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Trading earnings for card credits (Read 3921 times)
Tom_133317
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Trading earnings for card credits
Mar 9th, 2008, 4:22am
 
I was thinking it might be a win-win if we could trade $1 of earnings to get 1 "Artist card credit."  This would allow us to "buy" a few more of our own cards, at a cost to us of effectively $1, for use in local resale or to use for promotions, as well as allow GCU to keep more of the cash they collect rather than pay it out to us directly.  The "Artist card credit" would have to apply to buying our own cards so that GCU does not have to suffer the cost of paying out a commission to other artists.
 
Just a thought.  Would you take advantage of this if it was an option?
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Jill_133389
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Re: Trading earnings for card credits
Reply #1 - Mar 9th, 2008, 6:44am
 
Fantastic idea! I would definitely use this option, and buy more cards in general, too, not only my own, with credits - the current discount is not much of a discount... most publishers give a desk copy or a single copy as proof anyway, so why not expect SOME sort of sample for the work being published? At least at $1 it looks more reasonable.
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Karen_132511
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Re: Trading earnings for card credits
Reply #2 - Mar 9th, 2008, 11:06am
 
I have a couple of web stores at www.cafepress/essentialimage2 and they offer this option. You can use your cafecash to purchase from this site. It would be nice to see that here also.
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Pattiann_132699
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Re: Trading earnings for card credits
Reply #3 - Mar 9th, 2008, 12:03pm
 
Quote from Karen_132511 on Mar 9th, 2008, 11:06am:
I have a couple of web stores at www.cafepress/essentialimage2 and they offer this option. You can use your cafecash to purchase from this site. It would be nice to see that here also.

 
What you're talking about is in the works, as I remember. But that's not all Tom wants: He's pushing for a bigger artist discount. Mindy recently explained why this won't happen, at least any time soon. See the thread here: http://www.greetingcarduniverse.com/forum/yabb2/YaBB.pl?num=1204381949/0#14
The informative response from Mindy on this subject is the last posting on that page.
 
Pattiann
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Karen_132511
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Re: Trading earnings for card credits
Reply #4 - Mar 10th, 2008, 12:07am
 
I am interested in knowing how many people here have sent their work to a publishing company, and how many companies they have sent their work to. It costs to send samples to publishers. I have sent my work to many publishers. They will call you when they need something like your art, want only one or two of your photos, and you do not make that much from them, or it isn't what they are looking for. I printed my own cards for years and I can tell you that I do not make that much profit... my  time, ink, paper, envelopes and the wear on your printer and computer, cost to repair them. I have my cards in many stores, some are on consignment and some the stores have purchased. I own many card racks that I have in stores and when they purchase my cards I sell the card racks at cost, I do not make any money off of them. So I really appreciate GreetingCardUniverse and the amount that we receive, Someone else is doing all of the work and we make money from it. If a store wants to purchase your cards have them purchase them through GCU and let them mark them up to $3.50 per card retail cost. Purchase some for your samples and make a catalog to show shops, it takes money to make money. It is still cheaper than printing them yourself. Then send the store to GCU to purchase them from your GCU store. I know that Tom wants a bigger discount, but as Mindy said they don't make much from the cards sales either. Our discount is very reasonable and we need to appreciate having a website that is out there helping all of us. Just my opinion and my experiences. At cafepress our cafecash is what our earning are, if we have $6.00 in earnings we can purchase $6.00 of product at our cost, so if we have $6.00 of earnings at GCU we would get $6.00 of credit to purchase cards at our cost. So you could purchase 4 cards at your cost. At $1.00 GCU artist credit, GCU would be losing money. Fair too GCU is still $1.49 per card, everyones a winner then. I have several businesses that I own and several web stores and I think that GCU is doing a great job helping all of us artist. Thanks GCU.
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Norval_132688
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Re: Trading earnings for card credits
Reply #5 - Mar 10th, 2008, 1:13am
 
Thank you, Karen, reading the forum I come away feeling that so many of the people don't know what happens in the real world of greeting cards.  A free- lancer assumes all cost of producing the artwork plus mailing cost plus advertising your work---on and on and you still are lucky unless you are a 'Name' to receive a 10%
royalty.  Brick and Mortar  companies take a chance on every card they publish so
most artist understand this arrangement [companies lose money or just break even
on most cards].  So compensation is more than fair here, so we should all concentrate on ways to get more store traffic on this site.  The last part of your
posting,  I would like to see someway to use earnings to buy cards that would be
fair to both.
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Tom_133317
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Re: Trading earnings for card credits
Reply #6 - Mar 10th, 2008, 5:00am
 
Good responses everyone.  Thanks.  
 
I do know that small businesses don't like to pay out cash if they can avoid it.  I suspect most of the commission money that GCU pays out to artists is not used to buy GCU cards.  The idea I started the thread with would allow GCU to retain much of the cash as well as result in growth in card sales.  Like Karen, I'd like to have my GCU cards stocked in stores as I don't believe, in the near term, that online sales will grow very much.  Most GCU stores sell at most 1 card per week.  I think with several card stands I could sell more than 10 a day.  That is still only $5/day profit if I can actually net 50-cents per card after covering all the costs, but I think that is possible.  It likely isn't workable at the current discount, and so I'd have to seek alternative printers.
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Corrie_131338
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Re: Trading earnings for card credits
Reply #7 - Mar 10th, 2008, 5:39am
 
Hi Tom et. al. -  
 
While the idea of being able to use store credit to purchase own cards is an excellent one, it's unlikely there will be further discounts on card purchases such as $1 per card as Tom suggested.
 
The printer used by GCU is a POD - which means Print on Demand. That makes it possible for a customer to order one card rather than a minimum print run like a traditional printer demands. What *that* means is the cost per card is much higher. In traditional printing, the more cards you order, the cheaper it is per card. A POD simply charges the same cost per card no matter how many are ordered. Hence, on a per unit basis, a POD charges the same cost for one card as for 500.
 
As Mindy pointed out in the other thread (link in earlier comment) it costs GCU $1.49 to print a card, which includes printing and operating costs. So if GCU allows an artist to purchase a discounted card at a price of $1 per card, even using "store credit," they are out of pocket 49 cents per card. We can't expect GCU to remain a viable business if they consistently lose money on those transactions.
 
As for selling... we're GCU's top seller, and have been since the beginning, so we believe whole-heartedly in the power of on-line selling. More and more people are going on-line to make their purchases. We've sold cards to people who weren't even looking for cards, but making a Google or other search for a topic and stumbled upon us. It does work. Our sales have consistently grown since we started just a short year ago. On-line sales help pay our bills, and take a heck of a lot less time than stumping all over the place trying to seduce shop owners into stocking our cards. As Karen pointed out, when you take into account your expenses, including time spent on mainentence and the like, there isn't a whole lot of $$ to be made from brick and mortar store sales even if you did get a hefty discount. You won't make your fortune that way.
 
GCU does everything for you except design the cards. The store is free, no out of pocket expenses, no overhead, they do free promotions, and they're very responsive to suggestions. Artists already receive $1 off card purchases, which is a lot more than places like CafePress, which don't offer a discount at all. I believe Sue in another thread mentioned that other POD printers don't allow printing on the inside of cards, which makes that option much less viable for many artists.
 
The fairest thing to do for artists and GCU alike would be to allow artists to use store credit to purchase their own cards at cost, as CafePress allows, and no further discount other than the artist's discount that is already in place.
 
Corrie
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Tom_133317
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Re: Trading earnings for card credits
Reply #8 - Mar 10th, 2008, 6:41am
 
POD printing costs also come down with volume.  GCU already has bulk pricing, so POD card printing costs are not fixed.  If GCU can get the volume up, printing costs should come down.
 
Looking at the GCU 30-day report, about 250 cards are printed per day.  If we assume 200 result in commissions, and GCU is able to turn this into 100 artist card credits, the number of cards printed per day would almost instantly jump to 350/day.  This should allow GCU to get better pricing from their POD partner.
 
Also, if just 5% of GCU artists are able to sustain a local card business of 10 cards/day using GCU cards, then GCU would need to print an additional 500 per day (double the online sales of today).  This again should lead to significantly better volume pricing from their POD partner.  That would get GCU to 750 cards per day, a 300% increase over today fairly quickly.
 
Are there better ideas to achieve this level of growth without having to spend on advertising?  
 
Mindy mentioned traditional cards can be printed for as low as 10 cents each, so there is a huge gap between that cost and a single card POD cost.  That gap will be filled by creative POD companies who are able to smartly drive down costs using volume.  Will this be GCU, or one of their competitors?  
 
 
 
 
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Corrie_131338
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Re: Trading earnings for card credits
Reply #9 - Mar 10th, 2008, 7:00am
 
I will quote Mindy's former post (link in earlier comment to full post) on the topic of artist's discounts, which was recently discussed in another thread:
 
"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."
 
and
 
"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."
 
That's the answer on artist's discounts straight from the horse's mouth.
 
Corrie
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Naomi_132978
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Re: Trading earnings for card credits
Reply #10 - Mar 10th, 2008, 6:27pm
 
I have to say, since I have just finished doing research on several POD services for cards, GCU has the best prices thus far.  Yes, our commission is not that high; however the chances of someone purchasing our cards, I feel are much higher.  The company I use for my fine art prints just started offering fine art print cards.  Those are base price of $2.99, so the customer has to pay at least $3.50 if we want a .50 commission and $4.00 if we want a $1 commission, etc.
 
Most of the services offering cards of the quality of GCU do not offer the same service where individuals can write in the cards, stamp, and mail the card off, without ever having to touch the card.  This is a very nice feature for busy business individuals.  They will have their assistants or Virtual Assistants (I'm a Virtual Assistant, which is my main business), send these cards out for them.
 
I just turned on a client to GCU.  He has been using SendOutCards and JackCards.  The only thing he did not like about the GCU is the inability to set up drip campaigns.  He has drip campaigns with SendOutCards going out on 7-day, 30 day, 90 day, 120 day, intervals, etc.  I have set these up for him and some individuals will be getting cards three years from now, with his not having to have done anything.
 
We are about to manually do drip campaigns with GCU cards.  My hope and prayer is that the artists don't take down their cards after we have selected the cards for the campaigns.
 
Anyway, as you can see, I've done a lot of research and GCU is definitely up there as far as quality, service.
 
Things that could be added to the service to make it fantastic for everyone.
 
1.  Artists copyright, contact, logo, bio information on the back of cards.
 
2.  Ability to do drip campaigns (marketers love their drip campaigns).  Allowing a contact management source and setting up a set of cards in each campaign.  For instance, my client has 11 cards in a campaign.  These cards have been sent out to about 50 of his clients thus far.  50 x 11 cards=550 cards paid for in advance.
 
3.  If drip campaigns are a capability in the future, then a way to prevent the artist from removing the cards that are set in a campaign.
 
4.  Ability for the customer to add inside image to card.  That is an image of the customer's business card and image of signature.
 
Okay, like I said, GCU has pretty good prices out there all around for a POD.  I like the fact I have a way to promote my art.  If someone buys my cards, likes the art, there may be a possibility of the individual buying a fine art print.  Also, I can already see I could get hooked on designing cards.   Grin
 
PS: Pardon any typos, I've had a long day at the computer and I really don't feel like proofing right now.  Wink
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Nicole_133385
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Re: Trading earnings for card credits
Reply #11 - Mar 10th, 2008, 6:52pm
 
A wow at Naomi. Jee......nice client Cheesy!
 
And I second the statement of the payment here at GCU.
 
So far this is the Best Artist fee I get on the places I am at. Period.
 Wink
 
 
Edit:
It would be neat to do a trade though.  Tongue
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Naomi_132978
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Re: Trading earnings for card credits
Reply #12 - Mar 10th, 2008, 6:57pm
 
Yes, too bad I'm not one of the artists on SendOutCards and that he uses.  Though, you can bet I will start designing some cards that he might like to use here on GCU!
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Nicole_133385
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Re: Trading earnings for card credits
Reply #13 - Mar 10th, 2008, 6:59pm
 
Grin, I can imagine Cheesy
Wanna give us a hint what he's looking for?  Cool Tongue
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Teri Francis_131425
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Re: Trading earnings for card credits
Reply #14 - Mar 11th, 2008, 12:23pm
 
Quote from Naomi_132978 on Mar 10th, 2008, 6:27pm:


I just turned on a client to GCU.  He has been using SendOutCards and JackCards.  The only thing he did not like about the GCU is the inability to set up drip campaigns.  He has drip campaigns with SendOutCards going out on 7-day, 30 day, 90 day, 120 day, intervals, etc.  I have set these up for him and some individuals will be getting cards three years from now, with his not having to have done anything.

....

Also, I can already see I could get hooked on designing cards.   Grin

 
First, welcome to Naomi and Karen!  You've both added helpful information to the good insights expressed here by others.
 
@ Naomi ... I'm pretty sure drip campaigns can be set up through the affiliated reminder services ... BigDates, BirthdayReminders, DateBoxx, BestReminders, etc.  You or your client could site mail Mindy to find out for sure and see if it could be set up for him.  btw ... I hope you do get "hooked" ... your artwork, especially the "emotions" set, is absolutely brilliant!   Smiley
 
Drip campaigns are certain to impact on the future of greeting card marketing ... it may be under the radar right now, but they are already very popular in certain industries, particularly on-line retail and service marketers.  Not sure what GCU's vision or plan for this will be ... it's not really clear to me if GCU will become a virtual greeting card mall/send out service, leaving the other marketing share of subscription services to the affiliate reminder services, or if they will eventually absorb some share of that market as well.  
 
@ Tom ... sorry, my friend, but I have to agree with Karen and Corrie on this one.  I should say that I have no experience whatsoever marketing turn-around-products to retail sellers.  But one of my clients has a pretty successful gifts/collectibles store ... and she does sell some local artists cards.  I'm not gong to quote figures, but I know she'd be thrilled to sell 10 cards per week, let alone 10/day.  That's not to say it can't be done, particularly in a resort or destination marketplace.  But if you don't happen to live near the shore, the mountains, or a mega-amusement park, that's going to be a lot of work for not a lot of money.  
 
In my area (Phila/S. Jersey metro), most greeting cards are purchased at super-store retailers, malls, and specialty gift stores ... sadly,  the few stand-alone card stores in my area are pretty much facing extinction.
 
If you study current demographics and future market predictions, you'll see that GCU is uniquely positioned to make a whopping mark on this industry.  The other "Big Two" consumer providers have already started to try to implement a send out service on their paper greeting cards.  And while they may have the branding clout for the time being, they have an extremely limited catalog to choose from ... nothing close to the 41k+ choices available at GCU and its partnered reminder services.  
 
According to US Government Market Studies* "... the average consumer buys 30 cards per year.  Midle-age buyers (45+) were the largest block of consumers for many years, but not anymore.  Today, consumers 44 years and younger take the leas as the most active buyers of all stationery products.  Since 2005, consumers aged 25-34 spend more on stationery than any other age group.  Woman purchase 85-90% of all greeting cards."  *Source- US Stationery Market Report - July 2003 - March 2006
 
That means the folks of "our" generation are not the buyers who will bring growth to GCU ... it will be the Next Generation, who are more or less totally assimilated to doing every day tasks and purchasing every day items on-line (like "records"--remember those days before iTunes?).  I believe that within 5-8 years, a majority of all stationery goods will be marketed and sold on-line.  
 
I support and encourage any GCU artist who can or wants to market their cards locally.  But be sure to study the demographics and market saturation points in the area where you live before pinning your hopes on selling 300 cards per month that way.  If the numbers and realistic expectations support doing so, by all means, go for it!  
 
Wishing all continued success and many sales!   Smiley
 
Teri
 
 
 
 
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