Sell the Power of Plastic

Plastic products can be a lucrative niche for those who know how to approach it.

It's almost always more durable than paper, is usually nicer to look at and has a higher perceived value. The profit margins are generally higher and there are fewer of your competitors selling it than you may realize.

The material is plastic—and while it's not always an easy sell, it can be well worth the time invested for distributors willing to learn the ropes.

One of the keys to profiting from this material is knowing how the product will be used. Russ Herman, general manager, Allegheny Printed Plastics, Cranberry Township, Pa., noted that an item destined to be given away can often command a better price than one that will be resold or used internally.

"If a company plans to consume or resell an item, it might be looked at as a raw material—and the company will try to maximize its profit margin," explained Herman. "But if it is an item with a company logo on it that will be given away, the emphasis will be on quality. The buyer will be more particular about how it looks—and more willing to pay for it."

Jim Mendicino, Bestforms, Camarillo, Calif., added that customers who buy plastics are looking for more than just a product that will perform a function. They want something that will get noticed—and price becomes less important than visibility.

"A plastic card application tends to be less competitive because the customer is looking at what the card will do for him rather than the unit cost for the card," said Mendicino.

Mike Hallahan, president of PSI Plastic Graphics, Ellisville, Mo., stressed that plastic products are proven to be high impact, and a company that hands out plastic rather than paper business or membership cards is delivering more than one message. "They say to a customer that this is a top-notch company," Hallahan noted. "It's not just another card. It's unique." Even crafting something as simple as a Rolodex card from plastic makes sense when the extra attention it will receive is brought to the buyer's attention.

"If you're looking through a Rolodex file that holds five or six cards from vendors who provide the same exact thing, there's a pretty good chance you're going to find the plastic card first," said Herman.

Despite its attributes, however, manufacturers warn that distributors will likely meet opposition from some customers on price issues. For this reason, it is important for distributors to educate themselves.

Joe Street, regional sales manager, Ward/Kraft, Fort Scott, Kan., offered that a distributor should keep in mind that if it's a marketing piece, it ought to be compared to other marketing pieces. "If you try to sell a promotional card the same way you sell an invoice, check or statement, you're going to find it difficult," he explained. "But if you look at it as a marketing tool, you should be comparing it to four-color process flyers, for example."

Finally, Mendicino noted that too often distributors will present a proposal based on exactly the same configuration as the existing product, without looking at every option. "Ask questions. How will it be used? What is it expected to achieve? And then go back with something that will do the job and enable yourself to compete more favorably, and not necessarily with the identical product," he explained.

According to Rich Clark, senior account manager at Allegheny, the opportunities to sell plastic products—especially plastic cards—are everywhere. Telecommunications companies, financial and health-care institutions and the hospitality and airline industries are just a few markets that use plastics on a regular basis.

In addition to a vast amount of plastic cards, Allegheny makes procedural and warning signs for restaurants as well as signs for baggage counters at airports. And, Clark noted, many times forms distributors have the opportunity to provide insurance companies with plastic cards along with forms—both of which will be used in the same package.

Of course, when selling a piece that is used for operational purposes, the selling points change. In these instances, distributors will most likely tout the product's durability and service features rather than aesthetic appeal and high perceived value.

For example, much of the increase in plastic card use is due to the use of barcodes and computers, and the services they provide, said Hallahan.

"In the past, plastic cards were used primarily in the credit card industry. Today's uses include membership, frequent shopper, loyalty and gift card programs," Hallahan said. And while paper gift certificates serve a purpose, retailers today see that plastic gift cards offer multiple uses—and, ultimately, more bang for the buck.

"With the plastic gift card, value can be increased or decreased, making it not only re-usable, but also a tool to create return traffic by rewarding the customer for frequent shopping," explained Hallahan.

The look of plastic cards has even changed. The addition of keytags is a familiar example, but it doesn't stop there. Mendicino, for example, noted that Bestforms will soon introduce the Performer card. This combined loyalty card/label construction offers multiple labels on the reverse side of the card. "The labels can be redeemed at the retail site for discounts or free products with companion purchases," explained Mendicino.

Another quality that aids in the paper-to-plastic argument is durability. Plastic is a better choice in an environment such as restaurant kitchens, offered Clark, where grease, smoke and steam can wear on paper signs quickly. "And we recently received an order for an amusement park that had been using paper tickets with magnetic stripes," Clark added. "They weren't working very well because the park had several water attractions; so they switched to plastic."

This isn't to say, however, that every application qualifies for the switch to a plastic counterpart. "Sometimes the price can't be justified," said Clark.

For distributors looking for some help in determining when to sell plastic, try turning to your manufacturing partners.

Clark noted that his company's customer service department spends a lot of time educating distributors on the finer points of selling plastic. He also said that the company offers distributors instructional talks on the manufacturing of printed plastics. "We can get them over the hump a bit," said Clark, "by answering questions and getting them familiar with the product line."

For its part, Ward/Kraft offers joint marketing programs as well as a plastics training packet that not only offers background information on plastic cards, but also material that helps to overcome pricing objections and more.

Street noted that it can sometimes be difficult to get distributors interested in adding plastics to their portfolios. "We really have to explain that you can make good money in it, but you have to focus on applications and benefits, and often find yourself selling to different buyers," said Street.

Ultimately, said Hallahan, "It is all about repeat customers and loyalty. Everyone is looking to set themselves apart from the competition."

By Misty Byers