People Buying More Blinking and Musical Print Cards
Reuters reports that American Greetings says there is more demand for bliking and musical print cards. Unfortunately, American Greetings says they are unable to make as much profit from these cards because of the cost.
Those kinds of cards cost more for American Greetings to produce, so the company nets less profit per card compared to a traditional greeting card that might quietly pronounce "I love you" without an accompanying musical arrangement.
"We had lower yielding sales, meaning we generated less income as a percentage of net sales. The lower yield was driven by more costly content and lower sell-through. As an example, we sold more cards with higher content-related costs, such as music, lights, and embellishments," Chief Executive Zev Weiss told investors on a call.
We probably are not too far away from card manufacturers using e-ink technology to create cards. The cost for these cards would probably lower the profit margins for card publishers as well.
