The Wheels Didn’t Fall Off
Regardless of when this economic downturn began or any definitive signal that it has ended, most people who are actively engaged in the promotional advertising/specialty industry still are rolling along, but perhaps at a bit slower speed. Both the short- and long-term forecast for the promotional advertising/specialty industry is pretty strong (or can be).
This economic downturn was about money that stopped moving, uncertainty in the marketplace and the resulting drop in revenue and income for businesses and individuals. For promotional/specialty advertising it was not about a loss of confidence, the impact of ads delivered in this way or the high value of specialty advertising measured against every other media. Unlike banking, real estate and stock brokering, promotional advertising/specialty distributors and sales professionals do not have to rebuild consumer confidence in service and the products that carry advertising and marketing messages.
That's the good news. Fortunately, the bad news is also good news if you sell promotional advertising/specialties. Productivity, a word businesses throw around and government attempts to measure, is really nothing more than what a worker can accomplish in a specific period of time. As the economy contracted, employers reduced their staff and needed workers still there to pick up the slack. Some employers found that with a 20 percent reduction in customers' business and a 25 percent or more workforce reduction they still got the job done due to increased productivity from the remaining workers.
Though there have been signs of economic improvement, employers have been reluctant to replace workers. They have considerable uncertainty about the costs of rehiring because of potential healthcare costs, taxes and the anxiety of another possible economic slump. That means workers will need to continue to pick up the pace.
So why is this good news for specialty distributors and sales pros? Because promotional/specialty programs can lessen employee emotional and psychological fatigue, improve attitude, reward productivity, recognize superior accomplishment, increase job satisfaction and help moderate costs.
Kurt Kaeser, CEO of Kaeser & Blair, said, "When our dealers [salespeople] work on the internal employee programs with their customers, other projects and orders almost always follow. Right now is a perfect time to be selling specialty advertising because businesses are reinvesting and focusing on growing again."
The second half of every year always receives a natural sales boost from seasonal sales like calendars and planners and holiday business gift purchases. This year, especially, is a great time to solidify business relationships because a gift will have stronger impact. The expectation of a gift during the holiday season is not necessarily there this year, so businesses that thank their customers and potential customers will stand out.
Recognizing opportunities and capitalizing on an improving economic vitality will position your business for growth. With quite a few promotional advertising/specialty distributors having other lines like printing, labels and forms as their primary source of income, it is critical to think separately about the promotional advertising/specialty part of your business. If you don't, the optimistic outlook for the promotional industry might pass you by.
Printing, with the one exception of direct advertising literature, is consumed in the transactional activity of businesses. In a crippled economy, the amount of printing consumed decreases because business transactions decrease. When transactions begin to increase, most businesses simply start using the materials that are sitting in their warehouse or supply cabinet. There is a significant delay in new orders for printing. Promotional advertising/specialties are not transactional and are an important factor in increasing transactional business. So what might have been an "add-on" sale in the past is now the primary reason to see a client.
By far the most difficult aspect to handle when promotional advertising/specialties are the focus of a sales call is that it is not a "product" sell, but rather an "outcome" sell. The long road back to full employment, vibrant business growth and strong personal income has almost every business person considering price or cost before or to the exclusion of everything else. If you now sell promotional advertising/specialties or are adding that profit center to your business, positioning yourself as a resource to improve your customers' business rather than as a seller of specialty items will allow you a much stronger hold on the improving economy.
Some think the economy is getting stronger, while others feel we are headed toward a double-dip recession. Regardless of which direction the economy takes, this makes it absolutely necessary that every promotional advertising/specialty professional connect with clients now. Get projects on the books now. Show the continuing strong value of promotional advertising. Most businesses have money. They are simply afraid to put it back in motion. They have strong profits from the increased productivity already discussed. By helping your customers maintain a smaller, stronger, more productive work force, they and you are in a much better position to ride out the economic rollercoaster without the wheels falling off!
About the Author:
A veteran of the printing and graphic communication industry, Gregg Emmer is vice president and chief marketing officer at Kaeser & Blair Inc. He can be contacted at gemmer@kaeser-blair.com.
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Gregg Emmer is chief marketing officer and vice president for Kaeser & Blair Inc. (K&B). He has more than 40 years of experience in marketing and the promotional specialty advertising industry. His outside consultancy provides marketing, public relations and business planning consulting to a wide range of other businesses and has been a useful knowledge base for K&B dealers. Contact Emmer at gemmer@kaeser-blair.com.