From the document-oriented to the whimsical, ad specialties can help distributors increase form sales.
This year, the Promotional Products Association International (PPAI) released a report indicating that promotional product sales in 2003 totaled an estimated $16.34 billion—up from 2002's sales of $15.63 billion. In fact, last year was the first year that sales within the industry rose since a record-high $17.85 billion was reported in 2000.
Of the 2003 sales, desk products and calendars ranked third and fourth respectively as the most popular items sold. Armed with this information, it is no wonder that manufacturers of these forms-related products would want to recruit business forms distributors.
As a result, they are showing up at industry trade shows, such as the Document Management Industries Association (DMIA) Show, held last month. Among those making an appearance was John Andersen, sales representative for Admore, Macomb, Mich. Before the show, he said that some of his best-selling pieces are gusseted portfolios for mortgage companies and legal-sized folders for the legal fields. "I am not trying to promote a flavor-of-the-month product," he said. "Admore has a tried-and-true product line here featuring new designs—ones that were generated from customers' ideas."
Andersen noted that nearly all businesses use presentation folders, and if forms distributors do not recognize opportunities to sell this product in their account list, he suggested that they call Admore for advice. "We can send out industry-related samples to illustrate what other distributorships are doing," he said.
Andersen offered some ideas for distributors seeking to incorporate folders into their sales pitch. "First, they should ask for a sample of a folder the customer is now using. This gives them an opportunity to look at the type and quality of the item," he said. "Second, they should use and present folders with their own company names on them."
Andersen explained that distributors will benefit by comparing the customer's folder with their own. This way, the distributors have a better opportunity to suggest changes to the item's design or stock that may improve its look and function—often for little or no additional cost.
'Unrelated' Opps
While some manufacturers capitalize on items closely related to forms, others are confident that not-so-related products can prosper in this industry.
For instance, Marck Schroer, vice president of sales and marketing at AdImage Promotional Group, Hugo, Minn., touted polycarbonate water bottles. "For 2004, this was our biggest single item. The bottles received a lot of support on the retail front, and that translated well to the industry side," he said. "It fits for the health-care and retail markets, and even education—prime targets for forms distributors."
Schroer added that the product outsold every product within AdImage's travel tumbler and bottle category. "It's great for active people or those with health-oriented goals," he added. "And, it is odorless. There is no transfer of a plastic smell or taste, and it's nearly impossible to break."
When asked how a business forms distributor would introduce a promotional product such as a water bottle, Schroer said, "I think half the battle is already won. Distributors have an established relationship with clients, which can be the most challenging aspect of a sale," he added. "I would also think that forms distributors have a bit of a heads-up if a client is changing a logo or switching branches. These are prime opportunities for a promotional products sale since the customer will want to promote their change or expansion."
Schroer conceded that those in forms sales will have to expect differences in sales between the two product types. "Business forms sales generate a lot of repeat business, particularly with items such as stock stationery, which is a daily staple. But, businesses are always looking for something new and fresh with promotional products," he said. "For instance, clients might want a coffee mug today, and a clock radio tomorrow."
He noted that there are so many different applications for promotional products—from recognition and safety programs to customer appreciation and grand openings—that forms distributors would not see the reorder business they're accustomed to. "Keep in mind that each vendor may have different rules when it comes to promotional products," he said. "There is a little bit of a learning curve from category to category."
Andersen pointed out that Admore offers a Distributors Sales Tools program featuring an unbranded Web site, as well as free product fliers and templates for all of its catalog products. "We would be happy to share case studies with distributors and show them how others have become successful selling our products," he said.
Markets and Profits
As for where distributors can seek and find opportunities for promotional products, Andersen reported that hot spots for folders include mortgage and title companies; temporary staffing agencies; funeral homes; and optical, dental and cosmetic surgery practitioners. "And, distributors can experience a good profit on these items," he said. "Our suggested markup is 40 percent. Of course, not every distributor is able to get this type of margin on his or her orders. The neat thing about our type of products is the reorder aspect."
Andersen explained that Admore sees many reorders, and encouraged distributors to send a reorder card to be included in the shipment that would remind clients when and where to call if stock is low.
With it being the heart of the holiday season, Schroer reminded distributors that it is not too late to focus on year-end gifts. "Everyone wants to send out something, and distributors can still order in November—it is not too late," he said. "We also assist distributors who want to promote their own businesses by dropping off a candy jar or stainless-steel mug at an end-of-the-year sales call to thank clients."
Whether choosing a forms-related ad specialty or not, promotional products sales are experiencing a significant rebound. And, forms distributors can gain not only monetarily, but also educationally and relationship-wise by this increase.
By Sharon Cole
- Companies:
- Admore
- People:
- John Andersen
- Marck Schroer