Archive for Promo Industry News
Throwing in the Towel on Vendor Troubles
Posted 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
Posted 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.
Why Take the Chance? BPA Free Promotional Tumblers Are the Right Choice
Posted by: | CommentsThere 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?
Why Hit Promotional Products Has It Right (and why others don’t)
Posted by: | CommentsOne 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.
What is Leed’s Photographixx? Four Color Process for Drinkware
Posted by: | CommentsFor 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.
Tight Storage in the Tote Market
Posted 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.
Days of Lounging – Games Ahead
Posted by: | CommentsWith only a few weeks left to go before the start of professional football time is quickly winding down for those still looking to choose items for that first tailgate. Suppliers were slow to release gifts intended for use around football season because nobody knew whether or not the season would actually be taking place. Luckily with a resolution reached and a crisis averted there has been an onslaught of last minute introductions. On one hand it is good to see on the other hand it may provide more options than most can stand.
Sensing the ever increasing popularity of functional corporate gifts Leed’s has once again expanded their stadium chair offerings. After having a lot of supply issues this year with the first release the Game Day Cooler Seat has made a debut on the market. What is interesting about this piece is it folds almost flat like a pancake when not in use. What makes it unique is that it folds horizontally not vertically like most other collapsible coolers. This allows it to hold almost 200 pounds of weight when being used as a chair. Buyers need to be aware that limit is going to be under the weight of many of those sitting on it. In real world testing we found it holds up to about 230 pounds, but there are no guarantees. The best approach to take will be to explain to customers that best case it will hold what is advertised. Otherwise you may end up with clients looking to return it after it “falls apart” when someone much larger than what it is rated for squashes it.
With game days fast approaching that also signals the beginning of the holiday buying season. Look for the first signs to begin in the next few weeks as organizations try to use up their budgets before it gets taken away. With budgets as tight as ever we are finding the number one item being requested again this year are bottle type openers. By this we don’t mean the pop top openers but both wine openers and insulated carriers. Leed’s once again has us covered with the Belgio 4-Piece Wine Ensemble which is just a fancy way of saying a four piece set. This includes all the standard pieces such as the opener, pourer, stopper and ring. What’s a little different in this case and less presumptuous is that the logo only goes on the outside of the box. We like this approach as it is less likely to get pushed aside and is more likely to be used. It also gives the recipient the option of using just the pieces if they are put off by the logo
Whichever way you go this season be aware budgets are likely about to be trimmed. With the market volatility where it is many organizations are spooked and buying is being put on hold. Use your budgets now and you may well be able to secure some reasonable deals. Last year stock ran short early and customers were left out on the cold so the benefit is two fold.
Getting a Grip – Failure To Launch Properly
Posted by: | CommentsIt always amazes me when new products or services are offered by major organizations in a haphazard fashion. You have all seen it before whether it is the story of the car company that launched a new car using a name that was offensive to the local people or the soft drink company that tried to fix something that wasn’t broken. It is even more surprising to see these same mistakes repeated in future generations.
We are a huge fan of most everything industry leading supplier Leed’s has brought to the market over the last few years. There were a few real duds that enjoyed only moderate success. Do you remember the tire tread products of the early 2000’s? Since then things have gotten much better but take a look at the Grip Rubber Flash Drive 1GB and you will see an instance of what may be poor execution. At product launch the only available imagery is that of an orange dome with lettering on it. Almost every non-industry person that looks at it will think that the drive is orange. Not exactly the look and feel many companies will be looking for and a reason to look at some other product. The drive itself is fantastic and offers a 4 color process logo as part of the dome. So why would they choose to exhibit a single color logo set on a bright orange background? That’s a question for the product development people.
On the other hand we have a beautiful execution with another flash drive. Leed’s has stayed away from the idea of offering a ton of stock shapes like Norwood is now doing. As a side note the prices Norwood is offering on their drives make them hard to beat but will they be able to keep up with demand and quality? Although it is a niche product the Light Bulb Flash Drive should be a popular product among utilities, schools and just about any person looking to provide something unique. When Prime Line made a move a decade or more ago to being offering shaped stress balls they were an incredible hit for them. The same will likely be true for Leed’s and now the challenge will be to maintain quality and stock. Other shaped USB drives have not been big sellers and part of that we believe is attributable to the product positioning and imagery. Time will be the judge of how well these new devices sell.
Changes Sizzle July Cups Pens and The Rest
Posted by: | CommentsAfter what was a great year in 2010 the industry started off 2011 in a full gallop. By June the gallop had slowed to more of a trot and by most accounts July really continued to slip. Industry powerhouses like Leeds and clothing supplier Sanmar reported strong growth in the first half of the year but many are now warning of slower times ahead. As recently as a month ago many ASI suppliers were still internally suggesting up to 20% growth in the second half but those numbers seem unrealistic today.
There are some that are still growing at an incredible rate as judged both by reports and inventory. Bullet Line is a perfect example as they have captured the lower end of the market vacated by Leeds in the last year. As the “Gusto!” line has been gradually wound down products like the Sizzle Tumbler with Straw have been rolled out. Leeds already had a similar product called the Sedici but at a much higher price point. The Sizze is only a single wall tumbler which doesn’t provide much insulation but it does nail the market. They have been flying off the shelves since they first arrived a few months ago. Bullet has managed to roll out a number of new products while constantly turning over their existing inventory. This year alone they dropped almost 30% of the SKU’s they had in early 2010.
With over 200 new products introduced since the early part of this year introducing a dedicated cateogory for just New Bullet Promotional Products seemed like a wise idea. This way each new item can be showcased for up to a month before falling back into the relevant categories. Without a single product starting above $10 they have certainly taken up the lower end of the spectrum in the Polyconcepts family which makes sense. Up until this year the two companies were competing with one another quite often leading to all sorts of confusion among distributors.
The industry as a whole seems to still be going through some contraction. Inventory problems still exist at some firms and a full two years into the Bic/Norwood merger, Norwood still lacks online inventory for most distributors. If times were as good as some would want you to believe a top five supplier would have come around to expand their site. Over the coming weeks we will continue to provide more industry updates, at least one a day whenever possible.
Social Media By Microwave and PEVA
Posted by: | CommentsI am sure by now most of you have read that the World Health Organization has determined that holding a device that emits radiation for hours a day may not be safe. Although this isn’t much of a surprise to anyone that gives it a thought it is quite a turnaround from the WHO that had previously said phones were entirely safe. Will it change habits of the average user? Highly unlikely but what it may do is force cell phone manufacturers to work with providers to decrease the amount of radiation emitted. A local television station tonight highlighted the danger and indicated the best thing to do would be to use text or twitter instead of using the phone. I’m not entirely sure how that would help other than reducing the exposure as the phone would still be in the users hands presumably.
But the point of this isn’t to discuss the safety of phones. Instead it comes to the point of the promotional cooler which has long been lined with unsafe or potentially unsafe materials. PromoManagers has made a point to stay away from most non PEVA lined coolers over the years but in some cases we had no choice. What most people don’t realize is that their less expensive PVC coolers contain far too much “C” which stands for chlorine. The manufacture of chlorine results in the creation and release of dioxin which is highly toxic. Exposure accumulates up the food chain so as we dispose of our old coolers, old shower curtains and everything else the contamination of dioxin grows. Add to that exposure when users do not read the label and put their drinks in a PVC lined cooler and then float loose ice in the cooler. Finally Leeds and other promo products providers have released PEVA lined coolers such as the Arctic Zone Hydration Dual Lunch Cooler which also includes a bottle. The imprint usually goes right on the front on the pocket. The cooler is lined with PEVA instead of PVC making it much safer for anyone using it as well as when it is disposed. As a bonus Leeds added the sports bottle which cannot be imprinted but makes a nice addition. Make a choice and leave PVC for the bargain outlets. Your kids will thank you and so will your customers. It’s better for you and better for the environment.
While we’re at it, we should mention that across the board debossing will become more expensive as we head through 2011. The cost of making the metal stamps has gone up exponentially and as a result it is being passed along to distributors and is already being reflected in higher setup charges. We will discuss the premise of setup charges over the coming days. If you are interested in reading a brief explanation of PEVA and PVC you can check out the healthybuilding website for additional information.
