This series is designed to give the florist a basic understanding of the wire order segment of the floral business. Because there are several different segments of the Wire Order Business, each week I will attempt to cover one of the below topics.
- Understanding How Wire Orders are generated
- Why do I want or need a Wire Service?
- What are the Income and Expense involved with Wire Orders.
- How do I report my Wire Orders?
- How do I read my Wire Statement?
- How Do I reconcile my Wire Statement?
- How do I account for my wire orders in my books / accounting records/ general ledger?
1) Understanding How Wire Orders are generated
In the beginning, when a customer came into a flower shop and wanted to send flowers to someone in another town, the order had to be “Wired” out over a telegraph system (Western Union) to the town where the order had to be delivered. There were several challenges, first was there a western union shop in the town the sending flower shop was in, second was there a western union in the town where the order was going, third was there a flower shop in that town to fill the order and fourth how was the florist filling the order going to get paid. This created the birth of the Wire Service – Florist Transworld Delivery (FTD). Today, we have three major Wire Services, FTD, Teleflora and BloomNe
There are several parties involved in a wire order transaction. The Customer who comes into your shop to asks you to send an order for flowers out of your delivery area. The Flower shop (SENDING FLORIST) the customer has come into to send the order to another florist. The Flower shop (FILLING FLORIST) that will fill the order from the Sending florist. The Recipient who the floral order is for. The Wire Service which may be used to transmit the order from the Sending Florist to the Filling Florist.
Each of these parties play an important role in growing your business through increased sales and exposure to new sales opportunities which we will expand on in later blogs.