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Smallbussinesupc.com is owned by Engaging Ventures and Anaheim,
CA. The idea came about about 2 years
ago when a friend of mine starting small retail business asked
if I knew anything about getting a UPC code. I told I had
one, but really haven't used it much. I offered her a
chance to use my prefix as long as she didn't use any that I
wasn't already using.
After thinking about it, and realizing I have
99,999 different possibilities, I started goggling things like
"single barcode" and "buy a barcode" and realized others had
started selling subsets of their prefixes. I also noticed
several sights warning about those "other" non-GS1 websites.
Digging into more information, and finding the
original paperwork from the Class Action Lawsuit, I realized
that yes it is legal and fair to sell subsets of my prefix code.
I also realized that if I signed up for Partners Connections, I
would be agreeing to not let people use subsets of my number.
Needless to say, I didn't sign up.
I called GS1 just to verify that I do indeed,
for life, own my UPC prefix code outright. After
researching some more, and discovering the high cost of applying
for a prefix code now, I decided I should make my codes
available to small startup companies who would rather spend $900
on marketing and advertising than on a UPC Code.
During the development of this website, I
spend a lot of time researching the legality of what I'm doing,
as well as what retailers want. Here's basically what I
came up with.
If you have a few items, say 4 different
designs of shirts you want try out, you might 16 UPC numbers
assuming 4 different sizes per style. $900 for 16 SKU's is
$56.25 a piece! Especially if your product fails, and you
do not create any other products, AND if you're a sole
proprietor, like a lot of startups - you're out $900 right off
the bat. Not exactly what you want to spend opening
capital on. Think what $900 could do on Ad Words on
Google?
Now, there are large retailers like Wal*Mart
who won't accept a subset, or shared company prefix.
(Actually, Wal*Mart is the only major retailer confirmed that
won't accept them.) GS1 says some companies will charge
back a simple stocking, reorder, or other kind of fee if you get
caught using a subset.
So, in my humble opinion, if you are good
enough to get into companies like Wal*Mat, Sears, Target,
BestBuy, etc, etc, etc....then you are talking orders in the
1000'd at which point you can probably afford your own
company prefix code. If you plan on have a lot of product
development down the road, I would also probably seriously look
into getting your own prefix.
Meanwhile, save some money, spend it on
advertising, get the sales, promote like hell, and makes lots of
money. If you product is in high demand, I'm sure even Wal*Mart
would make an exception. In the end, it's all about paying
the bills. I hope I helped give you a foot in the door
somewhere. If I did, please write me an email telling me
what you did, what your product is, and how it sold. I
love hearing stories about other Entrepreneurs.
For more information on Engaging Ventures, the
owner of SmallBusinessUPC.com, click the links below.
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