Archive for the ‘Business’ Category

17
Nov

To Niche or Not To Niche?

   Posted by: Mattie Tags: , , , ,

According to everything I’ve read from the experts, I’m going about pretty much everything all wrong. Niche! Niche! Niche! They all say. And while I do indeed have niche designs, I don’t really have a niche shop, or even a niche web site (yet. that could be changing soon.) Not only that, but my "brand" is broad and I apparently share it with a "gentleman’s club" in Houston.

The question now becomes: Why don’t I change my brand? And why not branch out to smaller niche shops and link them together?

In answer to the second question , I may do that down the road, but I’ve discovered it’s easier to work on my catch-all site first. (Plus keeping all designs at CP and Z in one "shop" is just easier for payment. I don’t earn enough yet to branch out to dozens of smaller shops.)

As for the brand, I’ve gone through countless business names (the one I paid to incorporate was the worst one of all) and none seemed to "fit." This one does – and has the most interesting story behind it of any name I could have.

My IconMy brand is me. When someone sees my logo (the drawing of the rose inside a Texas outline), it’s recognizable. When they see my icon (my manga drawing that my sweetheart did of me), or my site background (the rose trellis), they know right away that it’s me. Someone I met recently even said she recognized the icon right away and could tell it was a drawing of me, and old friends can tell it’s me too as soon as they see it. I’m extremely flattered every time I hear that because I happen to think the drawing is quite lovely. Even though there are other icons that are similar to each other, none are quite like mine. It helps distinguish my brand, which I love.

For the first time, I feel that my business name and brand "fit." And nothing feels better than something that fits well.

 

The Yellow Rose of Texas.

Yellow RoseThere’s a Yellow Rose in Texas,
That I am going to see.
No other feller knows her,
No other one but me.

She cried so when I left her,
It nearly broke my heart.
And if I ever find her,
We nevermore will part.

She’s the sweetest little rosebud,
That Texas ever knew
Her eyes are bright as diamonds,
They sparkle like the dew,

You may talk about your Clementine
and sing of Rosalee,
But The Yellow Rose of Texas
is the only girl for me!

There really was a "Yellow Rose" of Texas and she helped shape Texas history as much as Sam Houston himself. Emily West Morgan was a lovely mulatto slave girl captured by Santa Anna on his march to San Jacinto. Emily sent word to Sam Houston and kept Santa Anna "occupied" while the Texans surrounded his army and defeated him, literally "catching him with his pants down." Texas owes her freedom to the beautiful slave girl who risked her own life in the Texas battle for independence.

Read more in the historical fiction: Miss Emily, The Yellow Rose of Texas

I promised "My Ideal Day" as it was "then" (on my first reading of Wishcraft). I don’t have the written version anymore – meaning I don’t know where it is in my multitude of journals. But I envisioned it so clearly in my mind, it’s become more of a fond memory for me … even though the places and events of that day never fully came to be.

My Ideal Day Then (as it was prior to achieving many of the goals I set for myself. Note that this is past tense, although for Your Ideal Day, you should write it out in present tense.)

I woke up just as the sun started peeking into the lace curtains of my bedroom window (No blinds in this house, that’s for sure.) My bedroom and office were both on the 2 nd floor of a two-story house, situated so the sun would wake me in the morning and I could still look out onto the ocean of my Texas gulf coast home.

The first order of business for the day was to check the computer and print out any orders that came in through the web site overnight – because there were always orders – and respond to emails. Next, downstairs for a cup of hot tea, followed by my cat, who went almost everywhere with me (this was written even before I got Sassy, and that’s just what she would always do.) Finally, dressed and ready to go – with printed shipping labels and receipts from the online orders – I would walk to my nearby gift shop, an easy 5 minute walk from my house, and located just off the beach in an artistic community within easy access for tourists as well as locals.

The shop would be already open by a trusted employee (a local art student), and already filling with customers, as it was the start of summer and a beautiful day out. My shop would specialize in offering the work of local artists as well as classes in the studio located in back. Our studio would be equipped for almost anything an aspiring art student might need, from painting and drawing to pottery to jewelry-making and lapidary.

On this day, our studio had a visiting local artist teaching a jewelry metal-smithing class, which I was looking forward to attending. Before the class started, I took a quick inventory of our pottery because I knew we needed to re-stock a few items soon – some of which I would be making myself in the days to come. In addition, I gathered and boxed the orders for shipping, getting them ready for pick-up by the postman. I also helped a few customers in their choices for gifts to take home – and every customer walked out with a purchase and a smile on their face.

After attending the class (most of which was like a refresher class for me as I already knew how to do it), and enjoying a light lunch with my fellow students – all of whom made a purchase of the instructor’s jewelry from our shop – I helped my employees clean and close up and took the day’s receipts with me to enter into my database at home.

Arriving home, I went straight to my over-sized, farmhouse style kitchen to start preparing dinner for a dinner party that night with the jewelry instructor, my employees and other local artists. (And of course, to feed the cat, who greeted me at the door coming home.) After a wonderful dinner with lots of wine, laughter, conversation and compliments on my food, I went with the cat back to my office where I prepared the day’s receipts and inventory (on a program I’d written myself) and checked email and orders one last time, getting everything ready for another great day tomorrow.

From Wishcraft:

With pen in hand and as much paper as you need (or a tape recorder if you prefer to dream out loud), take a leisurely walk through a day that would be perfect if it represented your usual days – not a vacation day, not a compromise day, but the very substance of your life as you’d love it to be. Live through that day in the present tense and in detail, from getting up in the morning to going to sleep at night. What’s the first thing you do when you wake up? What do you have for breakfast? Do you make it yourself – or is it brought to you in bed, with a single rose and the morning paper? Do you take a long, hot bath? a bracing cold shower? What kinds of clothes do you put on? How do you spend the morning? the afternoon? At each time of day, are you indoors or outdoors, quiet or active, alone or with people?

As you go through the hours of your fantasy day, there are three helpful categories to keep in mind: what, where, and who.

More news from CafePress. The link I mentioned to get to Shopkeepers from the MarketPlace has been removed. There is NO way to get from the MarketPlace to individual Shops! There is, however, a workaround to find them, but it isn’t easy and something the average customer will never know to look for. They’re even hiding the Shopkeeper’s name in some instances. Depending on how you get to the design, you’ll see either, "See all designs from XYZ Shop", OR you may only see this: "See all designs from this designer." With no reference to the Shopkeeper’s name at all!

By clicking the link to see all designs, you’re taken to a page with every design from that shop, but you are NOT taken to the Shop itself. You are STILL in the CafePress MarketPlace! In addition, the designs are just thrown onto the page in no particular order, and completely unrelated to the search itself. Shops with thousands of designs, ranging from animals to brides, to the zodiac, have all their designs mixed together in no particular order. So a bride looking for more designs for her bridesmaids might have to wade through several pages just to find a matching design.

Here’s how to get to the individual shops, where the majority of prices are now LOWER than the MarketPlace price:

Look in the address bar at the top of the page and you’ll see the Shopkeeper’s ID. It should look something like this:

http: / / shop.cafepress. com/?from=YellowRoseGal (I’m removing this as a link on purpose. I’d rather not link my OWN designs to the MarketPlace, nor do I want to direct you to anyone else there, so I’m using myself as an example)
Change "shop." (including the . ) to www. and REMOVE "?from=" in the address bar.

Example: http://www.cafepress.com/YellowRoseGal

This should get you to an individual Shopkeeper now.

But that’s not all they’ve done. It seems the CafePress executive team missed class the day business class taught them it’s not good to put all your faith
into a few large accounts while ignoring all the smaller accounts. If you’d like to know what I’m talking about, visit http://www.cafepress.com/ and type "the office" into the Search field. You’ll be redirected
directly to the Shop, bypassing the MarketPlace completely. The same is true for the lucky folks who are "featured shops." (Just how does one become a featured shop anyway? No, I’d really like to know. I want a link to MY shop from the home page!) No other shopkeepers are given this courtesy, even the ones who’ve been with CafePress for a long time, and helped them build their small empire.

Is that all? Far from it. People who have opted out of the MarketPlace, removed tags to stay out of MarketPlace searches, or even closed their shops completely are still getting MarketPlace sales! A few reasons have been given for this, including the time it takes for designs to be removed, shoppers placed the item in their cart prior to the change, etc. However, read this article for just one example of one astute shopkeeper and how his research shows a very different story:

http://irregulartimes.com/index.php/archives/2009/06/10/cafepress-shop-sales-posted-as-marketplace-sales/

CafePress: Why I’m staying

Wait, what? After everything they’ve done and you’re not leaving??? I’m not only not leaving, I’m doing what I can to support other Shopkeepers who are staying as well. Which is why you’ll continue to see CafePress shops recommended through my blog and my site. Anyone who thinks that EVERYONE will pick up and leave still has a lot to learn about the business world. Will CafePress stay in business much longer? I believe it’s inevitable that they’re going out of business. It isn’t a matter of if, it’s a matter of when. You don’t stay in business making poor, unethical business decisions that put hundreds of people out of work, and they’re making one bad business decision after another. But that doesn’t mean there won’t be hundreds of new shopkeepers and new designs signing up with them. The main thing they’re losing here isn’t shopkeepers, it’s their reputation. With every blog post I write, that won’t change. Nor will their decision. MY decision to stay is a purely business one. I’ve since found out there are other PODs that offer things like tile coasters and framed tiles, and still another that offers an almost identical keepsake box. But is it ethical for me to force my own customers to go to each one separately if they want a matching set? No, while I’m expanding to multiple POD companies, I don’t want to confuse my own customers by having the same items offered all over the Internet if I can possibly help it.

I don’t agree with what CafePress has done, but just because they chose to cut their legs off, doesn’t mean I have to shoot myself in the foot.

If you’re looking to open a new shop, or move your shop, have a look here for an extensive list and reviews of other PODs:
http://sefast.com/podreviews.info/index.html

And, as promised, here’s some really cute designs I’ve come across recently. Design reviews for even more coming soon!

 



28
Apr

A Question of Ethics

   Posted by: Mattie Tags: , , ,

Last week, CafePress made the decision to fix prices within their MarketPlace and give Designers only a 10% commission on those designs. They listed several reasons for this change, including “deliver a higher-quality shopping experience to customers” and “Inconsistent pricing on the same product makes shopping confusing for customers.” In the announcement, which can be read here, http://announcements.cafepress.com/?p=167, they also state, “These changes DO NOT impact the pricing, markup, or sales you are driving in your own shops.

Which, basically, means that there will most likely be separate pricing on items within the CafePress MarketPlace vs. what you will see in individual shops, thus creating inconsistent pricing for the same design.

This decision is an insult to designers and customers alike. While telling designers that their hard work is worth only 10% ($2 on a $20 t-shirt; mere pennies for small items such as magnets and stickers), they are also telling their customers that they don’t have the intelligence to see the difference in quality of a professionally rendered photograph or carefully drawn Celtic knotwork, or handpainted animals and wildlife vs. countless “I heart Edward” and “World’s Greatest Mom” text designs.

If you are new to print-on-demand (POD) sites, the basic premise is the POD provides the printing service on books, t-shirts, mugs, etc, etc, etc. (Varying by company. Some work only with book publishing, while others specialize in t-shirts, and others try to offer a variety of POD options.) and Designers, also often known as Shopkeepers, upload their designs for sale on the POD. Both sides benefit from the sale, albeit, the POD stands to profit quite a bit more than the designer. On the sale of a Jr. Spaghetti Tank for $21.99, the POD earns $16.99 while the Shopkeeper earns only $5 on average from that sale. This is how it works when the Shopkeeper sets their own markup. Some Shopkeepers may decide to markup their prices by only $3, some may decide their designs are worth $7. Thus you will see fluctuating prices for the same basic item, but for different designs. Just as you will see different prices on pillows when you visit Ikea, and different prices on journals when you go to a bookstore. And every bride knows there’s going to be a huge difference in the price of flatware when they go to register for their bridal shower. The key difference in this new policy at CafePress is that Designers will no longer be allowed to set their own markup for items found on the CafePress Marketplace – the “search” box on the main CafePress website.

Here’s a rundown of the difference using our Jr. Spaghetti Tank as an example:

Shopkeeper POD Base Price Shopkeeper
Markup
Customer
Pays
Shopkeeper
Earns
POD
Earns
Shopkeeper A $16.99 $5 $21.99 $5 $16.99
Shopkeeper B $16.99 $7 $23.99 $7 $16.99
Shopkeeper C $16.99 $3 $19.99 $3 $16.99
New CafePress Marketplace Sale undetermined+ N/A* $18.69+
$21.99+
$1.87+
$2.20+
$16.82+
$19.79+

*Shopkeepers no longer allowed to set their own markup on their own designs within the CafePress Marketplace.

+CafePress has hinted that the final Marketplace price will be anywhere from the current base price plus 10% to the standard current premium markup. No final word has been given, so these are only estimates based on this scenario. As you can see from the “base plus 10%” example, both shopkeeper and POD stand to lose, not gain from this. And the difference to the customer is at best $5.30, and at the least $1.30. The customer may not see a difference in price at all.

As a customer, is your integrity worth $3 or $5 when the Shopkeeper who created the design stands to lose up to and over 75% of their (already small) profit? The question isn’t whether change needs to be made or keeps things “as they always were.” The status quo isn’t the issue here. Other POD companies, upon learning of the announcement (and seeing a tremendous influx of designers as a result) have stated they won’t be adopting this new policy though who knows what they will do in months to come? The question is one of ethics. Is this a good business decision on the part of CafePress? By telling designers their work is worth only 10%, they risk losing top designers and leaving their Marketplace full of redundant “I heart Edward” designs. If that was their goal, more power to them. If their goal was to grow the business of their competitor, they did just that. If their goal was to increase their standing as the top POD of the industry, the end will most definitely result in just the opposite. And if their goal was to increase their own revenue in times of economic crisis, the $2.80 per item they stand to gain won’t be worth much when they end up in bankruptcy as top designers leave for the competition.

Here are just a few of the high quality designs that can be found on POD sites. This is just a very small sample. I hope to include more top designers in future blog posts, whether they’re on CafePress, Zazzle, or on the designer’s own site. If you see links to CafePress, however, I ask you to purchase ONLY from the Shopkeeper/Designer directly as the goal is to promote the Design, not a blank t-shirt. For that, go to Wal-Mart. :-)

If you want to keep up with CafePress announcements, feel free to visit this link: http://announcements.cafepress.com/

To view the top competition, visit the following links:

http://www.zazzle.com
http://www.printfection.com/shop

My Zazzle shop, which is where I’ll be moving all of my t-shirt designs: http://www.zazzle.com/yellowrosegallery

My Printfection shop, where you’ll find glass designs, suitable for framing and useful as glass cutting boards: http://www.printfection.com/yellowrosegallery

My CafePress shop (yes, I’m keeping it open): http://www.cafepress.com/YellowRoseGal

I would link to the CafePress Marketplace too, but they have yet to approve me as an affiliate. If you do visit their Marketplace, please send them the message that unethical price fixing won’t be tolerated by customers or designers alike by going directly to the Shop that created the design to make your purchase. (You should find a link labeled “From ShopName”.) Let CafePress know that even in unstable economic times, ethics and integrity is worth far more than a few dollars.

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.