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THE SECRETS OF
STARTING A VERY PROFITABLE FLOWER VENDING BUSINESS
STARTING A VERY PROFITABLE FLOWER VENDING
OPERATION SECRETS REVELED
I have sold in the retail market, millions of fresh roses and fresh
flower bouquets successfully for 32 years. I bought a retail nursery and florist
across the street for one of Connecticut's cemeteries, on a busy route that had
several thousand vehicles pass every day. I made deals with all the flower
wholesalers at first and then I proceeded to undercut the price of all the
flower shops in the state. My main objective was to create a customer base that
would frequently buy flowers "just because". My customer service was created
with an over friendly staff of a great combination of super personalities and
knowledge of the business, which was simply liking people and helping them to
satisfy a feeling. My motto to my staff was to let them know that we not only
sell roses and flowers but mostly, "WE SELL FEELINGS". We sell LOVE. My
obsession with quality and consumer service was so successful that it spread
through out the community and the state.
Wow, I can remember Valentines week with a staff of over 50 wonderful employees
wrapping and boxing roses through out the day and nights, get ready the rush of
the year. I was so careful with every dozen to prepare each like it was for my
mom or wife. We dethroned all the roses, cut them under water, to hydrate them
according to the "Chain of Life" procedure. They re-hydrated them in solutions
to further guarantee and extend their vase life. Our 4,800 Dozen roses that we
sold that week were our best advertising for the rest of the year. Heck, they
lasted over 10 days which pleased amazed our dedicated customer's recipients.
What a great feeling to know how many people we made happy.
Selling flowers at strategic locations has become a highly profitable retail
business for many enterprising individuals. These entrepreneurs are taking
advantage of a market that is, for the most part, impulsive in nature. Many
people buy flowers on the spur of the moment, and the presence of a flower
vendor is usually their inspiration.
Very often, men on their way to a date will see a roadside flower vendor, and
suddenly find the idea of taking flowers with him quite appealing. The same
holds true for many men heading home from work. If they're married, these men
will often purchase flowers from roadside vendors for their wives. The flowers
are fresh, attractive, and package to sell, not as nearly as expensive as an
arrangement from a florist, and the buyer doesn't even have to get out of his
car.
Women are also potential customers for flower vendors. A woman will buy flowers
to add color and decoration to her house or apartment, or sometimes, just to
cheer up a friend. In any case, the purchase is usually made on impulse, brought
about by the availability of a flower vendor.
Starting a flower vending business is not difficult. No previous experience is
necessary. There's only a minimal initial investment required, and you won't
need a lot of equipment. What you will need is an adequate supply of fresh,
attractive flowers, a good location for selling, and a cheerful disposition.
After all, you will be dealing directly with people, so a good disposition is a
necessity.
You can begin as a home-based operation with an investment of as little as $300.
If you live close enough to the market you want to reach, your own garage can
serve as storage space as well as your preparation area. Your operating expenses
will be minimal, and you'll have the opportunity to realize a high margin of
profits. You can contact www.rosefarm.com as well and we will walk your through
your orders and help you create your business.
Depending on the size of your investment (both time and money) and the size of
your trade area, a flower vending business could net anywhere from $20,000 to
$175,000 per year. It can be an extremely high profit business, if you choose
your selling locations wisely, and offer only fresh, attractive flowers.
BUSINESS OVERVIEW
Successful operation of any small business depends on several key factors.
Perhaps the most important is the ability to be a good business manager.
Although no experience is necessary to start-up a flower vending business, some
small business management training could give you the edge needed to insure
success. Most community colleges offer night school courses in small business
management and, if you are unsure about your business knowledge and/or
management skills, enrollment in such a course would be a good idea.
Here are other basic steps involved in the successful operation of a flower
vending business:
(1) Know your market. Proper knowledge of your market will enable you to set-up
at the best locations. You'll need to know the high-traffic areas as well as the
time of day traffic is at its peak in order to take advantage of a roadside
operation. You'll also need to investigate other potential locations such as
restaurants, malls, local festivals and flea markets.
(2) Obtain a dependable source for fresh flowers. Your business depends on the
quality of your merchandise. And since you are selling flowers, they must be
fresh and attractive. You should locate a quality wholesaler and establish a
sound working relationship. You should also have some knowledge of the types of
flowers people are most likely to purchase from a vendor.
(3) Establish a workable preparation area. Ideally, your preparation area should
be centrally located within your sales territory. The space needed should be
adequate for storing flowers and materials used for the preparation of bouquets,
as well as for the preparation itself.
(4) Hire the right help. Unless you plan a one person operation you'll need to
hire some dependable helpers. The people you hire should be outgoing and
trustworthy with the ability to deal with customers in a professional and
courteous manner. If your flower vending business is to be successful and highly
profitable, you'll probably need to have other people helping you. One example
is a successful flower vendor in Washington State who employs young people, pays
them minimum wages, and enjoys a brisk business at several key locations.
(5) Advertise and promote your business. Effective advertising and promotion can
help generate sales and profits. Knowing how to advertise and promote your
business, especially in the beginning, is a key step in the success of any
business operation.
All of these steps can be taken with a relatively small initial investment, and
your flower vending business can be in operation, and realizing a profit, in
just a few weeks. However, prospective entrepreneurs should also be aware of,
and comply with, any rules and regulations that apply to this particular
business in their area.
Depending on the location(s) of your flower vending business, you may need a
license to operate. If you plan to set- up a flower vending stand on a city
street, or any roadside operation within city limits, you'll most likely need to
get a permit. The best thing to do is consult a trusted attorney, or contact the
business-license department in the city your market covers to find out what
licensing requirements you must meet.
If you plan to sell flowers in restaurants and nightclubs, it is usually not
necessary to have a license. Also, if your roadside operations fall outside the
city limits, you probably won't need a license because most counties don't issue
them. Again, you should check with your attorney, or the proper licensing
authorities in your area before you start selling flowers.
Another consideration for a new business owner and employer is taxes. As an
operator of a business you will be responsible for collecting and sending in
various state and federal taxes, as well as certain taxes you will have to pay
yourself. If you are not familiar with your tax responsibilities as a business
owner, consult a qualified accountant or contact your local IRS office to get
the information you need.
You should also consult with an accountant as to the type and arrangement of
bookkeeping and record keeping best suited for your flower vending business.
Records of your business operations are, of course, helpful in the successful
management of the business.
These records need to be as accurate and permanent as possible in order to
ascertain any tax liabilities. They should include business income, deductions,
credits, and any employee information. As well as any other information required
by federal, state and local regulations.
EQUIPMENT AND INVENTORY
Since a flower vending business does not require an abundance of
sophisticated equipment, start-up costs can be kept to a minimum. The basic
equipment necessary should not cost more than $200 and can usually be found at a
wholesale florist supply house. You can also get your supplies and equipment
from several firms that cater to florists. You should be able to find a complete
directory of such firms at your local library. You can also contact several
florists (not necessarily in your market) and obtain this information.
For the preparation of your flowers and floral arrangements, you'll need stem
cutters and a supply of cellophane or florist's tissue. You will also need
several plastic buckets to keep the flowers in water and fresh while being
transported as well as on your selling sites.
To prepare the flowers for selling, you will need a preparation area. This area
should be cool and shady to help keep your flowers as fresh as possible. As
mentioned earlier, a location central to your area of sales is most desirable.
If your own garage fits that description, you won't have the added expense of
renting space.
Your preparation area will require several storage containers and a table. Some
refrigerated coolers may be necessary, but since most flower vending businesses
pick up their flowers on a daily basis, and sell them as quickly as possible,
that sort of storage requirement should not be excessive. However, during the
summer and winter months, you may need an air-conditioner and portable heater to
keep your flowers in salable condition. If you don't already have these items,
you can count them as a business expense and they are tax deductible.
Your inventory will consist of flowers. You can purchase these from wholesalers
found in most major cities. You can find these suppliers by looking in the
Yellow Pages of your area's metropolitan phone directory. Look under 'Florists,
Wholesale.'
Since you will probably have some flowers left over after each day's sales, it
is essential that your inventory be fresh when purchased from the wholesaler.
You can check the freshness of your flowers by examining the heads of roses to
see if they are tight to your touch. Also, if the blossom appears purple around
the edges, the flower is probably too old. When buying carnations, look to see
if they are firm and heavy-stemmed. If carnations are somewhat discolored, don't
buy them, because they probably aren't fresh.
The largest part of your inventory will most likely be roses.
Roses are the most desired flower, and they are
expensive. Prices will vary with the season and area of purchase.
Carnations will also make up a substantial portion of your inventory. These
flowers, while very attractive and popular, are much less expensive than roses.
Other flowers you may want to add to your inventory are gardenias, tulips,
daffodils, and orchids. Some of these flowers are expensive and usually appeal
to an older set of customers, so don't go overboard when dealing with your
supplier. Roses and carnations will be your best sellers.
Your best sales months will be during the holidays so you will have to make sure
you have an adequate supply of flowers. You'll also want to have a supply of
appropriate flowers to match the specific holiday, lilies for Easter,
poinsettias for Christmas and so on.
CHOOSING A LOCATION
Once you have a marketable inventory, you will need to set- up in a good
location. If you choose the wrong location your business will not be successful.
For flower vending, the two best selling locations are restaurants and
roadsides/street corners.
Restaurants are good selling locations if they attract large lunch and dinner
crowds. Especially good restaurant locations are those with specific themes.
French, Italian and Mexican restaurants are usually profitable locations for
flower vendors. You'll also find successful flower vendors in upscale lounges
and taverns.
In general, restaurants and lounges with a quiet and romantic ambiance, are
usually conducive to flower vending. Many restaurants are attracted to the idea
of flower vending at their places of business because it offers an extra
'romantic' touch to their service. Usually, the management of a restaurant will
charge the flower vendor only a nominal fee. In some cases, the fee may simply
be a few flowers to arrange and display throughout the restaurant.
For street-selling locations, freeway exits and stoplights on main streets are
preferred. These areas represent the highest amount of traffic therefore, the
largest number of potential customers. Ideally, your locations should be along
streets, highways and exits that feature a great deal of late afternoon and/or
early evening rush hour traffic. These conditions are ideal if you can find an
area where the traffic must come to a stop, or at least has to slow down. Your
location must be plainly visible so that oncoming drivers will be able to see
you in enough time to get out of traffic and pull off the road.
It is important that you stay away from roadside locations that could limit the
ability, or desire, of your customers to reach you. Never set-up at dangerous
intersections, along steep hills and other areas that could be hazardous. You
could lose a lot of business if potential customers don't stop because they fear
getting struck by other traffic.
When selling on city streets the most desirable locations are those that take
advantage of both automobile traffic and pedestrians. You should try to find a
spot in an area of heavy pedestrian traffic as well as vehicle traffic. Business
will usually be better when people are on their way home. If you know which side
of the street is the 'going-home' side, that's where you should set-up.
Operating a flower vending business allows you more flexibility than many other
businesses have. You won't have to stay in one location, if it proves
unprofitable. You can move around as often as it takes to find the locations
that afford you the most success.
You may have to experiment in the beginning. Simply keep a record of the number
of flowers sold at each location and the number of hours at each spot. From
these records you'll be able to determine the most satisfactory locations for
your business. You will also have a better idea as to the actual inventory you
need so you can cut down on the amount of excess that results in spoilage.
HIRING PERSONNEL
In order to be successful in the flower vending business, it may be necessary to
hire help. If that's the case, not just anybody will do. As the owner/manager of
the business you will have to hire people who are right for the job of selling
flowers. Although this may seem difficult, there are some guidelines that many
flower vending businesses follow quite successfully.
Students and people seeking part-time jobs are the most likely candidates for
employment in the flower vending business. Your interviews with such prospective
help should be designed to ascertain if they are trustworthy and dependable. You
also need salespeople who are outgoing, enjoy interacting with other people, and
who are well-motivated.
In most cases, if you are selling flowers in restaurants, attractive young women
are the best salespeople. Usually these women are dressed in a costume that
serves to identify your business. The most basic sort of identifying costume, or
dress, would be a white blouse and dark skirt. As the business 'blossoms' you
may want to invest in more elaborate costumes depending on the image you want
for your business as well as the particular restaurant theme.
Usually, an employer can find adequate part-time help simply by placing a catchy
ad in the help-wanted section of the classifieds of the local newspaper. The ad
should allude to making 'good money' for 'enjoyable' part-time work. Response to
the ad should be such that you can be selective in hiring the help you need. You
should also get excellent response with an ad in college newspapers. And you can
try placing the ads on school bulletin boards to elicit even more response.
Once you begin interviewing prospective employees, it is imperative that you
have them fill out an application form and supply you with at least three
references. And don't just read the references -- check them out. You should
know as much as you can about your help before you hire them.
Once hired, make sure all employees know exactly what their duties and
responsibilities are, as well as their salaries. You should also plan to review
each employee's performance on a regular basis. These reviews, or evaluations,
should be shared with your employees so they will know how they are doing and
how they can improve, if warranted.
DAY-TO-DAY OPERATIONS
Operating a flower vending business does not require hours of strenuous physical
labor. However, that does not mean flower vendors lead a life of leisure. With
any business there are demands that require time and effort. The flower vending
business is no exception. You and/or your employees will need to be well
organized from the time of preparation until the day's selling is done.
Preparing flowers for sale is an essential part of a flower vendor's work day.
In order to be salable, your flowers must appear fresh and colorful. Also, every
bouquet you plan to sell must be arranged in an appealing fashion. Therefore,
you should allow enough time for preparation so that the job is done right. But,
don't overdo it. If you spend too much time on flower preparation, you could be
cutting into valuable selling time.
The actual preparation phase should take as little time as possible without
sacrificing quality of work. To be as efficient as possible with your
preparation time you should organize the process. You can do this in a
step-by-step manner.
First of all, you should plan to remove many of the thorns from each rose stem.
About half of the thorns, beginning at the bottom of each stem, should be
removed. Then, you will need to clip a small portion from the bottom of each
stem. This will allow the flowers to absorb water and retain their freshness and
color. You can do the clipping with a sharpened knife.
Once you have dethroned and clipped your roses, you will need to place them in
relatively warm water. The water temperature should be about 105 degrees. You
can leave them in the water for up to two hours and they will be refreshed and
colorful when you are ready for the day's vending. All your other flowers must
also be properly cared for and prepared so that your entire inventory is
appealing to your customers.
Your preparation process should not involve much 'decoration.' People buying
single flowers usually won't expect frills such as ribbons or bows. However, you
should have such adornments on hand at your selling location in case some
customers request them. It's also a good idea to supply your sales team with
pins, if corsages and/or short-stemmed flowers are part of your inventory.
Any bouquets you sell should be wrapped in tissue or green cellophane. Not only
do the flowers keep better wrapped, they also appear more attractive and are
more appealing as gifts. Unwrapped bouquets do not have a particularly neat
appearance, and they probably won't stay fresh and colorful as long as they
would if wrapped.
How much time should all this preparation take? Well, most successful flower
vending businesses spend no more than two to three hours a day buying and
preparing flowers. It will probably take a new business a couple of months to
become organized and experienced enough to cut buying and preparation time down
to two hours per day. That will happen once you learn how to utilize the early
morning hours, after the flowers have been purchased from the wholesaler, for
preparation of the flowers and organizing your salespeople.
The best times to sell cut flowers, really depends on location. Street corner
and roadside vending hours are most successful during the late afternoon and
early evening hours when most workers are heading home. Most people are more apt
to take the time to make such a purchase as flowers on their way from work than
they are on their way to work. Weekends have also proven very successful for
many flower vending businesses that operate all day on Saturdays and Sundays.
If you are selling in restaurants, the most profitable time will be during
dinner hours. In some cases, lunch crowds will buy flowers, but usually the
evening diners will be your best customers in a restaurant. Your salespeople
should plan on up to three seating's of diners each evening in a popular
restaurant.
Between seating's, your salespeople can canvass the immediate neighborhood for
other potential customers, and then return for the next seating at the
restaurant. This type of selling will take some practice and experience, but a
good salesperson will soon learn how to make the most of his time and inventory.
It is important that you and your sales team be as poised and as professional as
possible when selling at any location, especially in restaurants. In
restaurants, a low-key approach is much better than an extremely aggressive
sales pitch. Be polite and friendly, and utilize flattery as an effective tool.
Approach the man in a couple and in a casual and friendly manner ask if he would
like to compliment his lady companion with a beautiful flower. Most men will
then buy a rose for their dining companions.
ADVERTISING
A flower vending business is unlike many small and part-time businesses in that
the usual forms of advertising -- newspaper, radio, TV, and so on -- are not
really effective. Since your selling locations may change from time to time, and
since buying flowers from a flower vendor is usually done on impulse, you'll
need a more immediate form of advertising. It should be something that draws
attention to your business as your customers approach your selling location.
For street corner and roadside vending, signs are the best form of advertising.
All that's needed is something to let potential customers know you are there,
and that you are selling flowers. Seeing your sign, many people will act on
impulse and stop to see what you have to offer.
The sign(s) should be hand-made rather than professionally painted. You don't
want to appear like a big business. And a hand-made sign will give the
impression of a small, family-type operation which usually means more reasonable
prices.
In some cases, a new business can get publicity from a local newspaper. If you
are selling flowers at a restaurant, you can try getting such publicity by
alerting the local newspaper. Most local newspapers use information of this sort
as fill, and it could prove valuable to your business.
If, as part of a special promotion -- a grand opening, or a special day such as
Valentine's Day -- you will be selling flowers at a business location, send the
information to the editor of your local newspaper. You may also want to include
a picture of you and/or your sales people. The paper may not decide to run the
story, but there's a good chance they will. Either way, you have nothing to
lose, and a bit of publicity to gain.
SUCCESS ANALYSIS
Eight contributing factors are measured on a 1 to 10 basis (with 10 being
excellent) based on analysis of this opportunity.
1. Time Investment 7 2. Start-up Costs 9 3. Gross Income Potential 8 4. Net
Income Potential 8 5. Income in Relation to Investment 10 6. Stability 8 7.
Overall Risk 9 8. Potential for Growth 10
Overall Potential for Success 8.63
POTENTIAL EARNINGS
The profit you can realize from a flower vending business depends on several
factors:
(1) The size of your market. Obviously larger metropolitan areas supply the
greatest source of potential customers, therefore profits. However, your
expenses in these larger markets will probably be greater, because of larger
inventory needed and a bigger sales team to cover the market adequately.
(2) Good selling locations. Even if your market has a large selection of
potential customers your profits will be, at best, minimal if you are not
selling in the best locations to take advantage of impulse buying. You have
something that practically everyone likes, flowers. But most everyone who buys
flowers from a vendor does so on impulse. To be successful, a flower vending
business must locate in areas of high-traffic, increasing the possibility of
impulse buying.
(3) Consistently marketable inventory. If you try to sell flowers that are too
old, wilted and faded, don't expect to do much business. Make sure your entire
inventory is always flower- garden fresh and attractive. Also, price your
flowers at reasonable rates. That way, both you and your customers will be
happy.
(4) A professional sales approach. Whether you are running a one-person flower
business, with yourself as the only salesperson or have several salespeople, a
friendly, low-key sales approach is essential. After all, you are selling
flowers, not used cars. Most people who buy flowers from a vendor are buying
them for a special person, and a friendly, non-aggressive salesperson has a good
chance of making a sale.
(5) The size of your investment. This does not just apply to the amount of money
you invest in the business. Your investment also includes the time and effort
you expend on making it a success. As a weekend business, or operating on a
daily basis, a flower vending business will require a certain amount of your
time and effort above and beyond your monetary investment. The amount of success
and profits you can realize depends, in large part, on how much you are willing
to put into the business.
Some flower vending businesses have reported netting as much as $175,000 a year.
That kind of income usually requires a sales team of half-a-dozen or more people
working in a large metropolitan area.
Smaller markets should expect a net profit of $10,000 to $20,000 per year.
The thing to keep in mind is that there is always a large market for a flower
vending business because flowers make personal gifts year-round. Obviously, some
months featuring special days such as Valentine's Day, Easter and Christmas will
be better than others, but this is not a seasonal business. You should be able
to realize a healthy profit every month.
Your initial investment can be as low as $300, or as much as $1,500, depending
on what you can afford and the size of your operation. It will most likely take
several months until you get adequately organized, and until you discover all
the best selling locations. But within a year you should be realizing a nice
profit with an efficiently operated flower vending business.
SUMMARY
A flower vending business is one of the best small businesses you can get into,
if you are short on investment capital. Very little equipment is needed. You can
use your own garage or utility room as a preparation area and for storage. And
you can sell your inventory on location, from the back of your own car, van or
pickup. You may want to invest in a business management course, if you are
uncertain about your management knowledge. But no practical experience is
necessary to get into this business.
The biggest expenses will be in inventory, which a good month's sales will
recover, any extra personnel you decide to hire, and in any licensing fees you
encounter. Advertising costs for a flower vending business are extremely low.
Since flowers have universal appeal, there will always be a sizable market for a
flower vending business. If you operate professionally, offering fresh,
appealing flowers, establish a good business relationship with dependable
wholesalers, find the best selling locations, and hire dependable, competent
help, there's every reason to be confident that a flower vending business can be
highly profitable.
There will be much more written on this subject.
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