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Local selling and the UPC (Read 3150 times)
Tom_133317
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Local selling and the UPC
Mar 1st, 2008, 6:32am
 
Hi everyone,
 
Q1.  Has anyone tried buying a qty of their best cards and getting them stocked in local gift shops?
 
Q2.  Can the UPC on the back of the card be used by the retailer for pricing and reordering?
 
Q3.  I've not read this anywhere, but I assume that we artists get $1 off our own cards (seller+artists commissions), and that we get that same amount off the qty price. So since the Qty 100 price is $1.89, will I get them for $0.89 each?  That might be workable to offer a local wholesale price of $1.49 (I make 60 cents/card) to the retailer so they can sell them for $2.99 (for instance).  I believe most expect the wholesale price to be 1/2 the retail price.  Not sure though.
 
Thanks .....TOM
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Cara_131386
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Re: Local selling and the UPC
Reply #1 - Mar 1st, 2008, 7:00am
 
Great questions Tom!  I will be waiting with you for some answers Smiley
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Sue_132963
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Re: Local selling and the UPC
Reply #2 - Mar 1st, 2008, 7:12am
 
Ew!  Good questions Tom!  I think I had already chalked it up to being too expensive to order the cards for resale.  (But then again, how about the postage?)
I would love to order from GCU for my resale cards.  The quality is great.
I am waiting for your answers with baited breath!
SueB
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Tom_133317
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Re: Local selling and the UPC
Reply #3 - Mar 1st, 2008, 7:55am
 
Quote from Sue_132963 on Mar 1st, 2008, 7:12am:
Ew!  Good questions Tom!  I think I had already chalked it up to being too expensive to order the cards for resale.  (But then again, how about the postage?)
I would love to order from GCU for my resale cards.  The quality is great.
I am waiting for your answers with baited breath!
SueB

 
At qty 100, it's $24.25, or 25-cents/card, so you are right - eats into the profit.  If we still want 50-cents profit/card, then our wholesale price may have to be closer to $1.64 in this case.  Perhaps the retailer may not "need" a 50% mark-up.   undecided
 
Another option is to order 200 or 400 cards in a shot, reducing the S/H costs to 19-cents and 12-cents/card respectively. At 499 cards it's under 10-cents.  That's a lot of cards, but we must think BIG right?
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Sue_132963
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Re: Local selling and the UPC
Reply #4 - Mar 1st, 2008, 8:04am
 
Hmm.  Well, now that is food for thought, Tom.... undecided
SueB
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Cara_131386
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Re: Local selling and the UPC
Reply #5 - Mar 1st, 2008, 8:40am
 
I'm getting all revved up thinking of the possibilities  Shocked
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Tom_133317
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Re: Local selling and the UPC
Reply #6 - Mar 1st, 2008, 8:58am
 
I went through this routine trying to get my goofy books into gift shops, but I think cards would be much better sellers.  What's exciting is to allow the store owner to choose the cards from a full line of samples (your top 50 say) you bring in to show them, and this allows them to match the cards to their clientele.  Making a full color catalog is also a great idea (takes time but it's effective).  
 
In addition, you could modify cards just for them, perhaps with their logo, message, or website somewhere on the card - OR - design a custom set of cards for them, for instance, if it's a cabin resort - do several of their site.  You'd be locked in as their supplier.
 
 
[I will be gone till late Monday]
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Sue_132963
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Re: Local selling and the UPC
Reply #7 - Mar 1st, 2008, 10:57am
 
Yes Tom.  That is exactly how I got my first gift-shop order.  They already had a surplus of greeting cards, but when I flashed my cards with photos of spots recognizable as "their turf"--Wala!  They bit...
Now, I have to print up my own cards for them.  But if I could get my cards affordably enough through GCU, I would MUCH prefer to do that--to say nothing of the superior quality...
SueB
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Ernestine_131365
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Re: Local selling and the UPC
Reply #8 - Mar 3rd, 2008, 6:03am
 
Tom-
 
This topic was discussed back in October, see this thread:
 
Selling GCU cards to Stores?
 
Quote from _131887 on Oct 26th, 2007, 11:21am:
Hi all!

My husband suggested I try selling my GCU cards to local artsy/gift type stores. Going around to local boutique type stores w/my GCU samples and taking orders. I was wondering if anyone else has tried doing this and what the results were?

-Di

 
 
Sue-
 
I believe we may be in the same "local market,' and I've found the same thing. . . shops want "area" images.  They also would like to see info about artist on the card, so I am waiting with baited breath for this option to be available to us before I think of putting MY GCU cards on local racks.
 
-Ernestine
 
 
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Sue_132963
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Re: Local selling and the UPC
Reply #9 - Mar 3rd, 2008, 11:53am
 
Ernestine,
Yes, it sounds like we are on the same page.  I have considered having 'peel and stick' labels printed up with my Artist Info on them to apply myself.  But again, we are talking about costs...And these things just take the cards out of the realm of even possible on the local market.  I can stand to make very little, just to get my foot in the door--but we are talking about loosing money by the time you pay for the cards, their postage, our add-ons and then transpotation (and time) to the points of sale to sell them and then deliver (or more postage?) them.  I would be elated if GCU could come up with some sort of solutions to our problem here.  Keep our fingers crossed.
Good Luck to you.
SueB
 
Quote from Ernestine_131365 on Mar 3rd, 2008, 6:03am:
Tom-

This topic was discussed back in October, see this thread:

Selling GCU cards to Stores?

Quote from _131887 on Oct 26th, 2007, 11:21am:
Hi all!

My husband suggested I try selling my GCU cards to local artsy/gift type stores. Going around to local boutique type stores w/my  GCU samples and taking orders. I was wondering if anyone else has tried doing this and what the results were?

-Di  



Sue-

I believe we may be in the same "local market,' and I've found the same thing. . . shops want "area" images.  They also would like to see info about artist on the card, so I am waiting with baited breath for this option to be available to us before I think of putting MY GCU cards on local racks.

-Ernestine



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Mindy
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Re: Local selling and the UPC
Reply #10 - Mar 3rd, 2008, 3:23pm
 
Quote from Tom_133317 on Mar 1st, 2008, 6:32am:
Hi everyone,

Q1. Has anyone tried buying a qty of their best cards and getting them stocked in local gift shops?

Q2. Can the UPC on the back of the card be used by the retailer for pricing and reordering?

Q3. I've not read this anywhere, but I assume that we artists get $1 off our own cards (seller+artists commissions), and that we get that same amount off the qty price. So since the Qty 100 price is $1.89, will I get them for $0.89 each? That might be workable to offer a local wholesale price of $1.49 (I make 60 cents/card) to the retailer so they can sell them for $2.99 (for instance). I believe most expect the wholesale price to be 1/2 the retail price. Not sure though.

Thanks .....TOM

 
To answer...
Q2. the UPC can not be used for reordering.   Since we have yet to control the content on the back of the card outside of our logo, this is not our/GCU UPC.
 
Q3. At the highest quantity discount, artists buy their own cards for $1.89.  Less the artist commission only, 50 cents, cost per card is $1.39 vs 89 cents.  Artists do not earn a selling commission for buying their own cards.  That would be a bit too self serving, wouldn't it? Wink
 
Note, the quantity discount is for the total number of cards in an order, not the total quantity of a specific card.  This gives you much more flexibility.
 
We'll head to the think tank to see what we can do to make this a better reselling proposition for artists.
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Sue_132963
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Re: Local selling and the UPC
Reply #11 - Mar 3rd, 2008, 6:05pm
 
Mindy,
You are GREAT...Thanks again for having an ear to your artists.  I know that if it is possible to find a way that is profitable for both GCU and your artists, you will do it.  I hope there is a way.  But if not, we artists will just have to find our own way to supply our private sales (verses sales on GCU).  In either case, I plan to stay on this site.  I have not sold any cares in over three weeks now.  But I am still pumped.  I love the ease of uploading our creations on this site.  I have tried several different software for greeting cards and none of them work with the ease of this site.  Thanks a million!
SueB
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Tom_133317
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Re: Local selling and the UPC
Reply #12 - Mar 4th, 2008, 2:19am
 
[quote author=Mindy link=1204381949/0#10 date=1204586631]Quote from Tom_133317 on Mar 1st, 2008, 6:32am:
Hi everyone,

Q3. At the highest quantity discount, artists buy their own cards for $1.89.  Less the artist commission only, 50 cents, cost per card is $1.39 vs 89 cents.  Artists do not earn a selling commission for buying their own cards.  That would be a bit too self serving, wouldn't it? Wink

We'll head to the think tank to see what we can do to make this a better reselling proposition for artists.

 
Mindy - correct me if I'm wrong, but RIGHT NOW any BUYER can come in through any artist's widget and buy a mix of 100 of the artist's cards at a price of $1.89 each.  Of that, the artist gets $1 and GCU gets $0.89.  However, this is not true if the artist themselves is the buyer.  It seems GCU has already established that if GCU can net $0.89/card on a qty 100 order, it's worth it.
 
This suggests to me that the artist discount needs to be $1/card.  This would not only solve the inconsistency stated above, it would motivate artists, like me, to place regular qty orders and get more GCU cards into circulation more quickly.   Artists could turn out to be the biggest buyers and the biggest sellers of their own cards, if the economics supported it.  At only a 50-cent discount though, in my view, it doesn't work.
 
I'd hate to see artists work "around GCU," by having, say, a spouse, become the BUYER, and using the widget to get the $0.89/card effective cost at qty 100 in order to make selling cards locally economically viable for the artist.  
 
Here's another point.  In the past several weeks, I've talked to several gift shop and flower shop owners who are very interested in unique greeting cards, as they don't want to carry the same old lines found in large chain department stores and drug stores.  They want people to come in because they offer gifts that are unique,  with many locally made,  rather than made in china or india.  GCU and its artists fit well into this theme, so it would be great all-around to find something here that can make it work.
 
Two of these stores already have said they would stock a set of about 12-24 of my cards if I made them available at a cost to them in the $1.50/card range.  I'd like to find a way to get there through GCU.
 
TOM
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« Last Edit: Mar 4th, 2008, 9:17am by Tom_133317 »  
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Ernestine_131365
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Re: Local selling and the UPC
Reply #13 - Mar 4th, 2008, 2:01pm
 
Tom-
 
It seems to me that "You want your cake and to eat it, too."  Whether You buy your own cards or someone else buys YOUR cards through a widget, it remains the same: a "non-artist" widget purchaser cannot use an "artists discount" and an artist purchasing their OWN cards through THEIR widget also cannot take both the artist discount and get a 50¢ sellers commission.  If you CHOOSE to use your artist's discount, you'll still get your artists fee but the sellers fee will cancel.  Suppose it just depends on whether you want your savings on the "front end" (artists' discount) or "back end" in a few months (sellers fee).  It's still 50¢ either way.
 
I still think there IS room for a modest profit with GCU card sales to stores, and I have been pursuing this angle, though my concern (as it is the shops' concern as well) has more to do with the ability to put artist's credit/info on the card. Is that major card company that wants to buy your designs offering you a better return?  Are you paid a flat fee or royalties?  What's the marketing plan?  Not that I want a specific answer, it's just that there is a lot to consider in figuring actual profit.
 
I think GCU deserves every bit of the portion of sales revenue they (as a company) receive.  It costs us NOTHING to be here, I can't think of ANYWHERE one can get just ONE card printed for such a reasonable price with this quality.  That is usually reserved for quantities of 300 or more (of the SAME card!!).  And even though I haven't sold a TON of cards (I don't have a TON on my site), this site has been amazing for name recognition and marketing. . . something I can't really put a price on, but extremely valuable none the less.  Google and Yahoo search results for my name have gone from buried on page 100+ a year ago, to consistently filling most of the first couple of pages now.
 
. . . besides, can you think of a more amiable group to chat with!?!
 
Cheers, Ernestine
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Mindy
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Re: Local selling and the UPC
Reply #14 - Mar 4th, 2008, 5:13pm
 
Our costs are between $1 - 1.15 per card.  Add to that merchant processing fees (5.25%) and it jumps to $1.30 a card.  Plus all of the wonderful GCU developers, staff, equipment, etc & operational expenses we'll call "overhead", now we're talking $1.50 a card (let's say #1.49 to make it easy).  The model is $2.49 a card less $1.49 cost = $1 per card profit to be shared equally, 50 cents for GCU and 50 cents for the artist.
 
Keep in mind print on demand costs are higher than traditional printers.  The tradeoff is the ability for small "runs" and onesies.  POD will never be able to compete with traditional printers on large order pricing and nor they with POD's on small order pricing.  As our business grows we can always add a new division with traditional press capabilities where you can print large quantities at 10 cents or less per card.
 
Let's talk Widgets.  The Card Widget is a customer acquisition tool.  It is not a discounting device.  It's a temporary promotion.  The widget "cookie" is only good for 30 days (this will soon be limited so it only works once for each email address).  The seller commission is paid as compensation for directing new traffic/sales to GCU.  On all widget sales GCU losses money.  We are willing to do this as an investment to acquire new customers.  They come, they buy, they love it and come back again!  With the 89 cent card you refer to GCU losses 61 cents.  
 
GCU also losses money on artists buying their own cards for $1.99 as well as any special promotions (discounts, free shipping, etc).  These are specific programs that we have determined we will invest in to build the business.
 
We have seen many large sales and likely many more not visible to us that we have lost due to pricing.   We're working a revised commission structure that will still give you 50 cents per card for small quantities, but a reduced rate on larger quantities so we can be competitive.  So for larger sales with lower per card prices there will be lower artist commissions and lower profits for GCU.  This will allow us to be more competitive and capture more sales.
 
What does this mean for reseller prices?  GCU is currently not structured to compete on price alone vs. traditional printers.  Although we'd like to make it attractive for you to purchase your own cards at a discount, we are not able to extend special pricing lower than our quantity discounts (the new pricing/commission structure will be announced around end of month).  
 
So today the options are $1.99 with your artist discount (w/ your 50 cent commission your cost is $1.49) price or at large quantities buy for $1.89 at bulk pricing discount (with your 50 cent commission your cost is $1.39).  Hopefully you can garner a higher price from your gift shops and the like by offering high quality, unique and localized cards.
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