INDEPENDENT FLORISTS' ASSOCIATION


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    Florist Direct Orders

    IFA members send florist-to-florist orders through a simple process called "Florist Direct" (FD) using a credit card. FD orders can be transmitted using the traditional 80%-20% split or using IFA's new 100%-0% FD program. A member determines which compensation program will be used once the shop's membership application been approved. In the 80%-20% FD program sending shops earn the same profits they would earn on traditional wire orders, but by paying the filling shop the 7% normally taken by a wire service, FD orders allow the filling shop to be more profitable. For gross order amounts (including delivery) greater than $25.00, the filling florist charges the sending florist's credit card for 80% of the gross order amount, and the sending florist earns a net sales commission of 20% plus his relay or service fee--the same commission a sender earns on traditional wire orders. For gross order amounts less than or equal to $25.00, the filling florist charges the sending florist's credit card for 100% of the gross order amount, and the sender earns his normal relay or service fee. With IFA's new 100% FD program, the filling shop charges the sending shop's credit card for the full value of the arrangement with no discount, and the sending shop retains its service fee.
     
    Gross Order Amount Wire Service Pays You (73%) IFA Member Pays You (80%-100%) Additional Profit
    $60 $43.80 $48.00-$60 $4.20-$16.20
    $50 $36.50 $40.00-$50.00 $3.50-$13.50
    $40 $29.20 $32.00-$40.00 $2.80-$10.80
    $25 $18.25 $25.00 $6.75
     
    As you can see, IFA orders put about $3-$16 more in your pocket for each incoming florist-to-florist order. Equally important, while you must wait 30-45 days to receive the wire service payments listed above, you receive compensation for IFA orders the day you fill the order.

    For example, suppose a florist sends you a $50 order. If your delivery charge is $5, you should fill the order with a $45 product. Traditional wire services will pay you $36.50 for filling this order, while you would charge a sending IFA florist's credit card for $40-$50, depending on the sending shop's membership type (80%-20% or 100%-0%). It's that simple. Unfortunately, many florists mistakenly assume that they receive 100% compensation for traditional incoming wire orders. That is NOT the case!

    IFA shops must guarantee that orders are filled with products equal in value to 100% of the gross order amount, less delivery. IFA members agree to charge the same amount for delivery fees on incoming FD orders as they do on locally-generated orders and not to artificially inflate delivery charges to effectively reduce the product component of the order price. IFA members agree to send only those orders that would be considered reasonable and acceptable for their own shops to fill at the gross order price, order description, and delivery terms being transmitted to the filling florist.

    The figures below show just how much more profitable it is to fill FD orders, compared to traditional wire orders. This example assumes 100 orders averaging $50 an order are received. The first column illustrates the net payment to a Teleflora or FTD member who receives the orders over Dove or Mercury. The second and third columns illustrate the payment to an IFA member who receives the orders via fax under the 80%-20% program and the 100%-0% program, respectively.
     
    Teleflora IFA 80%-20% IFA 100%-0%
    Gross order amount $5000 $5000 $5000
    Sending florists' discount (20%) <$1,000> <$1,000> <$0>
    Wire service clearing fee (7%) <$350> <$0> <$0>
    Monthly membership <$139.95> <$20> <$20>
    Network access fee <$79.95> <$0> <$0>
    Transaction fee <$100> <$0> <$0>
    Credit card discount (2.25%) <$0> <$90> <$112.50>
    Net payment $3,330.10 $3,890 $4,867.50
    Net Payment as % of Gross 67% 78% 97%
     
    Additional profit from IFA --$559.90-$1,537.40 a month or $6,718.80-$18,448.40 a year
     
    New Florist Direct program
    On November 20, 2004, IFA's Board of Directors approved a new option for its members to send and receive IFA's Florist Direct orders. Under this new program shops can send and receive orders at 100% compensation, i.e. with no commission paid to the sending shop. This optional program was created as a direct result of feedback from shops who expressed an interest in being able to send their orders with 100% compensation being paid to the filling shop.

    Since IFA began more than four years ago, IFA members have been able to exchange orders using an 80%-20% (80% to the filling shop and 20% to the sending shop) commission program on orders greater than $25 and 100%-0% on orders less than or equal to $25. This new option will allow a shop to send all of its orders with 100% being paid to the filling shop. Sending shops can charge and retain a service fee for handling their customers' wire orders. This new program is entirely optional. Shops that choose to remain on the 80%-20% program can continue to earn their 20% sending commission.

    IFA charges no clearinghouse fees. The monthly membership fee of $20 is charged only when a shop uses the IFA web site to send any orders or when a shop receives 5 or more orders during the month. If you do not send any orders through IFA's web site or do not receive 5 or more orders in any month you pay nothing for that month but still have use of all the services and programs of IFA .

    IFA florists now have a choice to be wire service free and to exchange orders at EITHER 100%-0% or 80%-20% without the hassle of finding filling shops or dealing with the sales tax issue.
    Coverage is not an issue with IFA . Basically, any florist that accepts credit cards can fill an IFA order in cities where IFA doesn't have members. IFA , using its credit card based system, currently has better coverage than any wire service.

    Instead of copying the other companies, IFA is attempting to lead the industry in ways that some people would have considered radical a few years ago. Most shops today readily accept IFA Florist Direct orders. Three or four years ago this was almost unheard of. This shows what a member-owned and member-governed organization can do.

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