Promotional Coolers Carry Your Message All Year
When most people think of buying promotional coolers they think of them as a summer item. Truth is they are one of the most widely used promotional items throughout the winter because they are often taken with the end user on vacations. When they are not being used on vacations during the colder seasons they often end up by the pool, next to a beach chair or while camping. These are all ideal locations for someone to discuss the logo or message on the cooler and for people to ask more about where the item was purchased.
Gemline has long been one of the industry leaders in custom coolers. This month they have released a series of new products geared towards the budget minded shopper but also looking for a quality promotional cooler. Starting at the lower end of the cooler spectrum the Catalyst Lunch Cooler has all the benefits of other mainstream corporate coolers but comes in at a lower price and with more colors available. One of the real limitations in past years has been the fact that most coolers were available in black of blue. Gemline was one of the first to market with vibrant colors and has continued that this season. In addition they are one of the first to market kid friendly promotional products that are actually CPSIA certified with PDF certificate files available for download on their site. Like the earlier model the Laguna Lunch Cooler has the same certifications and is also made from people safe non-PVC lining. What I like about all of their coolers is the construction which usually involves heat welded seams which hopes to keep the cold in and more importantly melted ice on the inside so your car or house does not end up soaked.
Gemline has gotten particularly aggressive with the mid-year launch after contracting the number of products heading in 2010. It is possible we will see more items released as the year goes along. Unlike some of the other major manufacturers such as Leeds and Bullet Line which continue to suffer from inventory problems Gemline is poised to deliver products in a timely fashion as we cruise into July and August. When you are comparing coolers and especially coolers that may be given to children the fifty cents you may save on the bargain brand may backfire when your client realizes you saved a few cents and in turn sacrificed their safety. Giving customers a potentially dangerous cooler does not relay a message of caring about their business. When looking for your next promotional cooler give Gemline a good long look.
Promotional Products Industry Plagued By Inventory Problems
One of the major challenges facing the promotional products industry as we head into the middle of 2010 is the absolute lack of inventory available from major ASI suppliers. This is mainly the result of poor planning or inability to see the return of the economy in the first months of the year. But it is also partially attributable to problems with cargo containers leaving Asia. That leaves distributors in the difficult position of not being able to provide new products to customers.
And there are a good amount of new products hitting the market this month. Leeds a division of Polyconcepts has launched an entire umbrella line. One of their newer offerings the 41" Classic Folding Umbrella is the very first custom printed umbrella Leeds has ever offered. This is one of the first major leaps for Polyconcepts into a new market since they launched their technology line several years ago. The umbrellas are scheduled to arrive in the coming days and as of this point there are no reports of difficulties in transit. Meanwhile over at Bullet Line which is another division of the same parent company they have expanded their custom caps line. Do you remember the big foam hats with a mesh back that were so popular thirty years ago? They are back with a vengeance and the Solid Cotton Twill Trucker Cap is one of the additions to the offering this year. Almost all of these hats and caps include custom embroidery in up to 7500 stitches which will cover almost all users. A nice aspect off the foam hat is it presents a large decoration area, almost a billboard for that matter on the front.
It remains to be seen whether or not the big players in the industry will have problems with freight as the year goes along. We should also be clear on another point. It is not that the containers are totally unavailable it is that the prices have gone up so much for immediate shipments as they bring capacity back online that some manufacturers are electing to wait it out. In some ways you cannot blame them if the alternative is shipping products that will eventually result in a loss or diminished profit. Combined with what were some of the higher fuel prices in the past few years once products arrived in the States there is no choice for some producers but to wait it out. Several of the major players have taken the time to write to their distributors explaining the shortages and this has gone a long way to repairing relationships and it also helps distributors maintain honest relationships with their end user clients.
As many of you may have read Google has announced that Caffeine is complete. Like so many others online I have noticed a steady decline in the quality of search results. One can only hope that in the coming weeks and months they fine tune this new product to bring it up to earlier higher standards.
Culmination of Factors To Slow Ad Specialties Markets
The fourth quarter of 2009 and the first quarter of 2010 caught a lot of the promotional products suppliers off guard in terms of growth and overall interest. As a result most are expanding up production and imports to compensate for the lack of inventory many suffered from into May. The only problem is that the economy is likely to stumble as we approach summer thanks to the effects of government stimulus wearing off and higher energy prices. Indeed in many parts of the country gas has hit multi-year highs.
With the increase in gas prices we will once again see people practicing staycations this year. You have all heard the term now, instead of expensive trips people are electing to stay local. This is where the Dunes Outdoor Game Set comes into play as it provides a unique branding opportunity on an item that has already sold out through May. In fact this multiple piece set has been so popular so far it may well end up in short supply into June. The true advantage of this type of corporate gift is that it provides a kid friendly summer promotion. The Laguna Game Set which also is manufactured by Leeds has a slightly higher price tag do to the increased number of game pieces and does include the almost popular chess and checkers. More importantly both game sets include a kite and beach ball as well as the Velcro paddle toss game. The toss game is similar to the more extensive paddle ball game you have seen played on beaches for years. Rather than decorate each piece in order to keep the acquisition costs down the carrying case or backpack is decorated. This is both convenient and also not nearly as intrusive.
The problem to date with both of these game sets is stock. The manufacturer which is owned by Polyconcepts, continues to have severe stock issues partly attributable to the increase in economic activity. As a result container ships have been delayed and that is resulting in long delays in getting products onto warehouse shelves. It is still a little surprising that vendors were caught off guard particularly in light of how strong the economy was at the end of 2009 but that is where we stand today. There are solid signs now that growth is slowing and with the increase in inventory dollars being spent and the subsequently increasing amounts of cargo capacity to and from Asia the favorable news is that stock issues should diminish as the year moves forward.
Simple Marketing Efforts Sometimes Effective
Day in and day out we are hit with advertising messages that are at times becoming so complex they are flying above the heads of the intended markets. Although these types of "thinking" marketing efforts can be very effective they have their place and time. With the economy the way it is today even organizations that are doing very well are reluctant to spend money in a way that may be viewed as frivolous. Think of what happened with the major bank last year that was going on a golf outing while borrowing money to stay in business.
That leaves three real possibilities all of which have their advantages. First a business can elect to not advertise at all. Obvioiusly this is not the ideal approach to gain market share. A second option is simply to spend less. The promotional products market is being dominated right now by products like the Fuzz from Leeds. A couple of years ago nobody would have even taken a look at this product at the top firms. They would easily have passed it over for more premium items. Lint brushes are hardly the giveaway of choice for top executives but they will carry a logo and do it in an economical manner. Along the same lines the lightbulb keychain has all of the virtues associated with LED type keychains which can provide an end user with safety at night but is affordable and will not be viewed as breaking the bank. A final approach would be to replace an item used on a dialy basis such as the Leeds Double Wall Ceramic Tumbler which can be used in place of a regular coffee cup. The advantage of this type of approach is that it serves two purposes, first it reduces the cost to the end user employee or client and actually helps to decrease the amount of trash and second although it is a premium item it does not carry the baggage a high end leather or desk gift might.
Meanwhile the imaginary world our politicians live in continues to provide evidence on a daily basis that the disconnect grows. Treasury Secretary Geithner indicated on the Sunday talk shows that the economy is growing more rapidly than they expected. Of course he glossed over the 10% unemployment rate, growing commercial real estate problem and also increasing fuel prices. These are all factors that are going to continue to impact families and as a result will temper any recovery. Instead we will be left with a recovery that has fits and starts much like we saw at the end of 2009. In addition there appears to be no acknowledgement of the shift going on overseas. Instead of shipping products to the USA we are finding factories overseas are either holding containers or are shipping products elsewhere to economies that are recovering more rapidly than we are domestically.
To see more of the Leeds product line take a look at Leeds site. They offer over two thousand promotional products and the number continues to grow each day.
Maintaining a Stainless Reputation More Difficult
A few years ago it was not all that difficult to maintain a solid reputation with your clients by simply taking orders and getting them out the door in a timely manner. During the high times of the last economic boom manufacturers were spending so much money on inventory they would spend months unloading out of program products. That all changed during the financial crisis and the net result is it is tougher today than it has been in many years to provide reliable service to your clients.
When providing a proposal to your client be sure to check and make sure the inventory is deep. If you are quoting a thousand piece order and the supplier only has a thousand pieces in stock your best bet is to find another product. Nothing screams amateur more than giving your client a product to select and then having to go back and tell them it is out of stock. Take the Colorband Stainless Bottle which is made in three colors. All of these colors are available to the point of several thousand in immediate inventory. Surely you cannot control quick and unexpected shortfalls but there are enough color options and enough pieces in each that you should be safe even if it takes a week to decide. With deep availability in the same three colors the Leeds Deco Band Stainless Bottle is another choice that will provide you and your client with some level of security in the coming weeks and months. If you are researching large orders you may want to even check with the manufacturer to check into overseas production at a discount. Be aware though that there are some significant difficulties getting containers across from Asia as prices have skyrocketed. In either case please remember to check inventory before recommending a product to your customer. Almost all of the major vendors provide instant public access to this information so there is no excuse for leading your client down the wrong path.
Apple announced the release of their 4.0 software this Summer. Hopefully it will take care of some of the existing problems such as the voice control issue I discussed earlier. It is likely that the introduction of multi-tasking may get around the issue entirely as it would no longer overtake the other controls. At the same time news of initial sales of their newest product have been strong but whether or not that continues in the weeks ahead remains to be seen.
Insulating Business Growth with Ceramics
By now we all know that the economy is only slowly starting to recover after millions lost their jobs and businesses closed all over the country. Billions have come out of the economy and as a result spending for less than vital projects such as promotional advertising have been trimmed. Aside of the few businesses directly tied into major contracts with the government most other organizations have kept spending to a minimum.
That does not mean a popular or exciting product will go ignored. Take for example the 11 Ounce Double Wall Ceramic Mug which was released this year by Hit. There have been several other suppliers that have released similar products but what differentiates this offering from Hit is the fact that they actually have sufficient stock to sell during the busy season. With dual wall insulation your hands are protected and your drink stays warm or cold. Another interesting release is the Flexi-Vase which is something we have never seen before in the industry. It is a combination flower vase and paper weight that folds completely flat when not in use but is water tight as soon as it is filled. This is an ingenious idea and one that someone should patent as it eliminates the hassle of trying to store a bulk vase under the sink or in a cabinet. Another important attribute of the vase is that it is resistant to breaking which is important for a hospital or other similar facilities. Both of these products demonstrate that a popular or innovative product will sell even in a bad economy.
As I discussed yesterday the problems with my current phone continue to mount. Today it went off into voice control no less than seven times in the course of two hours. The only thing that seems to help is a hard reset. If others have any ideas I am all ears but at this point I am resigned to the fact that my expensive smart phone is one of the dumbest devices I have ever purchased. I talked awhile back about major retailers providing examples of poor customer service but today it appears a major international manufacturer is providing the best example of terrible service. With all the hype surrounding the new iPad I can only wonder how many deficiencies it will ship with and how tolerant customers will continue to be in that situation. Look for further discussions in the next few days regarding new and popular products.
iPhone 3GS Voice Control Activates Randomly
About a month ago I upgraded the original iPhone 3G which I had purchased a year ago to the new 3GS. I had decided to upgrade the 3G for two main reasons. First because I was tired of the GPS issue that occurred whenever I locked the phone with a pass-code and second because the battery life had become so bad I needed a new phone.
Little did I know I was just picking up another phone with a new set of problems. After picking up the phone at the AT&T store I could not make calls for several hours. Calls to the service center yielded apologies for problems with the activation servers which seemed strange as we were months from any product launches. I took that time to update to the latest software and setup the phone. That evening I headed to the gym with a phone that still would not make calls but at least a functional music player. Upon arriving to the gym all seemed great until I accidentally bumped the voice control interrupting my workout and music. Ten minutes later it happened again, five minutes after that it happened once again. A month later it has probably happened a thousand times with no clear resolution available from the manufacturer and widespread forum reports of the problem.
The only fix to the iPhone voice control issues seems to be a hard reset. At least in the case of my phone it buys me another twenty or thirty minutes of uninterrupted usage before it happens again. I have tried new headphones and different model headphones to no avail. I have tried to reset and restore the iPhone as the troubleshooting pages indicate without any success. The only thing that seems to help is a hard restore which would seem to indicate a potential software problem. Between the issues of reduced battery life and inaccurate battery gauges I am at the point of wondering whether or not Apple® is back where they were in the 1990's where success went to their head. With so many other smart phones touting higher resolution cameras, faster processors and greater battery life one of the key features that separates this device is the access to iTunes. If that feature is defective as it is now for some users you have to wonder if the loyalty of customers will change down the road.
Proper Promotion Could Help Health Care Reform
I think what has been most interesting about the entire health care debate the past month is that almost nothing has been said of the actual benefits to the people. Sure there has been a lot of talk about the supposed benefits to the nation as costs for social programs is diminished but that means very little to the average person on the street struggling to survive. For certain those against the plan have been very vehement about what they believe are dire consequences of the potential legislation. Let's take a look at some of the details using existing examples as a guide.
Prior to that I would like to mention after having used a PolyPro Non-Woven Cooler Tote for the better part of three weeks I am pleasantly surprised by the durability. To be frank this is not the high end tote you would give a million dollar a year client but it is fine for conventions or corporate events. The rage in the last year has been polypro materials because they are inexpensive to manufacture and in almost all cases easy to recycle. Organizations are still finding recycled goods to be a bit too expensive as is the case with the Recycled PET Big Grocery Tote which although it features very slick lines and the green tag that everyone wants is still priced roughly double that of traditional polypro. That makes it a difficult sell still at this point in this particular economy. The only hope is that manufacturers do not bail on making recycled products and view the slack demand this past year as any indication of future demand. As soon as the economy bounces upward these products will come back in vogue.
Back to health care and the great debate of the 21st century. In one State where they have already mandated universal care there is one slight problem in relation to the supposed decrease in costs to consumers. Prices have continued to rise and are roughly three times what it cost just a few years ago. Using the connector site provided by the State a policy for a healthy twenty five year old man would run almost $600 a month with full coverage. That would equate to roughly 50% of the income level for the average person in some other parts of the country. It is very hard to believe this plan will make much of a difference to the average person paying for their own care. For those on the upper end of the spectrum it is possible costs will even increase and it has already been well discussed that associated taxes and costs will increase. These are all unfortunate consequences of insuring tens of millions without coverage at this point and in most cases without the means to pay for it themselves. Something clearly had to be done. Costs were spiraling out of control on all ends of the equation. The question that only historians will be able to answer was whether or not this was the correct approach.
Check out some of our earlier talks like Keeping the Message Cooler this summer for interesting information about new products.
Increased Costs Downfall of Recycled Products
A little more than ten years ago when a major ASI supplier first introduced recycled products made from reclaimed rubber the industry collectively ignored the offerings. Although the brand name was nationally recognized there was very little interest in the products and within three years the offering had vanished from the product line. A couple of years ago recycled promotional items were again introduced into the mainstream corporate channel and almost instantly became a mega success. Several issues have come together to create a perfect storm that is blunting sales.
First consumers and distributors were burned last year with horribly underestimated inventories. With some manufacturers the Spring of 2008 saw entire lines back-ordered for the critical Earth Day celebrations. Other products had serious quality control issues including melted buckles and inferior fabrics. Distributors had to deal with both of these issues in unmet expectations on delivery or worse angry customers when the more expensive recycled products proved to be of lesser quality than their non-recycled counterparts. Adding insult to injury some industry players such as Norwood suffered through inclement weather and flooding at some locations only making the problems worse. Manufacturers rushed to address these issues and the lack of color choices for the 2009 season.
Which leads to the next problem - collapsing sales the result of the ongoing recession. Everyone wants to promote eco friendly options but when budgets are severely cut customers are left with two choices, spend less money or spend no money at all. Although there is nothing official yet released by the major suppliers a quick look at online inventories shows excess quantities and also demonstrated no shortages this year leading up to Earth Day. This is partially the result of the economy but also directly reflects the increased costs associated with these products. Recycled apparel has been a major dud by most accounts with end users not liking the feel of recycled shirts and fleece. Taking a look at second quarter sales from suppliers there is an abundance of recycled and organic items which would again indicate an overstock situation. Higher prices and the recession explain much of the decrease but an overall change in buyer behavior may be behind the shift. It is too early to draw any conclusions but the 2010 "green" season will likely determine the fate of recycled promotional products in general.
Manufacturers need to bring to market some sub $3 items in popular categories to help continue the shift to recycled items. They also need to source some in the USA versus bringing them all in from overseas factories. Given the state of the economy and particularly domestic factories United States sourcing would help sell recycled items.
Broder Bros.appears to have dodged bankruptcy. Although there is no official word as of tonight it would seem they secured the needed percentages to prevent their filing. This is good news for the industry as the recent filing of Norwood already had the industry on edge. Changes are already underway at Broder with Columbia being dumped from the product offering. Once they sell through the remaining inventory it will be the first time in decades that Columbia has no presence in the industry. Meanwhile Callaway has landed at Perry Ellis. Once Ashworth officially exited the business Callaway was left orphaned until the announcement was made last week.
We do have an update to the Major Retailer Provides Lessons in Poor Customer Service but will update that story Monday morning. Suffice to say the demonstration is ongoing.