UPC code for packaging?

[gaseousclay]

How many of you use a UPC code for product packaging? I've read that it's essential when selling to big retailers, but for those of us just starting out this doesn't seem like an economical solution. My google search yielded a little info, such as, you have to join the GS1 website and pay a $250 membership fee plus an annual $50 renewal. You also should get a unique UPC for each individual product. Again, this doesn't strike me as financially economical if you're strapped for cash.

[Freelancier]

If you're cash-strapped such that $300 to get a UPC symbol -- something required if you put your product in a retail store -- is a problem, your business isn't long for this world anyway. Lack of cash kills businesses faster than pretty much anything else.

[Wozcreative]

How many of you use a UPC code for product packaging? I've read that it's essential when selling to big retailers, but for those of us just starting out this doesn't seem like an economical solution. My google search yielded a little info, such as, you have to join the GS1 website and pay a $250 membership fee plus an annual $50 renewal. You also should get a unique UPC for each individual product. Again, this doesn't strike me as financially economical if you're strapped for cash.

You've already failed if you cannot pony up cash for essential things like that. I am surprised that this is all they charge. If you are strapped for cash, you need to not be starting any businesses and get a job until you can afford it.

[gaseousclay]

You've already failed if you cannot pony up cash for essential things like that. I am surprised that this is all they charge. If you are strapped for cash, you need to not be starting any businesses and get a job until you can afford it.

I would have to disagree. My boss built a successful business over the course of 30 yrs. he doesn't use UPC codes and his business makes 2 million a year

[Wozcreative]

I would have to disagree. My boss built a successful business over the course of 30 yrs. he doesn't use UPC codes and his business makes 2 million a year

Does his product need a UPC? What I'm saying is if you need one, and you think $250 is too much to spend on a business, you're putting your eggs in the wrong basket.

[gaseousclay]

Does his product need a UPC? What I'm saying is if you need one, and you think $250 is too much to spend on a business, you're putting your eggs in the wrong basket.

No, his product doesn't need a UPC.

As for what I want to sell, in the short term I don't need a UPC. In the long term I do, but that's only if my product idea were to be sold in a big box retailer

[Fulcrum]

There's an easy solution to the UPC problem - budget the cost into the product development.

To echo what Woz and Freelancier have said, if spending $300 is making you nervous now, what's going to happen when you have to make an immediate decision about $3,000? How about $30,000?

[Fulcrum]

There's an easy solution to the UPC problem - budget the cost into the product development.

To echo what Woz and Freelancier have said, if spending $300 is making you nervous now, what's going to happen when you have to make an immediate decision about $3,000? How about $30,000?

[Paul]

Don't worry about it. If you get your product in a big box retailer you'll have bigger problems than that. if you think that may happen start priming investors/lenders for that possibility.You will have huge cash problems just filling the first order.

[gaseousclay]

There's an easy solution to the UPC problem - budget the cost into the product development.

To echo what Woz and Freelancier have said, if spending $300 is making you nervous now, what's going to happen when you have to make an immediate decision about $3,000? How about $30,000?

it doesn't make me nervous. I wanted to know how necessary it is to have a UPC code. I guess I answered my own question - a UPC code is necessary IF I were to get my product into a big box store, and that's a big IF. Either way, it's useful info to know for the future. Again, my plan is to start small, grow the business and see what happens from there.

[Brian Altenhofel]

If you get your product in a big box retailer you'll have bigger problems than that

Yep... especially since that space is leased...

[gaseousclay]

Yep... especially since that space is leased...

leased? pls explain

[Wozcreative]

How many products do you plan to have? How much will it cost you to re-print all your packaging and re-package everything? How much will it cost you to update the inventory system to work on UPC? What will it cost you to track your products manually as apposed to just scanning it into the system? What will the errors cost you when doing it manualy? Barcodes allow you to code all the data you need about the product, if you are planning on selling it using other partners, you better have a good way of transferring that data per product in a different way that is easy for your partners to sell them.

[Paul]

leased? pls explain

Sometimes you have to PAY THEM for shelf and warehouse space depending on the product.

[Brian Altenhofel]

leased? pls explain

The shelf space in big box retailers isn't free. The big box retailer doesn't come to you and say "we want to sell your product, send us X amount".

The manufacturer or distributor agrees with the retailer to pay a fee for the privilege of having their product sold through that retailer - typically expressed in dollars per linear foot per year per store, with the price varying depending on the shelf height (eye level in most sections and 2-3ft from floor in kid-oriented sections like toys or candy typically command the highest fees). The manufacturer or distributor must show that and can (and sometimes even must agree to) sell a certain minimum amount of product through that retailer's channels before the retailer's buyers will start performing their due diligence in determining the viability of the product. Most big box retailers even have the manufacturer or distributor be the one carrying the liability for unsold, damaged, and in some cases even returned goods. And there are even additional fees if the retailer is going to be responsible for stocking those shelves versus if you're going to be responsible for stocking those shelves. Not only does the retailer get the fees for the privilege of having your products in their stores, they also get a cut off the top of the actual sales.