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Selling Your Product as a Hot Promotional Item
By Matthew Yubas

The advertising specialty industry is a great market to sell your products. Maybe you've seen the mugs, pens, t-shirts and other novelty items given away by companies to promote awareness and generate sales.

     Companies spend big money on promotional products to have their logos, website, and telephone number in front of their customers. Promotional product sales generated over $18B in 2006. If your product is a fit, you can generate big money participating in this market.

Here's How The Industry Works

     A company such as Microsoft, HP, or Apple, goes to a logo company for ideas on a marketing program. The logo company is the distributor and center of the industry. The distributor adds value by providing the company with suggestions of what products would work best to meet their company objectives. A good distributor will propose certain products as the right fit and why.

     Upon agreement with the customer, the distributor seeks products from suppliers (product manufacturers). When a deal is made, the supplier prints the logo or other artwork and ships the product to the distributor. The distributor organizes the process and makes sure product quality is up to standard, and delivers the shipment to the customer.

Getting Your Product In The Door

     There are two main organizations that you should become familiar with: Advertising Specialty Institute (ASI), and Promotional Products Association International (PPAI). Both have plenty of information and resources to help suppliers and distributors.

     As a supplier you should have an ASI number to play in this market. ASI has about 90% of the industry's suppliers and distributors as members. ASI enables you to break into the industry, and makes you legitimate in the eyes of distributors. With a membership you obtain the ASI number. Membership costs for a supplier are $799 with a $250 application fee.

     "With a membership, your company and product information will be available online to the distribution network. ASI also provides a number of educational and marketing opportunities to entice distributors including trade shows, magazine advertising, and lists for direct mail," according to Laura Fisher of ASI.

     Promotional Products Association International works with suppliers and distributors around the world, and is a nonprofit organization. Membership starts at $600 and up, based on your sales volume. "As a supplier member, you place your profile online which includes your website, product line details, and company information," according to Gwen Gann of PPAI. This enables distributors to search for your products, and suppliers have access to distributor contact information.

      PPAI also connects suppliers and distributors with tradeshows, magazines, and educational programs. PPAI has a member numbering system and is in the process of adapting to the Universal Promotional Identification Code (UPIC). UPIC is open to members and non-members and is used as a way of organizing the promotional products industry.

Courting the Distributors

     Distributors help suppliers get products in front of company customers. Your task is to get the distributors aware of and interested in your products. There are a number of paths to reach the over 20,000 distributors including:

• Rent a list of distributors and mail a letter of introduction, product literature, and follow-up with a phone call. You are not selling at this point. You are making an introduction to generate awareness and interest.

• Call distributors and meet directly. Many are open to see the latest products in the market.

• Hire a sales rep company who already has established relationships with distributors that offer your type of product. The sales rep introduces your product and gets a commission on orders.

• Exhibit at a trade show and attract the distributors in attendance.

• Other methods include advertising in trade magazines and driving traffic to your website.

Playing the Game

     Distributors choose to work with suppliers who have an ASI or PPAI number, are credible, and can turn an order around in two weeks or less. You want to create relationships with distributors so they know you and your products before a client places an order with them. If a distributor you don't know calls to place an order, make sure payment terms are clear. For first time orders, get payment up front. For follow-on orders you can provide credit terms after you check their credit and references.

Unwritten Secret

     It's an unwritten rule, but suppliers should never go around distributors and talk to end-user companies directly. "Distributors will find out and you can forget about getting business from them again," said Ryan Kaback of Custom Logos in San Diego. So, don't sell direct or you'll likely get left out in the cold later.

Conclusion

     Some questions to ask yourself as a supplier. Is your product the type that is used as an advertising specialty item? Examples include computer items, gifts, golf, journals, umbrellas, and various innovative items. Can a logo or other artwork be printed on your product (talk to a local printer)? Can your product be printed and shipped in two weeks or less? Can you provide great products and customer service? If you've answered "yes" and willing to make an investment to create awareness with distributors, then you could be on the winning path to carve out a piece of this $18B industry.

To learn to bring your product to market, please see the product marketing page.

About the Author

     Matthew Yubas is a Certified Professional Marketing Consultant for the Small Business Development and International Trade Center. He has developed products for 20 years as an engineer, product manager, and independent consultant for startups, small business, and Fortune 500 companies. He has launched new products such as software applications, wireless devices, and websites. In addition, he has helped clients in a diverse number of industries that include photography equipment, auto accessories, soy candles, children's clothing, sporting goods, digital art, and home décor. He has earned a B.S. in Engineering and an M.B.A. In Management. Information about his new Invention Success Kit is available at www.ProductCoach.com.

Matthew Yubas  Contact Texas: 3124 75th Street, Lubbock, TX 79423 California: 9853 Pacific Heights Blvd. Suite K, San Diego, CA 92121

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