Hello,
 
It is my pleasure to make my first post and have the opportunity to speak with all of you.  This past year has been an exciting one watching GCU grow and witnessing our creative artist community reaching over 1,350 artists to date.  Thank you for all of your hard work!
 
The purpose of my post has to do with card prices and artist license fees.
 
When GCU started we set a license fee at a flat rate of $.50 a card sold based on a card-selling price of $2.49.  In doing so we knew there was little to no room for profitable discounting.  In fact, at a card price of $2.29 or below GCU actually loses money, considering costs like printing and fulfillment; artist, seller and merchant fees; and overhead (customer and technical support).  
 
As we learn and move forward, GCU’s goal is quite simply to sell more cards.  In the process make sure that GCU no longer loses money on sales and that artists continue to be compensated fairly.   This will also allow GCU to pursue marketing and advertising activities that have not been done in earnest to date.
 
Today we are all missing out on large quantity sales because our prices are not competitive.  With a few changes we believe we can begin to capture those lost sales and at the same time increase earnings for both GCU and our artists.  This will require a new pricing and artist fee structure.
 
We are considering the following and would like your feedback.
   
RAISE PRICES FOR MOST LIKELY SALES & INCREASE DISCOUNTS FOR QUANTITY ORDERS OF ASSORTED CARD - orders with two or more different card types.
 
We propose to raise card prices to $2.79 (see proposed pricing below).  This will boost revenues for the majority of our existing orders (99% of GCU orders are less than 25 cards).  From what we have learned we believe there is room for this increase.  At the same time offer deeper discounts for quantity purchases of assorted cards.
 
OFFER BULK ORDER PRICING – orders of quantities over 3,000 of the same card.
 
NEW PRICING AND ARTIST FEE STRUCTURE
In order for us to offer better pricing we require a partner with more flexibility.  We will soon announce our new printing and fulfillment partner who will not only offer higher capacity production at a lower cost but also offer some of the new services that you have been patiently waiting for like back of the card credits, international bulk shipping and more.  
 
We are suggesting an artist fee structure based on percentage of card sales price, net of discounts and promotions.  Note that with a card price increase to $2.79 for up to 24 cards, artists will actually earn more ($.56 per card vs. today’s $.50).  The suggested artist fee structure is as follows -
 
Price Range of Card Sold      Artist Fee Percentage
$2.29 - $2.79                                      20%
$1.89 - $2.28                                      15%
$1.70 - $1.88                                      12%
$.50 - $1.69                                        10%
 
Our new suggested pricing for Assorted Card Orders is  -
 
Quantity per order of Assorted        Card Price           Related Artist Fee
1 – 24                                                   $2.79                      20% = $.56
25 – 49                                                 $2.49                      20% = $.50
50 - 99                                                  $2.29                      20% = $.46
100 – 499                                            $1.79                      12% = $.21                  
500 – 999                                            $1.49                      10% = $.15
1,000 – Plus                                        $1.39                     10% = $.14
 
Our new suggested pricing for Bulk Orders is –
 
Quantity per order of Bulk          Card Price           Related Artist Fee
3,000  - 3,999                                $1.19                     10% = $.12
4,000  - 4,999                                $1.09                     10% = $.11
5,000 – 7,499                                $0.89                     10% = $.09
7,500  - 9,999                                $0.79                     10% = $.08
10,000  - 14,999                           $0.69                     10% = $.07
15,000  - 19,999                           $0.61                     10% = $.06
20,000  - 24,999                           $0.57                     10% = $.06
25,000  - 49,999                           $0.55                     10% = $.06
50,000  - Plus                                $0.51                     10% = $.05
 
Keep in mind these lower priced/lower artist fee orders are for the most part sales we are not capturing today.  It is not money lost out of your pocket nor ours, it is money on the table that we’d like to win!
 
I am certainly interested in your thoughts and feedback.  My goal is to implement changes by July 1, the beginning of the next calendar quarter.
 
Mike Fake
CFO, BigDates Solutions
Greeting Card Universe
 
 
 

WOW!  THANK YOU, MIKE....THANK YOU GCU!
I am truly revved up about this.  If the quality of our printed cards does not drop, perhaps some of us can, at long last, market our own cards on the outside world too.  This plan looks to me like a real winner, for ALL of us!
Do I approve?  "It's a noooo-brainer!"  
Thanks again,
Sue

Ditto to all of the above... good news.  Again I say I am privileged to be a part of GCU... It's a great place to be and I'm glad I'm part of it!
 
gina

Hello Mike,
When I first heard that there would be changes in the amount artists could earn on their cards I was a little concerned, but you have come up with what I think is a very good solution.  I have always thought the quality of GCU cards was so great that they could sell for more.  I think you have come up with a very good solution that I believe we will all benefit from.  I have been with GCU for almost a year now and I am so impressed with the artist community here and how GCU really cares about what the artists think.  Well done!
Kathy

Hi Mike,
 
First, welcome on your first forum post!  I'm sure we'll all be eager to see many more postings from you!    
 
I, too, am delighted to see that GCU will be making a move towards more advertising and making bulk sales more competitive.  The new pricing structure you've presented looks good at a quick glance ... I'd like to study it a little more closely, but it appears very attractive -- for the most part.  
 
One area that concerns me though is the steep drop-off under the Assorted Bulk pricing between the 50-99 and the 100-500 range.  That's a pretty severe cut from $.46 per at 99 cards to $.21 per for 100 cards.  I may be missing something that went into the considerations -- there may be a very good reason for such a sharp drop in commissions fees ... but at first glance, I can't quite imagine what it might be.  
 
This is right off the cuff, without having studied the new model closely yet, but I'm wondering if there's a reason why there could not be a more moderately staged drop-off.  For example ... 100-249 cards @ $1.99, and 250-500 cards @ $1.79 with commensuate artists fees of 15% ($.30) for the $1.99 cards and then drop down to the 12% ($.21) for the 300-500 card range.  Is that something that bears any consideration?  
 
I don't see any problem with reduced artist fees for bulk sales ... I expect it and endorse it for GCU's growth.  And I think the 10% across the board for single-card bulk order of 3k + is certainly fair and reasonable.  But having been fortunate in having a few bulk sales, I'm a little put off by the idea that a bulk sale of 90 cards which I recently had, will actually earn MORE than a bulk sale of anything less than 197 cards under the new structure.  Something just doesn't seem right to me about that.  If the $1.99 cards at a 15% commission is not something worth considering, then I would rather see the Assorted Bulk structure go from 20% for 1-49 ranges to a 15% fee for the 50-500 ranges ... personally, I would rather trade off that 5% on the 50-99 range and pick-it up on the 100-500 range.  And in reality, it would only be a 3% increase over the 12% in the proposed structure.  I can't speak for others, but I'd be happier giving up that 2% on the 10-99 cards and picking up 3% on the 100-500 card sales.  
 
Anyway, that just my initial thoughts on it.  I know a lot of work and thought went into this plan, Mike.  Just want you to know that we very much appreciate that GCU takes the time and goes to the effort of asking for feedback from us.  
 
Looking forward to hearing more on this topic over the next week or so.  Over all, though, great job to everyone at GCU.  Let's get those big bulks going!  
 
Teri

Hi Mike,
I think it is a great idea. I'm also very happy that GCU is artist-friendly and considers the interests of artists  and their feelings when making decisions and not only GCU's. . All of you are a very supportive bunch!  
Would like to quote henry ford on teamwork:
Coming together is a beginning.  Keeping together is progress.  Working together is success.  ~Henry Ford
 
have a nice weekend !
cheers, barbara

Quote from Teri Francis_131425 on Jun 20^th, 2008, 2:03pm:

 
The way I see it, the card price dropped by 50-cents going from Qty 50 to Qty 100, and so GCU split that reduction 50/50 with the Artists.  They get 25-cents less and we get 25-cents less.  This seems justified imo.
 
Also, we need to Retrain our Brain. BULK sales now are single card orders of 3000+.  Anything else is simply a "Quantity Sale."  
 
Also, as Mike mentioned, GCU lost money on orders over 25 cards ($2.29 card price and below), and it got far worse at 50, 100, 500, and 1000!  This was mainly due to the Artist fee being flat at 50-cents no matter what.  That clearly had to change.
 
Another Retrain our Brain is that the new commission is based on the customer order size.  If they place an order of 100 cards to get the card price of $1.79, then any artist in that order, and there could be several, will get 21-cents per card, regardless of qty of their cards sold in that order.  This is likely very rare, but we will have to accept this, otherwise, again, GCU could lose a lot of money since they only take in $1.79/card on an order like this.
 
The key point is that 99% of orders are less than 25 cards, and so artists will get a 12% raise in commissions with this new structure. The long term average order size is 2.2 cards. (I track this)
 
Also, I have received cards from the new printing partner, and I can't tell a difference.  I suspect they use the exact same POD printing machine as the current printing partner does.  

I also support the proposed changes. Thank you for giving us so much detail and involving us in the discussion. I have always appreciated GCU's excellent communication.
 
Thank you
 
Jen

Nice to meet you Mike!
The sliding scale idea is fine with me and I applaud your efforts!  
However, I see what Teri is saying about the 100-499 qty cards- the price drops 50 per card rather than 30 cents like the rest of the scale.  
If I were ordering 99 cards- I would be foolish to not order 1 more and drop my price significantly by 50 cents per card.  
There needs to be a middle area as she suggested and have a continuance of 30 cents per card drop. For exampke: as 100-249- at 1.99, and then have your 250-499 at 1.79. It would be more consistant.

Tom,
Yes I suspect you are probably right.  I didn't realize the current price was that low already- so that makes more sense to me.  
At any rate- this is just like anything else in business - small steps before you can run. People will see that we are making efforts as we expand and that is good- but still -to do so in a consistant manner is wise.  
We must also realize that our somewhat limited customer base is not solely due to advertising and pricing, it has to do with product line and eventually we will have to expand into new horizens or accept our fate.  
I mean no matter how new or small we are, we are competing with American Greetings, Hallmark, and others. And let's face it -they have quite diverse product lines - for example musical cards that record voice messages, embossed cards, and cards with metallic print etc...and whole lines of other gift items as well. That is what makes the market so tough to compete in.  
But as I say- small steps before you run. Slow and steadfast, see how it goes and then make new changes again in another six months- after seeing what happens with this one.
At any rate- that is just my opinion...it is a group effort indeed.

Denise,
 
I don't think you've come across as you think you have. You very nicely laid out a real-world example of how this would impact a plan you have. You did it in a reasonable and respectful manner. And when/if it is good for you, I'd like to hear your plan. Is *is* encouraging.  
 
~Pattiann
 
Quote from DENISE_132110 on Jun 20^th, 2008, 8:50pm:

Hi Mike-
 
This new pricing structure basically sounds good, but I do have some questions:  
 
Several of us have been talking about buying our OWN cards in bulk for resale and we're figuring our artist discount into the equation.  Would that still be 50¢ on any amount of cards as it is now, or would the discount be changing as well?
 
Also, what would the shipping costs breakdowns be?
 
Is our "artist's fee" actually a "licensing" fee? I'd never heard it referred to as that before.
 
What other marketing and advertising activities ARE in the works to potentially garner these bulk sales?
 
Also, going to Teri's comment, having an artist net the same $45 for a sale of 99 cards or 218 cards (which seems to be right in the area of most "current" bulk sales) is quite steep.  I mean this certainly would effect Artists buying cards in bulk wouldn't it?  
 
And there is the question of multiple artist bulk sales, how would that work?
 
Thanks for asking for our input!
 
-Ernestine

Patricia-
 
It's actually the opposite, commission on sales of 1 to 24 cards at a time would go UP, from 50¢ to 56¢ . . . this is GOOD especially if like you say, you have few cards in your shop.  So, breathe. . . it's okay.
 
No one's being greedy.  GCU needs more bulk sales to grow and have more exposure which helps ALL of us. . .  The little guys and the "big sellers."  It's actually those artists that DO have many bulk sales, that would be "taking the cut" to help the company grow.
 
-Ernestine

Sounds good to me.  Keep up the good work GCU and welcome aboard, Mike!
Linda

Quote from Oma_132016 on Jun 21^st, 2008, 10:42am:

 
  Well Said, Oma...
 
gina

Denise-
 
So glad to hear your card "kiosk" is a go. . .   . . . been working on a similar venture, too, where I sell handmade cards. . . having the printed cards as well.  Anxiously awaiting the back credits on GCU orders to be live!  Summer's here!  Time to make hay!
 
-Ernestine
 

Congrats, Denise on your store!  Doesn't the shipping cost get expensive?  That is my biggest concern with selling my GCU cards at stores like I do other cards.  It seems too expensive once I add the shipping costs.
 
 With the new pricing, will the shipping costs change?
 
Regarding the proposed pricing structure, I think it is a great move.  As bulk sales increase, this would increase our total amount made, even with the sliding scale.  As Mike said, this is a new untapped market for GCU - sales that we wouldn't have without the pricing breaks.
 
 
Thanks,
 
 
Sandra

@ Denise ... Yay!  So glad to hear that it worked out with the store owner and your plan is still a "GO!"  I know you and hubby put a lot of work into the prep and planning for this ... also know it will be a great success for you and for GCU!  Well done, girlfriend!  
 
btw ... I love your new logo!  Very classy design ... soon to be a very well-known design, I hope!

That's and interesting question (total cost with S&H).  Right now the Artist price is $1.99 up to 99 cards.  At 100-499 we get the same card price as the public; $1.89.  In all cases we get a 50-cent commission making our actual card cost either $1.49 up to 99 cards or $1.39 from 100-499 cards.  From this shipping and handling is added. At 100 cards the effective cost is $1.63 today, including a blank envelope.
 
With the proposed new pricing, it's not clear what the Artist price will be, and will the commission also be as proposed?  I suspect so  Let's assume our Artist price stays the same at $1.99 up to 99 cards, which I think we'd all appreciate.  If so, our effective card cost is $1.43/card ($1.99 - 0.56) up to 24 cards, but from 25-49 and 50-99 cards, the commission decreases which would make our effective card cost go up to $1.49 and $1.53 respectively.  At 100-499, with a commission of $0.21/card, and a card cost of $1.79, it goes up further to $1.58/card.  Obviously this is azz backwards, but will give Mike something to resolve this week.
 
As for shipping and handling, GCU has not telegraphed an increase, so perhaps the current S&H chart is still good.  I also trust GCU would like to keep the current effective artist cost, including S&H, to about today's levels.
 
One thought could be to allow artists to order cards w/o envelopes, so that we can have a variety of envelope colors and styles to support retail displays (purchased separately).  Perhaps this can shave some money off the Artist Price, reduce S&H, and offer some retail flexibility to drive volume.  I recently priced envelopes at 12 cents, color or white, at Qty 250.
 
Denise - we want a Photo of your card display when you get it set-up.  Very exciting.

Quote from Teri Francis_131425 on Jun 23^rd, 2008, 10:25am:

 
It may have been to make sure the full per-card price range was covered from 50 cents up to $2.79 so to include special pricing and discounts GCU sometimes advertises.
 
That middle-card qty range is an intersting one.  Thanks for providing some insight there.  I can't say one way or another what the right price should be.  GCU could speak to the question of how their $1.89 current price has faired at 100-499.

Teri, Tom, and Corrie file--------noted-------and added.    ............Norval

Just wanted to take a minute to say congratulations to Denise.  We will all be interested in your endeavor and wish you much success.
 
On another note, all this talk about artist fees, has made me curious about what these new changes will mean for seller fees?  Will the sellers of cards be on the same fee schedule as artists or will GCU continue this program?  Just curious.
 
All this talk is so exciting.  Can't wait to see what the future brings for all of us!
Kathy

Thank you for your feedback and support.  Some very good comments were made and questions raised.  I would like to address them.
 
SHIPPING COSTS
We unfortunately do not have a definitive response as to what our shipping costs will be as we have not finalized these costs with our new fulfillment partner.  This was an area of importance to us as we selected our new partner and all indications are that shipping costs will be the same or lower than they are now.  We will let you know very soon.
 
ARTIST DISCOUNT PRICING
Our new pricing and artist fee structure does affect artist net pricing.  As a result we are reducing the price we offer artists who use the artist promotion code to $1.89 (which would be up to 99 cards).  The artist will receive an artist fee of $.28 (15%), thus an effective rate of $1.61.  This is not as favorable as the current plan, however, as I mentioned in my original post we can no longer afford to lose money on card sales.  Additionally, shipping costs hopefully will decrease to offset part of the difference.
 
CARD PRICING OF 100 – 499 RANGE
This has been the main area of discussion.  We had this debate internally prior to suggesting this range.  The major factors in our decision were competitive pricing, historical sales and the cost of printing and fulfillment.  
 
I believe the posts have shown examples of competitive pricing that support our suggested pricing.  We believe that a quantity break of 100 has significance and the price should reflect this with a significant impact.  
 
We have had only 63 orders to date between 100 and 499 cards and are disappointed in this number.  We believe pricing is a major contributor and with our goal of selling more cards we need to be aggressive with pricing in this range.  At this time we believe the pricing for over 100 cards has to be significantly less than our current price of $1.89.  We don’t believe that graduating the tiers in this area would show that significant impact.  
 
As mentioned, it would be to a buyer’s advantage to buy that 100th card if they were buying 99 (other ranges have same effect, just not as pronounced).  The only way to eliminate this advantage is to price each tier within the range separately.  For example, if a customer bought 100 cards they would be charged $2.79 for the first 24 cards, $2.49 for the next 25 cards, etc.  The problem with this is that it is extremely confusing to calculate and explain to buyers so we do not wish to do it this way.  We prefer to make it simple so in my example the customer will be charged $1.79 per each card in their 100 card order and each artist who has a card in that order will receive $.21 per card.  There have only been 4 orders to date between 76 and 99 cards so we don’t think this will be of concern.  If we see patterns, we can always change pricing going forward to take advantage of customer behavior.  
 
Our printing and fulfillment costs do not decrease at the same percentage as our pricing does.  In fact, with the exception of bulk orders, our costs do not continue to decrease past a certain point while our pricing does.  As prices go down with no change in cost the margins are affected.  Our proposal has us sharing in these decreased margins.  
 
Even though we currently will not offer a price in the range of $1.89 - $2.28 we may experiment with this pricing in the 100 – 499 range or offer promotional pricing in other ranges.  Knowing this we needed to address the artist fee in this range, that being 15%, so you would know what this is.  We believe our proposed artist structure will give us the flexibility we need to find the right pricing. This is a win-win for all of us.
 
MISCELLANEOUS COMMENTS
Yes the artist fee is a license fee.  This is described in the artists Terms and Conditions.  
 
As of yet we can’t comment on specific marketing and advertising activities, as we have not finalized our marketing plan.  On a small scale we continue to test different activities.  However, this is a project in process and relates more to our budgeting and planning for the 2009 calendar year.  Keep in mind, our goal is to sell cards in a manner that is profitable for GCU and you.  We will provide more information at a later date.  
 
At this time we are not making any changes to our Seller’s Fees.  We still will offer $.50 a card sold through our seller widgets.  Keep in mind we consider the widget a customer acquisition tool.  The purpose of the $.50 fee is for first time buyers only and we realize we may incur a loss on that sale but the loss is a manageable customer acquisition cost that hopefully will be made up with future purchases.  The $.50 seller fee does not affect artist fees.
 
Hopefully you will follow our reasoning behind our suggestions.  Again keep in mind these lower priced/lower artist fee orders are for the most part sales we are not capturing today.  Our long-term goal is to increase card sales 1,000 plus fold in a profitable manner for both GCU and you.  We have a lot of work to do and undoubtedly there will be many more improvements as we work together.  Thank you all for your detailed and thoughtful insights.  This joint effort is what sets GCU apart.
 
Mike

Ernestine, just so there is no confusion the post you saw from Deborah was my post.  When I posted there was a glitch.  It was corrected in about two minutes.  You just happened to jump in during that time.
 
Sorry for the confusion.

Yo...Mike
 
I am very happy to have the opportunity to post feedback into this matter, it is heart warming to know that what one suggests counts.  That is one of the issues that sets GCU apart, and makes it a special, supportive place for artists and buyers.  I like being a part of this community.  I am so happy with the quality of the cards I have ordered for review.  I am delighted with the sales of my cards...I have absolutely no complaints at this time.....bada ...
bing...bada...boom....
 
BADA
I must share that I am concerned that with the new 'printing partner'...is that what it is called?  Am concerned that quality might be sacrificed.  I strongly insist that I see, or SOME artist sees, the quality of the card, stock, color resolution, integrity,to 5X7, 7x5 etc., of the new printer partner.
 
BING
Has the issue that was brought up, sorry don't remember the artist's name, Tom?..that on quantity/bulk shipping to artists might be reduced if envelopes weren't included?   This might be a BIG CONSIDERATION in regards to bulk sales, and IN PARTICULAR to anyone here who might be interested in selling their cards via store, kiosks, etc.
 
BOOM
This evening I was  approached the shop owner of a Florist Shoppe.....She would like to feature my cards.  I want to provide that service, of course.  Wonder when new pricing for bulk might be available, if I can save more $ (and make more) by providing my own envelopes.....can you address this issue please?  I also WANT TO KNOW WHEN THE ARTIST CREDITS ARE FEATURED ON THE BACK OF THE CARDS so I don't compromise the quality of the image by having annoying info on the front, i.e., copyright,  and I include my GCU url which is LONF, though sometimes is a design element...www.gcuniverse/flyinghorsedesign
 
BADA< BING BADDA BOOM< BADDA ........WHATEVER>>>>>>>
 
I agree that white card envelopes are a turn off...........HELP?...ADVICE?
 
Linda....in case you didn't know....
YO......"THE GODDESS":, ROLMAO

I too would really like to see an example from the new printing partner.  The great quality of the cards up to this point has been an extremely important part of the stew.  I would hate to be offering a card of a certain caliber and then not be able to supply that.  As well as being able to see the artists credits on the back.  We'd been waiting so long for this, particularly to be able to market our cards locally, I would hope that the cards will be of the same quality.
 
I'm afraid after all the work I've done to secure a market for my cards locally, it most likely will not be feasible with the new structure, as the volumes are in the amounts where there is no profit to be made by the GCU store owner for his or her own "beat the streets" marketing endeavors, especially when their can be no guarantee of quality.    More power to those who's markets can bear a retail price that will make it worth it.
 
I do hope that the new pricing and whatever the new marketing plans are will help to sell many more cards for GCU.  I just think there is a piece of this puzzle that is missing and that has to do with what individual artists can do to promote bulk sales themselves given the right tools and incentive.  I've said it before, but I honestly believe that the artists right here on GCU could do a lot more to promote their own stores (for big sales) and thus promote all GCU. Their should be more venues to promote certain types of cards, occasions even styles, and tools for store owners to participate.
 
Not everyone here on GCU is interested in huge sales (bulk or otherwise) and are are happy to sell a few cards here and there to friends and family.  There are others that use it is make extra "pin money" and then others who make an integral part of their living from their art and other online ventures.  And one can tell who these folks are, they have lots of cards for all occasions all profiles and they update constantly and WORK at marketing.  This helps get folks to GCU and to see all the other cards.  I, for one, would like to know what kind of marketing and promotion is in the works.
 
Ernestine
 

Quote from Mike_47592 on Jun 24^th, 2008, 6:18pm:

 
Hi Mike,
 
Thank you so much for your reply and explanation ... that helps clear up my question.  Actually, one of Tom's previous posts about Artist's discount led me to think that might be the missing link in the equation.  So, now I do understand the reasoning behind the sharp step-down pricing/commission at the assorted 100 qty range -- I *think*.  
 
I only have a few minutes here today and look forward to reading all the subsequent posts of the last day or so when I have a bit more time ... but I just wanted to let you know that your prompt and detailed reply are very much appreciated.  
 
Just a quick aside ... I agree with you that the 100-499 range is a very important one, particularly with the upcoming Holiday season approaching.  The more of those we can attract and build upon--even with significantly discounted pricing/fees, the more it will help increase sales in ALL of the other ranges as well.  There are understandable concerns such as those expressed by Denise, Ernestine, and Colleen ... but in the big picture, this venture is a leap of faith for all of us.  As volume sales increase, along with individual and small qty sales at the slightly higher pricing, I believe that our mutual faith in both GCU (the company) and the hard-working artists here will be realized.  
 
Again, Mike, thanks for your input ... and thanks for asking for ours!
 
Teri

Ernestine, I believe Tom has seen a card from the new printer (he quality tested the back of card credits), and in another thread, if I'm not mistaken, he said he was very pleased by the quality (I'm paraphrasing here).
 
How 'bout it, Tom? Am I hallucinating?  
 
Corrie
http://www.corrieweb.nl

Here's a scenario I see that could potentially raise questions for some.  Take the artists that may now have regular sales in the 10-15 (of a card) range, something which is probably pretty common. (50¢ commission 50¢ discount if self purchasing. . . cool beans)  
 
Now, under the new system it's great if those 10-15 cards are the TOTAL sale, it's a raise in commission!  But if these 10-15 cards are part of a bulk 100+ "multi-card" order including a variety of artists, this 10 to 15 card seller is taking a cut of 50 to 80% in selling those same cards.  They are not getting the additional income a "real" (store owner) bulk sale would provide.  Doesn't seem right.  Especially when tools available to keep artists shopping in OUR own store are lacking.  
 
Hate to sound like a broken record here, but artists REALLY want to promote their OWN cards and have customers buy THEIR cards. . . lots of them!  Good for GCU, good for the artists!  Without some adjustments in this plan and better tools for the individual artist stores where's the incentive?  
 
As it is, an artist designing specific cards with VERY specific purposes in order for them to be in the reminder serves definitely has the best chance of many individual sales.  But since you can't use keywords or profiling for a card unless the words and image are very clearly in the card, many "generic cards" will never show up in reminders (in other words you can't "suggest" a use for a card) and consequently often not seen by customers.  Don't all purpose, blank cards with a wonderful image on the front have one of the greatest potential for bulk sales???  Card stores and shops sell tons of these and if you are looking at increasing "BULK" sales wouldn't those sell more than Happy Labor Day sister-in-law??
 
Or am I just way off base?  I see what cards sell in shops,  I see what shop keepers are buying. . . big businesses buy cards in bulk, too . . .  I know it seems I am complaining, I'm not really.  I want GCU to succeed.  The Artist/participants are GCU's greatest asset. . . in providing product AND for marketing that product if given more tools.  It's really too bad that the artist's credit we'd waiting so long for (a great tool for outside marketing) comes on the heals of reduced commission for bulk sales.  
 
Tom- I would really like to see a copy of one of MY own cards from the new printer since detail, crop and COLOR issues are extremely important and may not be as evident in your cards.
 
Ernestine

Hello everyone.  Again I want to thank you for your feedback.
 
We encourage you to work with us as we attempt to increase our sales 100 fold and beyond.  In order to accomplish this goal changes are necessary.  If we all succeed with this goal, any concerns today will long be forgotten.  
 
For those still concerned about net pricing, I am hopeful you will soon see some additional price relief with shipping costs.  Even holding shipping costs steady is a win as shipping costs are increasing everywhere as a result of increases in energy costs.
 
The quality of our cards is of upmost concern to us.  The switch to our new printing and fulfillment partner and quality control testing has taken several months and was no small feat.  It is nice to hear that some of the artists have thoroughly analyzed the quality of cards from our new partner and are pleased.  If you have concerns, my recommendation is to purchase one of your cards and see for yourself.  As of today, all cards are now going through our new partner as we perform final testing.  Mindy will be posting an official announcement tomorrow.  To let a cat out of the hat on one item, artist recognition on the back of the cards is now available.
 
Quickly to address the discussion of envelopes - we are unable to send some orders with envelopes and some orders without envelopes.  The option of not including envelopes in orders is not available at this time.
 
To clarify a question as to how the artist fee will be calculated on artist discount pricing – the artist fee will be calculated on the discounted price.  So the artist fee is 15% of $1.89 or $.28 per card.  There is no magic here.  The general rule is that if a discount or promotion is extended to the customer, we all have to share it.
 
Lastly, we are planning on the new pricing going into effect on July 1st, which is next  Tuesday.  So plan accordingly.
 
We are looking forward to all the flexibility and additional functionality our new printing and fulfillment partner will be bringing us as well as increasing sales.
 
Have a great day.
 
Mike
 
 
 

Quote from Norval_132688 on Jun 25^th, 2008, 8:07pm:

 
 
norval what did you do differently?  i checked mine and portrait are fine, landscape is smushed into a rectangle.

Denise, don't go by the logo you see on the forum.  They're still distorted, 'posted before I made the change, and I guess refresh doesn't work on e-mails?

There has been so much discussion here...wow! I am pretty happy with the proposed changes. Whatever price reductions we can pass on to customers will surely bring more clicks and customers to GCU and more exposure to artists work.  
Cherie- I told my DAWG group (Designing Artists Women's Group) about GCU and several have joined and are creating cards now also. So I am excited. I have several friends from Ebay here as well. I hope they will enjoy it as much as I have since I have been here.  
I like the new card credits addition on the back of the cards too. That is very exciting.  
The last few times I ordered cards- I could tell a small difference in them, such as the card stock seemed alittle lighter- but just a tad and not very noticable. As far as color- I was pleased. So many printers are different so it is hard to tell how designs will look until you are holding the finished product in your hand. But for the most part, I have been pretty pleased with all of the cards I have ordered from GCU.  
I'd like to see different sizes become available someday soon. And possibly stationary and notepads. I believe there is room for those items to be added and it would open new avenues for our artwork as well. Boxed sets of stationary would really be nice- but I would take anything I could get. That might allow us to travel other avenues in the school systems for fundraising projects and things to do our part for community involvement. It would light a path of awareness for our little site here. lol But those are ideas for another day another time. If we could expand into new territories and put a brochure of those items together for schools, churches and other groups- man- what a beautiful world it would be! Wonder if we can put that on a to do list...hmm...lol
Anyhow- I have enjoyed reading everyone's responses and being a part of it all. Thanks for that GCU! Pretty cool!

Hi all,  
I too just received my first card from the new printer.  Card stock lighter and I actually like it better.  Whiter too, another plus as far as I'm concerned.
However....I am not satisfied with the cut edges.  The top and right (opening) edge of the front were messy...I sure hope this was a fluke.  The edges on my old cards from old printer were flawless...  Please artists, let me know of your results.
Sue

Denise, just checked your site!  Get a hold of Shaun I don't know what to tell You!
Your card 'Lilli' Wonderful, Outstanding, Teriffic, ---------------------------------------
I love it! ....................................Norval

Thanks Mindy.  Now I know what to look for.  I guess this last batch came from the old printer.
Kathy

Announcement made:
http://www.greetingcarduniverse.com/forum/yabb2/YaBB.pl?num=1214520904/0

Quote from Tom_133317 on Jun 25^th, 2008, 11:31am:

 
 
My cards have never been delivered in a "box", but always in a flat envelope.  There has been a crease or two... If the flat envelope is used, it should be heavy and not easily damaged.
 
gina

I am not a numbers person. But it seems to me that GCU has the artest in mind in all thier decisions. As far as I can see it looks like a good thing for all of us.  
Pretty much the main cost to me is the time it takes for me to make and post new cards. My designs are recieving more exposure than they would otherwise. Every sale big or small is money I would not have made. I have no costs out of pocket to have a presence here the commision schedule seems very fair. I have been very happy with GCU. The interest in the artest and quick responce to our feed back is exceptional.  
That you even put this out for our feed back is in my mind very positive.  
I am excited to see how GCU continues to grow and develop. I think this is a great place to be and I am glad to be a part of this community of artist and business people.

See offical announcement made here:
http://www.greetingcarduniverse.com/forum/yabb2/YaBB.pl?num=1215036682/0

Wow- I just figured this out- the commission dropped .33 cents per card.  
When this proposal went up- I didn't think about being included in bulk orders with all artists- that makes a real difference. The way this is set up- an artist may only sell 10 cards, but if his or her order is included in a bulk order then they still only receive 12% commission.  
 
On an order of let's say 40 cards for instance- if I want to take the 6 cent increase that I make on regular card  purchases to make up the difference in reduced commission- I would have to sell 220 cards to do this.  
 Or for every 10 cards- 55 cards to make up the reduction.

Most of these combination/mixed orders are shoppers filling up their cart with cards they love.  Lots of impulse buying.  They load up their cart with enough cards to hit a price break.  
 
If the price incentive was not there many of these impulse buyers would buy fewer cards.  That means some artists would not be included in the sale at all.
 
It all depends on your perspective - be part of the sale and get something or no sale at all.    
 

I think my sales has gone up after the new prices, I see on the mail I get at each sale that most of my sales are a part of more sales than the amount of mine.
I don't mind being picked in an impulse sale, then I get noticed and I get a sale
 
So I guess, after a while now, with the new prices, I have increased my sales
And I am satisfied with it for now
 
Thank You
 
Big Huggs
/Inge

Hi,
I was aware of the change of prices and comm. but didn't really appreciate how much it would effect my commission until now.  
I have just had a bulk sale of 48 cards which would have been a nice comm. rate for these 48 cards under the old comm. rates, but under the new terms/pricing I have only made $6.96. That, I have to say is disappointing for 48 cards sold.
No only that, but buying my own cards (one here, one there) has gone up as well (due to price increase of card + postage to UK) that its roughly costing £2.50 per card. In the Uk, we can get really nice hand-made/crafted cards for this, so in all honesty I'm not seeing the benefit for the artist.
Sorry, GCU, I love the site and really enjoy designing cards but the incentive has gone for me to buy my own cards (even with the artist discount), let alone other talented artists' cards here (which cost me more) who have some fantastic cards.  
Sorry to everyone if this sounds negative, I'm sure others are doing better due to the price change but my sales have gone down in general as well, although I do do Ok at Xmas time.

I'm sorry but I have to agree with Catherine.  
 
I just made a whopping $1.79 on the sale of 12 cards that were part of a bulk sale. That's a whole $0.15 per card.  
 
It's nice that the volume discounts bring in sales for GCU but I don't see any benefit to the artist here. Being part of a bulk sale or having no sales at all....hmmm, let me see....$1.79....my time making them is worth more than that.  
 
I don't mean to be negative either but at that royalty, I might as well just give my cards away.  
 

Not necessarily Mindy. It all depends on how badly one needs a sale.  
 
Quite frankly, I find your replies on this particular issue to be a little condescending.  
 
I read over and over on this forum about how people are so glad to be here and how they are just so happy to have a place to sell their cards, however, the alternative to earning "something" is definitely not nothing.  
 
I ask you, how long would GCU last if they were willing to just earn "something"? In that case, why not price your cards to the public at $something and just be grateful for whatever you get because you are "happy" to have a business selling cards?  
 
Perhaps it's okay if you just want to earn "something" but if you want to run a business, then something doesn't cut it. This is not my hobby, it's my living.
 
To be honest, I'd rather pay a membership fee to GCU, let you guys take the hits on the volume discounts and realize a decent commission. You can't sell cards without the artists who make them and it just seems to me that it's always the artist who gets taken advantage of. There are so many of us, we're a dime a dozen so to speak and that's why POD companies always have the upper hand.
 
You can ask us for and listen to our feedback and concerns but the bottom line is that you're always going to do what's right for the company even if it adversely affects the artist.  
 
You cloud everything over by telling us that it's going to bring in more customers and more sales but that doesn't change the facts.  
 
I just wonder how many others are bothered by this but just won't speak up. It's always just the "regulars" saying how wonderful it is.
 
Sorry but I have to say how I feel.  
 
 

Hi Corrie,
 
 I've been selling my art successfully on POD sites for almost 9 years now. Deadly serious business is right and everything has the potential to sell over and over and it does.  
 
In fact, this year has been a record year especially in prints and posters. I've seen a 200% increase in my own personal sales on Allposters alone even without the help of volume discounts to draw customers in.  
 
All that I see happening here is that there will be more bulk sales at the discounted rates paying us a lower commission. There is just no way that our individual sales at the higher commission will even come close to offsetting these discounts nomatter how many new people see our logos. I think you have to be a bit more realistic than that. Seems like a great plan now but I'm not convinced.
 
For the artists who sell a lot of individual cards, that's wonderful and God bless them but for the majority, I don't think it'll be long before they become very discontented. Especially with most of the other POD sites having the option of setting their own royalty rates.
 
You're basically saying the same thing as I expect Mindy to say, however, the fact remains, that the commission really isn't worth the trouble. It'll be a lonnnnnnnng time and a heck of a lot of sales before those individual cards add up in amounts big enough to offset the huge discounts.  
 
Maybe I'm wrong but I'm just looking at the big picture. What with the ability to set your own royalty rates, the volume bonuses and the added affiliate referral percentages, I don't know of any other POD site that pays as low as 15 cents.  
 
At 56 cents it's worth it, even 25 cents is acceptable but 15 cents is getting ridiculous, no wonder it brings in more customers, why wouldn't it?  
 
The chances are pretty high that our sales will consistenly be part of a bulk sale and therefore, we can expect to be making 15 cents on a regular basis.  
 
 
 

Corrie, your response was virtually identical to the one I was about to post - and you said it so nicely.  I also wanted to add that GCU involved Artists in setting the new pricing and they responded by "offsetting" our concerns about low commissions on large qty mixed sales by increasing our sub-25 card qty order commission by 12% (+$0.06/card).  We all went on faith that the new pricing structure would increase sales and bottom line profit/commissions for Artists and GCU, and it appears to have worked.
 
My single card sales and bottom line commissions have also jumped since this change was made, and I am now getting orders for 30, 40, and 100 (pending a customer requested change) that never would have happened without the new pricing structure. With the Back of the Card credits added at about the same time, we appear to be turning card receivers into new card buyers.  Really cool.
 
I have previously posted that these changes and others are allowing GCU to grow at a pace not unlike EBAY in its early days. Within a few years many artists will see daily card sales in the 100s and even 1000s/day with daily commissions we never dreamed were possible ($100s to $1000s/day).  Many more people in the world will be enjoying our art and our humor (in my case) which is really what most of us want to achieve with our work.
 
Best of luck to all -
 
TOM

I have had very few sales where I lost money because of bulk purchases, and I know I do pretty well here. I have seen sales soar since the rates changed. If I did sell a huge amount of cards, I would be thrilled, simply because 1. I didn't have to pay for printing or shipping or materials. 2. My card would now be sent to tons of people with my web address on the back of it. I'm getting paid to advertise my own shop! Those cards sent could generate more smaller orders that get me more commission. In this business, advertising is everything. Since I have joined this site in July, I have seen my card sales increase by about 30 percent every month. In this day and age, there is no stock in the stock market that is doing that well! That must mean that the site administraters, along with all of us, are doing some kind of fantastic job getting the word out to everyone!

Quote from Ruth_131575 on Oct 27^th, 2008, 4:21pm:

 
My apologies for coming across condescending, not my intent.  
 
The pricing & fees changes were targeted to capture large sales that we were losing because our prices were not competitive.  We literally were turning business away, so frustrating.
 
We don't see these larger sales overtaking full priced sales, one does not displace the other.  The larger orders are a new set of customers.  Both segments have great growth potential.
 
As for running a business, certainly we have to keep our head above water which will be quite refreshing since GCU lost money on nearly every card sale before the price and fees changes in July '08.
 
We will soon be posting here some stats re: 3Q growth.

I'M not a happy camper with the new pricing...I WOULD HAVE DONE BETTER WITH THE OLD, . THE PERCENTGE GINEN TO ARTIST  is pretty darn low...considering.  Check out the qUALITY THE CREATIVITY...AREN'T WE WORTH MORE????? I THINK SO.  SORRY FOR THE CAPS...Just noticed....   Here is the way I think, GCU goes PUBLIC, and then I would feel much more comfortable... Why hasn't GCU gone public???  I would buy!!!  I do feel that GCU is creating an environment of unhappy artists with the new paymt scale......cheese,,,,,give me more credit formy designs.....50 cents  is not that much, is it?  I have no idea what you overhead is, but my 300+ cards might have helped...did I get 150.00?  nope, for the sLE OF 250 DARDS DID I GET CLOSE TO 125.00???? Nope....Where is the bene?    
Pesky Linda
 
 
 
 
= CARDS THIS PAST MONTH MUST HAVE HELPED....helpp50 cents should be the cut ogg...I think!

OK...so if someone bought 50 of my cards (not all of the same, but a variety), what would their total cost be (including postage)?
 
Thanks.
 

Quote from Paul_133086 on Nov 3^rd, 2008, 11:53am:

 
$129

Yes, I assume someone buying 50 would want them sent to themselves with envelopes:
 
Qty 50 (single card or a mix) = $2.29/card = $114.50
S&H at Qty 50 = $14.50
Total $129 (=$2.58/card effectively)
 
You can test this by adding 50 cards to your cart then going to checkout to see the total $.  Then remove the item rather than placing the order.
 
TOM

Corrie
Glad to hear that you are profiting from the new structure, I think that in the long run it is a good thing...I guess, because you sell so many cards, that it isn't hitting you as hard, Corrie, but for us wee folk, ka ka poo.........
But, done is done...it is they way it is.  And I understand that it is the way it must be for GCU to survive...I do wish that GCU would go public on the market...I have mentioned that before, to date they haven't...why?
L

I dunno maybe I'm the idiot ....
 
6 cents more on most sales and the cards went up 30 cents. well OK  
 
This Christmas on a sale of 50 I will make less here than I did last year on a sale of 50 and I made those sales after I raised my prices.  And those cards were "designed" on 3 faces with my own logo on the back.  They were also more expensive than cards here.  Frankly I was shocked people bought that many at the price ... but they did.  
 
I hope I never sell a 100 cards in one order ... it's just not worth it.  The break point is 78 cards.  If someone wants 78 cards they can get 100 for the same price.  If they order 100 the artist looses 14 dollars in commissions.
 
I don't know what it costs GCU to print each card in a batch of 100 but 12% seems ... like a big drop in the commission.
 
OK so how many times do you sell 100 cards?