Industry Changes coming for Promotional Items

During these times of economic uncertainty and unstable oil prices, the promotional industry, like other industries will suffer price increases in 2009. In past years, the promotional industry has experienced small annual incremental price increases, just slightly above the rate of inflation. On many occasions, suppliers have honored pricing on reorders from the year before. However, with the current economic volatility, suppliers can no longer honor previous pricing schedules.

In recent weeks with the decline in gas prices and changes from China, there may be hope for clients looking for less expensive promotional items. I am recommending to my clients that have promotions planned for early in 2009 not to wait… take advantage of the lower pricing today, so they can PLAN their PROMOTION so they PROFIT.

I REFUSE TO PARTICIPATE IN A RECESSION

I hate to even use what I have come to know as the “R” word. It started off being whispered, and now is being talked about by the media, increasing the frenzy of businesses cutting back on their spending, pulling in their marketing, and getting ready to take the hit from the “r”.

Well, I REFUSE to participate in a recession, period. At a time when the competition is listening to the “r” talk, it is the opportune time to grow your business by obtaining additional market share and higher name recognition.

 

The best option is to be proactive; start developing your marketing strategies, especially your word of mouth marketing strategies, before you need them. An ancient Chinese proverb says, “The best time to plant a tree is twenty years ago. The second best time is now.”

 

The answer during a recessionary period cannot be to pull back on marketing or stop marketing completely; instead, marketing needs to be expanded, or at least kept the same.

There are a number of inventive ways to help market your company that cost very little or has no cost.

• Public relation campaigns are often thought of as very costly, but the reality is there are a number of low cost methods that can be utilized in order to have an effective campaign.
  • News releases are an efficient way to alert the local media of changes and news about your company. While the end goal is to have the newspaper, magazine, Radio or TV station conduct an interview and run an in-depth story, even if the media only runs the information in the release, credibility is added to your company.
  • Articles and editorials are excellent ways to become an expert for your local papers.
  • Sponsorships do not always have to break the bank in order to be effective. Too often companies try to get into every tradeshow or Expo in the area, but forget to take into consideration the target market. Instead, be very selective, and sponsor teams/events/booths that pursue your target market. This will cut down on cost of multiple, non effective, sponsorships and result in focused sponsorships with profitably results.
• Newsletters are an excellent method to keep in contact with clients, prospects, and associates, and can be created without a hefty expense. Whether in paper or via email, newsletters can be a great way to educate the recipients, and keep their mind on your company. Some industries, such as realtors, mortgage brokers, title companies, may go years between deals, and these businesses must be able to keep their name in front of their clients constantly so that when they are ready to move again, they know the right people to call.
• Blogs are the new great ways to update your clients; you can visit www.photosoncloud9.com to see a great example of a local photographer who uses a blog to keep her clients up to date.
• Word of mouth is an effective way to grow your business whether in a thriving or recessionary period. Dr. Ivan Misner, founder of the Referral Institute and BNI, two companies that focus on word of mouth marketing and developing relationships, recently said in an interview, “…you want to get really serious right now about improving your networking skills so that you can beat your competition. They’ll be going out of business and you’ll be thriving during this time. Go and immerse yourself into a culture of learning. Read this material and improve your skills. If you wait for the recession to be over, by that time your business will be over. Start now. Immerse yourself in learning how to network more effectively and you’ll get through this with flying colors.” To immerse yourself in learning about networking, you can visit www.bnipodcast.com for additional interviews by Dr. Ivan Misner.

 

Whether through a Word of Mouth Based Marketing Plan, newsletters, blogs, or other creative marketing, the crucial point is to continue marketing.

 

When is the last time that you went into Publix or Target? Both companies have been advertising heavily, but they have gone a step further. Following along with the trend to go “green”, both stores are selling grocery tote bags to replace the plastic bags usually filled with groceries. These bags are great examples of a way to keep their name in front of their client’s face; it is a constant reminder to see the bags in the trunk of our cars or on our cabinets just ready to be filled again with their groceries.

 

I was recently speaking to one of my clients, Jeanine McLeod of Cloud 9 Studios, ““We had our best month ever in May of this year,” she said, while smiling. “I attribute this to our utter refusal to participate in this ‘recession’. We don’t walk around with our heads hanging low; we are out there fighting for every last customer. We understand that many of our clients may be pinched at the gas pump or in the grocery stores and therefore have started offering payment plans to help with the investment they are making in their family portraiture. We also are working with our vendors to keep costs down so that we don’t have to raise our prices due to fuel and raw goods. Family is always important, and family portraiture is one of the only ways we have to artistically capture and remember who we and our children are at this moment in time. This is not something people are willing to go without even if their dollars are being stretched thinner than in the past.”

 

Rob Kress, Marketing Director of Ierna’s Heating & Cooling, recently commented, “Ierna’s Heating & Cooling has continued to grow despite the economic situation in the US. Though Ierna’s is growing consistently year after year, they have seen many changes recently that has not made the growth process easy. Rising fuel prices, higher prices of raw materials & tougher credit criteria for customers has made the growth process more difficult than ever. Ierna’s continues to provide their customers with excellent customer services and & excellent products at an affordable price. Advertising budgets have not been cut. Ierna’s also continues to give back to the local communities when the communities need it most. By continuing to do what Ierna’s has done for the past five years, their business continues to grow and prosper in, as the media says, “A Down Market”.”

 

Personally, I own a company called Thread Art; we help our clients make more money through embroidered & screen printed apparel and promotional items. I have a couple kinds of clients, ones that are continuing to spend money and get out there and market, and others who are cutting back to the bare minimum. Those that are cutting back are struggling to make their ends meet while those continuing to market, like Cloud 9 and Ierna’s Heating & Cooling, are doing amazing. Our goal at Thread Art is to double our business from 2007 to 2008, and we are on track to do that… so I have to ask,

“What recession?”

 

For additional information about Tiffanie Kellog of Thread Art, please visit www.threadartfl.com, email at tiffanie@threadartfl.com, or call 813-948-7243.