Standing orders and daily offers from farms
20-11-2010 / Articles
There are a many advantages in working with standing orders customer-farm, and one of the main is stability. After concluding the contract with the farm, the customer shall regularly buy defined/negotiated variety range of defined lengths, and the farm shall regularly provide the customer with these positions.
Some of the farms maintain the stable prices for the standing orders throughout the year. As a rule, these are upscale brands and the prices for their flowers are similarly high all seasons, but there are not many. The majority of farms try to put up prices of the standing orders to the level of winter prices starting from the mid of August and keep them high until April of the next year.
As a result of this prices conflict some of the customers start to experience challenges in sales of positions of their standing orders.
The lack of strategic flower varieties farms usually explain to the customer by decrease and deterioration of production, variety disease and technological problems of production. The Client understands very well that the flower farm is not a factory for the production of spare parts, but is really difficult to understand the fact that production problems affected only the short supplied part of the flower range. So, why the ballast varieties are ready to be shipped from the plantation, but the part of the scarce varieties of the standing order have not been confirmed by the farm? Obviously, the customer may cancel the entire order if the principal part of his order has not been confirmed by the farm. It is evident that such troubles could also have been avoided if the prices of standing orders were flexible. However, the relative price stability in the case of fixed prices for the season, in this option, can be violated, and customers will not be able to give even short-term price forecasts on their wholesale flower warehouses. We believe that the “golden mean” is the balance between standing orders and the purchase of daily offers of flower farms. Under that system, farms stay sharp, and customers are always keeping abreast of trends in the market due to positions purchased from the free market. Obviously, success of future farm sales primarily depends on the range of varieties that have been planted on the farm, as well as on the quality of the grown flower products. The level of flowers quality is determined by work of technologists who are responsible for the correct pruning of flowers, diseases prevention, timely fertilization, selection of the right fertilizers, selection during packaging, flowers treatment in special solutions before delivery to the airport. The quality of flower products is a subject to seasonal fluctuations (influenced with weather conditions), and also depends on the level of competence of technologists who are among the best-compensated employees of the flower plantation staff.
We wish the farms to be right in choosing varieties offered by breeders. The right choice of varieties means high productivity, vivid color solutions, flowers fastness to delivery by air and by refrigerated ground transport and minimum of “ballast” varieties in standing customers orders.
In the final analysis varieties range choice for planting determines the viability of the farm and allows it to compete in tough economic environment.