Floral Industry Background

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Floral Industry Background

• Topic 2091
• By Katie Wagar

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• There are three branches which make up the
  background of the floral industry
• The Grower--where the flowers are grown.
• The Wholesaler--the middle person who goes
  between the grower and the retailer.
• The Retailer--the local flower shop.
• .

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• Quite often these three businesses are
  intermingled
• The retail florist frequently will grow his/her
  own flowers in greenhouses and thereby omit using
  both the grower and the wholesaler.
• Some larger flower shops use flowers in such
  quantities that they will order directly from the
  grower, omitting the wholesaler.

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• The smaller shop will need to use both the grower
  and the wholesaler because he/she neither has the
  facilities for growing his/her own, nor could
  he/she possibly use enough flowers to fulfill the
  minimum order that is required by the wholesaler.

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The Grower

• Commercial growers operate their plants
  scientifically.
• They have, in most instances, studied
  floriculture, where they acquired a knowledge of
  entomology, plant pathology, soil chemistry and
  greenhouse management.
• If their own background does not include this
  training, then they may learn from others who
  have been trained in these things.

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The Grower

• The grower not only has a great investment in
  education and training, but also in the physical
  equipment required for growing.
• Even the smallest grower, who operates without a
  greenhouse, has an investment in land, tools and
  equipment that amounts to thousands of dollars.
• The cost of growing flowers under glass takes
  thousands of dollars more capital for
  greenhouses, heating installation, various
  equipment and planting stock.

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The Grower

• To take some of the gamble out of their business,
  growers insure themselves against fire, theft,
  wind and hail damage to their greenhouse and
  equipment. They cannot insure against crop and
  market failures.
• Even under glass they are at the mercy of the
  weather to a large extent and yet must do
  everything possible to time their crops to meet
  the demand.

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• This is particularly important on flower-buying
  holidays, when the market prices are high because
  of the heavy demand.
• Some growers specialize in certain crops, such as
  orchids, carnations, roses, chrysanthemums and
  potted plants while others grow diversified
  crops.

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The Grower

• The business of growing flowers commercially is
  not vested in the hands of a few companies, but
  is controlled by thousands of independent growers
  located in many communities.
• Their problems and methods of operation vary
  according to the climate, size of the community
  and type of growing.

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The Wholesaler

• Wholesale florists operate as distributors of all
  cut flower stock consigned or sold to them by
  growers.
• Retail florists rely on the wholesaler to fill
  their requirements for flowers of all kinds.
• Many wholesale florists also carry floral
  supplies, such as ribbon, baskets, moss, frames,
  etc.

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• Some wholesalers handle a general line of cut
  flowers and supplies, whereas others handle only
  flowers of certain varieties or specialize in
  supplies
• Supplies generally are purchased by wholesalers
  and rarely consigned to them.

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• It has been estimated that about two-thirds of
  the flowers on the market are consigned to
  wholesalers and the remainder are purchased
  outright.
• Most wholesale houses obtain flowers from a
  number of growers, some of whom may be located in
  other parts of the country.

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• The reason for this is obvious.
• It enables the wholesaler to have a steady supply
  at all times.
• When some varieties are not available locally,
  flowers are shipped in from distant growers.

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• Growers might indicate to the wholesaler the
  price they would desire, but most often the price
  is left to the discretion of the wholesaler.
• They are expected to obtain as much as possible
  for the stock consigned to them.
• The wholesaler usually receives a fifteen percent
  commission for handling greenhouse flowers and
  collecting the accounts from retail florists.

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• It is customary for them to receive a larger
  commission on consignments from growers of
  outdoor stock, particularly when shipped from
  distant points.
• This difference is offset by shipping costs and
  gives some protection to their regular growers.
• Everything else being equal, the stock grown
  locally will sell first.

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• The major wholesale flower markets, composed of
  several wholesale florists, are found in such
  cities as Chicago, New York, Boston, San
  Francisco, etc.
• Weekly reports of current flower prices and
  general conditions on these markets are published
  in the trade papers for the information of the
  industry.
• These flower market quotations give the low and
  high price quoted on each flower variety for that
  week.

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• Buying practices. The retail florist receives
  great benefits from the facilities of wholesale
  florists.
• Stock from many growers is assembled for the
  retailer's selection, saving them innumerable
  trips to greenhouses and fields to secure the
  same flowers.
• In addition to that, in larger cities, the
  wholesale houses usually are concentrated in one
  section of the city, in many cases within the
  radius of a few blocks or even in one large
  building-- a definite convenience for all
  concerned.

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• Many of the flowers are purchased by retail
  florists via the telephone, some shops send their
  buyers to market daily.
• Other florists visit the market in person once or
  twice a week and order by telephone on other
  days.
• Some shops make it a practice to stock up heavily
  one day a week.

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• Most wholesale florists also run a delivery
  service for more rural areas.
• Certainly it is not practical for a town with
  only one or two florists to have a wholesale
  florist.
• It also is not practical for the florist to go to
  town every day to get flowers for daily orders.

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• Therefore, many wholesalers own refrigerated
  trucks that are sent out on a daily route with a
  general selection of flowers for the florists to
  choose from.
• Most florists in rural areas have two or three
  wholesale trucks stopping at their shops to
  supply them with flowers.

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• A large number of standing orders are placed by
  retail shops to cover their minimum requirements.
  These orders receive preferred attention and are
  augmented by other purchases as needed.

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Grower-Wholesalers

• Many growers are in reality also wholesalers, in
  that they sell flowers direct to retail florists,
  without the facilities of an established
  wholesale house.
• Most pot plant growers deal directly with the
  retail florist.

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• Their supply of blooming plants, such as
  chrysanthemums, poinsettias, Easter lilies,
  azaleas, tulips, etc., account for a substantial
  volume of florists' business, particularly at
  holiday times.
• One obvious reason for sale of pot plants direct
  to the retailer from the grower is convenience.
• The bulk of potted plants and the extra handling
  and care required in storage, without greenhouse
  facilities, make any other method impractical.

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• However, some are sold in wholesale houses from
  samples, with delivery direct from greenhouses.
• Potted blooming plants are sold in competition
  with cut flowers and often are preferred because
  of more reasonable prices.

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• Commercial growers of foliage plants also sell
  directly to retail florists, although some
  distribution of their stock is made through
  wholesale houses.

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• Taking into consideration the quantity of stock
  sold by growers to retailers, in addition to the
  quantity sold by retail growers direct to
  consumers, it is apparent that a substantial
  portion of all flowers sold move through regular
  wholesale channels.

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Job Hierarchy
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ENTRY-LEVEL OCCUPATIONS

• Floral Shop Helper
• Delivery Person
• Floral Designer
• Sales person
• Office Person

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Floral Shop Helper

• Employees who assist other workers in a floral
  shop, by performing a variety of duties, are
  considered helpers and may be classified
  according to the worker assisted (designer
  helper, office helper).

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• Employees who assist in more than just one area
  of the store are often called by a more general
  title floral shop helper, utility helper,
  general services helper.
• . A helper may learn the job tasks of a designer
  or salesperson, but is usually doing so without
  agreement that such is the purpose of the
  employment.

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• A variety of duties may be performed by a helper,
  such as (preparing vases and containers stocking
  merchandise and supplies preparing accessories
  for corsages cleaning storage containers,
  trimming, splitting, cutting, or searing fresh
  flowers care for display plants wrap
  arrangements and plants cleaning work area, and
  equipment and furnishing a designer with
  materials, supplies, and equipment/tools).
• A helper also may be requested to make bows, bud
  vases, and dish gardens prepare potted plants
  assist with routing deliveries, make deliveries
  check in merchandise and run errands.

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• On occasion, by request, a helper may assist
  customers, write orders, and handle telephone
  orders.

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Delivery person

• The exact duties of a Delivery person will vary,
  depending on the size of the store.
• The primary duty involves the delivery of floral
  products to the home of customers and places of
  business.
• Because of these contacts with the public the
  Delivery person must be informative, courteous,
  and a knowledgeable and safe driver.

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• The Delivery person must appear neat and clean at
  all times properly greet customers, and handle
  customers, and handle customer questions about
  the care of flowers and plants load and unload
  products carefully, secure flowers and plants
  during transportation and repair, return, or
  replace any transit-damaged products.
• The Delivery person must have knowledge of the
  store's delivery area the ability to read maps
  deliveries must be timely-right day and time-and
  trips organized as not to waste time and energy.

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• The Delivery person may be responsible for the
  upkeep and maintenance of the delivery vehicle
  daily checks for gas, oil, and water levels
  keeping vehicle's interior and exterior clean and
  neat and reporting need for vehicle maintenance
  work.
• The Delivery person is usually expected to
  check-in merchandise, stock and mark merchandise,
  sweep floors, run errands, and other assigned
  duties when not on deliveries.

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• The Delivery person is also responsible for
  completing delivery forms, handling C.O.D. and
  cash transactions, and following the policies and
  procedures of the store.
• The Delivery person may on occasion be requested
  to handle walk-in and telephone customers.

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Floral Designer

• Floral designers create arrangements using
  flowers, floral products, and/or plants for
  events, such as weddings, holidays, funerals,
  birthdays, and others.
• Designers may confer directly with the customer
  regarding price and type of arrangement, or the
  designer follows information from an order form.

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• Designers must also give estimates on design work
  by utilizing knowledge of design, product
  availability and cost, and container/material
  costs. Designers are required to use time
  efficiently to complete work orders promptly and
  profitably.
• Designers also make dish gardens, terrariums,
  sprays, wreaths, bouquets, corsages, and
  boutonnieres. Designers may also decorate
  building, halls, churches, or other facilities
  wrap and prepare arrangements and plants for
  delivery duplicate arrangement designs if
  customers order interior, window, and counter
  display planning and construction.

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• Designers must have knowledge of flower/plant
  care, handling, availability, and store ordering
  procedure.
• Housekeeping duties include keeping the design
  area clean/cooler clean and attractive for
  display, and flower stock properly rotated.
• Designers often are expected to assist walk-in
  and telephone customers, operate the cash
  register, place orders for out-of-town delivery,
  and handle customer concerns and complaints.
• Designers utilize knowledge of social and
  religious customs when assisting customers and
  making arrangements.

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Salesperson

• Salespersons in floral stores sell fresh and
  permanent flowers, potted plants, floral pieces
  and arrangements, and giftware. Salesperson may
  specialize in certain product lines (gifts,
  plants, flowers) or provide special consultant
  services (wedding, interior design, funeral).
• Salespersons greet customers determine needs
  advises/assists regarding type of flower,
  arrangement, decorations, gift, and services for
  specific occasions uses suggestive selling and
  handles objectives and complaints.

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• The salesperson must appear neat and clean at all
  times utilize knowledge of social and religious
  customs, be informative, courteous, and
  knowledgeable of flowers and plants, their care,
  product availability, pricing and the assortment
  of arrangements/products available.
• Salespersons are responsible for completing order
  forms from walk-in customers and telephone
  customers handling credit sales, accepting
  checks and credit cards and handling a cash
  sale.

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• Planning and constructing counter, window and
  interior displays using store merchandise and
  props may be a responsibility of salespersons.
• Salespersons may contact florist in other
  communities to place orders for out-of-town
  delivery assist in designing prepare vases and
  containers make corsages make bud vases and
  other floral decorations.

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• Salespersons are expected to handle customers'
  payment of bills. Salespersons may also be
  responsible for sending out billing for charge
  customers.
• Housekeeping duties include maintaining the
  store's floors.

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Office person

• Keeps complete set of records of financial
  transactions of floral shop verifies and enters
  details of transactions as they occur or in
  chronological order in account and cash journals
  from sales orders, invoices, check stubs, and
  inventory records.
• Summarizes details on separate ledger, using
  adding or calculating machine, and transfer data
  to general ledger. Balances books and complies
  reports to show cash receipts and expenditures,
  accounts payable and receivable, profit and loss,
  and other items pertinent to store.

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• Calculates employee wages from store records or
  time cards and prepares checks. May prepare
  withholding, Social Security, and other tax
  reports.
• May enter charges and payments to customer
  accounts, and complete and prepare customer
  charge statements on a timely basis, accept
  payments from customers, and confer with
  customers having delinquent accounts.

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• May reconcile bank statements, handle charge
  account applications, and contact references and
  credit bureaus to check credit rating.
• An office person may also prepare purchase
  orders, conduct physical or dollar inventory,
  maintain a filing system, and answers inquiries
  concerning customer accounts.

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MID-LEVEL OCCUPATIONS

• Assistant Manager

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Assistant Manager

• A manager in a floral shop would be responsible
  for coordinating the activities in the following
  areas sales, design, delivery, and office.
  Depending on the size of the store, an assistant
  manager may be responsible for all or a
  combination of areas.
• In all areas, a manager would supervise and
  coordinate the activities of the store employees
  assign duties schedule hours, breaks, and
  vacations train employees assist employees with
  difficult tasks evaluate employees and handle
  employee complaints.

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• Managers are usually in charge of ordering
  flowers, plants, and greens on a regular basis.
  Managers may also purchase supplies, equipment,
  vases/containers, and giftware.
• Managers must price and sell merchandise and
  orders for profit spot check completed orders to
  assure quality products and profitable pricing
  and assist designers, delivery persons,
  salespersons, and office workers during busy
  times.

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• Managers must know the social and religious
  customs of various events, such as weddings,
  funerals, birthdays, etc. be thoroughly familiar
  with store policies, procedures, and rules with
  wire services orders and be able to explain
  these to employees and customers.
• Managers check to assure that floor displays are
  correctly priced and arranged. Managers may be
  in charge of coordinating and planning the
  promotional plans of the store, including
  advertising and display.

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• Managers prepare sales, inventory, and may write
  or approve checks for payment for invoices.
• Managers suggest new policies and procedures for
  the store as needs arise handle difficult
  customers and complaints check out the cash
  register handle checks and bank credit card
  sales slips and complete the deposit slip.

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• Managers may decide or recommend who to hire,
  dismiss or advance.
• If a manager is assigned to a particular area,
  then job duties will focus on handling problems
  and the day-to-day operations of that area.

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UPPER-LEVEL OCCUPATIONS

• Owner/Manager

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Owner/Manager

• The owner/manager of a floral shop performs
  duties primarily in the management,
  merchandising, and operations area. A manager
  may personally perform these duties, or supervise
  employees performing these duties.
• The owner/manager manages the store's finances by
  keeping the records of sales, accounts
  receivable, expenses, and accounts payable and
  making payment for invoices

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• The manager establishes pricing policies for the
  store prepares financial statements prepares
  budgets, and writes store's policies and
  procedures.
• Managers coordinate the sales promotion
  activities of the store, including advertising,
  publicity, and display.

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• Managers also hire and may train employees, plans
  work schedules, and maintains employee files.
  The owner/manager supervises employees to insure
  compliance with established policies and
  procedures in security, sales, record keeping,
  design, and cash register operations.
• The owner/manager may order flowers, plants,
  containers, and/or supplies.
• The owner/manager keeps up-to-date on trends
  through trade journals, vendors, sales
  representatives, buying trips, industry meetings,
  and educational programs.

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• During peak periods, the owner/manager assists
  other employees in the urgent day-to-day job
  duties.
• The owner/manager is ultimately responsible to
  the employees for a pleasant working environment,
  to the customers for a nice place to shop, and to
  show a profitable sales picture.

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Questions?