Throwing in the Towel on Vendor Troubles
By · CommentsWhether it is a product of the weak economic recovery or the result of poor planning customer service is an issue negatively impacting many in the industry as of May. A couple of years ago emails or letters would occasionally arrive from suppliers announcing the launch of a new product line, a merger or acqusition. Sometimes they would also detail service improvements or expansions. Now every couple of days an email will arrive from a Top 40 supplier with an apology for poor service with promises of improvements on the horizon. Today it was Logomark, a few days ago it was Bullet. The ”we’re working on it” approach is great for suppliers as for the most part they aren’t the ones taking the hit when a customer has to go to a show or event empty handed because the supplier didn’t ship or in some other way messed up the order. The customer will probably never order from that distributor again but the supplier will likely still get orders from the customer that didn’t fully understand it was never the distributors fault in the first place.
At this point we are throwing in the towel and are taking the approach of “show us” the improvements. Suppliers want to blame business growth as an excuse for all that has happened. Sure there is no doubt for some suppliers business has grown remarkably in 2012. But the larger problem is that most were running lean on people as we emerged from the recession and were ill prepared to handle the growth and pent up demand after it ended. Regardless of the cause suppliers need to get a handle on the situation and fix the problems because the industry in part has taken a step back in the last few months to days of old. Rapid order production has been removed by several suppliers and others are pushing back regular production schedules by a few days. That leaves distributors to deal with suppliers still at the top of their game like Leed’s which has hit it out of the park with their line of personalized towels as part of the Pro Towels partnership. Pro Towels has produced custom printed beach towels, golf towels and fitness towels for many years. By partnering with Leed’s they have greatly expanded their reach. Most of the towels include up to a 6 color logo or embroidery depending on the product. Golf towels usually end up embroidered, beach and fitness towels usually get screen printed, or as Leeds calls it “beachprint.” Stock is decent, quality is excellent and customers can trust that Leed’s will get the job done and get the product out the door or at the very least in an emergency tell the distributor that the order cannot be produced so alternatives can be explored before deadlines are missed.
It is obvious the first quarter was strong for many distributors and in turn suppliers. A look at the ASI Promogram demonstrates both suppliers and distributors saw growth in the first quarter of the year. In fact a few of the publicly traded companies have raised their projections for 2012. In the next month or two we will learn whether or not the changes being implemented by suppliers is enough to stem the tide and get them back on track. In the meantime we’re sticking with manufacturers that have consistently provided terrific service and are urging our customers to do the same thing.
When Good Suppliers Go Terribly Wrong in 2012
By · CommentsThere was a time when Bullet Line was a rising star in the industry offering inexpensive promotional items that were made with good quality and that shipped quickly. Through about 2010 their distributor reviews were mainly outstanding. Then came the merger and a rush to offer lower priced items to compete with Hit and others and by many accounts that is when things began to change.
In an average week we probably receive about 30 phone calls or emails from distributors looking for help with Bullet Line orders. Some go so far as to give us their order numbers. Many just start yelling and screaming about orders before we even have the chance to tell them we’re not the factory and they’re not our customer. On one hand it’s sad that distributors do not know how to contact their own manufacturers. That’s a telling commentary on the state of the promotional products industry. There are hundreds if not thousands of distributors out there that do not know the difference between a competitor and a supplier. We are not the the Bullet Line complaints hotline but it seems that consumers are content with calling whatever numbers they can find. So how does a distributor handle complaints about a favored supplier that comes in from a competitor? First use the tools available to make sure you’re contacting your supplier. Don’t call a fellow distributor yelling and screaming about an order that isn’t even placed with that company. First people are less willing to point you in the right direction if you’re screaming at them and second there’s nothing we can do to help you anyway. We cannot transfer your call, we cannot email on your behalf and we do not have secret contact information as some seem to think. There seems to be the sentiment that this is like selling dishwashers. You bought a Maytag, we sell Maytag so therefore it’s our fault if something is wrong with your Maytag even if you didn’t buy it from us and you cannot reach the person that sold it to you.
In the event that a distributor has a complaint or issue with Bullet Line instead of calling competitive distributors you find online please call Bullet directly at 800.749.7367. This is better for everyone because the time being lost in waiting for a response from customer service at a competitive distributor is more time lost on your order. Use the various ASI or Sage tools to take a look at ratings of suppliers before you order and pay particular attention to current trends. If more distributors did that they would probably stop piling orders into suppliers that are having issues getting orders out the door. We highly recommend Sage because the ratings are updated quickly which will help you capture shifts and problems quickly. But we need to stress this, if you have an issue, complaint or need service with a supplier please make sure you’re calling the actual supplier and not a competitive distributor. They cannot help you and you’re doing your customer a disservice. If you’ve received a shipment in error, have received goods you didn’t order or have other issues use the tools available through the industry or call the 800 number that is posted above of if you are local you can use the contact information from Cotera to reach Bullet Line with any issues.
There continues to be conflicting scientific studies on the safety of BPA used in the making of plastics for tumblers, mugs and toys. It is used in the production of polycarbonate plastics, PVC and other materials used in day to day life. That means there is a good chance you encounter it in your home or office. The controversy still rages over whether or not bisphenol is safe but the question remains why buy any product that contains the chemical if you don’t have to at this stage? There is no doubt it has some effects in some studies. Now that there are alternatives it seems logical to choose a product that is known to be safe versus one that may not be when the price and features are the same.
A couple of years ago almost every promotional tumbler on the market was made from the Type 3 or Type 7 plastics that used BPA in their production. There were very few tumblers that were deemed to have no BPA, among those were the “Evolve” line. Most suppliers just avoided the topic entirely because the cost of producing the safer mugs was higher. We know that BPA does leach into our system over time. One study found that up to 96% of pregnant women surveyed in the U.S. had the chemical in their system. BPA is a weak endocrine disruptor which means it can mimic estrogen in the body. Without getting into biology that isn’t a good thing and if it is avoidable why take the chance? In 2012 Leed’s committed to releasing only mugs and cups that contain no BPA. Initially the selection was a bit plain but with the release of the Groovy Double Wall Tumbler they added a significant amount of colors and some unique styling. Probably the biggest change is the move to ergonomic contours that make it easier to hold while driving or walking. In addition they came out with two Hot & Cold Tumblers in May 2012 that are designed to be used as either a water bottle or a tumbler and have two lids. Like any of tumblers that you will buy that is personalized with your logo remember it is always better to hand wash them and hand dry. If you have to use the dishwasher please use the top rack. Anything with a logo on the surface is susceptible to abrasion and placement in the dishwasher increases the chances that it may rub against another item and wear down part of the logo. Custom printing involves screening the logo onto the surface material and like paint on a house over time it can wear down. In general it is best to hand wash any tumbler and as of now none of the promotional sport bottles we sell are deemed both BPA free and dishwasher safe.
The bottom line on bisphenol is why take the chance if you don’t have to in 2012? There are plenty of options out there now and most custom tumblers are now made without the chemical. Just be aware that some direct from Asia importers are importing products that may look exactly like the counterparts being sold from distributors but that may be the older models made from the older plastics. You can read more about bisphenol A on the Wikipedia site with references to all of the various studies. Over the next few years the science will likely become more conclusive but you have the choice now to buy the safer alternative, why put your logo on anything else?
One only has to look at the latest growth charts from ASI or PPAI to realize there are some haves and have not in the industry as we head into the Summer of 2012. One does not even have to go to look at the numbers but merely the product to see which brands are growing the fastest. The truth is in the products and customers and distributors can quickly see why Hit Promotional Products is expanding so quickly.
Warm weather set in much earlier than normal across almost the entire country. That had buyers looking towards beach promotions much faster than they normally would with purchases coming in February and March. Weather forecasters did a pretty good job predicting an early warm season but for some of the big promotional suppliers – their forecasting stunk. This is where Hit has really excelled. One of the hottest selling items this April has been an old stalwart. Beach balls have always done pretty well but their popularity trailed off as prices went up. Enter Hit coming to market with a 12″ beach ball in the $1 range. But instead of just stopping there and reserving inventory dollars for use elsewhere they rolled out four other balls. Contrast that with Bullet Line which has the same 12″ ball that is almost entirely out of stock for the first half of the summer and no alternative selections. The same holds true for items like sunglasses. I’m not talking about the high end brands but the cheap rubber or plastic models that last a few months and get trashed. Bullet has one pair, Hit and others a dozen or more choices. What they have figured out is there is more to the inventory game than just having enough of a particular product. Their is safety in the depth of the selection and having another product to fall back on can save a sale for a distributor.
Taking a closer look at the numbers Hit Promo was around $77 million in 2010. That jumped to over $108 million in 2011. ASI provides the information to the public in their annual Top 40 Suppliers index. Notice that all those that are not estimated had much more modest growth during the economic rebound. Hit figured it out faster than anyone that it isn’t just a matter of acquiring new customers it’s a matter of acquiring your competitors customers. As we are at times waiting a month or two for products to come back in stock at some of our preferred vendors we have started to give a much closer look to the brands that are not only deep in inventory but deep in selection.
With the second wave of product launches coming from industry suppliers like Leed’s in the next week or two it will be interesting to see how they handle inventory. Business is highly erratic right now with some days off the charts and others silent. The up and down wave leaves purchasing agents at a loss because they cannot really predict what to carry when sales are up 30% one month and down 10% the next. One thought would be to look at the Hit model and their growth and realize it is more about the width of stock as it is the depth of individual units. The shotgun approach is more likely to maintain a customer in the event of a shortage. When the beach balls run out there is a good chance the customer won’t want a pen as an alternative and the supplier loses the client. Have a couple other beach ball type items and the customer can be kept in house.
For a couple of years niche industry suppliers like Gordon Sinclair and more recently Prime have offered their versions of full color printing on specific pieces. In some cases this involved what would be the equivalent of a sticker being printed and later applied and then sealed onto the surface. Leed’s recently announced the release of their own branded four color process after extensive durability testing of the imprints.
As a result many are asking what is Leed’s Photographixx printing and how does it help me when buying promotional items? As mentioned above the entire industry has always been based off of a per color and per location printing model. That’s why almost every pen or bag you’ve gotten over the years will have a single color logo on it with very few going to the level of having multiple colors. As price points diminished printing costs have not and often times a multiple color logo on an inexpensive bag would double or triple the cost. Why did that happen? Because each color required the bag to be spun around on the printing press an additional time while also increasing the drying time and slippage rate (think bad imprints). The new Photographixx system actually applies all of the colors and halftones at one time which diminishes the time spent on the machine will allowing the end user to end up with a logo that looks much like a photo reprint. It also removes the need to count colors and costs as whether the logo has three colors or ten colors the price is the same. Initially there are only a few dozen products that have this capability available to them including the Sedici Cool Gear Chiller Tumbler which has gel wedged between the layers that can be frozen to keep drinks cold. This provides an interesting template for printing as the gel can create different effects as it melts. One aspect of the full color printing that Photographixx offers that still befuddles some customers is that the setup charge is included in the run charge for the piece. Leed’s and most other vendors have always broken that out separately due to the cost of materials but in an effort to promote the technology they are eating this expensive charge. Down the road I suspect they will come back and change that but for the time being customers are urged to take advantage of the offer.
On March 31st Leed’s is expected to greatly increase the number of products that have Photographixx printing available as an option. Although limited in scope right now to drinkware we highly expect that in the coming weeks and months production will be ramped up and we will see this technology spread to stationary and bags. The simplicity provided to distributors would outweigh even the setup costs being applied down the road as virtually any logo sent into the factory in a high resolution format could be printed. It also is a smooth move on the part of Leed’s as the average local screen printer is not going to have this type of equipment in house to apply to drinkware. The more popular full color printing becomes on their items the longer they can corner the market.
I am always a little creeped out by how targeted marketing and advertising can be. Around Christmastime I was shopping for a dried Forsythia wreath – to this day I still see remarketed ads informing me that the Forsythia wreaths I had been looking are…still the same price.
Or how when I updated my Facebook status with a picture of a Snow Owl that I had come across in passing, my sidebar filled up with ads about Snow Owls. Snow Owl necklaces. Snow Own earrings. Snow Owl rings.
And not one real, live Snow Owl for sale gosh darn-it.
The point – or, rather, the question – is how personal is too personal? At what point does a so-strategic-it’s-almost-evil ad cross the line and become downright creepy?
This Neuromarketing article by Roger Dooley, ‘Forget Evil, Don’t Be Creepy!’ sheds some light on the matter.
First, Dooley50 percent of social media users don’t like having ads targeted to them based on information in their social media profiles.
That, of course, means that 50% of people DO like these uber-targeted ads.
But, unfortunately, companies need to not creep out ALL of the masses. Not just 50% of the masses.
To reduce your chances of being creepy, Dooley recommends:
- Don’t overpersonalize: Read his article – you’ll be blown away by how something VERY creepy can become something not-so-creepy-at-all…)
- Ask for Permission to Personalize: It’s not creepy if your consumer volunteers for it
- Stay Positive: Don’t associate your consumer with anything negative. For example, ‘Need a Job’ ads intrinsically make sense…but they can also work to make your consumer feel subconsciously inadequate.
So, now that your company knows how to avoid creepiness in marketing and advertising…let’s sit back and watch other companies come under public fire for their creepy advertising fails!
This just heard on a recent phone call with a potential new client: I want to get involved in direct mail. And I want it to bring in two new clients each week.
This is what I wish I heard: I want to bring in two new clients each week.
The goal, after all, is the bottom line. How you get there, well, it takes more than direct mail. Or email marketing. Or radio ads. Or any single-channel strategy you can concoct.
Of course, this is where I come in. To right the wrongs of single-channel marketing. To help implement a multi-channel marketing strategy that is seamlessly aligned with the goals of my client.
Selling this multi-channel marketing strategy, however, can sound a little like ‘cha-ching, cha-ching’ to a new client.
I am not a mechanic. I am not creating marketing problems that require costly repairs. I am simply trying to tell you how to best reach your marketing objectives.
Every industry requires a different mix of marketing channels. But every industry requires a mix. This Marketing Pilgrim article by Frank Reed, ‘All Marketers Should Be Multi-Channel Marketers‘ presents compelling data and statistics on the multiple devices that consumers may be using simultaneously.
But it goes beyond multiple devices…multiple CHANNELS is more than just devices. Multiple channels encompasses social media marketing, referral marketing, branding, advertising, promotions, tradeshows and more. All of these channels funnel down into one end-result: your marketing goals.
If you are convinced that your business needs only one marketing channel, good luck. You may see some results. But the best results will be from a multi-faceted marketing approach that leverages the various marketing channels that your target audience is exposed to.
Of course, multi-channel marketing is null and void if your messaging misses the mark. But that is a blog for another day (and another reason why, hey!, hire me!)
Super Bowl Advertising Has Gone Neither Big Nor Home
By · CommentsDoes anyone else remember the very first Budwesier ‘Wazzzzuuup’ commercial? I don’t mean the first ‘Wazzzzuuup’ campaign. No, I’m talking about the debut of the very, very first ‘Wazzzzuuup’ commercial.
I swear that my father and I were the only two people who noticed that ad.
It aired during Monday Night Football in December of 1999. I can remember thinking that everyone would be talking about it in school the next day. And no one was talking about it. Not a soul.
Just another painfully awkward moment in high school, I guess.
But my dad and I, we shared that commercial. We called each other just to say, ‘Wazzzzuuup…’ and we laughed every time we said it. We waited and watched and watched and waited for the the commercial to air again.
But it wasn’t until Super Bowl of that year that the ‘Wazzzzuuup’ campaign really gained traction with the masses.
I don’t want to say that the ‘Wazzzzuuup’ campaign was responsible for my venture into the marketing and advertising world. But it certainly was a major influence in my decision to pursue a career in this industry.
But now, NOW!, my how times have changed. The advertising innovation that we once saw during Super Bowl is no longer. I’m sorry to say that. But it’s not. I’m not even looking forward to this year’s roster of ads. I am expecting a series of gimmicky ads that try so hard to stand out that they do nothing but blend in.
And this year, for the first time, advertisers are ‘generating buzz’ for their ads by pre-releasing not only ad teasers, but also the full length spots. Stuart Elliot writes about this phenomenon in his New York Times article, ‘Before the Toss, Super Bowl Ads.‘
And of all the teasers mentioned and linked to, not one of them intrigued me. Not even the 10-second teaser for the Honda CR-V commercial, starring Matthew Broderick, paying homage to his 1986 hit movie, Ferris Bueller’s Day Off. Elliot describes the teaser is mysterious. Let me tell you something. If you don’t think you’re in for a series of Ferris Bueller-like shenanigans, you’re wrong.
Funny? Potentially. Creative? Innovative? Memorable? I doubt it.
I think what advertisers are struggling with is two-fold: (a) marketing budgets are under more scrutiny than ever before and a risky Super Bowl ad is a $2 million risk thatg most CEOs just aren;t willing to take and (b) there’s not a whole lot of marketing taboo anymore, not a whole lot of envelopes that haven’t already been pushed to their furthest limits.
So, what I anticipate is a bunch of ads that teeter between pragmatic and risky. And teetering is the biggest risk of all.
Go big or go home. If your CEO, CFO…whatever…isn’t going to buy into you creative Super Bowl ad 100% – if he is going to scale it back to be more safe – just go home.
And, perhaps, that same message should be shared with a certain contending team in this year’s big game?
Tight Storage in the Tote Market
By · CommentsEach year we try to take a look at all the new products coming down the pipe in an attempt to figure out what the trend will be for the year. Aside of the introduction of some flash into the promotional products market another clear trend is the ability to easily pack and ship goods. This is manifesting itself in a good way in that many of the tote bags hitting the market pack quickly and easily into pouches. That means you save on freight and space in the office.
Gemline was first to release a few products a year or two ago but they missed the mark. They came back at it this year with the Shopatronic Kit which is a tote and organizer all in one. We like this piece as it provides a notepad and has a pen loop. When not being used as a tote you can strap it to your grocery cart while writing out a list of things you need to do that afternoon. We have attached it to a bike here in the office as well as a treadmill. It works great in the gym, remove your towel and water bottle and instead of throwing a bag on the floor strap it to the cardio equipment you are using.
For those less interested in the gym setting there are similar alternatives but without the paper pad. Whether you are smiling, laughing or crying the Expressions Foldaway Shopper can be used as a backpack or even a tote on the go. This is an increasing trend we are seeing of dual functionality. The advantage of course of any of these items is that they pack in bulk well, so it is easy to ship them across the country. By easy we mean less expensive than goods that do not pack as well such as the laminated bags.
Over the next week we will be expanding the Built line from Prime. Many of you are aware of the brand as it is carried in stores all over the nation. In an era where many are moving away from the B2B market it is refreshing to see a brand trying to capture the business promotional market. In total we expect to release about fifty of their items in the coming weeks.
Fact: Mean People Suck At Running Businesses
By · CommentsWhile drumming up some new business in the ‘gigs’ sections of Craigslist a few weeks ago, I came across an ad from a woman looking for help with her marketing. She was a Rolfer, new to the area, trying to fill her new practice with new patients. She needed a marketer to review her website and current marketing efforts, as well as to suggest new marketing initiatives to further support her business development efforts.
She could not offer monetary payment, but rather, could barter for a Rolfing session.
I, being not only a fan of the barter system but also intrigued by the promise of structural integration, took her up on this offer.
This woman was a great person. From a small town in Washington State, raised in Boulder and, now, a victim of our heartless city.
Since she liked my recommendations, she offered an ongoing barter. 12-13 Rolfing sessions for a new website and a few other miscellaneous projects. I accepted. But only to decline later. I am a fan of the barter system…but not an all barter system. There has to be some cash. Or NStar needs to start accepting Rolfing sessions as payment…
I knew I should have declined from the beginning. How unprofessional of me to accept and then push off the project and then push off the project a few times and then admit that I am too inundated to take on a new project?
But I really wanted to help her. She was a great person.
I am constantly coming under fire for being “too nice.” “A pushover,” they say. “It’s okay to say ‘no’,” they say. But I don’t want to say no. I like helping people. I more so like helping people whose businesses I am passionate about. After all, if I am going to spend most of my spare time working, it better be rewarding work.
I am constantly coming under fire for spending more time on a project than what I invoice. Excuse me for wanting to do the job right, but spending the extra time to deliver something that I am truly proud of is rewarding to me and, usually, rewarding for my clients as well. And isn’t that what I’m hired to do? Deliver effective work that generates a financial reward?
I am constantly coming under fire for my generosity…but now all of you naysayers out there – all of you it’s-business-not-charity-sayers out there – feast your eyes on the Attention Max article by Max Kalehoff, ‘Why Generous People Get Things Done.’
Fast forward to the end of his article, “The mandate: To be successful as a leader or manager, you’d better help others, and hire and associate with people who like helping others…Your organization and your world will become a much more pleasant, nurturing place.”
And his sources are Forbes and an Ivey Business School article.
I am constantly coming under fire for my generosity. But it has never bothered me. I am happy being generous. I wish there were more generosity in business, in the world. I will spare you a socio-political rant about our rat-race driven, morally corrupt, do-whatever-it-takes-to-make-a-name-for-yourself-no-matter-how-many-people-you-leave-dead-and-bloodied-along-the-way country.
But, I will ask you to be generous. In your business, in your life.
And I will help that Rolfer out. I will. Just as soon as I have the extra time…
