Following the dissolution of the long-standing relationship between Sweet Pea Designs and PrintsWell reported upon earlier this month, Stacy Claire Boyd reports that PrintsWell will provide “all customer service, production and fulfillment services beginning April 15, 2010.”
According to an eMail distributed by Stacy Claire Boyd (“SCB”), they claim that they will be offering their “designs at a new lower price point” to provide their dealers with more “competitive pricing.” It also appears that through PrintsWell, SCB clients will be able to have their “own online stationery store, offering all of the SCB catalog products to its customers 24/7.” Clients who wish to avail themselves of this online service will be able to “brand” the SCB online store with their own logo and collect commisions based on orders processed through the store-branded website. According to the release, this service is free for the first 4 months and $15 a month thereafter. Call 866-481-4414 to take advantage of this offer.
Editor’s Note: With the many changes, consolidations and growing impact of the internet on the stationery industry, it is difficult for independent dealers to know which way to turn. As readers on the Stationers Guild Blog are aware, I have found no compelling economic argument that would lead me to believe that “lower” or “more competitive” prices make for a stronger industry. Quite the contrary. Lower prices necessarily lead to lower quality stationery products for the consumer and profit margins that are not sustainable to support the manufacturers and the craftspeople and designers who produce quality papers.
While I do not doubt the genuineness of Stacy Claire Boyd and Printwell’s intention to provide its dealers with a competitive product 24/7, the numbers simply don’t add up. For instance, let us assume that in the past you were able to sell a SCB baby announcement from the album for $200. If you are like most dealers and earn a 50% margin you would receive $100 for the sale. Now, under the new PrintsWell agreement this same invitation may sell for $160 (20% less). Your margin is now $80 for the same amount of work and same level of fixed costs. Does this make business sense? I think not!
Well, how about the online store where I make money 24/7? Glad you asked and, again, sorry to disappoint. Imagine if all 1,000 or more SCB dealers and existing PrintsWell dealers launch their own private-labeled SCB online stores: All that adds up to is another 1,000 pages of the 37 million pages now indexed by Google when you search for “baby announcements.” Unless you are a real pro at internet search marketing and website optimization, your SCB online store will simply be confined to the outer-reaches of internet oblivion. Even if it can be found, do you think you have much of a chance to compete with Costco and eInvite, who are driving prices and quality standards to levels that even the Chinese would envy.
I know this sounds like a bummer, but trust me it is time to wake up. Brand integrity is worth talking about! As dealers we should insist on quality papers and designs that do the industry proud and are sold at prices where the consumer receives “fair value” and at “price levels” where the dealer, manufacturer and designer are fairly compensated. To do so, dealers should simply quit carrying lines where that value proposition no longer exists. Let’s talk vigorously about the many great papers and designers we respect and not spend time apologizing for companies with boring designs, cheap papers and service quality to match! Fine paper companies who compete on price will go the way of dinosaurs. Don’t let them take the rest of us down.
Richard W. May
Editor Stationers Guild