Tuesday, September 25, 2007

Florists in Sacramento

There's this large florist with 2 stores that just shut down so suddenly. Both stores are in prime locations, both are next to a Subway shop. One would think that this florist is doing so well, with all the volume deliveries they do and the large inventory they carry in terms of containers, plants and flowers. The local wholesaler for greens/foliage shared that this florist owed them 24 hundred and who knows how much they owe the flower wholesalers. Unfortunately this florist declared bankruptcy and closed so suddenly. It's good for my business - I've seen an increase in walk-ins and call-ins, however, it's not good for the industry, not good for my wholesalers who have to suffer the loss of not being paid for supplies that have already been delivered and used by this florist.
One major reason for their downfall was 800flowers. Not only did they pay a percentage of their sales, but they also had to contend with the cheap orders sent to them by 800flowers. At best, they got 50% of the cost of orders from which they have to subtract the cost of goods and labor, delivery and all the associated expense of running a business. It's a very unfortunate situation.
My wholesalers are now more than ever grateful for the small Mom and Pop florists who either pay upfront or pay their bills consistently at the end of the month.
I'm a small florist in Sacramento and my greens/foliage wholesaler acknowledged that he appreciates that we pay upfront for our purchases, and we can be relied on to buy from him every week.

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