Calyx & Corolla is a mail-order flower company that in 1990 had consummated over 150,000 transactions bringing in $10 million dollars in revenue. They have a relatively easy time raising capital because they exceed their own expectations. Their success can be attributed to their original method of business that evolved in Calyx & Corolla. They utilize the usual methods of the mail order business but where they differ is in their execution of the orders. When Calyx & Corolla receives an order, it is prepared and shipped by Calyx & Corolla’s suppliers. This cuts out production time and keeps the flowers fresher than the competition.
The Calyx & Corolla team is a highly qualified and experienced one. The founder is a Harvard graduate who built up and sold a business, similar to Calyx & Corolla, to Williams-Sonoma. After starting she brought in a Harvard graduate and an industry veteran to help run her company. The management team realized the value of this start-up and worked hard to establish the company.
The flower industry is $9 billion dollar industry, as of 1990, which represents a growth of 7.7% from 1985. Per-capita consumption was at $36 and growing more towards the $60 which is the average in Europe. Most of the flowers sold in the United States are grown domestically and come from a wide variety of suppliers. The typical chain from grower to purchaser is a long one. It goes from grower to distributer who then hands it over to a geographically located distributer. It is then sold to local retailers who then sell it to the consumer. Being that the flowers go through so many hands, a flower that the grower sold for $5 can be sold for as much as $40.
The nature of flowers poses a hard reality to the industry. Flowers are perishable an ...