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HOW TO CHOOSE THE RIGHT PROMOTIONAL PRODUCT

05.14.2013 / Posted in ArticlesBranding

Promotional products. Most companies buy them for prospects, clients, event attendees—they’re a fact of corporate life.

And they do work: Compared to other items when it comes to the cost per number of impressions, promotional items often win. For example, the Advertising Specialty Institute found that the average cost-per-impression for a shirt is 0.005 cents. A prime-time television ad? Per impression, it runs 0.019 cents. 

But not all promotional products are created equal. Some are hits—and others are misses. How can you ensure that your next promotional item nails the target?

WHAT’S YOUR POINT?

What do you hope to achieve? How will you distribute the item? How does the activity for which you’re purchasing promotional products fit into your marketing strategy and message? How will you measure its success? 

Without a clear plan and an understanding of how these products integrate into your marketing program, you risk wasting a sizable chunk of your marketing budget

And the dumpster behind your building is not a prospect or customer.

SUIT THE PRODUCT TO THE PERSON

Who does the promotional item target? 

Don’t select a product you’d like—select something your audience would want. Ensure it fits your purpose as well: You may want to give something different to customers than to prospects. After all, you should have a different message for customers than you do for people who haven’t purchased from you.

DON’T FALL INTO A PROMO-ITEM RUT

Some companies have “signature” promotional items. They should reconsider. Customers likely already have one from a previous encounter with you. Many prospects may as well—at least, if they’re in the pipeline, they will. Something new and different will make a fresh impact each time.

FOCUS

Don’t give a promotional product to everyone you meet—even if they fit your audience parameters. Target carefully for the biggest impact. For example, handing a gift to everyone who walks past your booth at a trade show—even if its attendees are your target audience—cheapens the item’s value.

GIVE—AND GET

Ensure that you have contact information for anyone who receives a promotional item. With current or past customers, you’re all set. But if you’re trying to attract new prospects, giving something without getting something in return is doing it wrong.

FIND SOMETHING USEFUL

Choose something that your audience will use as often as possible for as long as possible. A study showed that promotional product use achieved a 69 percent boost in brand interest and an 84 percent increase in positive brand impression—mainly because of repeated exposure to the company’s brand though using the item. Also, you gain fresh brand impressions from the people who see someone use the product—an added bonus.

INCLUDE A CALL TO ACTION

The item may be usable, targeted, and fit your strategy—but it fails if you don’t give the customer a way to take action.

Include your company’s contact information: logo, URL, tagline, phone number, QR code—whatever makes sense for your initiative. And with a finite space in which to work, make every line count.


QUALITY MATTERS

Promotional items leave a lasting brand impression. Handing out cheap, useless products is worse than handing out nothing at all. 

Detail orientation ties to quality, too. Check every proof that you receive from the vender. Is everything clear and easy to read? Is the phone number correct? The URL? Are there any misspellings? Send the proofs through multiple pairs of eyes to be extra certain.

Need help making sure your promotional product is a good fit for your strategy? Call us today!



Your Path to Increased Profit: Take Care of Yourself First

Business owners who underpay themselves year after year are costing themselves in the long run.

Lots of business owners underpay or altogether forgo paying themselves in the interest of “investing” in their business and its needs. In the initial stages of a start-up or in tough times, one might have to make sacrifices, but doing so year after year points to a much bigger problem. To promote profitability, it may seem to make sense to habitually pay yourself less. In the long run, however, it will cost you and your business more than you might anticipate.

As the business takes off, it’s essential to start taking a decent salary for yourself and your partners. Whatever you pay yourself, it should be enough for you to live comfortably and allow you to save and invest for your future. Let the power of compounding work for you. If you own the building, make sure to charge the business a fair rent. You aren’t doing anybody any favors by hiding the actual expenses and giving yourself a false sense of profitability.

One of my consulting clients, let’s call him Steve, was in his 15th year in business but was paying himself barely enough to meet his household expenses. His wife also worked in his business. They hardly took any vacations or saved for their kids’ education or their own retirement. After I had a few meetings with him, he finally understood and realized the importance of taking care of themselves first. He gave his wife and himself a decent raise. They went on a family vacation that they thoroughly enjoyed, and came back rejuvenated with a new vigor. The following year, their business experienced a 10% growth in revenues and a 5% growth in profits.

Steve realized that he hadn’t performed at his best for several years. With the excessive number of hours he was putting into his business and the small return he was getting, he had lost the needed energy and motivation to think creatively and focus on profits. With the rotten mood he brough home at the end of the work day, his relationship with his family had also taken a hit. As a result of increased compensation, things were looking up. Not only could he pay for his immediate needs, but he could also sock away enough and invest for a comfortable life in his golden years.

How much should you pay? This question comes up all the time, and there is no one formula that fits all. It depends on variables such as type of business, legal structure, profitability percentage, tax bracket and others. Some possible solutions are:

  1. At least the pay needed to hire a manager to replace you in case you can’t work anymore
  2. Anywhere from 3% to 6% of your revenue
  3. A certain percentage of profits, leaving enough for reinvestment into the business, ensuring its continuous growth
  4. Enough to cover your necessary expenses plus maintain a rainy-day fund, among others

Family business dynamics. I have seen situations where the father, who has owned the business for years, hires children to management roles and pays them more than his own salary in order to “keep them motivated.” I find two issues with this situation. One, the children must earn their way up to management by proving their worth. Two, paying more than your own salary sends the wrong message of you being of less worth – it undermines your credibility as the leader.

Greed can kill the business. I have also seen the opposite happen. I knew an owner of a printing business who treated it as her ATM machine. She kept taking money out of her business to splurge on her luxurious lifestyle, including building a second house and taking multiple vacations a year. The number of employees went from seven to two. Sales kept shrinking. She lost most of her customers. The only reason she’s still in business is because of a contractual agreement with one large client.

You’re the one taking all the financial risks, having sleepless nights and making sacrifices; there’s nothing wrong with reaping the rewards. If you have managed your business with a focus on profits, you should not have to worry about finances after your exit – which, by the way, you get to decide, not your age, personal situation or circumstances.