Barcodes Demystified - these are excerpts from our eBook.
Message
from Phil Peretz, president of Nationwide Barcode.
I appreciate our
clients and hope that you will consider us for all of your UPC
barcode needs.
There is a lot of information on the internet about barcodes...some
of it is fact and some of it is misleading. I pride myself in taking
a straight no-nonsense approach to business and pride myself on
never steering anyone wrong. Don't be fooled by the so-called
official sites or "recommended by the Washington Post" guys. This is
all hype.
We are marketing, graphics and merchandising guys. We know how
important it is to get a barcode that works in order to get your
product to market. We also know that you need these quickly, so,
Monday thru Friday...we have same day service. (If you place your
order over the weekend, you will get them early on Monday)
Introduction to Barcodes
There are two types of barcodes for retail products, UPC – Universal Product Code and EAN -- European Article Number. We are going to focus on the 12-digit UPC-A barcodes since they are the most common and these are easily readable everywhere.
Wherever you go, the grocery store, department store,
on line at Amazon or your own refrigerator or pantry, you’ll find that
everything that you purchase has a UPC barcode on it. Sometimes they are a
little hard to find, but if you flip the package around, it’s there.
In this book, we will demystify UPC barcodes so that you have a better
understanding of how they work.
A barcode is an optical machine-readable representation of data. The first
use of barcodes was to label railroad cars, but they were not commercially
successful until they were used to automate supermarket checkout systems, a
task in which they have become almost universal.
Systems such as RFID are attempting to change the standard, but the
simplicity, universality and low cost of printed barcodes has limited the
role of these other systems. It costs less than one-half of one cent to
implement a printed barcode compared to seven to thirty cents to implement a
passive RFID.*
George Joseph Laurer developed the Universal Product Code in 1973. As an engineer at IBM he was asked to develop the pattern used for the Universal Product Code (UPC-A Barcode).
GS1, which used to be called the Uniform Code Council (UCC) is the provider of UPC barcode prefixes. A company goes to the GS1, they purchase the prefix and then are responsible for the self-assignment of the identification numbers that go after the prefix.
The Barcode prefix, the first 6, 7, 8 or 9 digits, is called a UPC Barcode Prefix The company who has been assigned the UPC Barcode Prefix is responsible for the assignment of the next digits (making up a total of eleven digits) to their products.
Then, as the barcode number is designated, the last number is mathematically determined through an algebraic equation to create a checksum (check digit). This check digit is the twelfth or final digit. When you join GS1, you get a prefix certificate along with your start-up package.
As far as we know, there are only a small handful of companies that require a copy of this certificate: Kroger’s, Walmart/Sam’s Club and Macy’s.
Unless you are specifically going to do business with these three chains, you have the option of using a company that is legally able to subdivide their barcode prefix.
The GS1 maintains the database of UPC Prefixes. It is our opinion that, although this database is conceptually a great idea, and has to be maintained, it is virtually ignored, unknown and unused.
Retailers input information from product data sheets filled out or given to them by their suppliers. The supplier gives the retailer the product information including the barcode based on the complete 12 digit code and the retailer enters it into their point of sale system.
There are no formal centralized databases of product barcodes. Using the mathematical formula x=1110 there are potentially 10 billion products that can be represented by UPC-A barcodes at any given time.
This, more than anything else, explains why there is no centralized database of products. No one has the bandwidth, energy or resources to catalog something this massive.
There is nothing programmed into a UPC barcode. The bars only represent the 12 digit number that is the barcode. The retailer associates these 12 numbers with the product information. This information is pulled from the retailer’s database when a product is scanned.
You have two choices when you need to buy a barcode or block of barcodes. You purchase directly from the GS1 (They charge a minimum of $750.00 plus a yearly renewal fee) or you purchase from us or a company like Nationwide Barcode (www.nationwidebarcode.com) .
Nationwide Barcode and similar companies received their prefixes in the 90’s or early 2000’s
In 2002 GS1 attempted to codify the agreement with UPC
Barcode prefix holders which included renewal fees. The codified agreement
included rules that were in the form of a contract which included not being
able to subdivide a barcode number. Prior to this, there were no signed
agreements with any prefix holders including Multicom Publishing.
The GS1 decided to change the way they were doing business. They started
sending out renewal notices insisting that the prefix holders pay renewal
fees and agree to the new terms and conditions.
Ultimately a class action suit was levied against the GS1 in the state of
Washington and the GS1 lost. All prefix owners prior to August 28, 2002
became exempt to the GS1’s renewal fees and new codified agreement.
Quoting the UCC Settlement web site:
This Settlement provides that companies who became members of UCC before August 28, 2002, are not obligated to pay membership renewal fees to UCC to maintain membership as a condition for their use of Company Prefixes issued to them by UCC, or as a condition for Basic Membership Benefits as defined in the Class Settlement Agreement. Class members who have paid a renewal fee to UCC are entitled to compensation from a $3,895,000 settlement fund. The settlement also provides that the "licensing agreement," which accompanied UCC renewal fee invoices, is null and void as to those who became members in UCC before August 28, 2002. **
Quoting George Laurer, “Often I am asked if a person that purchases a number from a subset seller will have legal problems in the future. Again, I am not a lawyer, but if the number was originally assigned to the seller by the UCC before August 2002, the answer is no problem.”**** Nationwide Barcode is one of the companies deemed legitimate by George Laurer. www.laurerupc.com
The decision to go with the GS1 or Nationwide Barcode (or a company similar to Nationwide Barcode) is a matter of economies of scale. GS1 charges an upfront fee and a yearly renewal fee based upon the number of 12-digit barcode numbers that you need along with your company’s revenue. The more you make, the more the barcode prefix will cost you, and this amount can increase over time. We believe that the GS1 is a great organization, they provide a tremendous service, however, for a small business with a limited budget, a Barcode Subdividing company makes the most sense.
* Text provided by Wikipedia and is available under the Creative Commons Attribution/Share-Alike License. http://en.wikipedia.org/wiki/Barcode ** http://www.ibcaweb.org/ucc-settlement.htm *** http://bellsouthpwp.net/l/a/laurergj/UPC/renufee.html (page on George Laurer’s website) **** http://www.laurerupc.com (George Laurer’s site)
Anatomy of a Barcode
The UPC symbol has two parts:
The machine-readable bar code The human-readable 12-digit UPC number
The manufacturer identification number is the first six digits of the UPC number -- 753182 in the image above. The next five digits -- 95342 -- are the item number. The GS1 also supplies 7, 8 and 9 digit manufacturer numbers as well.
A person employed by the manufacturer, called the UPC coordinator, is responsible for assigning item numbers to products, making sure the same code is not used on more than one product, retiring codes as products are removed from the product line, etc.
Typically, every item that a manufacturer sells, in addition to every variation of the item requires a different item code. Since the barcode is also used to track inventory, it is important to have a different barcode for each of these variations. Using shoes as an example, a man’s oxford shoe may come in Black, Brown, Cordovan, each in sizes, 9, 10, 11, 12, 13 and 14. Each of these variations (3 colors x 6 sizes = 18 different products)
Leading Digit and Check Digit
The first digit of the manufacturer's identification number is special. It is called the number system character. The following table shows you what different number system characters mean
0: Standard UPC number 1: Reserved 2: Random weight items (fruits, meat, vegetables, etc. 3: Pharmaceuticals 4: In store marketing for retailers (a store can set up unique barcodes for themselves, but no other store will be able to read them) 5: Coupons 6, 7 Standard UPC number 8: Reserved 9: Reserved
The last digit of the UPC code is called a check digit. In the case of our example, 7 This digit lets the scanner (and the computer attached to it) know if the number was scanned properly or not.
The first 11 digits are a combination of the prefix and the numbers assigned to a particular product. The final check digit is a mathematical algorithm weaving through the first 11-digits
The number at the far right is the check digit. In this case, it's a 7. If you want to compute the check digit for a UPC-A Barcode in Excel, do the following: Put the 11-digit number you want to compute the check digit for in cell A1.
Put this formula in cell B1 (you may need to remove the space where
before the 1st and 2nd line)
=10MOD(MID($A1,2,1)+MID($A1,4,1)+MID($A1,6,1)+MID($A1,8,1)+MID($A1,10,1)+(MID($A1,1,1)+MID($A1,3,1)+MID($A1,5,1)+MID($A1,7,1)+MID($A1,9,1)+MID($A1,11,1))*3,10)
Put this formula in cell C1: =if($B1=10,0,$B1)
Put this formula in cell D1: =CONCATENATE(A1,C1)
The number in C1 is the check digit, the number in cell D1 is the complete barcode number with check digit.
There is no hidden data built into a barcode, there is no pricing information, there is no product information. The bars represent only the 12-digit number. The way that it works is: The manufacture affixes the barcode to the product. The retailer inputs information about the product into their back-end computer that controls and communicated to all of the store’s Point of Sales systems (cash register). The customer brings up their purchase to the front counter, the item is scanned and the POS system communicates to the back-end system pulling the information about the product. The info is printed on the sales receipt, the price is charged and then, the items are deducted from the store’s inventory.
What is a Coupon Code?
he coupon code starts with a 5 to indicate that it is a coupon, then the next 5 numbers are positions two through six of the company prefix, the next three digits are the family code. These are assigned by the manufacturer to group products within a family of products. A family would be shoes – all sizes or colors, Vitamin Water (different flavors), etc. The next two numbers are the value code. In the case of the example here, 01 means buy two, get one free, and then, the last number is a check-digit
If you want more information about coupon codes, go to www.couponpros.org
Barcodes for Greeting Cards
here are two different ways to create a UPC barcode for Greeting Cards.
1) Some manufacturers use a standard 12 digit UPC code, same as any other product. This allows the retailers POS system to completely track inventory. Our recommendation is that you use a different barcode for each variation of card. This gives the most detailed information to the retailer when they track sales. Some Greeting Card manufacturers also use one barcode for each variation of price. This will convey the information to the retailers point of sale system but will not give accurate inventory tracking
2) UPC code with add-on. A 12 digit UPC barcode is used for each design type and price point, then, for store and your tracking, a 5 digit add-on is added to the end of the barcode. If you are a manufacturer of greeting cards, please call us and we'll work with you. Since these are all custom built barcodes, we do charge a little (very little) more. Here's an example of the UPC barcode with add-on. Inventory will need to be counted by hand at most retail stores if you use this method. If you use the Barcode with add-on, you will need to coordinate with the retailers to do a physical count of your cards. This style of graphic is an option and will require an extra charge from us to create your unique barcodes.
Shipping Container Barcodes
A Shipping Container Barcode is used on the outside of our master cartons and recommended or required by many mid-to large retailers who are automating their incoming inventory processes The UPC Shipping Container Symbol (SCS) is very similar to the Universal Product Code. This symbology is called interleaved 2 of 5 (ITF). The major difference between this barcode and a UPC barcode is the lines at the top and bottom of the barcode. These are called Bearer Bars. The Barcode is comprised of 4 groups. 1) - Packaging Indicator. We recommend that you assign a number ranging from 1 to 7 for the first digit. If you have a container that has 12 and another container that has 36, you assign different numbers to each. This is very flexible. 2) The next number is a ZERO. This is required. 3) The next 11 digits are the first 11 digits from the UPC barcode used for the item inside. 4) The final (14th digit) is a check digit.
UPC Databases
There are several databases available and none of them are complete. There are new products created every day and them come from giant manufacturers and from home-based entrepreneurs. Here is a partial list of databases and their purpose: UPC Database – www.upcdatabase.com This is an informal database created as a college project and is now a hobby project There are over 1,000,000 items in the database. Although this sounds like a lot, it barely scratches the surface. This database allows you to enter in a UPC or EAN number and see who manufactures the product. It does not allow you to enter a product and get a UPC code.
UPC Data - http://upcdata.info Another hobbyist site
Google Merchant Center – This is an interesting database since they feed this information to Red Laser and the Google and Android phone barcode applications http://www.google.com/merchants GS1- This database is good for locating company codes. Very few products are listed. http://gepir.gs1.org/v31/xx/
Nationwide Barcode has a service to help you get your products listed with the Google Merchant Cnter Database, Red Laser, Shop Savvy, and Google Android Phone Scanner application.
Although there are no "official barcode databases" where retailers pull information, these databases can help to secure your products and your UPC barcodes in the marketplace, plus, with Red Laser, Shop Savvy, Google Android Phone Scanner and Google Shops, this helps you can gain a lot more visibility.
http://www.nationwidebarcode.com/UPC-Database.htm
Barcode Sizes
UPC barcode sizes are referred to by magnifications. The nominal size of a
UPC 1.5 x 1” (it is stated as 1.469” x 1.02, but the barcode creation
software that we use shows that the extra fraction of an inch gives us a
perfect barcode. 
The minimum size of a UPC should be 80%, the maximum size is 200%.
If you do not have enough room, you can truncate the height of your barcode,
meaning that the height is a little shorter.
Barcodes also require that there is
a .025” quiet zone from the left and the right of the outside bar. Without
this quiet space, the barcode may not scan.
The absolute requirement is that a barcode will scan. If you need to alter
the size, double check that the barcode will scan.
Want to see some cool barcode art?
http://www.nationwidebarcode.com/barcode-art.htm
Communicating Barcode Information to the Retailer
In order for the retailer to enter your barcode and all associated information, you should provide them with some type of product specification sheet. At a minimum, you should provide them with a spreadsheet that contains the following: Supplier Name Brand Name if Different Product Name Part Number Weights and Measures (each, pair, dozen, oz. weight, etc) Other Pertinent Info Manufacturer’s Suggested Selling Price UPC Barcode Number
Optionally Ingredients and Nutritional Values (if applicable) Picture of Item Scannable Barcode Graphic
Many times, the retailer or distributor will have their own spreadsheet format for you to enter information.
Barcodes for Music
According to Wikipedia (Open Source Encyclopedia - used by permission) the definition of a barcode is: a machine-readable (uses dark ink on white substrate to create high and low reflectance which is converted to 1's and 0's) representation of information in a visual format on a surface. Originally barcodes stored data in the widths and spacings of printed parallel lines, but today they also come in patterns of dots, concentric circles, and hidden within images. Barcodes can be read by optical scanners called barcode readers or scanned from an image by special software. Barcodes are widely used to implement Auto ID Data Capture (AIDC) systems that improve the speed and accuracy of computer data entry. http://www.wikipedia.com
If you are going to create a physical or digital product, you need a barcode.
Once you get your barcode and associate it with your physical or digital product,
Nielsen SoundScan is an information system that tracks sales of music and music video products throughout the United States and Canada. Sales data from point-of-sale cash registers is collected weekly from over 14,000 retail, mass merchant and non-traditional (on-line stores, venues, etc.) outlets. Weekly data is compiled and made available every Wednesday. Nielsen SoundScan is the sales source for the Billboard music charts.
For forms and more information: http://home.soundscan.com/
Questions and Answers
What is a Bar Code?
A bar code also known as a Universal Product Code is a unique 12-digt code
that allows wholesalers and retailers to track the sales of your product.
This allows them to manage inventory and to sell your products at their
Point of Sales Systems (cash registers)
How does a bar code work?
When you sell your products to a wholesaler or retailer (Amazon,
Target, Borders Books, Autozone, etc.), they will have you fill out a
product information sheet. One of the things that you put on that sheet, is
your company and product information including the 12-digit UPC code number.
Then, the wholesaler or retailer enters this information in their
information systems computer. This computer ties into the registers at the
front of the store. The cashier scans your item and the information comes
up. Every time an item is scanned and sold, it deducts the number of items
sold from their inventory.
What information is in a barcode?
The only thing that is in a barcode is the representation of the
numbers. When a barcode is scanned, the computer reads the number and then
looks up the information from within a database.
How many Bar Codes do I need?
You need as many barcodes as you have products or variations of
products. If you are selling shoes, you would need one for each style, color
and size. If you are selling soft drinks, you would need one for the 12 oz.
can, the 12 oz. bottle, the six or twelve-packs, and the liters of each
flavor. Every variation needs a unique barcode.
What countries will UPC barcodes work in?
UPC bar codes work everywhere that either UPC or EAN bar codes are scanned
which includes the United States, Mexico, Canada, Australia, the UK, Asia,
South America and the Middle East.
What's the difference between a UPC code and a UPC
barcode?
A UPC Code is the number itself whereas the barcode is a UPC-A barcode
symbology.
What's a symbology
This is a term for the graphic style of a UPC barcode. There are a lot of
different styles of barcodes, but the main one for retal is a UPC-A (12
digit barcode)
How accurate is a Barcode?
Very accurate. Barcodes have check digits at the end (the 12th number). The
barcode scanner calculates what the last nuber should be and it it doesn't
match, it gives a "item not found".
Is there data encrypted within the bar code?
No. The bar code bars represent only the 12-digit number. There is no other
information contained within the bar code. All information is supplied to
you to the wholesaler or retailer.
What size does the barcode need to be?
UPC symbols are scanned by retail omni-directional scanners. This means that
UPC symbols have a fixed relationship between symbol height and width. When
one dimension is modified, the other dimension should be altered by a
proportional amount.
Because of this relationship, UPC symbols have a nominal height and width specified. A range of allowable sizes from 80% to 200% of the nominal size. This is covered in our chapter about barcode graphics)
What color can I make the barcode?
Barcode symbols require dark colos, black, dark blue, dark brown or dark
green. They should consist of a single line color and not printed by
multiple colors.
Barcodes require light background for the Quiet Zones and spaces. According to the GS1 "In addition to light backgrounds, ""reddish"" colors may also be used. If you have ever been in a darkroom with red lighting and tried to read red copy, you know it can virtually disappear. This is also true of similar colors such as orange, pink, peach, and light yellows. Given the fact that most barcode scanners use a red light source, you can quickly see why these colors may be suitable for backgrounds, but should be avoided for bars."
Why are there two numbers that stick out on the left
and right of a barcode?
Why are these numbers more important than the others?
This is done to ensure that there is enough space at the left and right to
give the barcode a safety zone. A barcode scanner needs this safety zone in
order to know when the barcode graphic starts and ends.