Target Markets

Bringing Elegance to Corporate Gifting This Winter

There are close to five hundred thousand different gifts you could give to your favorite client or employee this year that can have your logo decorated.  All but a few of those are the same old tired retreads from brands that become ever more dominate as the calendar turns the page.  One of the lasting effects of the economic calamity of the last few years is aggressive pricing of quality brand goods.

One of the first to the market with internationally recognized brands was the Wenger Writing Pad which is made by the same people responsible for making high quality Swiss Army goods.  That does two things for you as the person giving the gift, it provides instant recognition and credibility and also should put your mind at ease that the product you are gifting will stand the test of time.  Wenger has almost always been known for their knives but in the last year they have made a move into producing stationary items.  It appears they are poised for a much more aggressive move with a bunch of new offerings.

If you have ever received a leather watch or wallet you will know the C&B name and the quality that comes with that brand.  The Cutter & Buck Performance Writing Pad is made from the finest leather and includes all of the bells and whistles like a gift box that you would expect to get from Bloomingdale's.   C&B has always been known as a producer of premium leather products and now they to are making a significant move to the promotional products market.  Up until this year they had produced products without style but the entire performance series is stunning.  Nicely both of these products have a significant amount of money behind them and therefore are well inventoried for the holidays.

One of the major challenges facing advertisers this fall is the continued decline in confidence.  Business and employment are not rebounding and until they do we will not see a recovery that produces large and consistent increases in growth.  Suppliers are running very lean and inventory will be wide but not deep which presents challenges to you as a distributor.  We will discuss how you can blunt this potential obstacle in coming articles.

We also wanted to mention how important customer service is on top of it all.  It does not matter what product you are offering if the service getting that product into your customers hands is inadequate. 

An Ingenius Approach to a Ceramic Dilemna

The standard method for decorating just about any promotional item has been the traditional silk screen.  Silk screen involves the use of a screen or mesh that is placed over an item to be decorated.  Ink is then poured on the mesh and a straight edge is run over it to squeeze the ink through and the logo is applied.  This has always worked well for flat items but has been more expensive and slower to accomplish on odd shapes.  Even more difficult are non-porous items like ceramic where the ink has to dry on the surface.   During the summer this can lead to a smudged logo during periods of high humidity.

Along came MB Works with a unique solution to what has been an industry wide problem.  Instead of decorating on the actual ceramic mug they deboss a simulated leather wrap.  The Alta Ceramic Tumbler uses a full length leather type grip which insulates the hand but also lays flat for simply debossing.  They are then stitched together and are put in place around the tumbler.  This allows the manufacturer to stock a single item while carrying multiple colors for the wrap.  Extending this particular style even further MB Works has released a larger tumbler with even more colors that has a spill resistant lid.  The To-Go Ceramic Tumbler combines a black lid with a colored leatherette wrap that is debossed with the client logo.  Again unlike so many other manufacturers MB is not suffering from stock issues because the wraps are easy to produce and they are therefore able to concentrate their budgets on the single color ceramic tumbler. 

With the current economic situation so dire organizations need to come up with creative ideas for saving money.  The principle of stocking a single base item while providing multiple color options via the use of wraps is brilliant.  Even in a crisis they could afford to air freight in the wraps for a small fraction of what it would cost to fly in tumblers.  Yesterday we presented some ideas for using a blanket to boost client relations which was a direct attempt to mention that with marketing money so tight it is important to come up with ideas that serve many purposes.  Corporate mugs are the same in the sense that they serve a purpose other than promoting a brand.  Especially with ceramic mugs which can be refilled at many coffee shops you are potentially saving the end user recipient money while also fulfilling the primary goal of spreading a marketing message.

 

Using a Blanket to Boost Client Relations

Right now as the market continues to roll south and the preponderance of economic news is negative it is more important than ever to maintain existing client relationships.  Traditional methods have now been used for so many years that customers have become almost immune to their effects.  There are however some new mechanisms to extend your goodwill while getting your tag-line into the hands of key decision makers.

The tried and true staples of the promotional products industry have long soured as favored items.  In the last year or two there has been a steady increase in functional promotional products.  The Leeds Plush Blanket is a fine example of both a marketing tool and an item that can be used in and around the office or home.  Featuring fine microfiber but more importantly an embroidered logo this fleece blanket will occupy a unique position in the market.  Embroidery provides probably the best look and a more upscale feel than regular imprinting.

At the same time there is a market for a straightforward blanket.  The Leeds Fleece Blanket fits that niche incredibly well with a fold-able structure that results in a handle with large logo imprint area.  Quite a few of these items have a handle but few have executed the function as well as Leed's by providing an easy to carry strap and a large spot for your logo.  The goal with this item is to keep costs down so most customers will elect to go with a single color imprint.

By functional promotional products we mean those with a dual purpose that can actually serve a purpose around the home or office.  That is particularly important given the lousy economy and the ever increasing desire for environmentally friendly products.  Instead of giving your client or potential client something they will almost certainly throw out instead give them something that someone will eventually use. 

An Economic Glimmer of Hope Not Enough for Promotional Industry

Despite a significant upturn in sales for the first half of the year many promotional products suppliers are struggling.  Any tip towards another recession would likely be catastrophic with many potential failures on both sides of the business model.  There is some encouraging news today with the first hints that banks are easing lending standards.

The ramifications as reported by Reuters are easy to understand.  As banks release more money to small businesses they can in turn lend more to other businesses and clients.  If I were to take a look at the Click N Sip Stainless Tumbler and consider placing a purchase order for that item I would want to know that the manufacturer is going to support my order through the use of credit.  Up until the last few weeks or months ost suppliers were still tightening their belts. 

The same goes for other items from similar manufacturers.  Polyconcepts is a European based firm.  One of their leading promotional tumblers has been the Icon Glacier Tumbler which has been available since Icon was a company based out of Ontario.  Because of exchange rate issues and other similar problems the US based supplier has been tight with credit.  That has constricted sales and likewise as transportation companies tightened up last year the number of containers available for shipping were decreased on credit concerns.  The catch is that as business grew in the first half there were not enough containers to get goods shipped resulting in lost sales and profits only prolonging the problems.

The article in Reteurs website today at least provides some hope going forward.  The first step in any recovery is the easing and increase in lending.  The major question this time around will be whether or not the lending done can promote an increase in business.

The Real Failure at Toyota Was Not Mechanical

As the news broke last winter of the massive recall at Toyota focus immediately shifted to the mechanical failures that plagued drivers.  However the real failure was a corporate structure so rigid and so enamored with the success of the past decade that they lost touch with the customer base.  In many ways Toyota rivaled the failures of General Motors during the previous decade.

When Toyota first announced the recall there was widespread panic.  Later information on the Toyota recall site clarified the situation.  In total millions of vehicles were recalled and in the subsequent months it has become clear that the problems had existed for years but had either been ignored, missed or swept under the rug by management.  Much like the failures at Ford, General Motors and Dodge during the later part of the last century there was an inability on the part of top level management to recognize the simple fact that customers would eventually revolt if product quality dropped in a significant way.  The car business is not a field of dreams if you build it they may come to you one time but will quickly jump to other brands if quality is poor.  Toyota will find out in the coming months and years that the cost of fixing the problem whether real or imaginary several years ago will be dwarfed by the costs of fixing the damage to their reputation both among customers and of course dealers.

Car sales rose by a significant amount in March largely supported by immense incentives.  The costs of these incentives are known only to the manufacturers but it will likely far exceed the costs of repairing the problem years ago.  As the economy grows the question will be whether or not customers continue to choose Toyota when the incentives diminish and even more whether Toyota is now relegated to steep incentives that it never had to give previously.

How To Save When Buying Promotional Products

Everyone loves to get free stuff in the form of promo items and products.  Usually these come in the form of mostly useless trinkets that get thrown away a few weeks after being gifted.  So many promos miss the mark and end up carrying the wrong message with either bad quality or bad implementation.  One of the biggest obstacles is cost.  Most of the new crop of goods comes from southeast Asia and with fuel prices soaring vendors either had to raise prices or lower quality.   What that means is you can get some real junk if you are not careful.  So how do you find quality promo items?

Look for name brands like Leeds or Gemline if you are buying business accessories, Bic for pens, Antigua, Ashworth, Nike, Ultraclub, Hanes and similar brands if you are buying clothing.   Do not buy from a vendor that refuses to give you the real part number.  What do I mean by real part number?  Take for instance the Gemline Regatta Race Tote which is listed on the PromoManagers site as SKU 1283.   If you visit the manufacturers site you will find this actual product number.  Try that with another online provider and what you will find is that they obsfucate the product numbers.  Why would they do this?  In most cases to make price comparisons difficult.  In some cases providers may substitute a lesser quality item or generic with the old saying being applied here of buyer beware.  To further illustrate the point I have seen the Gemline Hampton Insulated Tote advertised as at least three different products and sku numbers.  You can go directly to the Gemline website and use it to verify what you are buying is authentic.

Many do the same with Leeds items like the Leeds Enzo 18" Duffel.  In almost all cases the product sku is hidden and that may leave you wondering what you are buying.  When in doubt ask the people you are buying from and ask them who is going to do the decoration.   Many online stores will try to skimp and decorate items locally.  What this does is perhaps cut costs but you will be forced to agree to a certain percentage of damaged or misprinted goods.   If you buy from a provider that uses the factory for printing you are usually guaranteed to pay for only items that are of good quality.

Another trend is jacking the customer on shipping charges.  Get a firm quote prior to ordering and make the seller put it in writing.  Better yet use someone offering promotional items with free shipping which gives you peace of mind you won't be paying a high shipping fee.  We will be highlighting some additional ways to save money and strategies to buy promo items at a discount this weekend.

Protecting Your Business From Gas Prices

With the news today of record gas prices coming to a neighborhood near you soon there are steps your business can take to deflect some of these costs.  With all of the mitigating factors to growth in the economy from high fuel prices to diminishing home equity and tight credit standards many are looking for ways to save money.

First and foremost do not rush out to fill your tanks.  Not only does this have a potential negative effect on supplies it adds weight to your vehicle which decreases economy.  Whenever possible run your take half full which can save up to .5% depending on the vehicle.  This may not sound like much but at $4 per gallon it and at 15k miles a year you'll have enough money to buy an extra pair of shoes by year end.  Next make sure your air filter is clean and in good working condition.   Air filters should be replaced every 10-15k miles and allow your car to take in air and increase the efficiency of the fuel burn.   By keeping this filter clean your engine produces the maximum amount of horsepower which in turn allows you to get up to speed without consuming as much gas.   Air filters are cheap and most can replace it themselves in under five minutes but as always consult your manual.

Perhaps the most important factors in increasing your fuel efficiency deals with your tires.  First make sure they are properly inflated.  Next make sure they are properly aligned.  Properly inflated and aligned tires can gain over 5% mileage versus those under inflated or pulling to one side or another.   A few years ago at $1 per gallon the costs of an alignment were often much higher than any potential gains from increased efficiency.   At $3 and $4 per gallon the cost of an automated four wheel alignment will often be much less than the costs of not aligning your wheels.  Figure a vehicle getting 25 miles per gallon versus one getting 27.5 per gallon with all of these fixes in place driving 20,000 miles per year.  At 25 miles per gallon the vehicle would consume 800 gallons or $3200 in fuel at $4 per gallon.   At 27.5 mpg the same vehicle would consume 727 gallons or $2900 in fuel.  For five minutes spent inflating tires and perhaps $10 in fuel filters you could end up saving $300 on an already fuel efficient vehicle.  Now run the same numbers on a gas guzzler getting 15 and 16.5 per gallon.   At 15mpg the vehicle consumes 1,333 gallons or $5,333 in fuel.  At 17.5 the same vehicle consumes 1142 or $4571 in fuel for a total savings of almost $800!   

The moral of the story is that even a modest ten percent gain in fuel economy for your work trucks spread out over 10 or 15 vehicles can save close to 10k in an average year at these fuel prices.   Take a minute on the next warm day to check your tire pressures and by year end you'll have put some money back in your pocket.

We'll be writing about additional ways to save time and money for your small business and how to help gain new customers in the coming days.  Welcome to our blog!