Kind of like the threads on Varsity Gold, it seems this thread -- if left unchecked -- is likely to become a compilation of thinly-veiled sales efforts, half-truths and rumors. Therefore, I will close it.
What we know:
It does appear (from our sources) that GiftCo has gone out of business, and it is definitely true that GiftCo is/was a major (perhaps the biggest) supplier to the industry, especially for the catalog/gift items that are such a popular option. (More below on how that works.)
I suspect this will lead to some issues, certainly for some GiftCo customers and likely for some parent groups, as well. I don't know what the status is of current GiftCo orders or whether fundraising companies that have been relying on GiftCo for 2009 products will have to retool their catalogs. But I suspect both could be issues. We'll try to learn more on that.
It's also true, as stated above, that GiftCo had credit policies that helped the economics work for some fundraising companies. In a different economic time, I imagine those companies could find other means of credit. Today? Ouch. We'll also see how that plays out.
Conclusion, it definitely makes sense for you to ask your fundraising company if they are a GiftCo customer and -- if yes -- to what degree and how it will affect your group and your sale. Could be the company gets only a small % of its items through GiftCo. Could be it gets a lot. Big difference.
Developing....
Tim
Extra aside for those interested.
So what role does GiftCo typically play? Fundraising is an interesting industry, especially the gift/catalog area. There are a ton of small-to-medium sized fundraising "distributors" who work directly with schools and groups. Think: "Jim's Fundraising" or the like (as opposed to the big national brand names). There are several in each region of the country and hundreds in total. Some take care of half a state; some stretch to 5 or 8 states.
And procuring all those hundreds of gift items (the NBA night light, the 8-in-1 screwdriver, the fridge magnet notepad) is a big undertaking. So rather than each of those hundreds of fundraising distributors all going to China and figuring out what will go in catalog this year, a "supplier" company (like GiftCo) does all that. And the distributors choose from GiftCo items for their individual catalogs. If you were to ever look carefully, you'd see that many catalogs have same items. That's because those companies both use the same middleman/supplier.
Have you ever seen a Sysco truck behind a restaurant? It's kind of like that. All these restaurants feel different, but there's a company like Sysco that helps make everything work. Sysco going out of business would be somewhat like GiftCo going out of business.
Having been in fundraising for over 26 years I have been preaching, no begging, that we change our ways. Stop marking up products to outrageous prices so you can offer 50% with sign up bonuses, it is killing the market as volume and participation continues to decline.
I wont list companies names like others but beware of some of the claims above, even those who import themselves can't gear up to supply a large increase in signings. As was said in another blog, orders were due weeks ago and it sure is a slow boat from China when getting product from there. It is great to say you are 83% american made but 80% of that is wrap there really is no good domestic supply of giftware.
Mr. jackson,
What percentage of your products are American made? What data do you use to compare all of the other companies out there to know if you have "the most American made products"? I just saw a post from Innsbrook that said 83% american made.
You may not recognize the name, but Giftco closed their doors today. Giftco was the major supplier of imports for the fund raising industry. How does this affect you? Almost all fund raising companies use their products. You have probably signed up with a company for next fall that used their items. You may have a problem. Many of those items shown in the catalogs will never be made. Some like Disney, Camp Rock were licensed through Giftco. How will fund raising companies now obtain those items? In addition, Giftco extended credit and generous terms for these imported items they produced. A company did not have to pay for these items until later in the fall. Now, companies will have to scramble to get goods made overseas and they do not accept VISA in China! companies will have to come up with thousands of dollars NOW to pay for these products.
Be wary of companies who will tell you that they can reproduce the Giftco imports by themselves. It will be hard, as orders were due overseas last month.
