Fresh Digest


Fresh Digest

Growing Sales in
A Weak Economy

By Terry Johnson


In some ways the floral industry is a paradox. On one hand we have a product that everyone loves. On the other hand, at least in the U.S. market, only a small percentage of consumers consistently purchase flowers. Yes, we have been fairly successful with selling fresh flowers as holiday gifts. But we have struggled as an industry to convince most American consumers to purchase flowers for themselves on a regular basis. Not only do we have one of the lowest rankings of per capita consumption of flowers among other industrialized countries of the world, but as American Floral Endowment statistics reveal, floral sales have barely kept up with inflation in the last decade.

Now, in a weak post-9/11 economy, the floral industry faces unique and difficult challenges: how do we grow fresh flower sales and profits in supermarkets, and what is the outlook for the future of the floral department? What is at stake is the tremendous potential for increased profits and sales that floral offers supermarkets. And at the very time supermarket management is seeking ways to compete with other retailers, such as Wal-Mart, no other department has a greater opportunity for sales and profit growth. The answers to these important questions lie in our willingness to recognize, understand and incorporate several basic fundamental keys to success in purchasing and selling fresh flowers.

Think “value” not “quality”

The word “quality” has little to do with the actual worth of fresh flowers today. After all, do you know anyone who would admit to selling or buying anything but “quality” flowers. The key word in the successful marketing of fresh flowers is “value”, within the two main categories of flower sales: flowers as gifts and flowers puchased for self-consumption.

The value of flowers as gifts is their ability to effectively communicate or transfer human feelings or emotions from the giver to the receiver. Flowers can accomplish transfer of feelings very well. Our challenge here is to continue to convince consumers that flowers are a superior alternative to the literally thousands of gift items currently available to consumers.

Value in flowers as it applies to self-consumption is another matter. While freshness and vase life longevity aren’t much of a factor in flowers purchased as gifts, those factors are virtually the ONLY important elements in the value of flowers to consumers wishing to make flowers a regular part of their lives.

The self-consumption market offers us an incredible opportunity for growth, but in order to grow fresh flower sales for self-consumption we will have to maximize flower freshness at the point-of-sale, and then maximize flower vase life in the home.

Freshness gets them to buy. Longevity gets them to buy again.

Education

My grandfather, a school teacher, had a sign on his wall that I would see every time I visited him. It read: “To teach the lesson, first you must know the lesson.” All of us who do business in fresh flowers regardless of where you are in the chain of distribution have a professional responsibiliy to understand proper fresh flower care and handling not just at your own level, but at every other level from grower to transporter to wholesale distributor to consumer. The Society of American Florists (SAF) has an excellent book written by Dr. Michael Reid of The University of California at Davis and Dr. Terril Nell of The University of Florida at Gainsville. Its title is Flower & Plant Care :The 21st Century Approach. They can be reached at 1-800-336- 4743.

Don’t assume your customers, suppliers, or vendors are using proper flower handling procedures. Make it your business and your responsibility to find out what they do or don’t do currently, and then work with them to execute necessary improvements.

Satisfying Consumers

What is it about other consumer products that compete with flowers for the shrinking discretionary dollars available that has boosted the competition’s sales growth while flower sales have remained relatively flat for the last decade? Examples of this competiton are all around us: Starbucks and other coffee retailers, wine, cigars, and candy are just a few of those products.

The difference is that those other industries seem to be doing a better job in consistently satisfying consumers. If we examine how these industries and companies accomplish consumer satisfaction, we can begin to see several things that they all have in common.

• First, they do an excellent job at creating excitement in the expectations of consuming the product.
• Second, they give consumers what the consumer considers value at the point-of-sale.
• Third, they deliver on their promise by meeting or exceeding the consumers’ expectations when the product is consumed. If they didn’t, consumers wouldn’t keep buying their products.

What must we do to consistently satisfy self-consumers of flowers?

1. Incorporate a consumer orientation into all activities, policies, and decisions. For instance, is your category management program limited to issues related to your bottom line? Are you limiting consumer choices and product synergies on the basis of margin alone? Are you giving consumers opportunities to purchase more than one product in the department? Are you providing consumers a variety of ideas on how to use fresh flowers in the home? Are you selling high value vases?

2. Develop a solid foundation of flower value by implementing value-assurance programs that identify and apply proven, correct flower care and handling procedures from the grower to the consumer.

3. At the point-of sale, create the anticipation of the enjoyment in the consumption of flowers through information containing emotive language, and offer consumers the freshest flowers possible. Freshness makes the sale.

4. Assist the consumer in maximizing the enjoyment of the consumption of the product in the home. It is when the flowers are being discarded that the consumer will determine whether they got their money’s worth. Vase life longevity brings them back.

(Terry Johnson is a frequent contributor to Fresh Digest and has served on several committees as well as having been member of the Board of Directors of the Fresh Produce and Floral Council. He can be contacted at Hortmarketing@aol.com.)

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