An open letter to CafePress:
Hello, I am – was – a new shopkeeper on your site. I have spent the last several weeks going through the forums on your site, reading help files, tutorials, etc to learn just what you and your company are all about and how it can benefit me as an artist looking to sell my work.
Compare this new business model to a direct competitor of yours, a book store selling blank journals. Walk into any book store and you will see an entire wall of journals to choose from. Narrow that down to a specific size, 5×8, and a specific style, O-ring wire bound, with a specific number of pages, 160. There is still a wide variety of selections and also prices. There will be a journal with a ghastly polka dot design for $7.95 next to one with a beautifully rendered Celtic knotwork design with an Irish Blessing on the cover for $15.95. Does the bookstore decide that since they are, in effect, the same product, the same size and with the same purpose that they should both sell for $11.95? No, they use the price set by the publishers who created each of these journals. Do they set up a discount bookstore next door and sell both books at the $7.95 price, undercutting the publisher of the higher priced book and telling them that their design, while nice, is the same as the lesser design and publishers of both books that the amount they will receive is going to be considerably less from the discount store? Of course not! It’s bad business practice and both publishers will undoubtedly pull all their products out of that store for the one down the street that gives them the price they wish to make for their journals.
Another example is that of the artist selling prints to local galleries. The artist and the gallery agree that both can sell prints independently of each other. They also agree on a set price for one design, based on that artist’s design and definitely not on the work of other artists. The artist may make an agreement with the gallery not to sell to other galleries within a specified boundary surrounding the gallery so customers won’t see it both places and become confused where they should purchase the print. And the artist will definitely agree not to sell it at the gallery next door for “X” amount cheaper! (In the online world, the “gallery next door” would be the convenient link on shops to the CafePress Marketplace, who has just become a competitor and no longer a partner.) No gallery is going to keep prints from an artist whose prices are lower in other galleries or online. And no artist is going to leave their prints at a gallery who lowers the price of their designs based on the work of other artists.
From your own announcement, this is the line that makes the least sense of all:
“Why is CafePress setting the pricing in the Marketplace?
Inconsistent pricing on the same product makes shopping confusing for customers.”
From both examples provided above, you can see how design drives consumer actions more than price. Different prices for different designs on the same product are understood by retailers and consumers alike. (i.e. A journal, a print, a pillow, a mug, all available commercially at different prices within the same store.) Your actions contradict your words by creating different prices for the same design on the same product, and basically in the same store! This will most certainly confuse consumers even more. The more savvy customers will benefit by checking with both the Marketplace and the Shop to see which price they can get lower, and thus “Shop” sales will most likely be tagged as coming from the Marketplace as the customer unknowingly clicks back and forth between them shopping for the best price. Newer customers, buying items directly from shopkeepers may discover the lower Marketplace price and return the item, only to buy it from the Marketplace at the lower price. With the economy the way it is, no one can blame customers for trying to find the best price that they can, but even customers will be confused by two separate prices on the exact same design. Have you never gone to the store and found one item tagged for one price with the identical item (And by “identical” I mean same design. Not two different designs on one product.) at a different price? Fair pricing standards dictate that the store (this would apply to shopkeeper and Marketplace, as these are one and the same in the eyes of the customer) allow the customer to purchase the item at the lower price, regardless of whether it was a mistake on the tag. Some stores don’t adhere to this, but most do.
How is this good business practice, undercutting prices of shopkeepers on your site and lowering commission rates for all designers to match across the board, regardless of design quality? My understanding in my research is that this type of print-on-demand service, while higher in price than what I would find at a local super-store, offers something the local super-store will never have: quality designs created by artists that can’t be found anywhere else. If I don’t care about the design, I have no problem going to XYZ Super-Store and buying the cheapest t-shirt they have. If I don’t care about the design of a journal, I’ll buy the $7.95 polka dot journal. I can tell you, as a consumer, I never buy the polka dot journal, even when my budget is tight. As a consumer of print-on-demand products, I’m buying the design, not the product. And in doing so, I’m buying the Designer as well. The Artist. Not the company. I can buy t-shirts, journals, mugs, pillows anywhere. When I shop for these items, I’m not comparing name brand to generic brand. I’m comparing one design over another and will pay according to a design that suits my taste. In any retail experience, there is room, and a market, for all reasonable price points. Why force a shopkeeper to accept one commission while allowing them to set a different commission for themselves all within the same site? It can lead to nothing but confusion for shopkeeper and customer alike.
Tags: Business, CafePress, POD companies