Q: If you don't charge any Service fee, how do you make money?
It sounds too good to be true.
A: We collect a 20% commission from the florist to whom we
relay your order, which covers our expenses. The wire-service
company (FTD, Teleflora) takes 7% of the money you paid and
the rest, 73%, goes to the receiving florist. This has been the
standard procedure in florist wire-relay services for a long time.
Historically, sending florists are allowed to collect an additional
"Service fee" from the customer to compensate for their time and
labor involved in finding another florist that can complete your
order and sending out your order by calling long-distance.
But these days, many stores, including ours, have already set up
a computerized Point-Of-Sales system that can take care of
wire-out orders relatively easily. This technology drastically cuts
labor cost and time involved in relaying orders.
So we believe that the most reasonable thing to do is to pass
those cost savings to our customers, rather than taking an
additional profit from the customers and making them unhappy in
the process.