Update: When we updated our SDK license we eliminated the ad-supported model in favor of the more popular ‘fee’ based models. This was a mistake, LOTS of folks like the free barcode scanner license model – we are adding BACK it as a fifth option.

Earlier this year we publicly released the barcode scanner SDK (ScannerKit) that powers ShopSavvy. We have hundreds of licensees including Consumer Reports, Walmart/Sam’s, FastMall and PriceGrabber. Our original license required that licensees include our AdOn ad framework in order to use the ScannerKit. Hundreds of you have requested an ad-free option and we decided we would change our licensing model to meet your needs.

I am pleased to announce we now have four ‘ad free’ options for licensees in addition to the ad-support model. Beginning today using the ad framework is 100% optional. General commercial licenses cost $5,000. Retailer licenses cost $5,000 and require the retailer to provide a product feed for use in ShopSavvy. Startups who have been in business less than a year and raised less than $250,000 can defer the $5,000 fee for 12 months. Finally, students and/or schools who want to license the SDK for non-commercial use can use the SDK at no cost. Here is a run down:

– Commercial Use: $5,000 upfront payment due prior to public release
- Retailer Use: $5,000 upfront payment + product/price/inventory data feed
- Startup Use: $5,000 payment deferred for 12 months
- Student/School Non-Commercial Use: No payment due (proof required)
- Ad-Supported: No cost as long as you include the Ad Framework for the life of the app

Licenses executed prior to December 13th, 2010 are still enforce and will be honored. If you are a current Licensee and wish convert to the new license please contact Alexander Muse at 214.550.2003.

On 11/22/2010 we began the Walmart User Gen Contest. We offered the first person to add 1,000 products from Walmart a free Macbook Air. Lots of you participated and one of you won. Nathan Chiu, who just happens to be from Dallas, was the winner. He stopped by today to pick up his prize and pose for a picture with the guys:

(Nathan is in the middle)

If you see a book wrapped under your Christmas tree I would be willing to bet it is a copy of George Bush’s Decision Point. We have seen a LOT of scans of the book. Turns out a lot of those scans turned into sales as Bush has sold more than 2,000,000 copies in the last month. Wow. To put this in perspective Bill Clinton’s memoir has barely sold that many in the last six years! Don’t tell anyone we told you.

I have noticed several product photos in ShopSavvy have been replaced by pen & ink drawings of the associated packaging. Very cool. Anyone can change the photo of a product by taking a photo OR selecting an image from the image picker. Of course, there are a few (well maybe more than a few) trying to insert inaccurate or offensive pictures (the offenders are pretty ‘sticky’ and while they can change their own version of the app, their changes don’t impact other users. Anyway, whoever is doing the pen & ink drawings – keep it up – we love your work.

Most of you assumed it would never happen (I was beginning to agree), but Microsoft has finally released ShopSavvy for Windows Phone 7. After much wrangling and negotiating with Microsoft they have decided to release our app WITHOUT live scanning for the time being. They have their own ‘tag’ app that uses live scanning and I think they want to give it a headstart before allowing ShopSavvy to go full-on live. Anyway, the app looks pretty cool (full on metro styling) and will give you the same results that the iPhone and Android versions provide. It is definitely a 1.0 version – i.e. not 4.0 (like iPhone and soon Android), but it is a good start. You can download it now from the Marketplace.

We think QuickPay 1.0 and the upcoming 2.0 version of the feature could drastically change consumer behavior when it comes to offline to online purchase conversion. IE Market Research projects that purchases made via cellphones in the US will exceed $40 billion by 2014 – that is a BIG opportunity. In fact even today, Amazon is seeing great traction with their mobile apps – more than a billion in revenue in the past 12 months. What if an application (say ShopSavvy) offered the same sort of functionality, but allowed consumers to buy the same product for less from ANY/EVERY other retailer? We think QuickPay will do just that.

Amazon recently released their version of ShopSavvy. It makes it easy to scan barcodes and find the item on Amazon. Several folks asked if we were worried. The answer is – of course – I am always worried. The truth is I think Amazon is worried. Why do I think that? Well first, Amazon cut off our access their API last year. This was a little surprising and didn’t seem to make much sense. Then they made a half-hearted offer to buy us, but in reality I think wanted to see our data (we didn’t share it). Now before you jump to the conclusion that I don’t like Amazon realize that I am a huge Amazon fan; as proof my family bought 80% of our Christmas gifts from the site.

The biggest reason I think Amazon was worried was the simple fact that more than 96% of the time they do NOT have the lowest price on a particular product. In fact, out of 3,171,490 products our users have scanned, Amazon was the cheapest option 123,174 times – 3.8% of the time. QuickPay allows a user to buy a product with just a few clicks – just like the Amazon app, but the difference is that the user can buy the product from the cheapest retailer – not just through Amazon. We believe QuickPay is going to be big – very big.

Remember our partnership with PayPal? Our4.1 release (submitted to Apple yesterday) includes QuickPay with PayPal. With QuickPay you will be able to buy items from participating retailers without leaving the app. Much like the Amazon app, but from ANY retailer. Here is a short demo:

Here is a partial list of participating retailers:

Dell, Children’s Place, ABT Electronics, American Eagle, Armani Exchange, Baileys, BarristerBooks, Batteries.com, Bluefly, Cigar.com, CompSource, Disney, Edwin Watts Gold, Electrique Boutique, PetCareRX, Tech For Less, CameraWorld, RitzCamera, Wolf Camera, NCAA, Burton – more coming soon.

For almost two years if you scanned a grocery item with ShopSavvy it wasn’t a sure thing we knew what it was, but it was a sure thing we didn’t have local inventory and prices for the product. That is changing. My favorite water is Fiji and represents 2% of bottled water sales in the US. Before November I would scan Fiji and I might get a price from Amazon or Sams.com – but never a local price. Check out this screen shot from ShopSavvy. Check out how many local stores we have here in Dallas – 17! We only have 3 online prices. This is a first. I am really loving our users – you all are monsters. Keep scanning!

If you have your spouse is likely working on our latest ‘deal’ from the Deals tab in ShopSavvy. Users who scan all of the items in their fridge, add them to a grocery list AND share that list with us have a chance to win a $250 shopping spree (deal ends 12/25/2010). Whats in your freezer? Let us know and you might win.

Here are a couple of lists from Tereda and Matthew I just got in my in box. Can’t wait to see what you eat:

Our QR code program with Walmart is just starting to rollout on a national basis, but I wanted to tell you about a New York City only QR code scavenger hunt that begins next week. We are pretty excited that Neatorama and Mental Floss are sponsoring a QR Code-based scavenger hunt in New York City that leverages an important feature of ShopSavvy – QR scanning.

The grand prize is a new Ford Fiesta and will be awarded to the first person to scan all four QR Codes spread throughout the city. The event starts at 11AM on Tuesday 12/21 at four different locations – the Upper East Side, Upper West Side and in the East and West Villages. The starting locations will be announced via twitter @neatorama and @mental_floss at 10:30 that day.

When participants arrive at the first location, they will need to scan the QR code with ShopSavvy to get the clue for the next location. Including the starting point, there will be four stopping destinations altogether. Monitors will stand by each of the codes to make sure they are not defaced, so that the next people to come along can continue the hunt. Although only one person will win the Fiesta, prizes will be given out by monitors throughout the event. Have fun and let us know if you win!