By Sue DiFranco
Copyright © 2001 Sue DiFranco/Fun Facts Publishing
Originally Written in 2001

I feel I hold a rather unique place in our industry because I'm able to observe and participate in just about every area. Because of this, I hear everyone's side of certain issues, and because I'm "in the middle," I'm able to sympathize with most.

I've held off discussing this for some time because I didn't want people to think I'm choosing "sides." Quite the contrary, I understand everyone's dilemma. It's grown to such an issue, however, (and will probably keep on growing), that mentioning it here might bring about some contemplation, and perhaps even some understanding.

At the exhibitor meeting on the second day of MemoryTrends (where exhibitors get together with the show manager and discuss what they liked and what they didn't like about the first day of the event), an issue came up with an exhibitor requesting that online stores have a different color badge than brick and mortar stores, because that person "doesn't sell to Internet stores" and therefore doesn't want to waste his time with a sales pitch.

Of course it makes sense to color-code badges at a trade show to know who you're dealing with. (New to this, I gave an entire sales pitch to an ad rep for a magazine, thinking she was a retailer. Whoops!) But is the purpose to differentiate, or to discriminate? 

Some scrapbook manufacturers will not sell to online stores. Period. Some manufacturers will charge a higher wholesale price to online stores, as opposed to storefronts. Their reasoning (and this, unfortunately, has proven to be true), is that some consumers get together and do "group buys." This means that they all pitch in money to purchase scrapbooking supplies at a "wholesale" price that they are only going to use for their own personal use (i.e., not reselling at a retail price).

How do they get away with this, when most manufacturers require a resale tax ID? Well, some use their spouses' or friends' business license or tax ID, and perhaps some even "start a business" for the sole purpose of saving money to fuel their scrapbook addiction.

Obviously this is wrong, and this is the one strong opinion I will make. When you do a "group buy" - if the purpose is NOT to resell at retail price as an online store or brick and mortar store, but rather for your own personal use - you are hurting everyone. You're hurting the manufacturer, you're hurting the retail sellers (both online and storefront), and ultimately, you're hurting yourself. Because if these manufacturers go out of business due to every obsessed scrapper doing "group buys," you won't have any more supplies with which to scrap.

Clearly we can understand the manufacturers' dilemma. But now let's think about the legitimate online store, who is selling products to scrappers who don't live near a retail storefront, or are looking for a different selection, or who just like the ease and convenience of shopping from home. As with any group, you're going to have your "bad apples" - perhaps a consumer has a false site mimicking an actual online store. But there are *many* online stores that are perhaps more professional, reputable, and profitable, than someone who made the decision to rent out a physical space. Many of them are now suffering financially because more and more manufacturers are either deciding not to sell to them at all, or to jack up the prices so they can't afford to carry the product line.

As with consumers doing "group buys," this too will ultimately hurt everyone. Obviously the legitimate online stores are hurt - they're in the business of selling scrapbook supplies, and if their product selection is diminished, so are their sales. (For those who think online stores don't have the "overhead" of a brick and mortar, and therefore shouldn't be allowed as great of a wholesale discount, I think many online stores would be happy to provide you with an expense sheet to prove the contrary.)

Consumers, too, are hurt. As stated previously, many consumers - *especially* in the scrapbooking community - are accustomed to, and prefer, shopping online. Simply take a look at the results revealed in the "Scrapbooking in America" study. This could be due to a lack of a retail store in the area, better or varied product selection, or simply the ease of shopping from your living room in your PJs at 3AM.

Ultimately, manufacturers are hurt. If consumers can't get to your product because they need to shop online rather than go to a retail store, your product won't be reaching them. Simple analysis tells you that down the line, that does not bode well for your business.

Retail stores also have a side. Online stores are their competition. With more and more consumers opting to shop online, they could be losing sales to various Web sites. Some storeowners have even heard customers commenting on how they can get the store's products "cheaper online." This, too, leads to pointing fingers. Retail storeowners might assume that online stores don't have anywhere near the overhead they have, and therefore are able to charge less, thereby joining the chain stores as the "enemy."

So, what to do? As I stated to my dh2b at MemoryTrends, "If we could all just understand each other's side, we might be able to work this out." Step outside of your "role" as a consumer, manufacturer, or storeowner, and try to see it from "their" side. 

Consumers: you're hurting the industry you love so much when you do false "group buys." If you can't afford all of the supplies you want, do trades or swaps, or try to cut back costs in another area. Please don't have any part in tearing down the industry we are all so proud of. Also, be considerate of your retailer, whether they are online or storefront. They're in this because they love scrapbooking, and they want to make a living at it. They're not here to "rip you off" or charge you more because they're greedy little monsters. They just want to get by, much like you do. 

Retailers: Sure, online stores are your competition, but that doesn't necessarily make them your enemy. Stress to your customers what you can provide that an online store cannot. If they have a problem with pricing, and you have the patience at the time, be straight with them with a mini crash course on Business 101. Also, if you've got extra time (yeah, right), start up an online store to complement your retail store, to gain a better understanding of a different set of dilemmas.

Online storeowners: please be as professional as possible. I know there's a lot of competition, but incredibly reduced prices all the time will not only hurt the industry, but force you to go out of business. There are other marketing tactics you can do to set yourself apart. Also, try to understand the manufacturers' point, but also try to explain to them what you see. If enough e-tailers get their point across eloquently directly to the manufacturer, rather than just venting on message boards, perhaps they'll gain a better understanding of your situation.

And finally, manufacturers: I know you're in a unique position because "obsessed" scrappers are doing everything they can to get their hands on your products cheap. But think carefully before you decide on a "no Internet" policy. Consumers buy on the Internet. They will continue to buy on the Internet. As more retail storeowners have to close up shop because they didn't realize the amount of time and money such an endeavor would require, many are still wanting to be a part of the industry and are opening online-only storefronts. Simple research will help you determine who is legit and who is not. Sure, there may be some that really go out of their way and trick you by having a professional Web site designer create the site, pay monthly charges for a professional shopping cart and Web host, and may even take out ads in the magazines, just so they can get a break on their scrapbooking supplies. But I would think not many. 

The industry is still so new, and we're all learning as we go. Let's just take some time and put ourselves in other's scrappin' shoes for a moment. Then let's keep movin', so we can raise that $1.4 billion a year figure even higher next year!