%$#%Barcodes!
Tuesday, 18
September 2007
It all began while talking to a bushfood processor
who bemoaned the cost of getting barcodes - something
like $2000 which would have given her 1000 codes, around
800 of which she didn't need.
I wondered how small business actually overcame this
'barrier to entry' and put the question out on the
informal bushfoods email list. I got the following reply
from Martha Shephard:
"We decided not to take this route - who needs 5000
barcodes anyway? Most native food producers could do
with a dozen or less. There is an online shop to buy
barcodes. While it is more expensive per code, you can
buy 3, 6, 12 or however many you need. We bought 6. We
own these, and there is no further subscription fee.
They simply send you the camera-ready art by email.
Worked fine for us. If anyone is
interested...www.buyabarcode.com."
This got me interested in barcodes generally and how
they worked and where you could get them and why there
was such a striking difference in cost.
First of all, if you want to sell to a major (or even
minor) chain, you have to barcode your products -
otherwise they won't get through the check out.
So the next obvious question is - what sort of
barcodes are there?
The type of product you're selling and the market
you're selling to will dictate what sort of barcode you
need.
Retail stores tend to use the UPC/EAN barcode.
Factories use the Code 128 barcode.
If you are printing small barcodes then the best
barcode to use is Code 128. If your barcode will be used
in retail stores then you will probably need to use the
UPC/EAN barcodes. This probably applies to most
bushfoodies.
And how do you get it?
Australia has a cross-industry organisation called
GS1 Australia that allocates barcode numbers.
There is a charge to join ($550) plus an annual fee
of $1,030.00 and $155.00 GST or $1,738.00 in total.
For this money you get a unique GS1 company prefix
(your ticket to international trade), 1000 barcodes and
a host of other services. Martha's method was looking
pretty good but then I came across the Gripon site.
Gripon are an Australian barcoding and POS site
(http://www.gripon.com.au) and they gave this
warning:
"Gripon Australia will not sell barcode numbers as we
do not believe it is ethical. We recommend that
customers join GS1 Australia to get their barcode
numbers.
There are internet companies who will "sell" you one
barcode. Be aware that these companies are not allowed
by their GS1 registration terms and conditions to sell
you one of their allocated barcodes.
They cannot give you a certificate of registration
from GS1 in your company name (which is required by the
large retail chains to authenticate the barcode). The
uniqueness of this barcode only remains whilst whoever
you bought it from maintains their GS1 membership or
until GS1 cancels this membership because they are in
breach of the terms and conditions.
Whilst EAN/GS1 membership may cost the equivalent of
say 20 single barcodes bought from sources such as these
online barcode sellers, you need to consider the
following.
What is the cost to your company's reputation if you
are forced to re-label all of your goods?
What is the potential real $ cost if one of your
customers starts selling another product with the same
EAN number. The official GS1 member will be fine but the
other party will have to carry out a recall, then
repackage and possible reimburse the store (remember the
scanning code of conduct you see at the checkouts).
If your product range and coverage in stores
increases (as I am sure you hope it will) then you will
end up joining GS1. All of your packaging etc you have
already done will be wasted and will need to be
redone.
Considering the cost of having your packaging done
and submitted for approval to the retailer. They then
ask for the GS1 membership certificate (which you don't
have) either initially or thru the regular supplier
audit process they carry out. You now must have your
packaging redone, join GS1, and then say goodbye to any
money you have already paid.
Be very aware of your risks involved in buying one
barcode on the internet."
Phew! Suitably worried, I thought I'd better visit
the buyabarcode site and see how they answered all
this.
Their front page is littered with specials - you can
buy one bar code for $US35 plus a once only set up fee
of $US65 = $US100. Additional bar codes cost $US35 each
and they had 3 bar code special for $US150 and a 6
barcode special for $US225.
I wondered how they did it so went to their 'About
Us' page and found the following (note, this refers to
US barcodes):
"Most people go to the Uniform Code Council to buy
their barcodes. Then pay the $750 or more to join and
then purchase the software that will allow them to
generate the code. So the prospect of getting a bar code
can sometimes lead to tears.
In 1999, Eric Jacoby, a fledgling entrepreneur
decided to figure out a better way. Subdivisions was
born.
Going to the Uniform Code Council himself, he joined,
paid the dues, received his barcode prefix number,
bought the software, figured out the printing issues,
and read all of the fine print in the U.C.C. manual. To
his surprise, after doing his homework, he realized that
with his barcode prefix he could generate 100,000
12-digit UPC bar codes that would all be unique. And by
selling these UPC bar codes one at a time, he could make
life easy for anyone out there who only really needs a
few bar codes at best.
Well, he says he's read the U.C.C. manual and found a
genuine loophole and it seems to be working for the
Shephards, so why would anyone pay the extra?
Next - putting barcodes on your
product. The software, the hardware, the
design... |
Industry
