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Feature Article: November 2006 Issue

 

19¢ Equals Big Card Profits
Quality, consistency, value and innovation propell Stockwell Greetings upward.

Stockwell Greetings principal & chairman, John Fenwick, constantly hears customers talk about the price of his company’s full line of greeting cards. But, of course, they are not complaining about paying just 19 cents per card for the ultra attractive line. At a price point like that, who would? Instead, they offer a confession rarely admitted in business

“A lot of retailers say, ‘You know, I’d gladly pay you 50 cents apiece for these greeting cards because of what I think of their quality,’” Fenwick said. “Yet, we at Stockwell Greetings really like the idea of one price for all. It doesn’t matter what the buyer decides to retail them at in the end. If they make a lot of money at it, good for them. We just think our one price policy is honest.”

Fenwick co-founded the now 13 year old company, www.stockwellgreetings.com, after he had spent a decade honing his skills in commercial art, design and production. Co-founder and photographer, Judith Gillman, president was equally important in the company’s launch and rise in the card niche. In the last two years, the Fenwick & Gillman partnership has produced a 70 percent sales growth.

“Our success is due to honesty, consistency and quality,” said Gillman, from the firm’s 30,000 square foot headquarters in Chicago. “People always know where they stand with us. There’s no wheeling and dealing.”

To be clear, the Stockwell Greetings success story isn’t only about the 19 cent price model. The eye catching uniqueness of the product line itself deserves as much credit. And this may be where the teaming of Fenwick and Gillman is most significant. He had manned design work for greeting card manufacturers, while she had worked the photography scene for a plethora of commercial niches. Due to their experiences, they each have a seasoned instinct to know what looks tasteful, as well as the common sense to understand what will fly off the rack.

“We both have it ingrained in us that quality always sells,” Fenwick said. “If you create something of quality, the rest of the process will follow. Before we started, we thought there was so much garbage on the market that we decided to print and sell our own greeting cards. What we’ve found is that retailers not only agree with our price, but store customers also love what they see in our designs. We wanted to create something of top quality that was also affordable, and we’ve been able to accomplish our goal.”

In the beginning, back in 1993, it was not easy for upstart Stockwell Greetings to turn prospective retail partners into instant believers. Many questioned the credibility of the super low 19 cent price before they became customers. However, their skepticism eventually would be transformed into audible rings of the cash register.

“One of our biggest challenges has been educating retailers in terms of what we are all about,” Fenwick said. “There was a lot of mistrust about the price tag. They’d be very suspicious of it because it was so affordable. We’d say, ‘Give us a $50 order and you’ll see.’ So, they’d give us the $50 order, and they’d just be amazed.”

StockwellGreetings.com

You would be hard pressed to find another manufacturer, wholesaler or distributor who had a website up and running as early as 1995. Without question, Stockwell Greetings was well ahead of the curve. The firm was in tune with the vast sales and marketing potential that a virtual catalog could have across the country and around the world, before most people knew it was technologically possible.

At first, www.stockwellgreetings.com was simply a helpful tool for customers to learn about the company and see its product line. Nowadays, orders can be made directly at the website by clicking through to www.wholesalecentral.com/stockw0001/store.cfm or via a phone call. Site users can also read helpful hints to aid them in selling cards in slower times like summer, and find advice on products for all seasons.

“Online customers can find us, learn about us and reach us 24 hours a day, seven days a week,” said Fenwick. “Thirty percent of our orders are now placed directly through the website. But even more tellingly, about 50 percent of our total business is originated at the website. A lot of people do their research at Stockwell Greetings.com and then place a call. We get orders from all over. It’s kind of fun. We get orders from France, England, South America, Mexico, the Caribbean, Canada, you name it.”

One of the many impressive features at the website involves the ability to view cards up close. For instance, a birthday card can be double clicked to produce what will be an 8 inch by 7 inch popup box on most computer screens. The viewer can click a right or left arrow to rotate the card in order to see the inside design (imagery and copy) as well as the backside art. Once all features of the card are seen, you can review other designs without closing the box. You can examine a whole card line within the framework of the pop-up.

Laura Fenwick, John’s sister in law, director of internet development, captains the technology behind the Stockwell Greetings.com ship. She’s currently working on a new self hosted storefront, as well as a system that will greatly improve the firm’s ability to update product. Both aspects will be put in place during the first quarter of 2007.

“Laura is an Internet genius,” John Fenwick, said. “She’s made the website so much more effective over the years. Laura has made it easier for our customers to find what they want. If they need holidays package deals bam! There they are, easy for people to find. The navigability is better, and the security is top notch.”

It should be noted that free site membership is available to retail and wholesale customers by simply signing up for a username and password. In recent months, the two leading product lines have been the fun and kitschy, “Humorville,” cards and the religiously oriented, “Heavenly,” brand. The company offers free freight for all orders over $50. Average wholesale tickets at the site even out around $150. Once again, there’s no strings attached to the order. It is still 19 cents per card.

“Our customers know what to expect at the time of purchase,” Fenwick said. “Our cards are packaged by the half dozen, which breaks down to $1.14 per box. So if you buy 100 six packs, you know it’s $114. And we give away free freight. So there are no surprises. We are always trying to put ourselves in the shoes of our customers.”

Who is profiting from this great offer? Stockwell Greetings’ 4,500 customers include a wide array of shops (which are regularly kept up to date on new arrivals via email). Specifically, urban chic stores, card boutiques and discount outlets make up a good portion of the retailer demographic.

“Because of the quality, companies often sell them for around $2.25,” Fenwick said. “The greeting card industry has changed from what it was four years ago. Lots of retailers still think that if they are going to retail cards for $2 to $4, they have got to pay $1 per unit. But the Internet is helping many of them find better deals on great products like ours.”

Creativity Drives Future

Although Stockwell Greetings currently carries approximately 2,000 different cards, the company is constantly adding fresh designs to existing categories and creating new lines altogether. This seemingly rigorous, ongoing process is no big deal for Fenwick and Gillman. Making art has always been second nature to them.

“We are always designing, always creating, it’s kind of ingrained in us,” Fenwick said.  “When I was a child, I always did artwork. My first job was at an ad agency, and I went to a commercial art school. Sometimes people ask, ‘Where do you get your ideas?’ I always tell them, ‘Artwork is all around you. You just have to keep your eyes open.’”

Gillman added that being active in the creative process also serves as an inspiration to provide the best customer care in the industry. She said the personal investment produces a greater sense of pride in company operations.

“It’s our own artwork. It’s all of our doing,” she said. “To co-found a small business and watch it grow and call it our own is gratifying. The response we get from our customers is gratifying.”

Indeed, Stockwell Greetings understands the needs of mom and pops stores that go up against the Wal-Marts of the world. The smaller players need the highest quality gift cards at the best price (19 cents) in order to compete. Because of this reality, there’s a buzz about Stockwell Greetings around the industry.  

“Quite a bit of our marketing is word of mouth,” Fenwick said. “But we’ve also had terrific luck in finding independent retail customers through WholesaleCentral.com,  advertising with Sumner Communications and through trade shows.”

When those customers place a sales call, they are served by reps either in the Chicago office or around the country (depending on the customer situation) who have decades of experience. Many of the reps are former greeting card distributors who closed down their warehouses because they wanted to join the Fenwick and Gillman team. They are dyed in the wool greeting cards salespeople.

“We have a guy in Minnesota who has been selling greeting cards for 40 years,” Fenwick said. “We have people in New York who have been selling greeting cards for 20 years. They have a large pool of experience. We have been very fortunate with that. They offer great value to both us and our customers because they understand the market.”

For more product information, contact:

Stockwell Greetings, Inc.
5410 West Roosevelt Road
Chicago, IL 60640
Angel: 800-701-3599
Paul: 877-886-6888
Laura: 877-313-4653
Rose: 877-416-2273
Website: www.wholesalecentral.com/stockw0001/store.cfm
or www.stockwellgreetings.com

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