Q: What do I do with all my old catalogs?
A: Here is how I handle paper build up. I take all my expired catalogs to a recycling center in town. In fact I now recycle all my junk mail, and cardboard boxes there too. It’s amazing how much waste we have in our business. I estimate 200 pounds of catalogs per year – easy!
Q: What is the definition of promotional products?
A: Anything a company gives away, sells, or uses to promote its business… including inexpensive giveways, executive gifts, and premium items. They are all “imprinted” goodies in some shape or form. Nearly every successful company uses promotional items of some kind. In a nutshell, they are the single most cost-effective form of advertising there is.
Q: Can you give me some advice about setting up a home office?
A: Since my father sold out of our home during my childhood, I grew up living in a home office. Since 1970, I have done the same. My first job out of college required me to keep an office in my home. I learned from my father’s success that home offices work. When we purchased our current home, we remodeled an upstairs den into a large office area with space-saving components and windows. We installed shelves around the top of the room to allow space for the multitue of samples that I’ve obtained over the years. We also installed white peg board on several walls to accommodate our mug and cap collections. I selected a white Corian counter top for all of the desktops. By using file cabinets to divide the room we have created two separate working spaces. They fit together back to back so that we can access the files from either side.
Q: Is there any practical way to insure that my order will be processed correctly?
A: First, I always make sure that purchase orders are written in an easy-to-understand style, always requesting that a paper proof of the imprint be faxed or e-mailed to my office. Even when it is clearly stated on the purchase order, I sometimes get calls from factories wanting to clarify part of the information–imprint color, etc. Most times, I welcome this attention to detail. By making sure a proof is received in my office before production starts, there is no misunderstanding about the exact imprint. Requiring this step cuts down on the frustration on both ends!
Q: I have several new sales associates and want to expose them to as much training as possible. Can you give me some suggestions or advice?
A: First of all, please take advantage of everything our website has to offer. We created it expressly for the purpose of providing free sales training. Also, there is great value in attending selected education seminars that are part of the ASI and PPAI trade shows. Don’t just have your sales associates go to any old seminar–you need to really target attendance to topics with which you feel your associates need the most help. Do your homework by calling ahead to find out exactly what will be covered in a seminar before you commit anyone’s time (and your money).
If they come within reasonable distance to your area, the education seminars that occur during the early morning of many traveling shows are also beneficial to attend. I also recommend that you join your local association so that you and your colleagues can take advantage of the speakers at its monthly meetings. Naturally, many of the presentations are on subjects that relate to sales training.
To sum up, don’t just seek non-denominational sales training; get involved with training targeted specifically at the promotional products industry. That will make the biggest difference for your new associates.
Q: I want to get beyond price selling. We are good at being creative; however, the majority of our customers seem only to be interested in the “best” price. What can you tell me about how I can deflect customers’ price focus?
A: It may sound simplistic, but call on customers who are essentially different from the ones you are currently pursuing. The best way to get beyond price selling is to find customers who are interested in service and quality, not just price. There are plenty of people out there who still appreciate creativity, and are willing to pay for it. Beating your head against the pricing wall is a sure formula for disaster and frustration. Instead, use the time you are currently wasting on futile price-based customers to find the “creativity” types that are like you. They are out there, especially at companies you never thought had a need for promotional products.
Q: I have been in business for nearly three years. My business is very small and so far I have kept busy through word-of-mouth. I still have a lot to learn and don’t want to grow too fast. What should be my growth strategy? How should I go about looking for new business?
A: It sounds like you have most of the business that you want. There is no better way than word-of-mouth advertising to grow any business, especially one focused on promotional products. However, you could now take the additional step, if you are not doing so already, of getting involved in community organizations and non-profit groups. You can readily find new clients through the personal relationships you form while participating in these groups. This type of networking can easily lead to fruitful new business opportunities.
Q: After 22 years in the industry, I’m still eager to learn new things about sales. So, what’s new?
A: The very short answer to your question is “nothing is new,” because the secrets to successful selling never will change. There have always been five basic steps to selling: 1) Maintain a steady stream of personal visits, 2) Properly follow-up, 3) Always effectively look for new prospects, 4) Set limits on customers, and 5) Show appreciation to both prospects and customers. By continuing to hone these five skills, everything you do will seem fresh and new.
Q: How have trade shows changed over the years?
A: Today’s enormous convention halls in cities like Dallas, Orlando, and Las Vegas accommodate thousands of suppliers and distributors and their representatives who are seeking not only “what’s new,” but marketing ideas, case histories, and all kinds of electronic enhancements to add to their selling arsenal. In 1962, when I took a few days leave from the Navy to join my parents in Chicago where they were attending one of the annual association trade shows, the scene was quite different. What made that event so memorable is the comparison that I can now make to today’s shows. I don’t recall the number of exhibitors, but they each had their own hotel room, which served as both display room and bedroom if they could only afford one. The rooms were located on several floors of the hotel, so you were forever going up and down on elevators to make sure that you covered the entire convention “floor”. A guard was posted at each elevator to make absolutely certain that no one entered without the official distributor or supplier badge. It was most unusual, in those days for a sales rep to be in attendance. If one did attend, he wore the badge of a distributor. The exchange of selling ideas was not nearly as important as it was to see “what’s new” and to order samples. The confidentiality of who the suppliers within our industry were at the time was held in trust by those who had a show directory. Therefore, entering our industry in the “good old days” was much more difficult than it is today. As a matter of fact, I met in the lobby bar a young man who was interested enough in our industry to come to the show from Texas in hopes of buying one of the show directories. He was successful in obtaining such a directory and confided in me that he had paid $100.00 to discover the names of suppliers. He planned on contacting them in hopes of becoming one of their new distributors.
Answered by an industry veteran, Frank Elliott of Elliott Sales Corp.
Q: How do I help a company understand the value of using promotional products in a safety program?
A: People get hurt, but it shouldn’t happen in the workplace. Accidents are mistakes that not only cost a company money but can cost the lives of workers. Accidents costs companies billions of dollars in insurance payouts and lost productivity time each time they occur. Accidents can be avoided or reduced through the implementation of safety awareness programs that reward employees for working safely. These safety programs help reduce the cost of workers’ compensation premiums, as well as help communicate to employees that the company does, in fact, care about employee health and welfare. Important steps in developing a successful safety program are as follows: 1) Enlist the full support and backing of management 2) Carefully plan and clearly define safety goals 3) Set attainable goals that are within reach of all participants 4) Develop a way to measure the program’s goals and objectives 5) Know your audience and target incentives and rewards that match the demographics of the employee base. 6. Promote the program throughout the duration of the safety campaign 7. Last but least…keep it simple Adhering to these guidelines will ensure that your prospect’s program will provide the measurable results that clearly illustrate the value of your consultative approach and the value you bring as an individual that offers solutions! Don’t overlook the opportunities within your client base for the repeat business safety programs can bring to the opportunistic promotional products consultant.
Q: Sometimes doing the small things gets you noticed the most. What can you do to make yourself stand out to customers and the local community (or, most important, more visible than the competition)? Can you give me case studies and examples?
A: Find something you enjoy doing, then do it to the best of your ability. We all know people who do many things, but few of them really well. Make a commitment to an interest or hobby that you have, such as golf, fishing, gardening or hunting. Then in a subtle way, let your customers in on your accomplishments in that area. Don’t bore them with long stories, but entertain them with some of your experiences. Remember, everyone in this business has the same catalogs. Your best chance for success is to make yourself stand out by being unique and interesting.
Q: ASI and PPAI—Are they different?
A: These two entities are seemingly different due to their tax status. ASI (Advertising Specialty Institute, Inc.) is a company that exists to make a profit, while PPAI (Promotional Products Association International) is a non-profit organization.
Q: What effect, if any, does that difference have on distributors?
A: ASI is similar to other suppliers in the industry in that it sells its services, while PPAI functions as a trade association charged with serving its members. In fact, ASI is a member of PPAI and exhibits at PPAI-sponsored trade shows. PPAI, on the other hand, has a presence at most shows, primarily to provide information and services to its members.
Q: As a member of both ASI and PPAI, is a distributor paying for the same thing twice?
A: The answer is “no.†For years, ASI has referred to distributors who buy their various services as their “members.†Most people, who have been in the industry for a good amount of time, would not agree with that conclusion, instead feeling that distributors buying ASI services are that company’s “customers.†PPAI primarily offers different kinds of services than ASI. Belonging to one is not dependent upon the other.
Q: How do ASI and PPAI charge for their services?
A: ASI charges for a wide range of services depending on what someone needs. PPAI charges its members an annual dues fee, based on the amount of sales volume a distributor generates during the year. PPAI also sells educational materials, as well as offering a number of training events. These take place usually in conjunction with PPAI trade shows; some events are free, while others have a fee.
Q: What do the numbering systems mean?
A: When we joined the industry over twenty years ago, we were assigned an ASI number, and it has remained the same ever since. That number is our identifier, and many suppliers use it to learn about our business. We were also given a number by PPAI when we joined many years ago. It has never changed either, and is used for the same purposes. ASI has done a superior job of marketing themselves as the premier number identifier in the industry; and suppliers feel that by knowing your ASI number, it is easier for them to serve you. For years, the practice of the suppliers asking for your ASI number was the only way they knew how to find out about you. This practice is leveling off since other service providers like DistributorCentral and SAGE have arrived on the scene. They also assign numbers to distributors, and many suppliers will accept those numbers as a way of identifying your company.
Q: What is UPIC?
A: A few years ago PPAI created UPIC system. Its purpose was a bit unclear to many until recently. UPIC was developed to be an industry identifier that can be used instead of an ASI number. With UPIC, suppliers have a chance to see your company information on the PPAI website, along with a current credit report about you that they can buy on line.
Q: Why do both ASI and PPAI out on trade shows?
A: They do so to make money. For years, PPAI was the only game in town when it came to shows. Their annual January show, EXPO, in Dallas, must have been their biggest yearly moneymaker. Since moving to Las Vegas, EXPO appears to be even more successful, based on the large number of exhibitors and endless educational activities. ASI entered the show business several years ago, and it seems they use their shows for revenue and as a forum for selling their products. ASI currently offers five shows a year: in Dallas, Las Vegas, Philadelphia, Chicago, and Orlando. ASI has also purchased the Discovery Shows, which travel around the country throughout the year.
Q: Why can’t ASI and PPAI get along?
A: No one will really say, but perhaps it’s because one exists to make a profit, and the other to primarily serve its members. And they have different visions on how to service the industry. Since non-profit organizations tend to be less aggressive than for-profit companies, ASI has taken advantage of that situation and plodded ahead with growth. It seems, however, that recently PPAI has changed its stance somewhat, and is trying to compete head-on with ASI in some arenas. Its recent affiliation with DistributorCentral seems to be an attempt to offer for free some of the same services that ASI charges for.
Q: What the heck is DistributorCentral?
A: DistributorCentral is a new entry into the promotional products field. It offers FREE services to distributors seeking information and help. Tom Mertz, the owner of “Top Twenty Supplier,†Tradenet, started DistributorCentral three years ago as a place for distributors to find everything they need. That includes things such as product searches, a place to enter orders, do color proofing, and customer invoicing. Once the new kid on the block, DistributorCentral has caught on and its popularity grows every day.
Q: How is SAGE different from DistributorCentral?
A: SAGE is a search engine that distributors buy for a yearly fee, while DistributorCentral is free. As it relates to searching for products, they basically offer the same thing.
Q: Do I have to be a customer of ASI, or a member of PPAI to be successful in this industry?
A: Not really. Even though we have been members of both and have enjoyed our associations, a distributor with good selling skills can do well without either one.
Q: What is a traveling show?
A: It is a group of suppliers who travel to different cities in order to exhibit their products. Any given show primarily exists to generate a profit for the show’s owner, since suppliers pay to be part of the show. The three traveling shows that are currently visiting many parts of the country are NSA, Discovery, and SAGE. They are basically the same in concept, just different in size. They all offer some kind of education sessions and provide table top space for the suppliers traveling with them.
Q: Why are there so many people in this industry?
A: The promotional products business is highly visible and easy to get into. Just look at me. In 1981, with few cash resources, I needed to generate some income while looking for a full-time job. As it turned out, I was able to make it in the industry, because I used the proper steps in the selling process. Many others do not and leave the industry pretty quickly.
Q: Is it true that SAAGNY almost sold the Promotions East Show to ASI?
A: Yes. The deal appears to have fallen through after eight months of negotiations over the issue of who would control what. It’s unlikely that anyone will ever know what really caused the deal to fall apart.
Q: How do I compete with people who only sell on price?
A: This is a great question. Sometimes when we try to sell orders to first-time customers, they are more concerned with what we’re going to charge than with the purpose of the promotion or other pertinent facts. Obviously, we want them to pay what is shown in the catalog, so we have developed a clever reply to price-oriented questions. We say, and I am not kidding, “What would you like to pay?” Nine times out of ten, their reply is, “A fair price.” With that response, the door is now open to tell them that the price shown in the catalog is fair.
Q: It seems suppliers charge different prices for similar products. How do I make sure that I’m getting the best deal?
A: If you want to be successful, spend less time calling competitive suppliers looking for a better price on orders. Many distributors waste hundreds of hours calling different vendors asking for a cheaper price on products that they have presented to a client. This practice of trying to make a few more pennies on every item is not only a tremendous waste of time, but a formula for disaster. The better use of your selling time is to be looking for new customers rather than beating suppliers to death over price.
Q: How do I keep from having to bid on orders?
A: Many distributors feel that the only way they can sell anything is by bidding on orders. When customers tell you that they are taking bids for a project, run the other way as fast as you can. Instead of wasting time preparing paperwork and cutting prices, invest your time more wisely by looking for customers who want quality and service, not just a cheaper price. Once you establish a reputation as being the cheapest vendor around, you will have a hard time selling at prices you deserve. Have the courage to walk away from sales that make you so little money; they just aren’t worth the effort!
Instead, start by using the proper body language, as well as carefully choosing your words, to appear confident and to show people that you want to hold your prices. Remember the following body language strategies:
Maintain direct eye contact. Never look down at the ground when you’re trying to close a sale, so as not to appear weak.
Always smile. Doing so sends a strong message of friendliness and confidence and it also encourages openness.
Keep your head straight. A tilted head is a sign of submission and hands in front of your mouth also sends the wrong message. Stand up straight while leaning slightly forward to show that you are open and listening. Rocking back and forth on your heels makes you look out of control and nervous.
By implementing these strategies, you will increase your chances at getting the price you prefer. As a bonus, you will feel good about yourself and have more energy to pursue the next deal!
Q: How do I handle the literature that is sent to me after a trade show?
A: Your actions after a trade show are almost as important as what you did during the actual event. After having your badge scanned by hundreds of suppliers, you will soon be receiving a multitude of catalogs at your office. Make sure to open them daily, not ganging up the envelopes and boxes for a one-time filing. By dealing with each upon arrival, you will have more time to look at each supplier’s catalog, giving you the opportunity to learn about new items you missed at the show. If you wait to file everything at once, you are missing the reason you attended the show in the first place.
Q: How long should I wait to follow up with people?
A: It always depends on the situation. When we drop off things for people at their offices, we leave voice mail messages for the prospect as soon as we can. This attention to detail shows that we care and those efforts not only makes us unique, but give us twice as many opportunities for people to remember us.
Q: What’s the most important thing to remember when using email as a selling tool?
A: The #1 thing to remember is to play it safe by being politically correct, because that you never really know where your message will end up. Be as gender neutral as possible in any comments or suggestions. Keep in mind that your contact may forward the mail to another party. Your intended reader may think one way about a subject, but the ultimate decision maker might have a different opinion. For example, watch the use of masculine pronouns (he, she, him, her). Your intended reader may be male; but his boss, the ultimate decision maker, might be female. The smart thing to do is to always take the neutral position.
Q: How do I get customers to pay their invoices faster?
A: You will get paid faster if your customers open your bill the day it arrives. Entice them to do so by making your invoices look like special packages. Instead of sending out bills in standard business-size envelopes, mail them in 8 1/2″ x 11″ manila or white folders. Use a Sharpie pen to inscribe the customer’s name and address in large letters directly onto the envelope or onto your company mailing label, if you have one. By combining a larger envelope with bold printing, you are creating mail which stands out. This larger size envelope also affords you the opportunity to send catalogs or other collateral materials, which sets up even more chances for selling.
Q: What do I say to someone when I get them on the phone?
A: First, ask for permission to speak to the person when you get them on the phone. It’s particularly good to do this when calling someone you don’t know. We always as,
“Can I talk to you for a second?” In our twenty years in the industry, we have asked that question at least 10,000 times. I can’t recall anyone ever saying “no.” How could they? This technique helps every conversation start off on the right foot. Remember, there is no better way to close a sale than by beginning with a positive reaction!
Q: How do I set myself apart from my competition?
A: Most people feel that promotional products are sold only as commodity items. Because of this attitude, it is imperative that you help customers realize the value of paying a higher price in order to get better service. Stand out from your competitors by providing faster responses to questions or more thorough follow-up on orders or both. Develop a selling style that shows you are different by adding a personal touch.
Q: There are so many franchise companies and service providers claiming to help me improve my business that I don’t know where to turn. Any advice?
A: If you are considering entering into a financial arrangement with such companies, you first need to examine what you need to do to grow your business and why an outside company could be the answer. Perhaps you’ve realized that your strength is in selling. Unfortunately, you get so bogged down taking care of the necessary back office work that you have less and less time to sell. One solution is to hire a part-time or full-time person to help you with these tasks. If that’s not a viable option, you could consider working with a service provider such as Asgard to help you with financing and order management. They charge a fee based on your sales volume. Before you even consider using such an outside service, your annual sales volume should be at least $100,000. The other solution is to align your company with one of the larger distributorships such as Geiger or the Vernon Company.
