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.