You might think of Anacortes, WA as an unlikely place for a new company to launch a variation on an old theme.  But that's what entrepreneur Patricia Carr has done with Scribulz.  The company began in 2007 with the idea of creating a product that kids could collect and trade, similar to the POG bottle cap phenomena from the late 1980s.  But that concept was too limiting, so Scribulz evolved into manufacturing a pretty nifty promotional item: a coin-like wooden token with a photo quality label that is reusable, eco-friendly and economical.  As part of our continuing series of interviews with VCs, entrepreneurs, marketers and other influential businesspeople, VOXUS asked Patricia to discuss her startup, how other small businesses might benefit from using her product and how she plans to take her company from Anacortes to Zanesville...and beyond.

 1) The fact that Scribulz coins are reusable promotional items makes them especially interesting.  In reality, though, what is the average percentage of coins that are returned to the purchaser?  How do you advise customers to best utilize this format of advertising (coins as coupons, as collectibles, etc.) in order to capitalize on the green concept?

The reusable aspect has been a real benefit to businesses.  In order to maximize the power of Scribulz, it is a joint collaboration in providing our creative medium with a powerful business message or offering. When this is accomplished, we see anywhere from a 10% to 100% return which cuts the initial coin cost each and every time they are returned. It's a great way to track your advertising investment and make design adjustments as needed.  Our highest responses have been from businesses that utilize their coins with aggressive discount offerings in conjunction with creative and colorful logos. We have also started to see an increasing demand to use Scribulz as business coins. Most business cards will be piled up with other cards or be thrown out, but Scribulz naturally sets individuals apart for a lasting impression. 

2) Who would you say is your typical end-use customer for Scribulz coins?  Since the product was initially conceived as a sort of trading card for kids, the design certainly has a childlike appeal – but what about business-to-business promotions?  How is Scribulz being used in this vertical niche?  Have you seen any synergistic partnering to use the tokens, such as one business giving away a product at another company (such as coffee)?

No such thing as a typical user with Scribulz! :) We do provide most of our current advertising services to small to medium sized businesses, but are expanding into entertainment promotions, fundraising and community events, and photography collections (pets, students, travel, etc.).  As far as synergy with businesses, we have run a successful tourist program with our Chamber of Commerce which was focused on having people shop locally. There were ~ 30 businesses that participated in customizing their own Scribulz and they were made available at the Visitor Center and Port/Marina. People were able to choose the coins they wanted to use and take advantage of great discounts on products and services.  Once redeemed at the local business, they would be circulated back to the two locations to be used again. The businesses would also keep some to hand out personally or give to other merchants to hand out on their behalf.  Another initiative underway is a local city “discount” coin that will be used at all participating merchants by locals. This will further enhance the cross-promoting aspect that will allow for businesses to share their customer base more freely in order to strengthen the group as a whole.

3) Right now, your customers are obviously located in the Pacific Northwest – but we noticed that you have salespeople beginning to set up service districts in other parts of the country.  Is your revenue model similar to franchising, or are these new sales regions being staffed by employees?  How do you do your manufacturing, via local printers?  And how is your viral marketing program working?

We started grassroots in growing our business locally in order to be hands-on with understanding the needs of our clientele. Since then we have ventured out into other parts of the country and beyond to spread the Scribulz offering. In order to continue to provide superior service, we are working with creative sales reps that understand their local communities.  Though franchising may be a natural choice, we are investigating other options at this time.  Our manufacturing process is covered under a pending patent, but all our wood coins, printing, and assembly is done in the good ol' USA.  We have realized along with many other small growing companies that viral marketing is powerful. We have only recently started down this path, but have received a good response so far.

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-posted by Rachel

Tags: scribulz