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Why the Bloomex model works

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  Taken from: Financial Post Published: Friday, November 28, 2008

Re: Flower Shop Empire A Bloomin’ Good Idea, Nov. 10.

Cesario Ginjo wants to build a national brand of flower retailers and distributors, according to the CBC show Dragon’s Den and the National Post. His position is that if he could find investors to finance his idea of creating a Canada-wide florist, he could “hit the ground running, open a new location and do $200,000 to $300,000 a year in business.”

This idea would be a unique one, except Bloomex ( already implemented this business concept. Since 2005, Bloomex has been Canada’s largest florist. It has production facilities in seven major Canadian cities — Vancouver, Calgary, Winnipeg, Toronto, Ottawa, Montreal and Halifax. Bloomex is the only Canadian online florist that can deliver to over 97% of the Canadian population from its own production facilities. In the Bloomex model, flowers are bought directly from the growers, eliminating the expensive middleman and overhead expenses. It also reduces transit time from growers to Bloomex production facilities, which equates to fresher flowers that last longer at a better price.
Bloomex has more cost-effective practices by reducing overhead expenses with warehouses, as opposed to store front retail, and passing the savings on to consumers. The Bloomex business model allows us to design and deliver fresh cut flower bouquets at 35%-50% cheaper than traditional florists.

Michelle Robitaille, Public Relations Manager, Bloomex.
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