The UPC Scam and trivia question

The UPC Scam and trivia question was Originally Posted on January 12, 2004 by lavarock

Before I get on to other things, let me tell you about the scam of UPC codes. You know, UPC codes, those scanable things on everthing you buy.

In themselves, they are quite useful. But they also can be big problems.

Most stores use scanners to scan the barcoded items. This allows the manufactorers to tag each and every product they have with a seperate number. Each item can then have a different price at any store at any time. The store could chance the price in the computer and hopefully on the shelf, and the items now costs a different price. The cost savings are great. The reduction in manpower to reprice items is significant. The tracking by the manufactorer is great too.

Consider now the small businessman, let’s say, a coffee farmer, who wants to bag his own coffee and sell it in a store. To do so, he must apply to the ONLY company that issues UPC codes. All of these big stores buy into having just one company issue the numbers, because they are saving money using the system. You can’t blame them. Also, the stores don’t want to play around with johnny-come-lately companies every week touting their own style of barcodes.

So we have this one company issuing codes. Let’s say this farm is only expecting to sell a few products. Remember that each product must have its own code. Thus to offer both an 8 oz and a 16 oz bag of two types of coffee woudl take 4 UPC codes. Every size, color and type of item should have it’s own code. If you offer 3 gift baskets, add another 3 codes to the total. If you stop selling an item, you are supposed to rfetire that code.

So you take this farmer. He starts adding up what he thinks he may need for the total numbers to be assigned. Then he estimates his 1st years sales for the UPC company. They round up the number of UPC codes to issue to 100 and issue their decree.

100 codes for a business which will be expected to make less than $500 from selling these products in stores will have to pay… {LOUD DRUMM ROLL….} $750 for the first year and $150 a year thereafter as a “membership fee”!!!! Can you believe that? All for the chance to sell a few products at a store. How many ways can we screw little businesses?

If this was a government regulated item, I’d complain to my elected officials, but the UPC organization is a private organization.

By the way, to add insult to injury, let’s say that you pony up the dough. To send your kit to a non PO box and have it in less than a few weeks, will cost you another $75 or so! Then to further rub salt in the wound, if you decide not to use the UPC codes, once sent to you, the fees are refundable (minus a $250 administration/restocking fee!!!!!!)

This could very well explain why few small companies sell products in a store.

So back to my tale…

I stopped hearing from the printer who was working on my labels. I had hoped to have them and start shipping coffee BEFORE Christmas. Last week I contacted a new printer and within a week had prices and an assurance the labels could be printed and shipped in 1 week. Friday, the 1st printer sent me a proof, almost a month late! I sent him a nice letter saying “Thanks, but no thanks”.

Now I have to decide if I want to get the UPC codes, figure out how to get the company identifier number to the printer and get the labels printed and sent to me. THEN I can start shipping coffee.

Meanwhile, I’m finishing up my shopping cart and trying to get it installed where my current website is located. Then it is a short detour to get the credit card account set up and linked in.

At that point I can start advertising and pray I get orders without getting so overloaded that I have to hire people to help

If this makes it to the triva games, remember that since I still don’t own the farm, the 1st set of labels will not say “Estate Grown” on them.

To stimulate sales and start shipping, I guess I’ll have to offer some discounts. I’d hate to think that people would have to pay “full price” for my coffee.

As Paul Harvey would say “Now, you know the REST of the story…”