery area is determined as part of the marketing plan and is affected by population, competition, geography, time, and operating expense.
• “Out of Area” Deliveries: These are deliveries beyond the regular delivery area as determined by time and operating expense. Florists can transfer these orders to another florist but may choose to deliver them for established customers or other special circumstances.
• Timed Deliveries: These are special service deliveries to be made at a specific time as requested by the customer.
• Last Minute Deliveries: These are crisis or emergency special service deliveries in which the customer calls and requests the delivery immediately (less than 1 hour). For example, a request may be made by a forgetful customer at the end of a business day to send a birthday arrangement to his wife before dinner.
• Holiday Deliveries: These are deliveries during holidays or peak times when there are usually extra personnel hired and more special requests made. Holiday deliveries may be made during a period of one or several days, depending on the holiday and when it falls (weekday or weekend).
• Specific delivery charge policies will vary with shop size and geographic area. There are two universal rules of thumb; charge for all deliveries and charge more for special service deliveries. A notable exception might be funeral home or hospital deliveries. Some florists do not charge for these deliveries but absorb the cost by charging for all other deliveries. If a florist does not charge for any deliveries, money will be lost due to the expenses of operating a vehicle. Some florists try to incorporate delivery charges into the price of arrangements, but this often results in the customer receiving fewer flowers for the price paid.

When determining the regular or base delivery charge, take into account the driver’s wage, vehicle cost, fuel cost, insurance, and maintenance. These factors can be used to determine cost per mile for operating the vehicle, and a delivery charge can be developed from this. The florist needs to make sure that operating expenses are covered by delivery charges. The base charge would cover deliveries within a specific range of miles. (Remember, a delivery is round trip.) Beyond this range, it takes more time and money to operate the vehicle so the delivery charge should increase. For example, $2.00 for deliveries up to 15 miles and $3.00 for deliveries from 15 to 30 miles. The florist can draw a mileage grid on a map of the regular delivery area and establish charges accordingly. Other delivery charges can be established according to the base charge. “Out of area” deliveries can be calculated as the base charge plus a certain amount per mile outside the regular area. “Holiday” deliveries may be calculated as the base charge plus $1.00 or $2.00 to take into account extra hired help and overtime. “Timed” deliveries may be calculated as double or more of the base charge, and “last-minute” deliveries can be four or five times the base charge. Timed and last-minute deliveries are a special service from the florist. They should be guaranteed and the extra delivery charge refunded if the delivery is not made on time. Once charges are determined, the florist should compare them with other shops’ charges in the area to make sure they are competitive. To assist personnel, a delivery charge chart should be developed and posted by each telephone.

Loading Deliveries
There is a science to loading a delivery vehicle for maximum product safety and unloading efficiency. Major problems which must be prevented include sliding, tipping, damage from temperature extremes, and bruising or breakage from tight packing or bumping during loading and unloading. Some helpful products and procedures include the following:

• Start the vehicle and turn on the heating or cooling system 10 to 15 minutes before loading, particularly prior to the first loading of the day.
• Load the vehicle only when ready for delivery, not as designs are finished.
• Close vehicle doors in between trips to and from the shop.
• Load the vehicle so there is minimal climbing in and out or reaching over large arrangements. Keep taller, larger items to the sides of the vehicle within easy reach of the doorways. Load in a way that items for initial deliveries are closest to doorways. Group smaller items in maneuverable trays, shelves or boxes so they can be quickly and easily moved around.
• Arrange items so that delivery information can be easily read.
• Place balloons in garbage bags to prevent tangling and floating around while driving.
• Use items to buffer, anchor, and support the arrangements. Suggested items include the following,
  Boxes filled with crushed newspaper or packaging material
  Sandbags
  “Buffer bricks” made by gluing (with pan melt glue) soft foam rubber strips to regular bricks.
  Support racks for large arrangements (such and funeral pieces and arranged roses in standard containers) made out of plywood. Build horizontal wooden frames wide enough to support containers when placed in sideways. Add vertical support pieces that can be moved and tightened to accommodate different sizes and numbers of containers.
  Compartmentalized carriers to accommodate numerous bud vases. These can be built out of plywood in a design similar to cardboard cases for soda bottle six-packs. A handle will make it easier to transport them to the van.
  Commercial products, such as cardboard bases, foam trays, and anchor boards.
  8. Check into commercial delivery systems. Some companies have developed special product lines specifically for floral delivery. Examples include one system with a special carpet and a series of plastic trays that adhere to the carpet to prevent slippage. And another system has modular trays with a series of foam inserts to hold different container sizes. Check trade publications and buying guides for more information

The Delivery Process
The actual delivery process is an important interaction between shop personnel and floral recipients or their neighbors, along with community members and professionals in hospitals, funeral homes and businesses. The process also involves unexpected challenges, such as unfriendly dogs and unanswered doors. The florist needs to make some decisions and develop policies to make this integral part of the delivery function effective and organized. Items to be considered include the following.

• What to include in the delivery speech, such as a greeting, quick tips, and closing.
• How to respond to basic questions (“How long will these last?” or “Who was the Sender”)
• How to respond to complaints
• How to deal with unfriendly dogs
• How to respond when a customer is not home. How to determine when it is appropriate to leave flowers with a neighbor (flowers should not be left in doorways or porches, especially when extreme weather conditions exist)
• When to turn off a vehicle or to keep it running.
• How to respond to trouble points, such as those listed below:
  Designs damaged in transit
  Unable to locate delivery address Involvement in an accident
  Flat tire or vehicle breakdown Recipient discharged from hospital
  What is appropriate church and funeral home etiquette (closing doors, placement of flowers, preventing spillage)

Delivery Kit
Delivery vehicles should be equipped with a driver’s kit to take care of any in-route problems. The following items should be included in the kit:
Local Phone book, Street guides, City Map (mounted and laminated on a board), Non delivery tags, Pencils, Pens, and Notepad, Magnifying glass, Jumper cables and basic tools, Basic flower repair tools (cutter, wire, pins), Inclement weather gear, Blanket, Insurance and vehicle I.D. Cards, Clock
Change for tolls and telephone, Cloth for cleaning spills and a jug of water

Alternate Delivery Options
There are some alternative delivery options which are suitable for small shops and new businesses. These include the following:

1. Delivery Service. It is best to select a company that specializes in floral delivery only. The company must have the proper vehicle (especially proper size and temperature control) for this to be successful. Delivery services usually pick up once or twice a day and charge by the piece, according to the delivery area, with one delivery attempt made per charge. The florist should find out about billing frequency and holiday or peak period policies (most services will only take so many orders per day). Other precautions are to have a contract that spells out specific services and liabilities and to make sure that the cost can be charged to customers at a rate which is competitive with other florists’ delivery charges.
2. Contract Drivers. Florists can also consider contract drivers, who are hired for specific periods of time, such as holiday and peak periods, and use their own vehicles to deliver. These drivers are frequently paid by the piece but can be paid an hourly wage. Also, there are laws regulating how long a business can use contract labor, which is usually regulated by the state. The florist must contact the state Department of Labor regarding wage and labor laws before hiring contract labor.
3. Multi Shop Delivery Pool. A common alternative to in-house delivery for shops of various sizes is multi-shop delivery pools. This involves a group of shops pooling delivery resources and personnel. Essentially each shop brings its wrapped delivery items to a meeting point by a specified time, the deliveries are divided by areas, and each shop then takes all the deliveries for its specified area. The meeting point may be in a rented building, at a wholesale florist, or at one of the participating retailer’s shops. The basis for funding and regulation of this pool is set by member shops who periodically hold meetings. Advantages of a delivery pool include saving time and money due to less driving and being able to take all orders that come through for the entire delivery area instead of transferring some to another regional florist. This offers the potential for more shop exposure and more income. On the other hand, disadvantages are that the individual shop loses control once an item leaves the shop, and the florist cannot be sure that the quality of delivery is what he or she would prefer. Despite any disadvantages, multi-shop delivery pools are operated successfully throughout the country, particularly in metropolitan areas. An interested florist can contact local floral industry associations and other florists for more information.

As a final reminder, the florist should follow a maintenance schedule for vehicles and a meeting schedule for personnel to keep the delivery process operating efficiently and effectively. This means regular oil and fluid changes, tune-ups and servicing for vehicles, and periodic reviews and update sessions for employees, particularly before holidays. This will assist in keeping vehicles, people, and the system running smoothly.
In order to be timely, effective, and efficient, deliveries must be organized and carefully controlled. Success of the whole process is hinged upon careful selection and maintenance of vehicles and delivery personnel. Adherence to key guidelines can be of assistance in the effective selection of the vehicles and personnel, which must be followed up with maintenance and training for maximum effectiveness.
To support these efforts, organizational methods must be used, including maps, color coding systems, and delivery sheets, along with cost-effective measures, such as proper financing, route planning, and a carefully calculated fee structure. The florist must remember that delivery is a special service that can actually assist in advertising a business and distinguishing it from other types of floral outlets.