By Sue DiFranco
Copyright © 2004 Sue DiFranco/Fun Facts Publishing  

Sigh. It pains me to write this, three years after writing the original article that addressed this industry-specific situation. Most of you know what I'm talking about - scrapbook consumers getting a resale tax ID without any intention of reselling products, going in on "group buys" with their friends to buy items wholesale, and using the products on their own pages, all simply to save a buck or two while fueling their scrapbook habit.

This situation has caused many manufacturers and wholesalers to refuse to sell to home-based businesses, and in many cases, online stores as well. It is a situation that has been affecting, and will continue to affect, every area of the industry negatively - from the consumers to the retailers to the manufacturers.

I came upon the following on a message board, and I wanted to pass it along, because this kind of attitude does exist and it's something of which we should all be aware.

From a scrapbooker who openly admits to purchasing items wholesale for her own use, after someone pointed out that this perhaps wasn't an honest way of doing business...

"Since when is trying to save money on scrapbooking supplies dishonest? It might keep a few of you from making money off fellow scrappers but I really don't think it is being dishonest. I have a tax ID and I buy albums directly from the wholesalers.

"I do it because I got sick of seeing K and Company albums on 'sale' for [dollar amount] and finding out they are [dollar amount] wholesale. I don't think my not giving 'you' or a store an extra [dollar amount] is dishonest in any way.

"I know that if you retail in some way you don't make a fortune but you are for the most part making 50 percent or more on most big items. I have seen the lists and I know how much wholesale is and how much retail is charged on most internet sites. So although I know and understand that you would 'rather' people buy from you, I don't think it is fair to call people dishonest or try to make people feel bad because they need to save a few bucks on scrapbook supplies. That is a manipulative way to get people to think they are doing something wrong so you can gain."

Wholesalers, I know it's difficult to check the validity of every "retailer" who wants to purchase items from you (and this may be why some manufacturers have just decided to forego non-brick-and-mortar altogether), but hopefully this will shed some light on certain scrapbookers' attitudes.

Unfortunately, many consumers have never been taught the basic wholesale/retail concept, and consider buying items "wholesale" to be a legitimate way to save money. And because resale tax IDs are fairly easy to obtain, depending on location, it's not too complicated for some frugal scrappers to go this route (and if a resale tax ID already exists, from a friend or family member's business, it's even easier).

What to do? One of the most important things is speaking up. If you hear of a consumer involved in something like this, let them know it's wrong and why. Like I said, many consumers just might not understand the wholesale/retail concept, and may not even consider that what they're doing might be wrong. Let them know. And show them this original article.