Now is the perfect time for distributors to get started on end-of-year promotional sales and rake in profits for the new year.
The season is ripe with opportunities for distributors who are interested in exploring the ad specialty market and for those who wish to expand their current promotional product offerings. "The fall is the beginning of another school year, and also the start of the fundraiser season," noted Dave Spangenberg, director of business development at Carlson Craft Business Solutions, North Mankato, Minn. "With the high profit margins available on promotional products, they clearly make lucrative fundraising products."
He noted that the fall season marks a growth in promotional products sales. "Clients are either preparing for the new year or are trying to find ways to energize fall sales with their remaining budget dollars—ad specialty items are usually welcomed to meet these needs," he said.
According to Cindy Scardino, marketing coordinator at Gill Studios, Shawnee Mission, Kan., virtually every business uses promotional products in some capacity. "Distributors have a variety of items to choose from, and only need to find what suits their customers," she noted.
Gill Studios, which offers a selection of calendars available on magnets, plastic cards and computer hardware, also offers a new line of holiday sticker sheets that are printed on a variety of materials. "Our keyboard and monitor calendars are great for fall and year-round selling," she said.
Spangenberg also said that the fall is an ideal time to remind accountants and tax preparers about their presentation folders and report cover inventory. He noted that Carlson Craft's Post-it Notes and holiday cards are also big sellers this time of year. "Inquiring about holiday cards during the fall allows adequate time to produce the order and apply early order discounts, as well as for clients to address and mail the cards."
In addition, Spangenberg said that Carlson Craft's patented football and hockey Event Helmets are ideal promotional items for the high school and college sports fall selling season. "When selling these items to the college and professional markets, distributors first need to get samples into the sponsors' hands for their approval," he explained. "With the high school market, it is a good idea to first find local sponsors to purchase advertising on the helmets, which will increase distributors' profit margins."
Ripe with Opportunity
As for the kinds of opportunities available to distributors interested in selling printed promotional products for the fall selling season, Richard Krauth, vice president of Rainbow Printing, Uniontown, Ohio, said that gift cards have continued to show solid profits in recent years. "Gift cards comprise one of the fastest-growing markets in the plastic card industry," he said. "The majority of retail stores and restaurants have replaced conventional paper gift certificates with these products."
He also said that promotional magnets are always popular tried-and-true favorites. "Promotional magnets are long-standing favorites with business-to-business and business-to-consumer companies," he noted. "Unlike most other advertising media, magnets keep advertisers' messages visible for an extended period of time."
This fall, Krauth predicted that loyalty cards/key tags, gift cards and fall/winter sport schedule magnets will be some of the hottest ad specialty items on the market. Scardino said that because of the popularity of Gill Studios' holiday sticker sheets, the company has added five new designs that will be displayed on its Web site and at trade shows. Spangenberg also said that Carlson Craft's discount cards, ID badges, gift cards and coupons are generally in high demand at the beginning of the school year.
The manufacturers said that there are a number of challenges inherent in producing printed promotional products, namely troubleshooting faulty equipment and meeting stringent production standards.
"Our Event Helmets give us a unique challenge with the folding and gluing," Spangenberg explained. "In order to ensure the quality of these items, the process requires on-going adjustments and modifications to our folding and gluing equipment."
Krauth said that Rainbow Printing's primary challenge is meeting demanding lead times. "Every job we do is different, which makes managing the production process extremely critical," he said. "We have invested in state-of-the-art equipment and continually streamline our production process in order to achieve some of the most aggressive lead times in the industry."
Fall-ow the Leader
For distributors who require additional insight into selling printed promotional products this time of year, manufacturers offered some tips. "Don't overlook the existing customer base," Krauth advised. "We have found that some customers were not buying certain products from us simply because they didn't know that we manufactured them."
Scardino also said that Gill Studios offers a wide selection of products that can be sold to a variety of markets, including banks, retail stores, medical offices, and hotels and resorts. "These businesses can all benefit from seasonal reorders of calendars, holiday stickers and labels," she said. "Distributors will find many opportunities available this fall."
Spangenberg encouraged distributors to pitch orders for the upcoming year in the fall. "Fall is the ideal time for distributors to review their clients' beginning-of-the-year product needs," he said. "For example, a client launching a new brand in January will require entirely new business identity packaging, such as business cards, address labels letterhead, presentation folders, envelopes and stamps."
To further assist in the selling process, Krauth encouraged distributors to be innovative and imaginative with their sales. "Don't be afraid to sell something new," Krauth said. "Our goal as a manufacturer is to continually offer new products and pursue new markets—our best distributors do the same."
Spangenberg said that having a variety of samples is a major key to a successful sale. "Samples help answer questions, generate ideas and eventually close the sale," he said.
Ask Questions
Spangenberg also encouraged distributors not to be afraid to ask plenty of questions. "Asking who, what, when, where and why questions will help distributors understand how the client will be using the product, and may even spark additional ideas and product suggestions."
Looking ahead, Krauth said that he expects printed promotional products sales to continue to grow. "As advertising budgets are cut, more and more companies are looking for low-cost, high-impact ways to allocate advertising dollars—promotional products continue to fit the bill," he said.
Spangenberg agreed. "As the $17 billion promotional products industry continues to grow, the barriers that once separated it from the forms and commercial print industry no longer exist," he observed. "We find that an increasing number of distributors see the benefit of being a one-stop-shop for their clients' overall imprinted products needs."
By Cynthia T. Graham