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Promotions & New Price Group (Read 8182 times)
Mindy
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Promotions & New Price Group
Feb 17th, 2009, 10:51am
 
Thank you all for your feedback on Artist Fees as they relate to GCU offered promotions.  It's clear that most of your are in favor of offering promotions.  Before March we will put into effect the following structure.  Until then, artists will not be contributing to any costs associated with promotions.  
 
GCU will absorb all the expenses associated with marketing and promotional efforts for:  
    - Free shipping offers  
    - Free card offers  
    - Card Seller Widget Fees  
 
As for other promotions (% discount off or specific discounted price per card) instead of paying artists the lower commission rate on the discounted card price, we will calculate commissions using the higher commission rate on the discounted card price.  
 
Example: Assume a promotion of 30% off price per card (excluding taxes and shipping)
 
1) If a shopper buys one card, the price of that card is $1.95 ($2.79 less 30%).  The Artist Fee Percentage is based on $2.79 (20% Artist Fee not 15%) and applied to the discounted price of $1.95.   $1.95 times 20% = $.39 Artist Fee.  
 
2) If a card buyer buys 80 cards, the price of each card in that order is $1.60 ($2.29 less 30%).  The Artist Fee Percentage is based on $2.29 (20% Artist Fee not 10%) and applied to the discounted price of $1.60.  $1.60 times 20% = $.32/card or $25.60 for the order.  
 
Lastly on promotions, with the exception of free shipping, all will be exclusive meaning shoppers and artists can only use one promotion code at a time.  Artists can continue to use their artist discount code with a free shipping promotion but not also with an additional promotion.  
 
Additionally, thanks to a handful of persistent artists, particularly Teri Frances, who helped us realize that our pricing structure has a significant price drop off after 100 cards.  We will be introducing a more graduated step in the pricing structure for the 100 - 499 range where cards are currently priced at $1.79.  
 
We will be breaking this down to 100 - 199 cards at $1.99 and 200 - 499 cards at $1.79.  Effectively this means that artists will be earning more money on card orders in the 100 - 199 range (15% x $1.99 vs 12% x $1.79).
 
This will be the adjusted pricing for Assorted Card Orders:  
 
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 - 199                                            $1.99                      15% = $.30
200 – 499                                            $1.79                     12% = $.21                    
500 – 999                                            $1.49                     10% = $.15  
1,000 – Plus                                        $1.39                     10% = $.14  
 
Once again thank you all for your feedback and suggestions!  We will post back here when these changes are in effect.  Smiley
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Delores_132508
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Re: Promotions & New Price Group
Reply #1 - Feb 17th, 2009, 11:01am
 
Thanks for the info, Mindy!   Sounds good!
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Robin_134252
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Re: Promotions & New Price Group
Reply #2 - Feb 17th, 2009, 11:17am
 
Thanks, Mindy. I appreciate how GCU is willing to listen to the artists feedback and make changes when possible.
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Lindy_135087
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Re: Promotions & New Price Group
Reply #3 - Feb 17th, 2009, 11:46am
 
Thanks for the info. I too appreciate that GCU evaluates their policies and listens to the artists! That is great. Thanks again!
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Jeff_135713
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Re: Promotions & New Price Group
Reply #4 - Feb 17th, 2009, 12:38pm
 
A well read topic.
 
Thank-you Mindy for the info.
 
Now, all I have to do is sell a card (or 2, or more)
 
-Whisper-
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Angela_131975
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Re: Promotions & New Price Group
Reply #5 - Feb 18th, 2009, 3:58am
 
Whoo hoo!!!
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Tom_133317
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Re: Promotions & New Price Group
Reply #6 - Feb 18th, 2009, 4:44am
 
A 40% Artist Commission raise on 100-199 card orders !!
 
WOW!
 
Thanks again BOSS!
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Kathy_131728
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Re: Promotions & New Price Group
Reply #7 - Feb 18th, 2009, 4:50am
 
Thanks Mindy,  This sounds good.
Kathy
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Linda_132742
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Re: Promotions & New Price Group
Reply #8 - Feb 18th, 2009, 5:59am
 
Cool!
Linda
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Patricia_132015
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Re: Promotions & New Price Group
Reply #9 - Feb 18th, 2009, 2:06pm
 
That explains things better for me. I have to ask if that's per person that orders that meny cards at a pop or a total of cards in all orders that day by meny customers?
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Joan_135833
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Re: Promotions & New Price Group
Reply #10 - Feb 18th, 2009, 3:50pm
 
It's an offer we can't refuse!
 
Many thanks - this is a most gracious universe of which to be a part.
 
Joan
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Mindy
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Re: Promotions & New Price Group
Reply #11 - Feb 19th, 2009, 10:23am
 
Quote from Patricia_132015 on Feb 18th, 2009, 2:06pm:
That explains things better for me. I have to ask if that's per person that orders that meny cards at a pop or a total of cards in all orders that day by meny customers?

 
Calculations are done on each separate order - so yes, at a "pop".
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Teri Francis_131425
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Re: Promotions & New Price Group
Reply #12 - Feb 23rd, 2009, 6:38pm
 
Hi Mindy and fellow GCU-bies ...
 
Wow, I've been out of the loop for several weeks (real life off-line gets in the way sometimes), and I'm just starting to catch up on all that's been happening here!  
 
Mindy, Nasser, Mike ... thank you all so much for the hard work you put in tirelessly to make GCU successful for all of us.  Most importantly, thank you for listening to us and for being so conscientious in considering our input and perspectives on so many issues -- and particularly in this case where the fiscal realities have to be measured on both sides in order to maintain and extend the reach of GCU's future success.  Not an easy task on your side, I'm sure!  But I do want you to know, your willingness to re-look at the issue is sincerely appreciated, and that was true no matter how it turned out.
 
I hope and believe that this will benefit not only the Artists, but more importantly the middle-line buyers.  The $1.99 price point for 100-199 cards should work well with some markets and regional retailers (i.e., mom & pop shops, boutique, bridal, resort, etc.).  I hope that will be the case and it if so, it will be to everyone's advantage.  The bigger bulk buyers will feel like they are being rewarded with a slightly better discount, and the 100-199-ers can still mark their products up to make a very decent profit.  
 
Thanks also to all of the Artists who voice their thoughts, ideas, suggestions, and feedback ... we all have a stake in GCU's success, and it's really wonderful that we are included in the process.
 
Won't be able to get caught up on all the forum tonight, but will try to be more active as time and circumstances allow.  Hope everyone in the GCU family is well and selling boat-loads of cards!  Hmmm, that reminds me ... St. Patty's Day, spring break, prom season, Easter and Mom's Day are almost upon us.  Guess I better get some new cards up soon, lol!  
 
Happy thoughts and hugs to all!
--Teri
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Mindy
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Re: Promotions & New Price Group
Reply #13 - Mar 3rd, 2009, 11:28am
 
The new price group is now live and effective!
 
Specifically 100 - 199 cards @ $1.99 with earnings of 15% = $.30  
 
 Smiley
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Gina_133039
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Re: Promotions & New Price Group
Reply #14 - Mar 3rd, 2009, 5:53pm
 
Maybe it's just a coincidence  Grin(though I don't believe in them), but I made one of these 100-199 sales today.  I hope this is the beginning of a trend and that more and more people take advantage of it.  It's really quite an honor, IMO, to have someone pick one of my cards for a large quantity...  Smiley come to think of it, it's quite an honor every time someone picks one of my cards, whether it's one or a bunch...
Good luck everyone... and thanks, Mindy, for the congrats.
 
gina
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