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Current position : Home/Listen to Plants/Aesthetics Auction-Wholesale Market

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[1] To combine with aesthetics for sales, they did it because it can guarantee them and help them get the most out of economic benefit.

We went to the florist Mr. Zhang¡¦s place early in the morning to experience how it feels like to be a florist one day by working with his families all day. Mr. Zhang showed us to the flower wholesale market in Tianwei at 3 o¡¦clock in the afternoon. We went to the auction to see how the chopped flowers produced by the florists were sold out. Once arriving on-site, we had a short meeting with the chief of the wholesale market named Kuo Wen. We asked her to introduce us to the underwriter Mr. Tseng Yung-Chi on-site. We did it all because that we want to know why the underwriter is willing to do business with people from the wholesale market.

Everything started with a good beginning. These beautiful portfolios can create an all-win situation for each party. Please refer to the topic made by our team in the menu called ¡§Aesthetics Auction - Wholesale Market¡¨.
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[2] Conversation with the florists, the wholesale flower market, and the underwriter

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Q: Why are you willing to deliver your flowers to the wholesale flower market for sales at an auction?

Florist Mr. Zhang:

Our florists used to do business with the flower wholesalers on behalf of individuals, or through the production and marketing groups, or a producer cooperative society when there wasn¡¦t a place like the flower market. Yet, we are not so good at bargaining for a good price. Besides, the flowering period of chopped flowers is quite limited, and most of the time the florists are afraid that the wholesalers are not willing to purchase flowers. It might be risky for the capital can go down the drain. Therefore, the wholesalers will take charge of deciding the price. The bill for payment will be released every 3 months. Once in a while, there will be an issue of the bounced check, and there¡¦s nothing we can do.

Yet, an auction will be held in the flower wholesale market. The Top 5 national wholesale markets will take charge of how to decide a mutual quotation for the market. The sold-out goods will receive money as an exchange of goods from the flower market. Although there might be a risk of dispose of the goods remained on-site, or we may be charged by an extra transaction fee, we will be guaranteed by this money we received for a balanced economy, which can also help us get rid of negotiation or request for payment. Therefore, we can keep focus on how to increase revenue for more profits by maintaining the high-quality in our flower production and cultivation.
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Q: How to deal with the disposal if the flowers weren¡¦t sold out?

Florist Mr. Zhang said in a helpless voice:

(Sigh) I must concentrate on the production management to maintain the quality, and create a code applied to the production-marketing process in the auction through word of mouth.
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delivered to a garbage truck


Q: Can we ask Mr. Tseng Yung-Chi to talk about what are the advantages of the flower wholesale market? (No. 081 was used by the wholesale underwriter in the flower market.) Thank you!

Mr. Tseng Yung-Chi:

Basically, each time when I buy goods, I will see what the market needs now prior to purchasing. If there wasn¡¦t a wholesale market, I might need to look for it out elsewhere and try to find beautiful flowers sold at cheaper price. The flower market is now available for everyone. The market collects flower crops delivered by the florists from all over the country. There is a variety of choices, and it¡¦s allowed to choose the product before trying to win the bidding. Its market quotation will not end up with an abnormal figure since the Top 5 national flower markets will regain control. Since the quotation for flower crops mostly starts with a higher bidding price, the bidders will try to cut down the price one by one. In this way, there won¡¦t be such a case to bull campaign. It can guarantee the wholesalers so they can be much willing to join us to the auction.

Q: How can you decide within such a short period of time whether or not to place a bid or to set a price for the bidding?

Mr. Tseng Yung-Chi:

Basically, when the auctioneer started to call for a price for one piece of product in an auction, it can take only a few seconds. Besides, there will a bidding called out from three lines. That¡¦s why I decided to do it in a few different ways:

1. Look at the florist code for the marketing and production process, and make sure all qualities made by the florist are good and provided well on a regular basis.

2. Trust in the levels given by the auctioneer.

3. Then decide what price you want for placing a bid for flowers based on the client¡¦s needs. There¡¦s just a few supply of goods, and some retailers even asked me for a delivery so if you want to place a bid, you¡¦ve got to do it fast.
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Q: May we request for a brief introduction to the flower wholesale market from Chief Quo? Thank you!

Chief Kuo Wen:

Welcome to join us! We are so grateful that you can spare some time to do this project by making your webpages with this topic to showcase the flower wholesale market so everyone can get to know the value of this existing wholesale market. To find out an introduction to the flower wholesale market, you may try to find it on our website, and there¡¦s plenty of information out there. Let me make it brief for you first

Profile of the flower wholesale market in Tianwei, Changhua County¡iµù¡j

1. Objectives:

To promote the development of the flower industry, the wholesale market started to seek out channels for the marketing and production sector. It also tried to promote a business model by running its operation like a corporation to reach the goal of sustainability. It provides services for the marketing and production sector, and gives it back to the florists.

2. Current status:

The auction market was first founded in Tianwei county in 1994. There was a Holland-style e-auction system, which can be run in a computer environment set up for the very first time. A three-line computer was used for running the operation to hold an auction. Until 1999, several pieces of products were introduced to an auction, and each line could have sold out more than 600-700 pieces per hour. Till today, the average amount of delivery per day is about 2000-4000 pieces. The daily amount of the deal is made at 2-4 million NT dollars, which makes this place become the Top 2 flower auction market in Taiwan. The main supply areas are Changhua, Taichung, Nantou, Yunlin, and Chiayi, which can take up more than 90% of the output volume.

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3.Address: No.583, Sec. 2, Guangfu Rd., Tianwei Township, Changhua County 522, Taiwan (R.O.C.) TEL:04-8834062

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4.Function:

(1)Do the wholesale market business.
(2)Do the flower export business.
(3)Do the transfer business to handle each payment made in the auction at each wholesale market for the member of society.
(4)Do the rental business of the freezer compartment and shipment.
(5)Sell the materials used for flower packaging.
(6)Hold a seminar for the flower packaging based on each level, and run an educational training to improve professionalism and skills for all members.
(7)Join in each activity that showcases the flower crops, and promote the flower crops made in Taiwan.
(8)Collect information related to the flower marketing and production after doing research. Create a website that can provide information of markets and reports. Members can use the information for production planning.
(9)Hold a campaign through demo for the flower crops to achieve the goal of exchanging the technology.
(10)Work closely with the agricultural units to carry out each planning of marketing and production.
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Q: May we ask who can join an auction to make a deal? What are the qualifications?

Chief Kuo Wen:

Only the underwriters and florists who have a license can be eligible for supply of goods and purchase of goods. If the underwriter (the bidder who joins the auction) would need to be qualified for entering or exiting the market, he or she will have to submit an application first. However, if the submission should be a successful one, it should at least comply with the following 2 qualifications: 1. Enter a market at least 4 times per month; 2. Buy flowers at an amount of 200,000 NTD per month. If there is an unachieved item, one point will be deducted one at a time. If 3 points were deducted, the underwriter will lose its qualification to trade. Besides, each time when a cooperative society comes to buy some flowers, it should pay the loan of the last deal first. Once it received a license card, it can enter into the flower wholesale market for bidding and purchasing.
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Q: Which are the crops sold at a flower cooperative producer society?

Chief Kuo Wen:

The flower cooperative producer society only sells a variety of chopped flowers including imported flowers and leaves gathered from all over the country; yet, chopped plants are not available in the auction. Each kind of flowers can be categorized into various species. Therefore, there are hundreds of chopped flowers available for sales each time an auction was held. Each time, more than 2,000 chopped flowers were sold in an auction per time at the cooperative producer society in Tianwei. The average sale per hour is 1,800 pieces. The crops were sold out very fast in an auction.
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Q: How to run an auction? What does an auction procedure look like?

Chief Kuo Wen:

Most flowers were sold to Taichung, Changhua, Yunlin, and Chiayi, and all transactions were completed online using a computer platform. Before an auction was run by the flower cooperative producer society, there will be a staff on stage to introduce the flower¡¦s species and its quality to the florists downstage, and there will be a sample for the florists to decide if they would like to purchase the flowers. Before each dealing starts, the flowers will be classified into groups for packaging based on its level of quality. Some flowers even need a code for labeling so that everyone may consider the code in the next purchasing.

Q: What to do with the flowers if the items appear to be not sold-out?

Chief Kuo Wen:

Disposal can be the last step for cleaning. Sometimes the flowers will appear as not sold-out; therefore, if the flowers appear as not sold-out after the auctioneers have bid twice, these flowers should be disposed. These flowers are labeled as No. 999, which are to be delivered to the shopworn goods area. After all auctions were completed, the flowers in stock will end up in the garbage truck. After compression, the flowers will be delivered to the garbage dump for disposal immediately!
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Q: How can the business model to run an auction for flowers do any good to the florists? How would it have affected the entire flower market?

Chief Kuo Wen:

A large amount of flowers would be provided to the florists, which can help to nourish the inventory, so there won¡¦t be a shortage of flowers. However, it might be a problem because the flowers will be rotten, or perhaps it may have caused a change for the interests of the florists if doing business with regular florists. Yet, if it chooses to do the flower business in an auction market, the above issues can be avoided. And flowers may be delivered to a wrong place. The auction market not only helps the florists, but also helps the flower market as well. The reason is quite simple. If the florists can have these flowers sold out on this particular day, the flower market will no longer have to dispose flowers anymore. It can offer plenty of advantages for the entire flower market, which can help the florists to get as many flowers as they want. Each day at the flower auction market, there will be an auction held at 4pm. Unless it¡¦s a holiday, there won¡¦t be a problem for the uneven distribution of interest; that is, for those who arrived early, they will not get more than those who arrived latter. At the auction market, by pressing down the button at the seat, the dealing was made once an item was selected. On one hand, it can avoid errors in the pieces of goods selected due to an unclear speech. On the other hand, it allows the auctioneer to make himself clear without using a body language, which can help the florists quite a lot. If the auctioneer needs to deal with tons of cash at the same time, it can be quite a mess. Therefore, if it¡¦s in an auction market, the check will be used for payment instead so the florists can pay by cash. Most of the time, the machinery can process all the money transaction so there won¡¦t be such an issue about the lack of money, or add-on shipment. Certainly, it may have affected the flower market. If one day the flowers were produced much more than any other season, there won¡¦t be enough places to sell them all in the auction market. Then, there would be a large amount of flowers left in the inventory, which can lead to leaving all the dried flowers behind. Therefore, the flower auction market can help many flower vendors and florists a lot.
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Q: What are the places to hold a flower auction market in Taiwan? Are these places all of the same kind?

Chief Kuo Wen:

There are five flower auction markets in Taiwan including Taipei, Taichung, Changhua, Tainan, and Kaohsiung. The markets are located in the following places ¡X Neihu district, Taipei City, Nantun district, Taichung City, Tianwei Township, Changhua County, Annan district, Tainan City, and Cianjhen district, Kaohsiung City. The following companies or markets were established in chronological order ¡X Taipei Flower Market (1988), Changhua Flower Wholesale Market (April, 1994), Agricultural Products Wholesale Markets (September, 1994), Taichung Wholesale Flower Market (January, 1995), and the last one known as the Kaohsiung International Flower Co., ltd. (September, 2003).

Currently, there are five places in Taiwan to sell flowers in a flower auction market through bidding. Each auction is held through the 3-line approach on a computer platform. All auctions that mainly sell the auction are held in three markets; one market is located in Taipei, the other is in Taichung, and another is in Changhua. The markets implement the five-code supplier integrated operation to fix the code issue, which can benefit the supplier units to deliver the products for sale in an auction more systematically. However, the Tainan market currently implements a 6-code solution to fix the code issue. There are five places to sell flowers in the wholesale market. All wholesale business for chopped flowers and flower-related materials, toolkits, or sprouts will be run smoothly in a wholesale market.
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Q: Can the florists and flower wholesalers agree with the function of a flower auction market?

Chief Kuo Wen:

Basically, the florists and the flower wholesalers are at loggerheads; therefore, someone must act as a middle man to help them negotiate with each other. That¡¦s why the flower auction market was first founded. The function of flower auction market not only helps them settle many conceptual issues, but also brings them much convenience. Therefore, they agree with all the functions of a flower auction market. That¡¦s why so many people come to make a deal here. If no one can settle for a negotiation, there won¡¦t be a place like this flower market. Before the auction market was founded, the florists work hard to cultivate the flowers, and then all they could to do is to sell them all to an underwriter. The price can be cut down by anyone as people wish. The underwriters will gather together to negotiate a way to monopolize the market and take control of the business to cut down price. The florists will be affected by the profit they made. Yet, some bad wholesalers will owe money to others, or run from an unpaid debt, which can do great harm to the florists. The purpose of holding an auction market is to protect the florists. The auction market can act as a third party for completing payment. The underwriter can win the bidding today, and then it must first complete payment before joining a second auction. The last day of payment should be made within 7 days after money is paid off. Otherwise, the underwriter would be put on a list of control targets. Although the florists may have to suffer from great loss for flower disposal because no one calls for bids in an auction. Yet, they prefer to deliver the crops to an auction market for security¡¦s sake.

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[3]How it works through work procedure on the auction market

I. Cargo Assembly in the place of origin
After the florists pack up the packages, these packages will be delivered to a distribution area or to this market.
II. Purchase of Merchandise

Receiving time starts from 13:00 to 15:30.

III. Discharge & Tally
1. The tally personnel will give instructions to discharge goods, count goods, and sign the bill.
2. Check out the flower quality, and write down the auction serial number.
3. Deliver the flowers to each auction area based on different species.

VI. Pick up the bill.
The underwriter will pay the unpaid debt at 15:30 in sequence, and receive a bidding card before it enters into the auction.

V. Transaction
The auction time starts at 16:00, and three lines are available to help to deal with multiple bidding made in the auction on a computer system one at a time.
IV. De-Consolidation
1.After the delivery, the underwriter will print out the barcode, and then put a label on each package for categorization.
2. An automatic screening system is applied to distribute products to the distribution area of the underwriter.

3. The cargoes were delivered to a particular area based on the underwriting number.
IIV. Receive the bill.
After the auction is ended, return the bidding card, and pick up the shopping list for the bill.

IIIV. Stock Requisition
1.The market staffs will screen the barcode on the label placed on each cargo, and the underwriter will confirm and check if everything is correct before making a deal.
2. The underwriter will deliver all cargoes that belong to it first at its sole discretion.
IX. Checkout
1.Each day, the transaction data is cleared before logging in to place a bill.

2. On the next day, the underwriter shall be notified of its amount unpaid, and ask for a payment.
X. Information
1. After logging into an account, each deal, big or small, together with the market prices will be sent to the main place of origin via fax. All information will be uploaded to a market information portal of agricultural products.

2. There are 10 lines available now with a CTI or IVR service to allow the supplier get an immediate first-hand market price through dealing.
XI. Remittance
Remit money three times a week, and notify every one of the monthly remittance schedule no less than 1 month.
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[IV] Experience how to run an auction in the flower in the flower auction.

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1. Our experience tour at the flower auction market had just started, and everyone was so excited and curious about what we saw once getting in.

2. Every worker at the auction market tried to be brief when introducing the auction process to us, and allowed us to raise questions in the Q&A session. Everyone is allowed to get to know what is the auction marketing actually doing?

3. On each seat, there¡¦s a button to link to the auction clock. It allows the underwriter to make a fast outcry.

4. There are three auction clocks in the auction market. Three lines were put online together for opening an auction each time.

5. Besides the auction clock, there is a bulletin board that displays the yesterday¡¦s market price and the flowers and the amount to be sold today in the auction.

6. The working staff told us how to run a real operation to place bids in the auction.

7. The flowers to be sold to the auction should pass an examination first before the delivery to an auction market.

8. The flowers to be sold in an auction will then be sent to the auction market on a conveyor belt for bids.

9. Each piece of flower crop needs to be all packed up based on the standard set up by the auction market in a fixed amount.

10. Count down today in the auction. We were like so excited¡K!

11. The flowers for sale will then go on the conveyer belt to reach the auction market. The boxes would be opened first.

12. The inspector will review the items in each box to see if the quantity and packaging have met the standards. Everything has to be confirmed through different levels.

13. Holding the flowers in hand can allow the inspector and the pricing staff to settle a price, and show the underwriters to look for the products they want. The price is based on the market price after the recent cargo rating. (The price may go down when placing bids.)

14. The three auction clocks will run one at a time to place the bids. The auctioneer will call for bids. It has attracted people from all over the industry!

15. The underwriters tried to concentrate on how to place their bids with the lowest price to buy flowers they want.

16. After the auction, the flowers would be delivered through a conveyor belt to pack up in boxes.

17. The underwriter would separate the flowers bought from an auction, and then the flowers would be dropped off next to the underwriter¡¦s truck. (On each piece of cargo, there¡¦s a barcode of the underwriter¡¦s code.)

18. For the flowers unsold, they would be placed on a corner where no one visits.

19. This batch of flower has a code No. 999, and it would end up in disposal.

20. For the cargo with a code No. 999, it will be delivered to a garbage truck for disposal immediately. (It would be compressed before breaking up.)

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[V] Conclusion

We will pass through the flower wholesale market every day when we go to school. Yet, we never visit the market before so we don¡¦t know what¡¦s going on there. We¡¦re very fortunately to have this chance to visit because Mr. Zhang can show us the way to get in. We must take this chance to explore the mysterious land we pass through each day when we go to school.
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In front of us is the conveyor belt. Chief Kuo explained that the conveyor belt is used for delivery flowers. Next, we went into the auction room where there are three large auction clocks in the front row. There are several seats for the underwriters to sit in. We sat on the past seats for the underwriters and listened very carefully to her introduction to this auction market.
Today, we also visited the real auction at the market. There were three conveyor belts moving at the same time. The underwriters would concentrate on the auction clocks to decide when to place their bids in due time. It can avoid placing bids at a higher price.
When the auction is about to come to an end, the working staff showed us the way to the disposal area. We found out that most disposed crops belong to the leaves. Less flowers were disposed. Yet, we do find out some lilies and roses being disposed. It¡¦s such a pity.
We¡¦re very grateful that Chief Kuo Wen showed us the way around in the flower wholesale market. I get to know more about Tianwei after getting through such a valuable experience!

-----------------------------------DATA REFERENCE----------------------------------

http://www.cfca.com.tw/market11.php

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CYBERFAIR 2017