2 replies to this topic

[DavidBlaise]

I received an email this morning from a Top Secrets of Promotional Products Sales client asking several questions related to the state of the industry. Since these are topics that affect everyone, I thought I'd share it with you:

Quote

QUESTION: As a consultant in this industry, I'd like your take on the "state of the industry". What do you see out there as you work with all of these different companies. I know that some companies will grow in a down market and all that, but do you think that this industry as a whole is too saturated with companies and reps? Do you think we'll see a lot of promotional products companies go out of business this year if that's the only line of business they do?

ANSWER: As far as what I see, I just got back from the ASI Show in Orlando. The education sessions were packed. I literally had people standing at the back of the room and sitting on the floor at my feet. On top of that, the vibe was unbelievable.

People seemed genuinely excited about the coming year and implementing the strategies we shared with them in those sessions. Many of the companies that we worked with in 2008 are having their best years ever. They attribute it to the fact that for the first time, they are really focused on doing everything they need to do, consistenly, to create, retain and grow their book of business.

Is the industry too saturated with companies and reps? Yes, I believe the industry is too saturated, but fortunately, the actual market for promotional products is nowhere near saturated. Here's what I mean...

There are a lot of people in our industry, and there are more and more coming in every day. But, very few of them actually market themselves systematically and aggressively. Very few create a presence in the marketplace. Very few have any idea -- let along a system -- for finding good prospects, qualifying them quickly, making intelligent, targeted product recommendations, addressing concerns, closing sales and following up intelligently and systematically. Because of this, very few people in the promotional products marketplace are even aware that so many of these people are out there... because they're not out there. They're just hiding out, so no one ever sees them. So from that standpoint, the market is not saturated at all.



In fact, ask yourself these questions:

• Are most businesses in your market aware of the true value of promotional products?
  
• Do they know what promotional products can do for them and how much they can help?
  
• Are they aware of the targeted nature of promos? The long term advertising value? The low cost per impression? The high perceived value?

If not, that's a strong indication that they've never met with anyone who takes an intelligent, structured approach to consultative selling, which indicates to me that the market is far from saturated with focused industry professionals.

Now, to your final question: Do I think a lot of promotional products companies will go out of business this year if that's all they do? Yes and no. Yes, I do think a lot of promotional products companies will go out of business this year. But no, I don't think it's related to whether or not that's all they do.

To clarify, I think that a lot of companies and salespeople who do this business poorly will go out of business this year... and may I say "good riddance." Those who never bother to learn what to do or implement what they've learned give the industry a black eye, so the sooner they finally fail and disappear, the better for the true professionals who actually know their craft and create value in the marketplace.

Anyone who who truly wants to be successful in this business can do so, as long as they are willing to invest in themselves, learn their craft and put the best practices they learn to work every day. But I hope the days of "sidling" in our industry will soon be over.

[PromoVictory]

David,

Thanks for your great insight on the industry. I had the pleasure of sitting in on one of your seminars on Saturday in Orlando and had my wife sit in on another while I attended a different topic from a different speaker. From what I heard in your 1 hour seminar, I decided on Sunday that it way time to become involved in your Top Secrets program. I have just started listening to the CDs and have already picked up on some things I need to implement.

I would have to agree - the attitude of both distributors and suppliers at this year's show was much different than the past years that I attended. Distributors were really attending a lot of the learning sessions on Saturday. I was in different ones all day long, and every one was standing room only. Suppliers on the floor really had an attitude of helping distributors understand their product and help to find the right concepts for our customers.

My outlook for this year is one of anticipated growth. My local competitors don't believe in attending these shows and seminars, so they are just peddling products. It is a time when we really need to become focused on our customers needs. Because I am committed to doing that, this will be a great year for me!

Jim Freund
Victory Promotional

[DavidBlaise]

PromoVictory said:

My local competitors don't believe in attending these shows and seminars, so they are just peddling products. It is a time when we really need to become focused on our customers needs. Because I am committed to doing that, this will be a great year for me!

Competitors who don't believe in investing in their own training and education are bad for the industry in general, but great for making the rest of us look good!

Congratulations on your commitment to take the steps necessary to learn the things that will make you the money. Be sure to participate in our online Mastermind and Discussion Groups as well as our teleconferences. They are all included in the program you purchased.

Best regards,