Michaels Increases Gypsy Promotion

Michaels has increased the value of the promotion that they are running with the purchase of the Cricut Gypsy.

It appears that Michaels and other retailers are restricted from discounting the price of the Gypsy, so Michaels is using the classic retail tactic of “discounting” it by providing more value for the $299 MSRP they have to charge. (This is a similar pricing tactic to the one used in the HSN promotion for the Gypsy launch, where the Gypsy was bundled with a large number of accessories for the $299 MSRP.) The new Michaels promotion, effective until 10/31, includes a huge bonus of Cricut points (a total of 800) and two free Solutions cartridges via mail-in rebate.

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Provo Craft Launches Cricut Gypsy on HSN

At Midnight on the 24th, Provo Craft went on HSN for what was described as the “worldwide launch” of the Gypsy.

The Gypsy has actually been available for pre-order at Michael’s since August 15th. Those orders were supposedly available for pick-up on the 24th, and the Gypsy will be on Michael’s shelves on October 4th. Other retailers will be able to start selling the product during the second week of November.

Provo Craft’s Jinger Adams presented the Gypsy package, which was the limited deal of the day. The package’s regular HSN price was listed as $349.95, but the day’s introductory price was $299.95. The hosts kept pointing out that $299 was the MSRP for just the Gypsy and its accessory sleeve, and that when the machine comes to stores it will be a coupon-excluded item.

Gypsy HSN packageThe package had an MSRP of $483.96 and included: the Gypsy, slipcase, HSN-exclusive carry case, various power, computer & cartridge connection cords, car charger, two full-content cartridges that are exclusive to the Gypsy, and the Don Juan cartridge that previously was only available on the Cricut Create machine.

Buzz about the Gypsy launch was all over the social media sites as midnight eastern approached on the evening of the 23rd. Scrapbookers on Facebook and Twitter were talking about their excitement about seeing the product demonstrated on-air, and about being able to buy one. On Twitter, at least, all this excitement had apparently unexpected effects for the company’s PR efforts.

On Twitter, Provo Craft was directing people to a TweetChat room where all the tweets tagged with the hashtag “#gypsy” would show up to facilitate communication and create a community event even though all the attendees didn’t follow each other on Twitter. So many Cricut fans were tweeting using the #gypsy hashtag, however, that the tag made the list of trending topics that appears on each Twitter user’s profile page.

Experienced Twitterers can predict what happened next: spammers who didn’t understand the meaning of the hashtag and thought it sounded possibly less family-friendly than it was started using the hashtag to get their messages seen by the people who were using searches and tag monitoring. And many of those spammers’ profile pictures and tweets were NSFW (geek to english translation – Not Safe For Work: meaning containing adult content). Understandably, this didn’t sit well with the online Cricut swarm (or should it be band of Gypsies?)

Spam Complaint
It didn’t seem to completely the disrail the evening’s festivities online but certainly put a damper on them for many participants. The frustrating thing was that most of the spam was coming from only a few accounts, and if Twitter were closer to “real time” in banning spammers the problem would have disappeared before it really disrupted the event.

After the midnight to 1am hour, Provo Craft’s Twitterer said that they sold over half their available stock for the day in that first hour. After several more scrapbooking segments in the next 12 hours that featured the Gypsy package, the noon hour segment began with the announcement to viewers that there were only 680 units remaining. The package was sold out by 12:40pm.

By my count, the HSN event makes the fifth “debut party” for the Gypsy. There were 3 such events the week of CHA-Summer – the online unveiling, the evening invitation-only Gypsy Gala in Orlando, and then the unveiling in the booth the following day. Then there was the buzz the day that pre-orders started to be accepted at Michaels stores, and now this HSN event. There will be a couple more big days in this promotional schedule too, when they Gypsy arrives on Michaels store shelves and is released for general sale. You have to hand it to Provo Craft. They certainly know how to build buzz around an item and sustain it for awhile. Other than the misstep early in the campaign when the response to questions that arose over how the device worked were somewhat bungled, this marketing program has to be judged a textbook example.

People are talking about the Gypsy, and initial demand was good for the item. The question is will that demand for a high ticket item be able to be sustained leading into the holiday season in a poor economy? The answer to that will be of interest to many companies in the industry beside just Provo Craft, because it has far-ranging implications.

Provo Craft makes Gypsy FAQ available; HSN to get Gypsy

Provo Craft has made a very comprehensive FAQ available on the Gypsy website that answers pretty much all of the questions that I have heard asked about the Gypsy (and some that I haven’t).

The Gypsy FAQ discusses in detail the computer compatibility of the device, how the cartridges work with the device and with Cricut machines, and even hints at future plans for the expanding the Gypsy’s capabilities. If you are planning to or are considering buying a Gypsy to use with your Cricut, the FAQ gives an excellent overview of the device’s capabilities and usage.

And if you don’t want to buy it at Michaels, according to the FAQ there is another place that you will be able to get it on the 24th of September – shopping channel HSN.

Michaels Gets Gypsy For 30 Days

Michaels announced last week that they will be selling the Provo Craft Gypsy exclusively starting on October 4th. They began taking pre-orders for the device last weekend, and the pre-orders will be delivered in late September according to what a representative for Michaels told Scrapbook Update.

Of course, the big question for both consumers and other retailers is how long the device will be exclusive to Michaels for. October is already creeping into the start of the holiday shopping season, and Michaels would be unlikely to discount much for the holidays on a hot product that they had an exclusive distribution deal on. And of course other retailers are going to want a chance to capture a part of the holiday market for the buzzed-about device for Provo Craft’s popular Cricut (also a popular holiday item).

According to a statement issued to Scrapbook Update by a representative for Provo Craft, the Gypsy will be exclusive to Michaels for only 30 days and will be available in other stores starting the 2nd week of November. This means that it should be widely available at other retailers before the official start of the holiday shopping season at Thanksgiving. It will be interesting to see if there is a Gypsy sale war on Black Friday the weekend of Thanksgiving since it would be expected to be a hot seller for the holidays.

Of course, even the 30 day exclusive deal on the Gypsy release for Michaels is a blow to other scrapbook retailers since it will soak up the first frantic buying frenzy for the product.

Michaels & Provo Craft News Briefs

For Friday, here’s a couple news briefs related to Michaels and Provo Craft:

Michaels to hold Back-To-School event

Michaels will be holding a back-to-school event in all of its stores tomorrow (Saturday, August 15th) from 10am-1pm. Kids from age 5 to age 12 are invited (while supplies last) to decorate metal pencil boxes to help them prepare for the return to the classroom this fall.

Home Depot Gets The Cricut

Yet another big box store is getting the Cricut – only this time it’s not a crafts store. Home Depot has started to carry the Cricut Expression Home Decor Bundle and a selection of accessories for it on their website. The focus of the store’s offerings is on the machine’s wall decor capabilities, with a variety of colors of vinyls and the cartridge selection mostly alphabets.

Michaels Gets Exclusive On Gypsy

Customers who are waiting anxiously to get their hands on Provo Craft’s new Gypsy tool for the Cricut machine are going to need to look at Michaels for it. According to Michaels, it will be available exclusively in their stores starting on October 4th. Michaels stores will begin taking pre-orders for the tool tomorrow (Saturday, August 15th). Scrapbook Update is waiting for word from Michaels on how long the tool will be exclusive to them, and will update the story when that information is received.