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Wednesday
Oct082008

China Clarifications

OK, I just read your comments on Monday’s blog, and I want to clarify a couple of things. 

First, we are not thinking about opening up a market in China for selling at this point in time. The regulations in place for direct selling are so different there than most other countries, it’s just not possible for us right now. Maybe someday, but not anytime soon.

Second, I will always choose US-made products whenever feasible. Just last year I opened our new rubber stamp manufacturing facility to produce our core product--not overseas--but in Kanab, Utah. For years, I bucked the notion of going into China for product, but there came a point a few years ago when it became very evident that if we wanted to stay in business, we would have to make that move. That is the reality of doing business in today’s world.

Even today, when we choose manufacturers, we look at more than price. We look at quality, shipping time, order quantities, and other issues. We don’t always go with the lowest bid prices. In addition, there are some products that we can’t even get anywhere but China. And other products made in the United States whose quality is so inferior that we couldn’t in good conscious offer them to our demonstrators and customers. 

Our decision to hire staff members in China was based on two main desires. First and foremost, we wanted to ensure that the products we are getting from China met our standards of quality and safety. Steve and Fayer will do onsite inspections—inspecting both the facilities and the products that are manufactured in those facilities. We have not had that ability before. We’ve always inspected products once we’ve received them here, but we have had no control over the environment where the products are being produced before.

Second, currently we are working through third-party vendors who are brokering the manufacture of these products, and we are paying premium prices (which are still much lower than the prices we can find anywhere in the United States, by the way). If we can work directly with the manufacturers, we can negotiate lower prices when possible and better control the quality. 

We have hired people we know and trust, and people who have years of experience. We brought them over here so they could understand more completely our culture and our commitment to quality and safety. Steve and Fayer are not consultants; they will not be working for any other companies. They are working exclusively for Stampin’ Up!, and they are completely dedicated to us—and our demonstrators and customers.

I hope that clarifies some issues. I understand the concerns you’re expressing and thank you for your honest feedback and concerns. I am proud and honored to be associated with people who genuinely care about the world around them. 

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References (3)

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  • Response
    All companies exporting products or services to the European Union (EU) may someday be contractually required to have ISO certification to sell into the market. Even today, contractual requirements are finding their way into purchase orders for products manufactured in Japan, the United States and elsewhere. Currently, the requirement for ISO ...
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    safety action
  • Response
    ISO 9001 standard is not product specific and can be used by a wide range of manufacturing and service companies. Long time ago, I saw a flag-size poster on a theater in Singapore bragging about its registration to the ISO 9001 standard. One of my European colleagues recently mentioned that he ...

Reader Comments (31)

I love that we inspect the manufacture conditions of products from china, if more companies did that sweatshops would be a thing of the past!
October 8, 2008 | Unregistered CommenterZarna
Shelli I for one thank you for your prompt attention to the concerns of some. I also hope your realise that not all of us feel the same - or maybe I am the odd one out. I think also the latest happenings with production of things in China has blind sided some.

To be a competitive business these days you sometimes have to source products from other places and to run a business effectively you need quality products at a competitive price and this would means sourcing from china. It is good that you have found Fayer and Steve to do some of your legwork for you and us.

I have seen many times demonstrators from all over complaining about pricing yet they dont want things produced in other countries - You cant have it both ways.

I feel too now that Stampin Up is an international Company with many providing for different markets its only logical that not all products will be made or sourced in USA. I also know that when there is a problem with a product and it doesnt meet your high quality standard then the product is removed from sale until such time it does meet your standard and this to me shows you not only care about what you sell but you also care about what the customer receives and I cant see you relaxing your standards which is something I am proud to use as a selling point to my customers and I know other companies do not have this high regard of their customers or products.

Again, I thank you for your genuine honesty and prompt reply to the concerns of many
October 8, 2008 | Unregistered CommenterLeonie Schroder
Hi
Thanks so much for clarifying those issues for us!
I really enjoy being associated with SU - it is a company that truly cares for customers and demonstrators!
Congratulations on your 20 year anniversary Shelli! The company has come a long way! All the very best for the next 20!
Lisa Martin - Down Under :)
October 9, 2008 | Unregistered CommenterLisa Martin
Shelli..

Thank you so much for taking the time to clarify some of our concerns. Me not being the business woman you are cannot truly understand the process you have to go through. By you answering our concerns has clarified this for us.

SU is truly a great company to work for. I have NEVER had a problem with the quality of any item I sell to my customer and know that I can stand by our products..!!!!

You are truly an amazing woman and to take the time to answer our concern solidifies my view of you.

Hoping to speak with you at the Virginia Beach Regionals.

Terry Molineux
Shelli, YOU ROCK! Thanks for EVERYTHING!
October 9, 2008 | Unregistered CommenterSHH
Thanks Shelli for the info. Makes more since now. I think a few of us didn't take the time to think about things before we responded in a negative way. To be honest I was one to be on the negitive side but now that I have stopped to think and for you to explain in more detail, I am still proud to be a su family member.
October 9, 2008 | Unregistered CommenterPam Renico
Thank you for clarify things for us. I still can't believe what a busy lady you are!
October 9, 2008 | Unregistered CommenterTwila Davis
You are so kind and generous to offer clarification to those who were upset or confused as to our new Chinese venture...I never doubted you for a minute...and your concern for those who posted yesterday just makes me love ya even more! You're the best!! If more CEO's were like you we'd all be in a better place right now...

((()))reen
October 9, 2008 | Unregistered CommenterMaureen Stivala
Makes perfect sense. Your Great! Stampin Up! is amzazing, and I think that the company has it's priorities straight. Thanks for informing us. :)
October 9, 2008 | Unregistered CommenterJustine
Shelli- thanks for your candor and honesty in answering the questions and concerns that were brought up in the last post. I appreciate your position and always trust that you will do what is best for this company and the demonstrators. You've been a great leader for last 20 years and I know you will continue. Thanks for all you do. I very much appreciate this forum to get to know more about you and the company. Amy
October 9, 2008 | Unregistered CommenterAmy Ward
Hi Shelly,

Thanks for the clarifications. As a demo, who happens to be Chinese by the way, I'm glad that we're taking pro-active steps around quality control and trying to find the issues earlier in the manufacturing cycle. This latest news to me means "words in action", meaning that the SU philosophy is we not only say we demand quality products and offer superior service, but that you are demonstrating steps to ensure that, for both customers AND demos alike. Thanks!
October 9, 2008 | Unregistered CommenterCarol Kwong
I must say even tho you did back pedal a bit and clarify things- going to China for product is atill a move away from the US. With the state of the country this signifies much more than just having eyes to help with bragains. Cheap is not always effective. Even if you start small, the cheap aspect will lure you away from the safety and I beleive that those NOT living in the US and exposed to US regulations by nature have different standards of product. We wee it with every major company that does business in China. The poor standards are passed down no matter what the level of control. I would hate to see a recall in our products or worse, a safety concern.. Just the kinda thing that makes me go Hmmmmm.
October 9, 2008 | Unregistered Commentershar
Gosh Shelli........celebrating 20 years with such a fabulous company...you should be sooo proud. I know I am......and interestingly, having being a demo for just 2 years I guess I trust ALL the business decisions you make. Very wise to employ in China for the specific purpose of being the people with their noses to the ground where our products are sourced. I think there are some who need to read the packaging very closely on many of their (non SU!)craft purchases and perhaps put away their fears and have a litte faith!!!

Long live SU!!!!!!! Congratulations on reaching this great milestone - no great surprise really. I am very proud to be associated with the most impeccable company I have ever dealt with!!!!!
In today's global economy you just gotta stay competitive. I like everybody else love to see US made products BUT if SU!'s competitiveness depends on reducing costs then you just gotta do what you gotta do. I just hope we end up seeing those costs stabilize dare I say go down? For a sec I thought you may be opening another distribution center that would get orders to the east coast alot quicker!!! (**wink**wink**) Had to throw that in there. Anyhoo...Happy Birthday! I'm going to stick around for the ride!
October 9, 2008 | Unregistered CommenterOlga
I admire your honest and eloquent clarification. Thank you for sharing your business and personal journeys...no matter where they are.
October 9, 2008 | Unregistered CommenterTammy
Shelli,
You truly do amaze. I've known companies where to openly question the decisions of the leadership was a sure fire way to get demoted, fired, or made miserable enough to quit.

You are one class act! I am proud to be associated with a company such as Stampin Up!
October 9, 2008 | Unregistered CommenterJudi Parker
I want to say thanks for clarifying Shelli and giving people the chance to really understand what your first post was about.

I think some people are forgetting that we live in a global economy, and Stampin' Up! is not just an American Company any more. Australia, New Zealand, England, France, Germany and Canada all have an interest in what happens with Stampin' Up!.

While I think it's hugely admirable to want to buy US made products (many people here in Australia, want to buy Australian made as well, we now even have logo's on our foods identifying what is ausssie ownwed and made) it's not always feasible or desirable to do so.

Although I've haven't met you (yet!) Shelli, I wholeheartedly trust in you and know that you would never do anything that wasn't right for Stampin' Up and it's demonstrators as well as customers.

I'm all for cheaper pricing if you can maintain the fabulous quality that people the world over, know SU! is famous for. I would love, love, love to pay a little less than double the US price for my stamp sets.
October 9, 2008 | Unregistered CommenterHolly Carruthers
Thanks for the info - my only conern was quality due to recent news about China, but I certainly trust you and StampinUp to do what's best. I appreciate the quality of SU products over most of the retail products. I want my gift giving to be made from quality products that I can be proud of. Thanks!
October 9, 2008 | Unregistered CommenterElizabeth
Gosh Shelli,
I was so sad to read all those negative comments and people threatening not to but SU! I am 100% behind whatever decission you make, im sure it will be for the best! I hope the negative comments didnt get you down. You have one VERY happy Aussie demo here :)
October 10, 2008 | Unregistered CommenterKristy Young
I appreciate you taking the time to clarify your earlier statements. I think SU is a wonderful company and have never has quality issues with anything I have purchased or sold to a customer. On the other hand, I personally would be willing to pay a little more for merchandise produced in the USA. I have a hard time buying Chinese made products due to their lack of human rights as well as the communist issues.
October 10, 2008 | Unregistered CommenterJoy Willinger
Shelli,
You shouldn't even have to justify yourself or your actions.
Knowing you (I feel) on a little bit more of a personal level, having been with Stampin' Up! for all these many years, I know you always try and do the right thing, no matter what the situation.
You are as genuine as they come!
Congratulations on your 20th year anniversary! You've come a long way baby!
Love you,
LINDA
October 10, 2008 | Unregistered CommenterLINDA GUTIERREZ
Miss Shelli it is hard to please everyone. But the most important thing is that the company is committed to manufacturing its stamps in the US and is also committed to purchasing the highest quality w/ the best price point available.
October 10, 2008 | Unregistered CommenterElizabeth
I am so delighted to be associated with Stampin' Up! I am proud that there is so much care given in the manufacture as well as the acquisition of third party products that are offered by Stampin' Up! It's great to know that this company genuinely cares not only for itself, but also for those who make it a success-whether it be designing, manufacturing, marketing, demonstrating these fine products, or any level in between.
October 10, 2008 | Unregistered CommenterLynnette
I guess some people were not aware that the companies that manufacture things like paper punches (for ALL companies) and most crafting tools, are made overseas- the Sizzix dies are made overseas... most of our tools that have our name on them are made by companies who make for other companies too- they just put SU's color/logo on them.
I look at this bond with China like a form of "quality control" and applaude SU for taking this step. We need that.
Please support our ink, rubber and paper mills in the US. Thank you for your time.
October 10, 2008 | Unregistered CommenterRebecca
I just want you to know that I totally trust your judgment about what products come from other countries. It is unrealistic to believe that everything a company offers can be made in the USA. I always support US made products, but also know that some things ARE inferior, no matter WHERE they are produced! I know that you are doing what is best for the company, the demonstrators, and the customers. My trust is in YOU and your advisers...I have confidence in your decisions. I believe that your hiring the two new employees will be a definite asset to SU. THANK YOU FOR ALL YOU DO!!!
October 10, 2008 | Unregistered Commenterdiane mcvey

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