Bar Codes: Do you need one?

A

Anija

The initial cost for getting your own UPC barcode is pricy: $750, and then an annual fee thereafter. This gets you 100 barcodes, which you are "renting" from the GS1 (originally the UCC). If you intend on selling your sauce in any store...your gonna need one. But, can you justify the price.

There are options out there. There is a loophole in the original UCC contract which actually gave numbers to their first customers. There are several companies out there that will sell single barcodes, with no annual fee. What's the catch? Besides some fly-by night outfits, I haven't found too many yet. The only one is that you are not listed as the manufacturer in some large databases. Is that bad? Not really. Most retailers enter this information into their systems as they acquire new products.

Remember, your UPC code is not in some worldwide database. It is merely a tracking number that stores can assign to you. A unique number. This is where the fly-by-night outfits and the GS1 will scare you. If your number is already assigned to another product, your product might just get rejected by the company you just got that contract from.

Here is some more reading, including a statement from the creator of the UPC.


Some Barcode history and information This site has lots of good info: I've just linked to the FAQ

George Laurer, Inventor UPC

While I have opted to buy just a few from a third party, you need to weigh the pros and cons. If we ever get a huge line of products, we may need to rethink this option. You will need a unique code for every strength, size and other variations of your product. If you do opt for your own UPC, be advised that the process can be lengthy.
 
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Great info! Thanks..
It is my understanding that a bar code isn't necessary unless a store requires that your product have one in order for them to keep track of inventory, or unless a company is planning on producing over a specified number of a particular product, then the bar code is required by law. The number is in the thousands from what I remember. I'm still green in this area, so if I'm wrong please feel free to give me the smack-down..just don't hurt me too bad.
 
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Truth is, to get your product into any large scale outfit, you will need one. Smaller shops will not require it. When we hit the shelves in Whole Foods, it was a requirement, same with our Canadian distributors.
 
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We have our barcodes but as of now we don't place them on our labels. When you buy them you don't just get 1 # you get a block of #'s which allows you to expand the line in the future. If requssted we can add them. With use of our friends digital label maker.
Now we just use the space to promote ourselves with phone # and web address. I think the threshold is like 100,000 units sold before it is required. unless like was stated before the customer requires them.


Mick
Kato's
 
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kato said:
When you buy them you don't just get 1 # you get a block of #'s which allows you to expand the line in the future.


Mick
Kato's
Click to expand...

Yup, when you buy them from GS1, the official UPC vendor, you do get a block of numbers. The beginning numbers are your manufacturing "prefix". The companies that sell "after market" UPC, assign you one of their numbers from their block.

Small shops may not require a barcode, but it would really suck if you couldn't get into a store because of it. That is why we got the two "cheapies". Makes us look legit, too. :lol:

We're going for the Whole Foods / Wild Oats stores, and other "high end gourmet" shops, so this was important...and (warning: OT subject) why we can't use Strong Steven (the hot paprika from a previous thread) in our new product. It has a "banned" stabilizer (But that's a different topic!)
 
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imaguitargod said:
Thank you! Throw as many ideas at me as you want...as long as they are not attached to bricks...
Click to expand...

John:

When it's time to get a UPC code, don't do what most people do. They spend the $750 to $850 going directly to the company that has a whole crap load of bar codes. This company is not a government agency. They are a "make money company". They bought litterally millions of bar codes years ago and when you drop the $750 to $850, you are actually leasing up to 100 bar codes. YOU DO NOT OWN THEM. There are other companies, that I use, that actually sell you the bar code. YOU OWN IT. No one initially needs a hundred bar codes. This company makes you pay an annual fee also. Most folks don't know the history or real deal with bar codes and end up throwing money away. I pay $40.00 per bar code and own it forever.

Blue's
www.bluesbbq.net
 
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[quote name='Blue's']John:

When it's time to get a UPC code, don't do what most people do. They spend the $750 to $850 going directly to the company that has a whole crap load of bar codes. This company is not a government agency. They are a "make money company". They bought litterally millions of bar codes years ago and when you drop the $750 to $850, you are actually leasing up to 100 bar codes. YOU DO NOT OWN THEM. There are other companies, that I use, that actually sell you the bar code. YOU OWN IT. No one initially needs a hundred bar codes. This company makes you pay an annual fee also. Most folks don't know the history or real deal with bar codes and end up throwing money away. I pay $40.00 per bar code and own it forever.

Blue's
www.bluesbbq.net[/QUOTE]
Great advice Blue, thanks!
 
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Where did you purchase your bar code?

Blue said:
Now the Yes answer.[/B]
According to George Laurer, the inventor of UPC, if the company joined the Uniform Code Council prior to August 28, 2002, the Uniform Code Council's membership and licence agreement did not contain any prohibition against subdividing the numbers. The four companies in the United States that are issuing single UPC numbers are Simply Barcodes (www.UPCcode.us), www.buyabarcode.com, www.upcexpress.com and legalbarcodes.com.
This appears to have been a side consequence of the class action settlement reached December 15, 2003 in the Superior Court in and for the state of Washington, county of Spokane.

You have to remember also, if you get huge and start selling to major big box retailers there are issues with sublet barcodes.
"...the bar codes will not be able to be used at either Wal-Mart or Kroger's. This is due to their application process and not to the actual functionality of the bar codes. In the application process for these 2 stores only, they require a copy of your GS1/UCC certificate with your own company's name on it. None of the resellers of bar codes, can provide you with this document. If you intend to sell your product at either Wal-Mart or Kroger's, you must purchase your bar codes directly from GS1/UCC to get that documentation. The bar codes will work at any other stores in the world but these 2 stores." Isn't that a pain in the ass?

So it appears you have purchased your UPC from one of the companies listed above and they are "subletting" the UPC to you. I'd check the verbage on your contract just to make sure you "own" it outright. Not that it matters, for all intents and purposes, you do own it.

Again, I'm not an authority, but my previous employ has provided me with some insight on the dark scary world of UPC's.

This info and lots more can be found at Bar Code 1. It's basically the same information taken from the GS1 Canada literature that I quoted above.
Click to expand...
 
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Wow...very good info Uncle Big. We actually joined the GS1-US over a year ago. After doing a lot of research (wish you would have posted this a year ago) we feel it was the investment we needed to pursue. We where leary of buying from a small company because at the time we where worried if the company didn't renew we would be without UPC's. Another deciding factor was that we supply local Kroger stores with our product. Again, good info!
 
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BigDawg said:
Wow...very good info Uncle Big. We actually joined the GS1-US over a year ago. After doing a lot of research (wish you would have posted this a year ago) we feel it was the investment we needed to pursue. We where leary of buying from a small company because at the time we where worried if the company didn't renew we would be without UPC's. Another deciding factor was that we supply local Kroger stores with our product. Again, good info!
Click to expand...

You're welcome for the info Big Dawg.
I just thought posting it here and providing the link, newbies and small market fiery foods makers would have it as a resource.
I actually came across it in another post on THP just now so it might be redundant, but oh well.
The Wal-Mart and Kroeger thing is very important to keep in mind, because you may start small, but you never know who might try your product and want to add it to their listing.
Some big box stores or co-ops still have their own individual purchasing departments depending on the size of market and you could get into a big chain, at least on a small scale, before you know it.
Better to be prepared for it before you blow up big time and find out you sh*t the bed on a big sale by not following "the rules" before those rules even applied to you.
In business you can sometimes avoid the "20/20 hindsight" by taking in as much information as possible at the beginning and planning for world domination from the get go.
Look at Creator from Defcon, that's his motto, and some people might say it's cocky or corny, but it's a realistic goal if you believe that it is possible from the day you start out. He's doing on hell of a job so far. I hope we can help him melt the frozen tundra of Canada a little bit more by distributing Defcon north of the border for him. It's working so far, we're getting great response to a great product.

:lol:
 
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Uncle Big said:
In business you can sometimes avoid the "20/20 hindsight" by taking in as much information as possible at the beginning and planning for world domination from the get go.

:lol:
Click to expand...

That is kinda what we did when we started...Told ourselves we where going to have fun but take pride in doing things right the first time. Would research everything 100% before jumping in. Learned all the FDA rules, bought UPC's, Nutritional facts, Food Process License,including even the small things like always getting health permits for all events, then sat back and watched the health inspectors shut everyone else down at the events but us.

Now thanks to forums like THP, and the awesome people who have fiery food companies who love to help out, people can learn a lot of the does and donts of the industry. Makes it a lot easier than when we first started. Still a competitive fire out there, but great and successful families always have friendly competition. Sorry Rambling...
 
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Uncle Big said:
Better to be prepared for it before you blow up big time and find out you sh*t the bed on a big sale by not following "the rules" before those rules even applied to you.
In business you can sometimes avoid the "20/20 hindsight" by taking in as much information as possible at the beginning and planning for world domination from the get go.
Look at Creator from Defcon, that's his motto, and some people might say it's cocky or corny, but it's a realistic goal if you believe that it is possible from the day you start out. He's doing on hell of a job so far. I hope we can help him melt the frozen tundra of Canada a little bit more by distributing Defcon north of the border for him. It's working so far, we're getting great response to a great product.

:lol:
Click to expand...

i think we all start to get in the market to get this kind of response Uncle Big, if not why we doing it....yes have a fiery product is good, but have a great product is the ultimate answer..!!!
We all love what we do, pro or amature..but to survive we have to make products that people really love and different that anyone also. I would never produce a salsa that is similar to pace or big dawn....My is a signature product that people love because is unique taste and consistency........
just my 2 cents...:)
 
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Uncle Big said:
Look at Creator from Defcon, that's his motto, and some people might say it's cocky or corny, but it's a realistic goal if you believe that it is possible from the day you start out. He's doing on hell of a job so far. I hope we can help him melt the frozen tundra of Canada a little bit more by distributing Defcon north of the border for him. It's working so far, we're getting great response to a great product.

:lol:
Click to expand...

Oh stop it Uncle, you're making me blush :).

As I had stated in a previous post, our mission is slow but steady growth. It avoids the ever-present "growing pains", and allows complete control. Yeah we're growing, and on a steady basis, but we check the thickness of the ice before taking each step. So far, so good.
 
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Uncle Big said:
Blue's
I used to work for GS1 whose umbrella the UCC now falls and all barcodes originate with that GS1 group. I'm not an authority on this sh*t or anything, but here's what I retained from my years with GS1 literature.

"Issuing single bar codes isn't a black and white issue (no pun intended).:lol:
Can someone sell a barcode one at a time? YES and NO.

The No answer first.
If a company joined the GS1-US (fomerly the Uniform Code Council (UCC)) after August 28, 2002, the UPC company number cannot be rented, leased, or further subdivided, according to the UCC.
This is directly from the UCC:

"The UCC Company Prefix is for the sole use of the applicant and is a restricted asset of the member to whom it is assigned. Any other use of the number is prohibited, including but not limited to, renting, leasing or subdividing all or a portion of the UCC Company Prefix. Upon the sale of a division or a product line, the Sales Agreement should specify which of the parties to the transaction would have use of the UCC Company Prefix. Only one company may use the UCC Company Prefix."

The UCC Company Prefix is a limited asset of the member. The member, however, does not have complete freedom with regard to the prefix; they must be used within our guidelines. As long as the UCC Company Prefix is active, the company is a member of the Uniform Code Council, Inc. Therefore, a company cannot cancel membership and continue to use the UCC Company Prefix.

Teresa Truscelli Director, Customer Service Uniform Code Council, Inc."

Now the Yes answer.
According to George Laurer, the inventor of UPC, if the company joined the Uniform Code Council prior to August 28, 2002, the Uniform Code Council's membership and licence agreement did not contain any prohibition against subdividing the numbers. The four companies in the United States that are issuing single UPC numbers are Simply Barcodes (www.UPCcode.us), www.buyabarcode.com, www.upcexpress.com and legalbarcodes.com.
This appears to have been a side consequence of the class action settlement reached December 15, 2003 in the Superior Court in and for the state of Washington, county of Spokane.

You have to remember also, if you get huge and start selling to major big box retailers there are issues with sublet barcodes.
"...the bar codes will not be able to be used at either Wal-Mart or Kroger's. This is due to their application process and not to the actual functionality of the bar codes. In the application process for these 2 stores only, they require a copy of your GS1/UCC certificate with your own company's name on it. None of the resellers of bar codes, can provide you with this document. If you intend to sell your product at either Wal-Mart or Kroger's, you must purchase your bar codes directly from GS1/UCC to get that documentation. The bar codes will work at any other stores in the world but these 2 stores." Isn't that a pain in the ass?

So it appears you have purchased your UPC from one of the companies listed above and they are "subletting" the UPC to you. I'd check the verbage on your contract just to make sure you "own" it outright. Not that it matters, for all intents and purposes, you do own it.

Again, I'm not an authority, but my previous employ has provided me with some insight on the dark scary world of UPC's.

This info and lots more can be found at Bar Code 1. It's basically the same information taken from the GS1 Canada literature that I quoted above.
Click to expand...

Simply Barcodes

595 Piedmont Ave.
Suite 320-220
Atlanta, GA 30308

404-885-6066
877-768-4977

Very good company. Tech support if you would ever need it. They also send you proof of ownership of your bar code. They purchased blocks of codes before the UCC was started. They've worked great for me for almost 2 years.

Blue's
www.bluesbbq.net
 
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