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Your #1 Resource For: Starting a Successful Scrapbooking Business Growing Your Existing Scrapbook Business Insider Information on the $3 Billion+ Scrapbook Industry |
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By Sue DiFranco We recently provided an overview of a controversial subject in our industry right now: the fact that many manufacturers are opting to not sell to online retailers, or to charge a higher wholesale price than they charge to brick and mortar stores. This increasingly frequent practice is a result of some scrappers claiming to be legitimate businesses, while just purchasing supplies for their own personal use. The proposed idea that online storeowners have less "overhead" than brick and mortars, so they should have to pay more, has also come in to play. This subject affects nearly every area in the industry - manufacturers, online storeowners, retail storeowners, and consumers - and could potentially have disastrous consequences. To read the entire article, please click here. We received responses from some business owners who are being affected by this policy. Here's what they had to say: I started my business online to be able to be home with my kids. Finally I had to break down and open a storefront just to get access to the products my customers love. But I have paid a dear price for it. My children now spend half the day in day-care because they are just too young to be in the store with me all the time. I tried to set up an account with [popular wholesaler] and had invoices, canceled checks, tons of stuff, including ads in Memory Makers Magazine, and no matter what I could show them to prove I was running an actual business they would not let me open an account. The funny thing now is my overhead on my website is still more than my actual store front. And nobody cares. That is really frustrating to me. I just don't understand what manufacturers and wholesalers think a picture proves. I have tons of things to prove my credibility as a business, but they just want a picture. I don't understand any of it and I appreciate you sticking up for us little guys. Thanks so much, I love your newsletter. Heather Stanworth Hi Sue, I just wanted to tell you that I thought your article on this subject was a very well written and balanced view of a sometimes 'hot' topic. As an online retailer, I obviously lean in a certain slant. I particularly am worried about the tiered pricing trend using perceived ideas about expenses as a price point instead of accepted craft industry (and most industries) price points of quantity ordered. It is a very important topic with ramifications for all parties involved.. e-tailers, retailers and consumers. Thank you for bringing it to light! Marisa The forum is open for anyone who would like to voice their opinion on this issue. It would be great if members of every area of the industry would let us know what you think. The only way we can come to an understanding is through communication. Send your thoughts here. Thanks!
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