What’s a Florist to do?
The year is 2022. The Minnesota minimum wage for high school kids is now $10 (doubled inside of 6 years). Gas prices are well over $3.50/gallon – up 40% from 2021. Who could have imagined the impact to small businesses like us – that rely on unskilled high school kids – we teach how to answer the phone professionally, how to take an order, how to run a cash register/POS – how to treat customers, and how to become a good employee. When they leave and move on, they have skills they didn’t have before. We took the unskilled and gave them skills with a minimal pay – with progressive increases as they completed their training plan. Now we are required by law to pay them the fully-skilled wages (more than what the florist makes frankly), and we pay payroll taxes – for which the higher wage did not lower the MN payroll tax% – so MN.gov gets even more money (wonder where the surplus comes from?). I am also required to pay unemployment tax on them, add in the additional accounting costs, software fees, and professional fees for quarterly reports and audits plus Workers Compensation. The cost to small businesses is easily $25+/hour for a completely unskilled person. To add misery to pain, many of these kids have to be supervised continually to keep them working, not playing on their phones, or just staring into space or watching you work between customers. This is completely unacceptable – the government is now in charge. not us. Is that the outcome everyone wanted? Will there be florists in the next generation? Probably not.
We don’t have employees anymore. We can’t afford them. They are a by-gone luxury now. In response to the situation, we are doing everything we can to lower our expense so that we don’t have to raise prices – in an already economically hurting industry. If I raise the price of a dozen roses from $82.50 to $100 – and I sell fewer flowers because of it – I go out of business. Raising prices is not an option for us. We are already pressed down, squeezed, and working drudgery hours for near-zero profitability throughout COVID. Examples of changes include: Restricting our business hours to 8:30-3 M-Sat. Eliminating unprofitable products and services – which gives our customers less choices and options. Increase to our delivery fees due to the gas price increase. We recently are being forced to change our baker due to scone price cost increase of .60 cents per scone. We can’t sell scones at $5 each – but that’s what we would need to do if we stay with our current supplier and adjust to this new “economy”. So we have to change. We have no choice but to lower our quality of service and selections. We can’t do $30-$40 arrangements anymore, because we know we’d get complaints. Customers in the lobby have to wait longer. The phone rings and sometimes goes unanswered.
Furthermore, when you go on the internet and order flowers through Avas Flowers, 1-800-Flowers, FTD, Teleflora, etc. – those orders don’t come to us anymore. We couldn’t afford to fill them with any profitability after paying the wire transfer fees and managing the many problems with that order channel. Those order will now go outside your local florist to get to you. We are only accepting florist-to-florist orders over the phone with a credit card now. That hurts all of you – thinking we are delivering your order and you are supporting a local florist – when in actuality, you are not. Your money goes to some corporate call center – and they will either have to cancel your order, or increase your costs trying to get another florist out-of-area to deliver to your house. I’m so sorry for this horrible inconvenience to my customers who enjoy using the internet to order flowers. You deserve better. This economy, the political strikes against small businesses, and all the social media attacks just aren’t worth it when basically we are here ourselves working at less than the “cost” of the new minimum wage. Know that we continue to work to serve our communities and families for your proms, weddings, funerals, engagements, anniversaries, and special events that are so blessed when flowers are present.
On a more positive note, we are making strategic changes to our business. #1 – The Knot. We are told that we can do better servicing 2 weddings a month with customers on The Knot than what we are making monthly now with the floral-retail business. This is our new direction and we will be putting marketing efforts toward capturing more bridal events via www.TheKnot.com . We will continue our drive-through coffee business with restricted hours which is currently holding its own. What this will mean for Mother’s Day is yet to be seen.
Secondly, we have made the strategic decision to promote “Minnesota Grown” with our partner Len Busch Roses. They have greenhouses throughout Minnesota for tulips, alstromeria, and many of the cut flower selections that top florists choose for long-lasting floral bouquets. In this decision, we will be increasing prices somewhat, but we believe with the economy changing so dramatically and with energy prices soaring – our move to support Minnesota Growers is the right thing to do. Our best profitability comes from our www.northbranchfloral.com website orders. Please be sure to use it in the months to come if you are unable to get through on the phone.
May you all be blessed by our Lord and maker through these difficult transitions that are necessary as economic change forces us to make tough decisions. We love you all!
