How to Get Authentic Barcodes for Manufactured CPG for Retail Sale Inexpensively

Barcodes provide product information like brand name, product type, variations (like color, size and so on) and unit retail price in the product mix. Example: Brand A, Product line B, Vegan hand bag, Regular Size, Dark brown and so on. 

Unique Product Code / UPC-A  (aka GTIN-12) and or, their non-North American version, the EAN (aka GTIN-13) barcodes are required on packaging if you manufacture consumer packaged goods (CPGs aka fast moving consumer goods / FMCGs) for retail sale. This is especially the case if your products will be sold at major retail outlets where products are scanned for efficient and accurate identification at the checkout point.

To clarify, each product variation will have two versions, ie a UPC and EAN version. Manufacturers that distribute products internationally have only to verify the preference of all retailers in any supply chain. However, as suggested above, UPC are the standard barcode used in North America while the EAN codes are the standard elsewhere globally. 

However, I still can not stress enough the need to confirm barcode formats with retailers when planning your labeling. Fortunately, many retailers even have machines that read either format without a problem. However, most will object strongly to your simultaneous printing of both barcodes on a single package as this usually leads to problems with efficiency at the point of sale.

UPCs and EANs are used for all retail products, both off and online and with only a few exceptions (such as books, pharmaceuticals and variably weighted goods like meat and vegetables). These codes are highly functional as they are used so widely as a standard that retailers worldwide, of all operational sizes use them seamlessly. Some better known large retailers include Google Merchant, Amazon (for MOST products) and Overstock.com, Trader Joe's, Whole Foods, Office Depot, etc. Regardless of where you source them, all authentic codes originate from the GS1, a non-profit organization that sets the standards for the use of barcodes in global commerce.

However, you can choose to buy barcodes from either 1) the GS1 directly or 2) resellers. While there are ilegitimate resellers (who sell entirely madeup or recycled numbers), it is possible to buy GS1-originated barcodes from legally authorized resellers, whose barcodes never expire, thereby not requiring you to pay the otherwise yearly renewal fee. However, such barcodes must have predate August 2002, (a significant turning point after which barcodes were rented out from GS1 versus being owned outright, can therefore expire and require the payment of annual renewal fees).

GS1 or Reseller?

As just mentioned, purchasing barcodes directly from GS1 requires fees for membership and annual renewals. For instance, the GS1 may require you to pay a $250 initial fee and $50 annual renewal fee for up to 10 unique barcodes, ie roughly $25 per barcode. Being the global authority on barcodes, this option is safe and legitimate. However, when manufacturers find this continual rental cost prohibitive, they may choose to buy barcodes from resellers for a one-time fee that is sometimes as low as $4.25 per barcode (ie a total payment of $42.50 for 10 barcodes or even less, depending on the reseller). 

In the vast majority of cases, reseller barcodes are acceptable to a retailer's 'Vendor Compliance  Program'. However, in the less likely event that you need codes bought directly from GS1 (as when selling through Walmart, Kroger's, JC Penny and Macy's/Bloomingdales), you will have no choice but to buy directly from GS1. Just to explain however, these retailers demand directly bought GS1 codes that carry the manufacturer-owned prefix numbers and therefore the manufacturer's name (versus that of resellers). When you buy codes from resellers, you will essentially use the prefix owned by a reselling company that has purchased barcodes before August 2002.

This video is a brief history that explains how the current practice of resellling barcodes became legalized in August 2002. Before the class action against the GS1, companies were forced to buy massive lots of numbers, specifically prefix numbers that were unique to their company whose following unfixed numbers allowed those comapnies the possibility of assigning tens of thousands of products to that many outstanding code combinations, even if such companies only needed as few as 10 codes. However, these companies filed a class action when GS1 wanted to convert the earlier outright purchase of barcodes to rentals. In the end, those pre-2002 GS1 customers were free to never have to pay rental / renewal fees and to have the right to resell the many thousands of unused codes under their pre-existing prefix numbers.

Since GS1 operates in over 100 countries, you can likely contact an office in your country, or region. If unsure, landing on the GS1 website, automatically provides this information (as the site can detect your location). You will see that office's street address, telephone number and email address.

Beyond this point, this post explains the necessary steps for getting authentic and inexpensive barcodes for your manufactured CPGs for retail sale.

Steps

1. Establish the type of barcode your wholesale buyers require by requesting details of their vendor compliance requirements. This is part of ensuring good B2B customer relationship building as it relates to trustworthiness (of authentic codes) and giving retailers a good customer experience with efficiently working codes. 
2. Use only those barcode resellers that are authorized and who sell only unused unique barcodes. Examples include: BarcodesTalk.com at toll free (877) 263-1343 or contactus@barcodestalk.com (my favorite because of their very well-informed and capable customer service personnel that is also available for after-sales care) or NationwideBarcode.com at toll free (888) 356-7770 or info@nationwidebarcode.com.
3. Unfortunately, it is not possible to access any single database to investigate your barcode number(s) beforehand. 
4. After buying the codes, you can search through different barcode databases to see whether anyone has illegally used your codes. Unfortunately, there is no single global database for doing this. However, see the following useful resource(s). 
1. Barcode lookup app
5. Expect (or request) that any legitimate reseller will provide the following among other things.
• both UPC and EAN barcode numbers automatically (to represent any single product variation). In only some cases (like that of BarcodeTalk.com), you can specially request the GTIN-14 barcode which some retailers require for master cartons / warehouse packaging. However, the GTIN-14 codes and artwork will require you to pay an additional fee of roughly $7.50 for each code, with the cost tapering if ordered in larger volumes. 
• graphics, 
• certificate of authenticity
• ownership documents 
• an Excel list of your numbers
• support (as by email and or email)
• free registration to a database like upcbarcodes.com of your barcode. This registration may be useful because it makes your product information available on Google, Bing and some smartphone barcode scanners. This is beneficial as a deterrent against anyone wanting to steal the code and or make claims of ownership.
6. If retailers do not provide one, prepare an Excel or CSV spreadsheet with the following details for submission to retailers for entry into their inventory management database (that connects to their point of sales / POS systems). 
• brand
• product name
• product description
• Variations like weight, measurements, colors, size, etc
• Pricing information
• SKU number
• UPC or EAN number

CONTENT RELATED TO GETTING INEXPENSIVE AUTHENTIC BARCODES FOR MANUFACTURED CPGs FOR RETAIL SALE

• Follow the size requirements. for instance, graphics are provided at 1.5" X 0.8". However, you can reduce the size by as much as 20%, ie to roughly 1.2" X 0.64"
• Establish the type of barcode your wholesale buyers require by requesting details of their vendor compliance requirements. This is part of ensuring good B2B customer relationship building. 

Good Customer Relationship Management with Wholesale Buyers

In order to maintain long lasting wholesale customer relationships, provide retailers with the best possible customer experience (CX). Here are some tips for starting and good customer relationship management.

1. Create B2B customer profiles. Just as you would for consumers, conduct (primary &/ secondary) research to know your B2B customers, especially as this knowledge relates to their purchase motivation factors, including pain points and other secondary needs. See customer personality types. 
2. Manage brand perceived value and avoid over-saturation within any single market, especially small markets. Consider selling to only those wholesale customers whose stores represent your brand. For instance, if you sell to upscale boutique stores to appeal to their up-market target customers, do not try to maximize sales by selling to supermarkets, especially lower-end ones. After all, retail outlets used for selling products signal the image and value of those products. Going against an expected standard can rub some customers and consumers the wrong way. Furthermore, even when numerous options exist for ideal wholesale customers (because they fit your target customer profile), resist the temptation to sell to all of them if doing so will prevent over-saturation in the market. In other words, analyze and shortlist your options to only those customers whose relationships are most beneficial. This applies most significantly when product margins are narrow. Also see notes on preventing price wars. You can also consider offering a sense of exclusivity with product liability insurance coverage for only compliant / authorized retailers (who you can add as 'additional insureds' in the event of liability claims). 
3. Set prices with a reasonable profit margin for retailers in mind. As mentioned in an earlier article regarding how to price when selling wholesale (and retail), if possible, find out their expected retail margin before your sales presentation. Just like location (as discussed above), the price signals the value of the product. If your product targets the high-end segment or can be considered 'premium', you can hurt your business in one way or other by under-pricing through insecurity of being able to sell. For instance, the retailer may raise his price and gain the profits you should, both of you will miss the opportunity for higher revenue or a quality-sensitive market will not buy as a low price may make them question its quality. Sometimes, it is wiser to start with higher prices as you can reduce them if necessary. You can not easily do the reverse. To establish this price more appropriately, use competition and reservation pricing methods (ie considering the highest tolerable price your market can bear) in conjunction with the cost method (that only considers covering your production costs).
4. Protect the profit potential of your wholesale buyers. Avoid detrimental forms of competition with and among your wholesale buyers. For instance, prevent price wars among retailers and with you by having a Minimum Advertised Pricing (MAP) policy for all authorized retailers of your product. Needless to say, you should also comply with this policy so as to never undercut those who retail your product. The earlier point regarding brand image and avoiding over-saturation also work towards this end.
5. Make the relationship as easy and flexible as possible. For instance, allow low minimum order quantities (MOQs) for new products and or markets. Retailers appreciate this very much as they need to monitor sales before committing to product they can not sell. Offer options for slow-moving products like product swaps (with you) or appropriate product bundling (with other brands in their store). Options like these for slow-moving products are particularly useful when products have a limited shelf life. It would not hurt to know your customer's fastest moving items and best sellers as bundling with those products may be useful for pushing your products if possible. One noteworthy consideration however is that custom products generally have a higher MOQ.
6. Demonstrate that you are a good match for your customer's brand. Do this with suitable products, all-important packaging and signals that, regardless of the size of your business, you have the wherewithal to maintain a reliable business operation. For instance, have appropriate policies that cover the points discussed here. More importantly however, before chasing after big retailers like chain stores, consider perfecting your business model with a few small one-man boutique companies. Your ability to generate sales and overall good performance track record will help in demonstrating your business acumen. Packaging helps to drive sales in retail and should not be handled lightly. For clues on what consumers like, consider the packaging of successful competitive brands. They continue to exist as testimony of what has been tested and ultimately approved by your target market.
1. Regarding packaging, case study the locations of your target wholesale buyers to see the packaging colors they use in the spaces you wish to have your product sold. Retailers often place competing brands with contrasting colors next to each other. If your product quality is in order, consider using colors that compete with a market leader. (See discussion about this at 14:32 in the video below)
7. Promote your best wholesale buying customers. This provides a great win-win situation as it is not only free advertising for your customer but also provides content and social proof for your blog or vlog.
8. It is cheaper and easier to keep pre-existing customers than to get new ones. So keep in constant contact and be very contactable with those you already have. Several ways include the following.
1. Use distribution lists like MailChimp mailing lists, Whatsapp groups, private Facebook groups, etc for disseminating (scheduled) newsletters. Your newsletters can announce new products, limited editions, tentpole marketing promotions, etc.
2. Use a Customer Relationship Marketing (CRM) system to easily identify inactive customers and reach out to them. It is an opportunity to remedy problems (like slow moving products, you can offer a discount for them to bundle using one of their faster sellers that you have listed in the CRM).
3. Have a contact center like a live chat service. You may even set up with triggers and automated responses (to frequently asked questions / FAQs) to minimize the customer service you provide on a daily basis. Additionally, live chat systems can also set up trouble ticketing services. This is especially useful for providing customers or their consumers a means for venting complaints to you rather than via social media and allow you can not only resolve the problem but also transform it into a competitive advantage. 
9. Offer a product mix that encourages "sales velocity" for retailers. ("Sale velocity" refers to how quickly product sales turnover within a given time). (See video below) Example(s)
1. Have a family of brands. (See articles on product mix and brand architecture).
2. Introduce new products at least once or twice yearly to remain interesting to your wholesale customers and, in turn, their consumers. Retailers face a lot of competition and seek the next exciting innovation. Use this knowledge to your advantage.
3. Offer multiple sizes that can be sold in different sections. Doing this may transform your brand into an overall higher sales velocity brand than otherwise. Different sizes may relate to seasonal themes, like travel sizes, back to school sizes and so on. Your sales pitch may include selling the idea that your product can be paired with other higher velocity products. Use different presentations as part of your sales pitch regarding the multiple places that your product can be placed. Example(s): the regular plastic tub of peanut butter was a competitively very saturated product. However, by packaging  it in various ways like single-use children units,  single use snack units and so on, non-leading brands were able to improve their 'incremental sales' because their products could better sell the idea of placing their product in locations with various themes, like back to school, point of sale impulse shopping counter and so on. Incremental selling involves finding ways of encouraging the sale of an extra item whenever possible. A classic example includes the small items placed at the cash register to trigger impulse sales.  
10. Provide promotional material as 'silent salesmen' that help sell your product at the point of sale. Depending on your target market's stage within your sales funnel (or your market's mental buying funnel), they may include messages that state the ethos of your business (for customers who are not yet familiar with your brand), unique value proposition (of the product), customer service QR code for FAQs (for new products), limited time offers, special price offers and so on. Materials include shelf talkers, wobbling shelf talkers, shelf talkers with tear off material (like for custom orders), window clings, point-of-purchase (POP) displays (to create very eye-catching display, usually in the form of assembled cardboard shelving placed strategically in stores). See how to create compelling point of purchase shelf talk messages. Consider offering these freely with first orders and or beyond certain order sizes. Be prepared to collaborate with retailers regarding placement area, type and message of shelf talkers, etc to compliment the brands of the product and the retailer. Retailers can also help by providing a profile of their customers and, if you can not get it yourself, images of their brick & mortar retail outlet. The image should make it apparent the ways consumers can move through the store and potential placement possibilities. See how competing brands are currently placed. 
    
     
11. Develop wholesale customers product knowledge base. This could help retailers to boost sales. Methods may include video infomercials, live webinars and information cards or web pages that they can bookmark.
12. Simplify and fine-tune the ordering process. For instance provide well organized product & order sheet, (automatic) order confirmations, straight forward and safe online payment process and order tracking.
13. Have convenient distribution channels and deliver as promised. Consider having a specific shipping day. If you do not meet the expectation, advise your wholesale customer immediately and delight them with something extra when you eventually ship.
14. Be trustworthy. Demonstrate your trustworthiness through the following.
1. Have transparent policies. Make the general terms and conditions very accessible to wholesale customers and employees.
2. Keep your promises. Anything that creates expectations should be considered to be promises you make to the market such as your unique value proposition, policies and product claims.
3. Be honest. Examples include highlighting when your product is unsuitable.
4. Comply with their Vendor Compliance program. For instance, when approaching retailers, do not only ask about the type of barcode they use but also ensure you buy barcodes that are authentic. Read about getting affordably priced barcodes.
5. Show competence. Master your skill so you can deliver desired results.
6. Speak confidently.
7. Really listen and show empathy. Steven Covey rightly explained that "most people listen with the intent to reply, not to understand... [thus, filtering messages through their biased frame of reference]." Overcome this tendency by trying to truly understand, shifting away from your own life perspective.
15. Make meaningful contact with retailers. When first approaching a company, it is usually more efficient to avoid vending departments and online forms if you approach the company's buyer for your product type directly. Ask around to find him or her name and contact details. If you only get the details of assistant buyers, treat relationships with assistant buyers particularly well especially since they often graduate eventually to being the main buyer. If you can not get your vendor alone, explore 'vendor days' that some businesses hold to allow vendors a time period of usually 20 minutes to pitch their products to their buying department. Research how and when you may participate. In fact, assistant buyers may be easier to reach and may help you to enroll. The disadvantage is that your competition will also be pitching on the same day and platform. Some large chain stores have local purchasing departments to cater to the unique needs of their location. For instance, a store in a sunny location may be receptive to products that are less popular globally like sun-clothing, eye shades, sun block and so on. Consider approaching local vending departments with location-specific products.
16. Contact the buyer with correspondence that incorporates as many of these points as they apply. Here is a sample letter.

Hello [prospect's name],

I found your contact details through [name of source]. If you do not buy stock for [the company], please forgive my error and advise the correct person.

I am [your name], the [co-founder / sales manager] at [your company]. We operate in the [x niche / y industry] and offer [name(s) of product type(s)]. Our brand is is renowned for [your brand's UVP / competitive advantage].

When is a convenient time for you to receive a quick visit from my seller to receive a free sample ... ?  /  Would you like to review a free sample of our [specific product by name] to see if you might be interested in stocking it, perhaps for those of your [employees / clients / customers] that [describe your product's target customer profile in a way that reflects your UVP____   Example: desire to deeply and thoroughly remove sweat, oil, grime and bacteria while leaving the skin refreshed for hours and without drying or otherwise damaging the skin]? 

Please find information about this product and company [in the attachment / via the link to an introductory video] below.

> [Specific product name], [Link: _specific product_, polices, process(es)]

If you are interested, please use [this number / the following contact details (email@email.com, link, +1-234-56780)] to advise when and where you wish to receive the free sample or first order.

Regards,  

[Your name, position / role]

 

PS. There is no minimum order quantity (MOQ) for the first order. Just in case you might be interested, some other products that may also interest you include the following [create a list of products below that represent products that are only indirectly or loosely related to the customer but might surprisingly interest the customer].

> [Specific product name], [Link: _specific product_, polices, process(es)]

> [Specific product name], [Link: _specific product_, polices, process(es)]

CONTENT RELATED TO OFFERING GOOD WHOLESALE BUYING CUSTOMER RELATIONSHIP MANAGEMENT

• Good customer relationship management is a worthwhile consideration for wholesale buying customers (as much as it is for consumers).
• Purchase decision
• What is your brand personality? Like retail customers / consumers, wholesale buyers will also trust, like and commit to a brand personality they see as compatible with which to have a relationship.
• Customer experience (CX) management.
• Minimum Advertised Pricing (MAP)
• See how to write compelling point-of-purchase (POP) shelf talker messages.
• Read why you may wish to offer compliant / authorized retailers peace of mind by registering them as 'additional insureds' on your product liability insurance policy.
• Example of 'Why Us' points that promise a good B2B customer experience.
• PROFIT PROTECTION FOR AUTHORIZED RETAIL SELLERS. Example(s): manufacturer will not set lower prices than those of retailers; Minimum Advertised Price / MAP policy to discourage price wars (some brands);  Exclusive distribution channels (some brands);   .
• CONTINUAL INNOVATION FOR YOUR CONSUMER ENGAGEMENT. Example(s): Special and limited editions (some brands); Continued market research to help retail sales strategy and to improve sales velocity.
• EFFICIENT & FLEXIBLE OPERATIONS. Example(s): Online orders; online payments; low minimum order quantities; authentic UPC or EAN barcodes.
• TRUSTWORTHINESS. Example(s): Shared core values; Transparent General Terms & Conditions.
• SUPPORT. Example(s): Free live chat with extended hours, email support, sales material, CRM communication like scheduled email re new releases, feedback box.
• CONVENIENCE. Example(s): Convenient distribution channels.
• PROMOTIONAL OPPORTUNITIIES. Example(s): Free advertising (Conditions apply).

Third party content

• Sharing market research findings with wholesale buyers (especially those who do not know you) can build trust. Some key KPIs include results regarding: 
• consumer willingness to pay for pricing decisions
• consumer ability to use packaging alone to quickly select suitable products (suitable to their segment) from a wide range of products
• Understand the world of your wholesale customers so that you can figure how best to fit into it. In the following video, note how you can improve your offering by demonstrating how you will help customers with their quest to encourage consumers to buy more, how they stock shelves and so on. For instance, if possible, by simply creating multiple sizes for your product, you can allow for your product to be sold in multiple aisles of a store. This was the case for peanut butter companies that struggled to compete with the leading brands until they offered small single-use kid sizes that could be stocked at the checkout section unlike before. This means that the product could promise your retailers a greater chance of higher sales velocity (something they are always nervous of, especially when adopting new products). 

            

CRM / Customer Relationship Management 101 to Grow A Business

Customer Relationship Management CRM Systems For Business Growth 101

Customer Relationship Management (CRM) is a business strategy that integrates 3 essential components; people (internal and external), processes and technologies. One CRM application includes managing a business' interaction with its current and potential customers. CRM is heavily driven by customer data. It collects and analyzes data (of all a customer's current and past interactions with the company) with the common specific aim of improving its relationship with that customer and, in turn, customer retention and sales growth. (This can be customized according to your business' unique value proposition).

A CRM system (like Zoho and HubSpot) is used in sales (and marketing) project management for tracking all interactions in one place. When kept in the cloud (ie on the internet), the CRM allows multiple virtual team members greater connectivity through real time access anywhere globally.

Uses & Benefits of Customer Relationship Management (CRM) Systems

• It allows a business to integrate multiple functional teams (sales, invoicing, etc), ie to have a '360 degree perspective' on the customer's experience (CX). This is so because all workers use one centralized space to log every contact with any single customer, from emails, scheduled meetings, phone to even offline activities. Specifically, each team and its members will have full access to the history of any single customer and know precisely where the business left off with a single customer, even if through another team. Ultimately, this allows you to provide a seamless and customized customer experience (CX). Since CRM also allows you to spot and merge multiple records created by different team members for a single contact, it essentially combines all of the bits of information from different locations to create a single, more complete record. In short, CRM can significantly improve your business' efficiency and customer experience (CX). Consider for instance how a sales representative can consult notes of all prior interactions before calling or responding to a customer. Perhaps that sales representative can avert a potentially bad sales day with a customer who has complained to another department over a product or issue that (s)he wanted to offer. Perhaps the customer is frustrated and on the point of attrition. With knowledge about a customer's history, the sales representative can make an appropriate and well informed decision on how to proceed with the particular customer.
• CRM tools can integrate different applications and even social media that you already use, the most common of which include Gmail, MailChimp, Facebook, etc. Consequently, it allows you to enhance your business' CRM-driven efficiency with added functionality (of each individual system). Regarding the social media integration, this also allows you to know every time your business is mentioned on social media. This therefore allows your business to respond very quickly to market sentiments.
• CRM allows you to monitor how correspondence ages and, in turn, recognize the health of your relationship with a customer in a timely manner. For instance, if a customer stops sharing information and responding as readily as before and slower than normal, you may need to work on maintaining the relationship. In fact, CRM task functions can be set to send reminders that ensure you are reminded of important tasks. For instance, you can create reminders for 'tasks' that send you email reminders when contracts are up for renewal and so on. It can essentially prevent aging of contact points.
• CRM can integrate pre-existing databases. For instance, you can import contact lists using a CSV file. See how to do this using HubSpot.

• 

  NB. HubSpot already has a list of preset field names (like first name, country, etc). In order to ensure HubSpot accepts your csv file with fields that are special to your field, edit the list of fields, called 'properties' in HubSpot before attempting to import your csv file.

• CRM is ideal for ensuring the continuity of a company after sales representatives are absent through vacation, retirement, termination, end of project and so on. This is possible because the data is managed in an already familiar (standardized) and accessible manner in a single place.
• Since CRM allows you to standardize and centralize all of your customer data, it is much easier to observe, make accurate management reports of, track and consequently respond strategically to market trends (like groups that respond better to certain marketing efforts, untapped geographic-related markets of hot lead, cash flow from weighted averages of the percentages on the sales pipeline, aging quotes, sales person activity to ensure salesforce is spending time in worthwhile places, etc). In turn, it also provides a better opportunity to grow your business than otherwise. For instance, CRM even allows you to monitor geographic market trends that you examine for opportunities.
• CRM offers tools that organize and track a business' sales process. For instance, you can spot the bottleneck points, ie where leads get stuck in the sales pipeline. In short, it can help businesses to identify and resolve operational issues.
• CRM allows you to automate your business intelligently. For instance, if someone visits your website and completes a contact form after business hours, your integrated CRM can send you an automatic email notification of this fact. Although this is already a common feature in contact form applications, if your market segmentation involves geographic location, the CRM goes further by establishing the lead's location as a means of determining who in your team must deal with the email and even incorporating an autoresponse email that assures the lead that someone will respond shortly. In other cases, based on the lead's contact form entries, you may even set up your CRM to quickly qualify your 'hot leads' and direct the notification as urgent to the correct person.

CONTENT RELATED TO CUSTOMER RELATIONSHIP MANAGEMENT

• CRM is the sine qua non that helps you to create a superior customer experience (CX)
• Encourage leads to easily book meetings using a HubSpot CRM schedulig tool. Preliminary meetings are an effective way of qualifying leads.
• Integrate incoming and outgoing emails to a HubSpot CRM, even without access to the HubSpot CRM account.
• Trouble tickets
• CRM is a key aspect of successful virtual team working
• What is your brand personality? Customers notice, trust, like and commit to a brand personality they see as compatible and with which they can have a relationship. Every touchpoint of your CRM must integrate your brand's personality in a consistent way.
• A CRM system needs one good coordinator.