Promotional products create name recognition

Businesses of every size in every trade look for ways to distinguish themselves in the marketplace. Many find their solutions in the form of promotional products.
Promotional products businesses assert that their services provide companies with marketing tools that create name recognition at a low price point.
“It’s actually very practical,” said John Reynolds, owner of Letsch Advertising Inc. “The trinkets and the throwaways are becoming less popular; now it’s all about finding the right item that (clients) can hand to their customer that is going to keep their name in front of them all of the time. So the functional aspect is there – it’s up to the promotional company to show them the way to go,” he said.

What’s hot, new
New promotional items are being introduced all the time.
“Every year the vendors strive to come up with the gadget of the year – it’s like the hot toy at Christmas,” Reynolds said.
New items include biodegradable cups made from corn oil, antiseptic pens and other antiseptic items in the medical field.
“We are seeing a lot of new drink ware, which is always popular, and a lot of new products in the bag industry. The bag industry has really exploded because it is a usable item,” said Michele Kiser, president of Advertising Plus. Insulated bags and shoulder bags are growing in popularity, she added.
Items practical to business professionals are increasingly popular as employee incentives.
“USB ports, also called flash drives, are becoming very popular. They are very practical for traveling salespeople. You plug them into your laptop and you can access information when you are away from your office,” said Advertising Plus sales representative Candice Miller.
Brenda Jackson, owner of Trader Jacks Promotional Products, has seen an increase in this type of merchandise as well.
“Our industry follows retail trends, and the techie items like the USB memory sticks are very popular. People are giving them out in client packages and as staff appreciation gifts – mostly the more technologically oriented corporate clients, computer companies and businesses like that,” she said.

Recession-resistant
While some forms of advertising suffered during the economic downturn of the last several years, promotional products companies have survived and even thrived, owners say.
“In the last five years, with so many industries changing so quickly, people were spending less on advertising – but they have never deleted the promotional products,” Kiser said. “Clients cut back on the more expensive items, but they always bought something.”
Reynolds attributes the resilience of the industry to price and practicality. “Promotional products are a lot lower price than the other media buys – the TV ads, radio ads and newsprint – and they are a tangible, usable item,” he said.
And when times are tough, that’s when companies need to get name recognition, Jackson said.
“I don’t find many of my clients cutting back on advertising. If the economy slows down, a lot of times they will spend more on advertising in order to stimulate sales,” she said.
Reynolds added, “I think when times get bad people start meeting with their customers face-to-face. When you do that, it’s nice to have something to hand them that will remind them of your company.”
These days, Kiser said, “Magnets, sticky notes and pens have become more popular than higher-dollar items like clothing. Five years ago about 70 percent of our business was clothing. Now people have cut back a bit on those $20 items but are spending much more on $2 items like drink ware.”

Fierce competition
The promotional products industry had sales of $16.3 billion in 2003, according to Promotional Products Association International. Locally, it’s a highly competitive business.
“A lot of people are getting into this business because it’s a good small business, but it’s not an easy one to learn. There are thousands of vendors and over 600,000 products available,” Reynolds said.
As a result, promotional products companies have to differentiate themselves from the competition through service. Companies strive to be a resource for their clients, to ensure that they are using their advertising budget to its full potential. “A place where a lot of businesses need help is fitting promotional products into their marketing plan and understanding how they can really work with their business – whether they are used to tie in to a specific event or to a message that the business is trying to convey,” Jackson said.
Both Letsch Advertising and Advertising Plus assist clients in the creation of online company stores.
Kiser emphasizes to clients the value of ordering custom products 90 days in advance to receive a cost break.
“When the customer allows more
production time, say 60 to 90 days, you can go overseas and get them a lower price point. You have to do a high volume order to do this, but you can get totally custom items like a custom piggy bank or, say, a custom tool for a client in the automotive industry, at a much more competitive cost,” Kiser said.