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A suggestion made in the December 1998 issue of The Crafts Report has bothered me for some time, but I never got around to writing to you about it. Now, the May issue has arrived, and it too contains a statement that I feel needs comment. So, here are comments on two separate topics that The Crafts Report articles have addressed.
The article "Tips for Pricing" (TCR, December 1998) reads, "You can price your work according to the market to which you are selling ..." This may be true if you are selling your work retail or on consignment. However, if one is selling work wholesale, then all wholesale customers must be treated exactly the same. All wholesale customers must be charged the same price for the same item. This is federal law as enacted by the Robinson-Patman Act (see "The Crafts Business Encyclopedia" by Michael Scott). Whenever The Crafts Report publishes articles on pricing, I feel it is important that this federal law be mentioned. For example, the article, "Power Marketing with a Computerized Mailing List" (TCR, April 1999), suggests increasing sales at a show by offering a 10 percent discount to previous buyers. Legally, you cannot do this if the buyers are wholesale buyers.
Beyond this law, I have found it poor business practice to sell the same item to different customers (wholesale or retail) at different prices, even if the customers are in different markets. The world is often smaller than we think. Inevitably, such pricing comes back to haunt you when two customers, who you never in a million years dreamed would encounter each other, compare notes, and one ends up feeling cheated.
On another topic, a sidebar in the article, "Project Aims to Protect Craft Artists from Imported Knockoffs" (TCR, May 1999), states that when establishing copyright, you cannot use the official © on an item until it is registered with the U.S. Copyright Office. I believe this statement is incorrect. It contradicts every book, article or pamphlet I have ever read on copyright, including those sold by The Crafts Report or distributed by the U.S. Copyright Office. Please check on this fact!
I have read The Crafts Report for many years, and usually find the articles helpful and accurate. Please continue to offer good business advice by making sure all the articles are as correct and complete as possible.
Kristie Sherrodd
Sitka, Alaska
Editor's note: We appreciate your letter, and want to clarify a few things in regard to the Robinson-Patman Act: U.S.C. Section 13 - Discrimination in price, services, or facilities:
"(e) Furnishing services or facilities for processing, handling, etc. It shall be unlawful for any person to discriminate in favor of one purchaser against another purchaser or purchasers of a commodity bought for resale, with or without processing, by contracting to furnish or furnishing, or by contributing to the furnishing of, any services or facilities connected with the processing, handling, sale, or offering for sale of such commodity so purchased upon terms not accorded to all purchasers on proportionally equal terms."
In the first article you mentioned, the author is referring to craft shows, stores and galleries as different markets. In the very next sentence, he points out that within each separate market, prices must remain consistent. This is in full agreement with the Robinson-Patman Act.
The act was designed to prevent discriminative pricing leading to unfair competition. Further, it does not prohibit "special sales or other price reductions, as long as all customers buying the product under special conditions are treated equally," as is stated in "The Crafts Business Encyclopedia."
In the second article you mention, the author is talking about special sales for repeat customers as an incentive for them to buy more. This is a popular and effective practice, and as stated above, fully within the boundaries of this law.
On the issue of the use of the copyright symbol, you are correct, and we apologize for the misinformation and any inconvenience it may have caused. The following is correct: "The use of the copyright notice © is the responsibility of the copyright owner and does not require advance permission from, or registration with, the Copyright Office" (Source: U.S. Copyright Office).
JULY 1999:
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