Auctioning through the clocks at FloraHolland is going to be more expensive in the near future. This is because of the ongoing implementation of the cost-maker, cost-bearer principle. FloraHolland’s CEO, Lucas Vos, mentioned this in his latest vlog.
The ongoing implementation of the cost-maker, cost-bearer principle is one of the three topics that are currently discussed at special member sessions. According to Vos, the members feel strongly about it. The second point that members have highlighted is the differentiation of auction fees. Different types of growers need to be treated differently.
A third aspect that members are concerned about is whether the policy regarding trading outside the auction will be upheld. They would like to see the obligation to supply to the auction maintained.
If all of the members’ wishes are granted, the auction is going to be cheaper for large nurseries than for small growers. And the clock is going to be more expensive. Vos couldn’t say yet whether the cost-maker, cost-bearer principle is going to be introduced at once or gradually.
He did elaborate on FloraHolland’s need for growth in his vlog. A topic that the members can’t seem to agree on. “FloraHolland’s members aren’t providing the required production growth. There’s a risk that customers are going to purchase plants and flowers through other channels. We’ve got to make sure that customers will continue to purchase through our platform in the future”, said Vos.
That’s why FloraHolland is looking for a way to offer customers the entire assortment they’re looking for, on their marketplace. In addition, the transactions have to be simple and the transaction costs of the system and the logistics have to be kept as low as possible.
The fact that FloraHolland is looking to expand its assortment is taken into account in the new pricing system and in the plans with regards to different membership types.