unit b2-12 floriculture horticulture cd. problem area 2 floral design
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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?
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