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Negative Publicity Watch: Valentine's Day 2015 Underway By Jenny Scala
As the voice of the floral industry, SAF contacts these companies and asks them to reconsider their approach. Here is a list of companies recently contacted by SAF:
Jill Roig, director of marketing at Fascinations, replied to SAF: “Thank you for reaching out to Fascinations and expressing the concerns of the Society of American Florists. We understand your position, and want to clarify that in no way, was it the brand's intention to offend the floral industry. The creative direction behind our Valentine's Day campaign is to capture the attention of consumers and showcase what our specialty retail store offers in a playful manner.”
To report negative publicity, email jscala@safnow.org. Share
SAF Members Weigh in on Fourth-Quarter Results; 2015 Projections By Mary Westbrook
At the end of the fourth quarter last year, when SAF queried members across segments about the state of business, 47 percent of respondents said things were good — and 10 percent said they’d classify them as excellent. The relatively positive outlook complements December holiday survey results, as reported last week. Of course, not all survey respondents expressed the same rosy sentiment: 34 percent said business was OK and 6 percent said they’d call it poor. (Less than 3 percent termed the state of their business terrible.) Breaking the same question down by segment, 67 percent of growers classified business as good; 11 percent said it was excellent; 11 percent said it was OK and 11 percent said it was poor. Among wholesalers/suppliers/importers, 56 percent said business was good, 22 percent said it was OK, 17 percent called it excellent and about 6 percent said it was poor. About 45 percent of retailers said business was good and 36 percent said it was OK, while 10 percent termed it excellent. Six percent said it was poor and about 3 percent said it was terrible. Half of all respondents said, compared to 2013, annual gross sales in 2014 were up. Twenty-four percent said they were the same and another 24 percent said they were down. (The remaining respondents weren’t sure.)
Among respondents who said 2014 fourth quarter sales were lower than 2013 fourth quarter returns, 63 percent said the drop fell between 1 and 10 percent; 23 percent said they saw a decrease of 11 to 20 percent; 10 percent saw a fall-off of 21 to 30 percent and 4 percent saw a steeper decline, of 31 to 50 percent. Among respondents who said 2014 fourth quarter sales were higher than 2013 fourth quarter returns, 71 percent saw a bump of 1 to 10 percent; 24 percent saw gains of 11 to 20 percent and 4 percent saw an increase in the 21- to 30-percent range. (Less than 1 percent saw an uptick of 31 to 50 percent; less than 1 percent saw gains of 51 percent or more.) Overall, 46 percent of all respondents said they were optimistic about sales expectations for 2015 — a positive indicator that seems to echo the sentiments earlier this year of SAF Chairman Bob Williams III, AAF, PFCI. About 31 percent said they were neutral or uncertain about sales projections for the New Year and 14 percent said they were very optimistic. Seven percent of respondents were pessimistic; 1 percent reported feeling very pessimistic.
Among wholesalers/suppliers/importers, 59 percent characterized expectations as optimistic and another 18 percent said they were very optimistic. About 18 percent said they were neutral or uncertain and about 6 percent were pessimistic. About 43 percent or retailers said they were optimistic. Thirty-three percent of that group said they were neutral or uncertain, while 15 percent said they were very optimistic. Eight percent said they were pessimistic and about 1 percent said they were very pessimistic. In write-in responses, many respondents — from all segments — expressed relatively cautious optimism, noting continued concern over challenges such as competition from order gatherers, mass-market chains and supermarkets, along with the value of some wire orders, and outside factors, including immigration reform and health care and energy costs, as well as perennial challenges, such as finding skilled or qualified workers, keeping costs in check and planning for the next generation of industry businesses. As one California wholesaler noted: “The economy in our area is stronger than the national average [but] we do not think it is sustainable. Our business is in a growth and succession mode. Our biggest challenge will be sustained top line growth and continuing our succession plan implementation.” Also in California, a grower expressed the feeling of several respondents when she pointed out that many factors depend on forces outside of her control: “The cost of doing business (labor, utilities, complying with government regulations) has gone up so much over the past few years, we have no choice but to do an across the board price increase to our customers.”
At least one Connecticut retailer expressed a challenge many florists would have been thrilled to face several years ago, in the worst of the recession: continued growth. “Business is stable and [we’re] seeing pops of growth in B2B business. [The] challenge is to keep growth going in the 10- to 20-percent sales range.” The survey also asked respondents about spending expectations in key areas for 2015, as compared to 2014. Those results include: Labor
In related results, 29 percent of respondents said they plan to give pay raises/salary increases in the next six months; 15 percent said they would likely reduce hours — but another 13 percent said they planned to add hours; 10 percent said they would not replace staff who leave; 7 percent said they would have salary freezes; about 4 percent said they would add benefits — but 3 percent said they would reduce them; about 3 percent anticipated layoffs in the first half of 2015. Responses have been rounded to the nearest whole number. Share
 Coming to CAD? Bring a Friend for Free By Shelley Estersohn
“SAF wants to help more members experience the excitement and satisfaction of supporting the industry through grassroots action in Washington,” said Drew Gruenburg, SAF COO. If you register for CAD, a second person from your company who has never attended before can register for free. “CAD is a great opportunity for high school and college students,” Gruenburg added. While making plans for CAD, don’t forget to book your hotel. The cut-off date for guaranteeing the SAF room rate at the CAD hotel is Feb. 13. To get the SAF rate, make your reservation at the Ritz-Carlton Pentagon City by Friday, Feb. 13. Call the hotel directly at (703) 415-5000 and ask for the SAF Congressional Action Days room block. For the CAD schedule, hotel and travel information, and to register, visit safnow.org/congressional-action-days. Those who register for CAD by Feb. 20 qualify for a $50 early-bird registration discount. To register the second-registrant who is a first-time attendee for free, contact SAF at 800-336-4743, ext. 221; meetings@safnow.org. Share
Award Nominations and Applications Due March 2 By Jenny Scala
Download nomination forms and applications from safnow.org/awards. For more information, contact SAF's Jenester Corbin at (800) 336-4743, ext. 234; awards@safnow.org. Share
San Francisco Flower Mart Reaches Deal with Real Estate Company By Mary Westbrook
“Over the past several months we have been working to finalize our agreements with Kilroy and begin designing the new flower mart facility,” Otsuka said. The new deal will provide for an “updated, more efficient facility” that allows the Mart “to stay competitive in our conveniently located market and service our customer base.” Under the terms of the agreement, Otsuka and his team will continue to manage both the current San Francisco Flower Mart and the new facility when it is completed. The updated facility will contain 115,000 square feet of warehouse space with 150 parking spaces and an additional 10,000 square feet of retail space. All vendors/tenants have been offered a five-year extension of their leases at their current rent and terms. The new San Francisco Flower Mart is tentatively scheduled to be completed in 2018. In the meantime, Otsuka said the goal is “to keep seamless, continued operations during construction to service the growers, wholesalers and retailers who supply, sell and buy here at the Mart.” Look for more coverage in future issues of E-Brief and Floral Management magazine. Share
Famous Couples Generate Excitement for Valentine's Day By Katie Hendrick
Starting Monday, Feb. 2, the Spring Valley, N.Y., shop will feature a different famous couple a day on its marquis and Facebook page, prompting fans with either name to stop in for a free rose. "We don't expect to see any Cleopatras, but (the promotion) will pull in a few walk-in customers for a little added business during the next two weeks," said Marketing Director Kim Meisner, basing her predictions on what happened with the game last year. "But that's just a bonus," she said, explaining that the game generates buzz for Valentine's Day (minimizing last minute orders) and prompts people to like and comment on the Facebook posts daily (helping the shop's ranking in Facebook's newsfeed algorithm). "We're all about getting as much visibility on our social media pages as possible," she said. For shops eager to replicate the game, Meisner recommends alternating "really familiar couples" (Fred and Wilma, Romeo and Juliet, Johnny and June) with more obscure ones (Bruce and Patti Springsteen). "Not being too predictable keeps them intrigued," Meisner said. "People told us they were trying to guess who we'd pick next." Share
Market Flowers as the Antidote to Old Man Winter By Katie Hendrick 
With a handful of exceptions (professional skiers, snow plow company owners, Southerners grateful for a drop in humidity), few people relish winter. Use this to your advantage by describing the vibrant blossoms in your cooler. For the masses seeking any reprieve from frigid temps and long dark days, the thought of brightening up their homes and/or offices with gerberas, roses, hydrangeas, lilies, hyacinth, etc., should be very tempting.
Take a few minutes to upload photos of your cheeriest buds to Facebook and Instagram with a hashtag, such as #wintersantidote. Then, using SAF’s customizable press release about flowers’ impact on emotional health, email the lifestyle or community editor at your local paper (attaching photos of your flowers), with a note that you’re happy to give an interview. When he or she calls, be prepared to lay on the sensory details that capture your inventory, said SAF Vice President of Marketing Jennifer Sparks during the January 20 webinar, “PR Boot Camp: Capture Media Attention for Valentine’s Day & Beyond.” Like a waiter who can make diners salivate with his descriptions of seasonings, sauces and meat tenderness, “a florist who can paint a visual feast creates a craving,” Sparks said. As examples, she quoted a florist who said “how fun it was to be surrounded by a sea of red, purple, pink, and even blue roses for Valentine’s Day,” and Red Kennicott, CEO of Kennicott Brothers Inc., who told a reporter that looking at coolers full of springtime blossoms made working in Chicago (then -9 degrees) a lot more pleasant. Missed the webinar? Never fear. You can download it here to pick up more news hooks and tips for generating positive press. It’s available to members for $9.95 and $49.95 for non-members. Share
For Millennials, Use of Technology Just as Important as Brand Name, Study Claims The Wall Street Journal For brands looking to break through to tech-savvy millennials, the technology it employs may be just as important as the brand’s name, according to new research from data and analytics company Annalect. The study found that 52% of millennials surveyed said that the technology a brand uses used is the most important factor when making a purchase. Read more. Share
Phoenix Florist Shares in Super Bowl Spotlight By Mary Westbrook
That’s just one practical lesson Tony Medlock, AAF, AIFD, PFCI, of PJ’s Flowers & Events in Phoenix is taking from a whirlwind-of-a-week last week, when he completed three separate jobs for Super Bowl-related events, including floral designs for a green room and the dressing rooms of halftime performers Perry, Lenny Kravitz and Missy Elliott. “It was a pretty hectic week — but good practice for the staff for Valentine’s Day,” Medlock said with a laugh. Medlock got the call for the dressing and green room orders on Thursday; organizers said they found his shop through a simple Google search and decided to call him because he featured custom designs and photography rather than solely stock shots. (Have personalized shots on your website is lesson No. 2, for those keeping track.)
The last-minute hustle was made easier by the fact that Medlock and his team already had been commissioned to create designs by the Super Bowl Host Committee for the 26 visiting NFL owners (staying at five different area hotels) along with event designs for a corporate party, organized by a California event company. Thanks to those orders, the shop had flowers and containers on hand that made the fast turnaround manageable. After the game, Medlock posted photos to social media, gaining exposure among his own followers, customers and vendors (including a container source who was tickled to see one of her products used in Perry’s arrangement). And around town, people are still commenting about the shop’s association with the big game and brush with fame. “You can’t pay for that kind of exposure,” Medlock said. (Lesson No. 4: Jump on social media, fast, to spread your good news.) Share
How to Keep Your Business in the Family By Katie Hendrick
In the floral industry, “where the days are long, the pay is often low and the room for professional growth can sometimes be (or, at least, appear) limited, the challenges are even more acute,” said Floral Management contributing editor Mary Westbrook. But the dream — watching your children build upon the solid foundation you’ve spent years laying — can happen. Westbrook spoke with three floral business owners who’ve managed to attract their offspring to their calling and are reaping major benefits by incorporating a younger generation’s influence. Learn their advice, such as embracing physical distance as an opportunity for your kid to acquire more knowledge and skill sets, in this month’s cover story: “Modern Family Business.” Check it out here. Share
Garden Centers Need To Think Outside The (Big) Box By Fred Berns What does it take to outmaneuver and outsmart bigger competitors with deeper pockets? Independent garden centers are discovering it takes a combination of innovative products and services along with offbeat events. Savvy center managers are offering everything from phone apps and concierge programs to garden shows and farm dinners to differentiate themselves from big box stores and other vendors. Read more. Share
Hand-Painted Wedding Cakes: The Next Big Bridal Trend? 
The Daily Meal It is no secret that Americans are obsessed with cake artistry. Beyond the fondant-rolling and the cake-sculpting, there is a style that has flown slightly under the radar that is about to make a big splash in 2015: the hand-painted wedding cake. Read more. Share
Retail Revenues Increase 125 Percent from Smartphone Purchases FierceRetail Consumers are fully embracing shopping online from their phones, as shoppers using smartphones increased their spending by 125 percent across all product categories. According to a quarterly report from MarketLive, some physical retailers, in the furniture and housewares categories specifically, even reported triple-digit increases in purchases coming from smartphones. Read more. Share
Divorce Can Be Ugly — for Employers, Too By D. Albert Brannen No one ever sets out getting a divorce as a life goal. Unfortunately, though, divorce becomes a reality for an alarming number of married couples. While divorce can be emotionally devastating for the individuals involved, it can also end up interfering with their jobs. This article will outline nine ways that employers can be affected by the divorces of their employees. Read more. Share
Design Master appoints Marketing Manager
Kelly joins Design Master as Marketing Manager to expand Design Master’s technology driven awareness and education as the Color Design Resource. She will assist our sales team in their efforts to digitally support our color and creative markets to spread the word on Design Master. Share
Push for the Early Delivery By Katie Hendrick
“[Customers] almost always go for it,” said Lyn Santamary, owner of Santamary Florist and Greenhouses in Middleton, Ohio. If she ever senses hesitation, she talks about how everyone in the office will “ooh” and “ahh,” “which usually does the trick.” For more Valentine’s Day strategies, see “Saturday Sales Slump: Says Who?” Share
A Cheat Sheet for Tough Questions By Katie Hendrick
Don’t freeze — or worse, snap — when asked something controversial. SAF has the answers to a range of sticky questions to give you the confidence to respond with grace. Find a cheat sheet here. Share
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