Episode summary
Farmgirl Flowers Founder Sees Resilience Amid Fuel Cost, AI Uncertainty | Bloomberg Businessweek
Bloomberg Businessweek Daily
· · 11 min · Hosts: Carol Massar, Tim Stenovec · Guests: Christina Stembel
Summary
Christina Stembel said Farmgirl Flowers is holding up, but only barely, as higher fuel surcharges and Google’s AI-driven search changes squeeze a bootstrapped business. She said the company will likely finish the year around $34 million to $35 million in revenue, but flat rather than growing, after traffic fell about 21% year over year and outbound transportation costs rose by more than $2 million.
Stembel argued that the economics of flower delivery are increasingly unforgiving. Farmgirl Flowers charges $25 for shipping while paying roughly $34 to $36 to ship a box, so the company has had to raise product prices and absorb some of the higher logistics costs. She said the pressure is coming from both sides of the supply chain, including more expensive inbound transportation and higher flower prices.
On AI, Stembel said the technology has helped the company save money on engineering, but the search changes tied to AI overviews have created a much larger problem. She said Farmgirl Flowers has frozen other hiring and shifted significant time toward writing content for search scrapers and bots, calling that a major distraction from running the business. She also said small businesses are not meaningfully heard in policy debates and want more transparency around surcharges and regulation.
Key takeaways
- Christina Stembel said Farmgirl Flowers expects to finish 2026 roughly flat at $34 million to $35 million in revenue.
- She said Google’s AI search changes cut Farmgirl Flowers’ traffic by about 21% year over year and forced a major content strategy shift.
- Stembel said higher fuel surcharges will add more than $2 million to outbound transportation costs this year.
- She said the company charges $25 for shipping but pays about $34 to $36 per box, limiting its ability to pass costs through.
- Stembel said AI has saved the company about $350,000 in engineering hires, but the search disruption has offset those gains many times over.
Notable quotes
“we are just running a flat year. So again, 34 $35 million. Um, we're happy with that”
“this year we have huge fuel shirt charges. Like huge like”
“we will end uh spending over $2 million more on outbound transportation”
“What I spend my day doing right now four to six hours a day I'm writing for robots for bots”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. — You're listening to Bloomberg Business Week with Carol Masser and Tim Stenc on Bloomberg Radio. We are surrounded by flowers because she is back. She's a go-to for us a couple times a year. She's a great gauge not just on the American consumer but also on small business and really understanding what it takes to bootstrap and run a business in this country and this environment.
She is a fave. We're just going to put it out and lay it out for you. Christina Stumble is CEO of Form Girl Flowers, founder of it of it. She bootstrapped this company. We I feel like have been with you through a lot of different business cycles um and momentum. How are you first of all and how's how are things going?
Good. I'm great. Um, yeah. I I feel like I come on, you've been with me on this journey for so long. I appreciate it so much. Um, and I come on and I'm always like, "Oh my gosh,
This is going on and this is going on. And we do have some things going on this year. Um, but I think the thing I've learned the most at I'm going to turn 16 or Farm Girl's going to turn 16 November 7th.
Um, is that we can get through it. We can get through it. So, I'm I'm coming here with some some more optimism this time.
Um, but yeah, there things are things are going. Um, the economy affects us all. small businesses as well and yeah so but but we're getting through it.
Just to contextualize for our viewers and for our listeners, what numbers can you share with us about the size and scope of your business?
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- fuel surcharges
- ai uncertainty
- company resilience
- cost pressure
- logistics and delivery
Companies and tickers mentioned
- Farmgirl Flowers
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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