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(NECN: The Boss) - David Hartstein's plan was to increase flower purchases in the United States by changing the way Americans thought about buying flowers. He wanted people to think of them not just on special occasions but like buying bread and milk.
In 1998, the first KaBloom store opened in Newton, Mass. In 1999, Inc. Magazine named KaBloom a "hot start-up." But nearly three years and one recession later, KaBloom failed to live up to its forecast of grossing $15 million dollars in 2000. KaBloom's early growth came to an end in 2001 with 34 shops.
Flower buying habits changed as more consumers turned to the Internet. Supermarkets took an even bigger bit with do it yourself bouquets. Between 2006 and 2008, David sold, then bought back his company. David knew he needed something to bring his company back to competitive levels, and in 2007 a "miracle" happened.
After lots of trial and error, David patented the Moses Miracle. It was a $10,000 investment that paid off. The invention consists of a tiny balloon filled with water. The balloon is placed on the stem, and the flowers are shipped. The water never spills out, allowing the blooms to be shipped fully hydrated.
The company then came up with a payment system called Whizpay, which made buying flowers over the Internet easy.
To date, KaBloom is the only company in the US that can ship flowers overnight, in water. Today, there are two successful KaBloom stores in Massachusetts, and one in California. The company has seen 50 percent increase in orders. KaBloom brings in $10 Million in gross sales, and delivers 1,000 flowers every day.
Today, they are headquartered in Brookline, Mass., and employ 25 people.
Watch the attached video for more.