Floral wire service
Encyclopedia
A floral wire service, also known as a flower relay service is a company established primarily to facilitate order exchange and fulfillment between local florists and/or third-party sales agents of floral products. Floral wire services offer proprietary networks, clearing house
services and operate as affiliate marketing
schemes.
and was mutually owned by its members. Members exchanged orders via telegraph messages and hence the name 'wire service' was used to identify the order exchange business model. In 1965, with the introduction of international order sending, FTD changed its name to Florists' Transworld Delivery
.
In the 1920s, a group of British florists formed a similar 'Flowers by Wire' group. This group, also a business cooperative and affiliated with FTD, began operating under the name Interflora
in 1953. By the 1970s, most European countries had their own Interflora units.
In addition to the cooperatives, independently owned and operated for-profit companies built their own proprietary networks including Teleflora
and 1-800-Flowers
with their BloomNet division.
Twenty-four states have now outlawed geographic misrepresentation by floral product sellers in Yellow Pages
and in online advertising.
Clearing house (finance)
A clearing house is a financial institution that provides clearing and settlement services for financial and commodities derivatives and securities transactions...
services and operate as affiliate marketing
Affiliate marketing
Affiliate marketing is a marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's own marketing efforts...
schemes.
History
The first floral wire service, established by a group of 15 US florists in 1910, was Florists' Telegraph Delivery Service (FTD). The group was formed as a cooperativeCooperative
A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit...
and was mutually owned by its members. Members exchanged orders via telegraph messages and hence the name 'wire service' was used to identify the order exchange business model. In 1965, with the introduction of international order sending, FTD changed its name to Florists' Transworld Delivery
Florists' Transworld Delivery
-Going public:In 1994, FTD began a process of demutualization.On December 19, 1994, a precursor to the FTD Corporation, a private, for-profit company, acquired FTD, which then divided FTD into two organizations: FTD Incorporated, a for profit corporation, and FTD Association, a non-profit trade...
.
In the 1920s, a group of British florists formed a similar 'Flowers by Wire' group. This group, also a business cooperative and affiliated with FTD, began operating under the name Interflora
Interflora
Interflora is the most commonly used name for a group of organisations worldwide, providing florists with a brand under which flowers can be purchased and delivered to 140 countries, most with their own partnership, or unit.- History :...
in 1953. By the 1970s, most European countries had their own Interflora units.
In addition to the cooperatives, independently owned and operated for-profit companies built their own proprietary networks including Teleflora
Teleflora
Teleflora is a floral wire service company which brokers orders to local florists for delivery. Headquartered in Los Angeles, California, it offers what it describes as florist-to-florist clearinghouse services; these enable sale and delivery of eligible products to be independent of one another....
and 1-800-Flowers
1-800-Flowers
1-800-Flowers is a floral and gift retailer and distribution company in the United States. It was one of the first retailers to use a 24 x 7 toll-free telephone number and the Internet for direct sales to consumers....
with their BloomNet division.
Operations
Similar to travel agents, wire service affiliates' main functions are to act as agents and sell products and services on behalf of local florist suppliers. Unlike other retail businesses, sellers are not required to keep stock on hand. A flower arrangement or other floral gift is not purchased from a supplier unless a customer requests the item. The flowers or other floral gift are supplied to them at a discount. The profit is therefore the difference between the advertised price which the customer pays and the discounted price at which it is charged to the agent. This is known as the commission. A wire service affiliate selling agent typically earns 20% of the product and local delivery price, plus services charges. Additionally, many florist wire services pay performance rebates to affiliate resellers.Twenty-four states have now outlawed geographic misrepresentation by floral product sellers in Yellow Pages
Yellow Pages
Yellow Pages refers to a telephone directory of businesses, organized by category, rather than alphabetically by business name and in which advertising is sold. As the name suggests, such directories were originally printed on yellow paper, as opposed to white pages for non-commercial listings...
and in online advertising.
Major wire services
- BloomNet (Wire Service division of 1-800-Flowers1-800-Flowers1-800-Flowers is a floral and gift retailer and distribution company in the United States. It was one of the first retailers to use a 24 x 7 toll-free telephone number and the Internet for direct sales to consumers....
) - Blossoms Network
- B Brooks Fine Flowers
- FTDFlorists' Transworld Delivery-Going public:In 1994, FTD began a process of demutualization.On December 19, 1994, a precursor to the FTD Corporation, a private, for-profit company, acquired FTD, which then divided FTD into two organizations: FTD Incorporated, a for profit corporation, and FTD Association, a non-profit trade...
- InterfloraInterfloraInterflora is the most commonly used name for a group of organisations worldwide, providing florists with a brand under which flowers can be purchased and delivered to 140 countries, most with their own partnership, or unit.- History :...
- Petals NetworkPetals NetworkPetals Network is a floral wire service company which distributes consumer flower orders to local florists for delivery. Petals offers both a florist-to-florist clearinghouse service and a customer to florist service through its network of independent local florists.Unusually for floral relay...
operating in Australia, New Zealand and the UK - TelefloraTelefloraTeleflora is a floral wire service company which brokers orders to local florists for delivery. Headquartered in Los Angeles, California, it offers what it describes as florist-to-florist clearinghouse services; these enable sale and delivery of eligible products to be independent of one another....
- TelefloristTelefloristTeleflorist is the trading name for British Teleflower Service Limited, and has about 1100 members. Teleflorist was established in 1947 in Hampshire, England, and has remained privately owned....
- Ready Flowers Limited operating primarily in Australasia