GCU Forum - 3rd Quarter 2008 Growth - impact of recent changes

Mike_47592

GCU Administrator
artist

Posts: 40

3rd Quarter 2008 Growth - impact of recent changes
Nov 12^th, 2008, 3:13pm

This is the first full quarter since we instituted the new pricing and artist fees on July 1, 2008. We are seeing positive results as expected. Mainly, more cards sold in various order sizes, more large orders (sales artists are calling bulk sales) and increased payments to artists.

RAISE ON MOST LIKELY SALES
Approximately 99% of card orders in the third quarter were orders of 49 cards or less. There was a 12% increase of cards sold within this order range compared to the second quarter. This range (0 - 49) is the order level where artist fees either stayed the same ($.50) or increased to $.56 a card after our artist fee change. This growth and artist fee increase resulted in a 22% increase in artist fees for this order range compared to the second quarter.

LARGE SALES GROWTH
As it relates to orders of 50 cards or more we had a 62% increase in this order range compared to the second quarter. We know this growth would not have happened if we had not reduced our card pricing for larger orders. This is incremental revenue to artists and GCU.

YEAR TO YEAR GROWTH
Compared to third quarter 2007, total cards sold increased by 450% and artist fees increased by 350%.

We are very encouraged by this growth. Keep in mind that the third quarter is a "quiet" quarter not offering any significant card buying events (e.g., Holiday Season, Valentine, Mother’s/Father’s Day, Easter, Graduation cards, etc.).

We have a long way to go. We are not focused on increasing sales and artist fees by a few dollars but on increasing both by several thousand or hundreds of thousands of dollars. Thank you for your continued support as we grow GCU to be the ultimate destination site for all greeting cards.

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Sandra_133229 Gold Member artist Posts: 786	Re: 3rd Quarter 2008 Growth - impact of recent cha Reply #1 - Nov 12^th, 2008, 3:18pm Thanks Mike for the very informative update. It is very encouraging. Your team continues to impress me in your technical knowledge, response to artists, and marketing and sales. Keep up the good work! Sandra
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Linda_132742 Gold Member artist Posts: 1796	Re: 3rd Quarter 2008 Growth - impact of recent cha Reply #2 - Nov 12^th, 2008, 4:03pm This is great news! I hope GCU continues to grow and that at some point will be offered as a public stock on the market. I'd be interested in investing in some shares! Linda
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Sue_132963 Gold Member artist Posts: 1224	Re: 3rd Quarter 2008 Growth - impact of recent cha Reply #3 - Nov 12^th, 2008, 7:15pm Mike, Thanks so much for the 'Skinny on the Penney'. Your optimism is purely contagious! Thanks. We needed that... Sue
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Ed_133653 Junior Member artist Posts: 78	Re: 3rd Quarter 2008 Growth - impact of recent cha Reply #4 - Nov 13^th, 2008, 5:57am Hey, great news (we all could use some! ) ~Ed
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Mikey_135428 GCU Newbies artist Posts: 2	Re: 3rd Quarter 2008 Growth - impact of recent cha Reply #5 - Nov 13^th, 2008, 10:44pm Sounds like a good time to open a store... Thank you! http://www.greetingcarduniverse.com/kingdaddy
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Teri Francis_131425

Senior Member
artist

Posts: 326

Re: 3rd Quarter 2008 Growth - impact of recent cha
Reply #6 - Nov 14^th, 2008, 9:40am

Hi Mike ... thanks for the stats and the update!

From what I've seen, those numbers reflect the pretty much the same figures I come up with from my own shop. Total cards sold and artist's fees increased over 300% for me in 3Q, and it appears to be holding at that and/or growing so far in 4Q. The new price structure seems to be working well ... I know it will take time for all artists to begin seeing it, but hang in there, gang ... I truly believe that the growth and sales numbers in 2009 will dwarf what we've seen even in this year.

Thanks again, Mike and GCU! Wishing everyone many happy holiday sales!

Teri

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Linda_132742 Gold Member artist Posts: 1796	Re: 3rd Quarter 2008 Growth - impact of recent cha Reply #7 - Nov 14^th, 2008, 3:16pm Glad to hear that you are profiting from the new "structure". For me, well, no, am down over $100.00....not a fan of the new pricing, in fact I find myself hoping for no bulk sales, but sales 49 or below...hopefully it will all level off . I have faith in the system, but my pocketbook doesn't! L
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Gail_135209

GCU Newbies
artist

Posts: 12

Re: 3rd Quarter 2008 Growth - impact of recent cha
Reply #8 - Nov 16^th, 2008, 6:02pm

Quote from Mike_47592 on Nov 12^th, 2008, 3:13pm:

This is the first full quarter since we instituted the new pricing and artist fees on July 1, 2008. We are seeing positive results as expected. Mainly, more cards sold in various order sizes, more large orders (sales artists are calling bulk sales) and increased payments to artists.

RAISE ON MOST LIKELY SALES
Approximately 99% of card orders in the third quarter were orders of 49 cards or less. There was a 12% increase of cards sold within this order range compared to the second quarter. This range (0 - 49) is the order level where artist fees either stayed the same ($.50) or increased to $.56 a card after our artist fee change. This growth and artist fee increase resulted in a 22% increase in artist fees for this order range compared to the second quarter.

LARGE SALES GROWTH
As it relates to orders of 50 cards or more we had a 62% increase in this order range compared to the second quarter. We know this growth would not have happened if we had not reduced our card pricing for larger orders. This is incremental revenue to artists and GCU.

YEAR TO YEAR GROWTH
Compared to third quarter 2007, total cards sold increased by 450% and artist fees increased by 350%.

We are very encouraged by this growth. Keep in mind that the third quarter is a "quiet" quarter not offering any significant card buying events (e.g., Holiday Season, Valentine, Mother’s/Father’s Day, Easter, Graduation cards, etc.).

We have a long way to go. We are not focused on increasing sales and artist fees by a few dollars but on increasing both by several thousand or hundreds of thousands of dollars. Thank you for your continued support as we grow GCU to be the ultimate destination site for all greeting cards.

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Country Nest:
http://artist.greetingcarduniverse.com/countrynest

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Tom_133317 Gold Member artist Posts: 2207	Re: 3rd Quarter 2008 Growth - impact of recent cha Reply #9 - Jan 19^th, 2009, 2:08pm Mike, can you post some Y/Y and Q/Q stats for 4Q and 2008? Thanks. We all enjoy the information and the growth in the business. Thank you for all you do. TOM
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Sheryl_133470 Gold Member artist Posts: 705	Re: 3rd Quarter 2008 Growth - impact of recent cha Reply #10 - Jan 21^st, 2009, 7:22am Thank you Mike for this information. Great news to hear. Thanks to all at GCU who work so hard to make this a great site. Sher
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Sue_132963

Gold Member
artist

Posts: 1224

Re: 3rd Quarter 2008 Growth - impact of recent cha
Reply #11 - Jan 21^st, 2009, 11:58am

Mike and GCU Artists,
Here is some interesting data.
I joined GCU the first of January in 2008. From the 1st to the 21st I sold 13 cards, earning me a commission of $6.50.
For this same period this year, 2009, I have sold 130 cards with a commission of $64.10.
So you will see that my card sales AND commissions are approximately TEN times that of last year.
Of course I am selling more, in part, because I have so many more cards in my shop. But also because of GCU's bulk pricing. But what amazes me is that my commissions have kept their ratio!
I know Linda has said that she is loosing money because of the change. I sure would like to hear from other Artists. Are you loosing since the bulk pricing changes, are you doing better, or like me about the same ratio? And are you selling more cards? I know I saw a difference right away.
Thanks Guys.
Sue

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Sandra_133229 Gold Member artist Posts: 786	Re: 3rd Quarter 2008 Growth - impact of recent cha Reply #12 - Jan 21^st, 2009, 12:01pm Sue, I began in Feb. 2008 and my ratio is the same as it was last year. The bulk pricing has averaged out without a problem for me. Sandra
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Tom_133317 Gold Member artist Posts: 2207	Re: 3rd Quarter 2008 Growth - impact of recent cha Reply #13 - Jan 21^st, 2009, 12:16pm Sue - wow! You are really doing well, 10x is spectacular. I posted that I am seeing an aggregate 50-cents/card for all my sales to date, about 10-months worth. http://www.greetingcarduniverse.com/forum/yabb2/YaBB.pl?num=1232504220/9#6
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Mindy

GCU Administrator
Community Manager

Posts: 6537
Gender: female

Re: 3rd Quarter 2008 Growth - impact of recent cha
Reply #14 - Feb 12^th, 2009, 12:23pm

Quote from Tom_133317 on Jan 19^th, 2009, 2:08pm:

Mike, can you post some Y/Y and Q/Q stats for 4Q and 2008? Thanks. We all enjoy the information and the growth in the business. Thank you for all you do.

TOM

Will do, and your request seconded by Linda:
http://www.greetingcarduniverse.com/forum/yabb2/YaBB.pl?num=1234452330/0

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Linda_132742 Gold Member artist Posts: 1796	Re: 3rd Quarter 2008 Growth - impact of recent cha Reply #15 - Feb 12^th, 2009, 1:39pm Thanks for looking into this for us! Linda
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