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Your Business Commentary

Mike's often irreverent, thought-provoking analysis of the industry-- with an occasional guest columnist.

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Provo Responds Again To Charges

The Salt Lake Tribune's article is "irresponsible..

by Cathy Davis, Provo Craft and Novelty (January 15, 2007)

(Note: The Salt Lake Tribune reported on the controversy surrounding the sales and marketing policies regarding Provo and its Cricut line. CLN reported on the Tribune article in the current – 1/15/07 – issue and asked Ms. Davis, Director of Corporate Communication and Training, for a comment. She responded with the letter below. To read the Tribune article, visit www.sltrib.com/search/ci_4969590.)

Dear Mr. Hartnett,

I would like to begin by thanking you for the opportunity to respond to Mr. Dolan’s claims. It is refreshing to see our media partners providing us the opportunity to offer accurate facts before false information is printed. The irresponsible reporting of the Salt Lake Tribune served only to perpetuate the falsehoods that Mr. Dolan has been making.

We would like to go on record saying that Mr. Dolan’s claims are unfounded. He has made accusations that are untrue and consequently have an negative effect on all those involved.

Since its founding in 1963, Provo Craft has not only stood by our commitment to deliver innovative products to benefit retailers’ businesses, but has also been equally committed to the core value of integrity. At no point in time would Provo Craft ever intentionally mislead or deceive any of our customers. Furthermore, since the implementation of our Minimum Advertised Price (MAP) policy, Provo Craft has worked to uphold and enforce this policy unilaterally and without exception. There have been many questions concerning why different retailers are allowed to sell products for certain prices. It is important to understand that Provo Craft does not have any influence over the price products are sold for. Our MAP policy covers certain forms of advertising on particular products within the Cricut line.

Since the launching of the Cricut Personal Electronic Cutter, the worldwide response to this innovative new product has been simply incredible. While this demand has not come without its challenges, we continue to look for ways to improve and enhance our partnership with each of our customers. We understand the concern that is felt by our independent retailers when trying to compete in such a competitive marketplace. We are truly committed to looking at ways we can assist them in their endeavors. It is discouraging to know that there are other retailers who are responding to the call for a boycott based on false information. We will be providing exciting opportunities for independent retailers to grow their businesses and it is truly unfortunate that some may not have the benefit of these opportunities.

Sincerely,
Cathy W. Davis
Director of Corporate Communication and Training
Provo Craft and Novelty, Inc.

(Note: To read previously published material regarding the controversy, click on "Vinny Da Vendor" for an interview with Ms. Davis, and "Benny Da Buyer," retailers' reaction to the interview. To comment on Ms. Davis' letter, the Tribune article, and the overall issue, email your thoughts to CLN at mike@clnonline.com.

xxx

 

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