Insider Information
Up until 2009, the industry was surging ahead with sales figures that hit a whopping $19.4 billion* mark in 2007. In an ominous showing of what was to come, the sales volume for '08 fell more than a billion dollars, or 6.89 percent, coming in at $18.10 billion*. And while 2009 numbers aren't currently available, the business savvy reader and the not-so-savvy alike can guess where the numbers did trend in this past dismal year.
The buzz at this year's PPAI Expo, the promotional products industry's biggest annual show, was one of hope. The opinion on the floor of industry suppliers and distributors was quiet optimism and a firm belief that the worst of the recession was on its way to being a thing of the past.
With that in mind, a few months into 2010, a new selling season has officially arrived. And if you are still feeling a little perplexed with all the ups and downs of the past year, you may be saying to yourself, "My life would be so much easier if only I had a stock pile of great selling ideas right at my fingertips." Look no further, now you do. The industry "experts" have spoken and they had lots to say about the future as well as sales tips to help you seal the deal. Don't go into your next sales meeting without taking a peek at these tips from some of the industry's leading suppliers.
"The Promotional Products industry has been, continues to be and will be built on the intersection of entrepreneurial spirit and continuous improvements in the flawless implementation of quality products, services and operations. It is all driven by great talent throughout the industry with the goal of staying focused and anticipating customer/market needs and changes.
The changes in this industry are not unlike others: rebuilding after 9/11, improving production capacity and speed to market, focus on improved technology for ease of doing business, a continued effort on delivering safe and quality products at competitive values and truly servicing the customer to help them be super heroes through value-added solutions."
—Jim Simone, CAS, senior vice president of marketing, Norwood Promotional Products, Indianapolis
"Niche marketing is going to be very important ... If you do the same things, you're not going to have the same results you've always had."
—Dale Limes, MAS, senior vice president of sales, HALO/Lee Wayne, Sterling, Ill.
"Being able to offer a customer a product that adds to the branding value of [his or her] own company is extremely important and should not be overlooked. [For example,] a distributor should offer [its] customers the best golf balls and not just the golf balls [it] make[s] the most margin on."
—Kellie Costa, custom marketing manager, Acushnet Company, parent company of Titleist, Footjoy, Cobra and Pinnacle brands, Fairhaven, Mass.
"The laws are changing all the time. And no one can tell you they are 100 percent safe, but what they can tell you is that they have systems in place to make it as safe as possible, to try to deter as much as possible."
—Trevor Gnesin, president, Logomark, Tustin, Calif.
"Promotional products are a way to make the economy turn for the better. It's a chain reaction that we can't control, but we certainly can contribute to."
—Tania Boone Richardson, vice president of administration, E.P.S. Solutions, Woodstock, Ill.
"Companies like to place their logos on a black background because it looks sharp and won't compete with any colors in their logos."
—Heather Smartt, category manager, product development, Leed's, New Kensington, Pa.
"Clients today are looking to measure the effectiveness of the dollars they've spent. They don't feel comfortable just giving away promotional products like they may have been in the past. If you, the distributor, can build a measuring device in to a distribution plan ... then there's some justification for their promotional product."
—Gary Haley, senior vice president of sales, Beacon Promotions, New Ulm, Minn.
"Everybody loves to receive something unexpected; especially if it's free. Customers and future customers who visited your booth will carry your message like a billboard throughout the tradeshow."
—Harris Cohen, president and CEO, All-In-One, San Diego.
"Companies are slowly realizing that something symbolic has more meaning in the long term, more positive effect in the long term and [is] more in line with what the millennium generation is interested in."
—Jarod Johnson, vice president of sales, Indiana Metal Craft, Bloomington, Ind.
"The average order repeats itself for eight years. You talk to some of the old-time calendar salespeople in our industry and a lot of them are retired, but they've kept their calendar orders and just make phone calls and say 'How many do you want this year, and are there any changes?'"
—Phil Martin, national sales manager, Warwick publishing, St. Charles, Ill.
"I think especially in the economic downturn we have right now, people are a little reluctant to spend. What better way to do something that benefits them than by giving them something that's actually practical."
—Alan Traiger, vice president of marketing, ACRO, East Brunswick, N.J.
"Financial institutions will always require the basic promotional items, but if you really want to garner their attention as well as their purchasing dollars, show them something they can use which will improve their image and relationships within the surrounding community."
—Ronald Williams, director of sales and marketing, Brandelope, Fenton, Mo.
"It has become accepted in both retail and promotional industries that the product you buy now may be outdated in a year or two. Clients are more likely to place a repeat order based on a higher capacity, bigger screen or more functions."
—Nate Bettinger, manager of sales, Pingline, Chicago
"In our industry we try not to get too trendy because our styles get put into programs that could last for years, and trendy styles don't do well for those applications."
—Lori Anderson, marketing manager, Rivers End Trading Company, Hopkins, Minn.
"There is no magic bullet that applies to all marketing campaigns. What is hot in January may be perceived differently later in the year. [But] people spend money on what they want in any economic time if you've got a hot enough product and they want it, they will buy it."
—Kenneth Huang, president, KTI Promo, Houston
"We are finding more that our customers are ordering gifts for an entire office or family, rather than individual gifts. The towers and boxes might have a higher cost-per-item, but they can be shared among the crowd."
—Rebecca Seltzer, marketing director, Mid-Nite Snax, Mineola, N.Y.
"Quality materials, hardware and workmanship usually go hand-in-hand."
—Michael Schreiber, vice president, Latico Leathers, Denville, N.J.
"Usefulness and functionality are mentioned when consumers are asked why they keep promotional items."
—Steven Meyer, MAS, vice president of sales, Molenaar, Willmar, Minn.
* Information found on PPAI website
- Companies:
- Norwood Promotional Products