When Free Samples Aren’t Free
With the advent of internet sales came the trend for free samples throughout the industry. A few years ago it was considered the cost of doing business and indeed was less than the traditional costs of acquiring a customer in the promotional products industry. However as the online industry continues to mature the trends are now clearly headed in the other direction. A search of sample policy on a major search engine will quickly demonstrate the proverbial worm has turned regarding samples. We will attempt to explain why this quantum change has occured.
Several years ago during the dot com boom investors were willing to spend tens of millions of dollars developing ecommerce enabled websites. Literally dozens of dot com promotional products companies came and went in a matter of a year or two. One of the largest distributors almost went out of business after spending a quarter of a billion dollars buying an ecommerce site that produced no sales. After dropping that type of cash the cost of free samples could be easily justified by the bean counters. A more careful examination shows that the practice of providing free samples can be one of the biggest hinderances to an organizations bottom line. Take for example a recent sample order we provided for a large multinational. They requested the Leeds Excel Sport Duffel at close to ten dollars, the Gemline Regatta Race Tote at about the same, the Gemline Hampton Insulated Tote at almost twenty dollars delivered and last but not least the expensive Gemline Vertex Large Sport Duffel which took the prize as most costly. Overall we estimate the time involved cost of goods puts the order at well over $150. The net return was zero as the client not only did not order but never afforded the opportunity to bid on what they did order. Was our experience unusual? Hardly. Reading through the policies of many of our esteemed colleagues it quickly becomes clear that our experience is the rule and not the exception. Approximately 80% of the sites we visited strictly state they no longer offer free samples ever. Several actually go on to cite self studies that show close to 98% of all sample orders resulted in no actual order being placed. Worse not only did these studies show no order at the time but they show no orders ever. That would indicate the absolute worst investment a promotional products distributor can make is offering free samples without restriction. Out of the remaining 20% about half of the distributors state they will charge the customer only if the order is not placed, the other half state they will charge for any products not ordered. In the above example if four samples were ordered and an order for only one placed, a significant number of distributors would still charge for the other three.
The big manufacturers, Leeds for instance and Bic as another example no longer offer free samples online. They too have found that in the majority of cases free samples are simply a line item deduction from profitability. We still provide free samples to existing and in some cases potential clients but our policy is much stricter than it once was and in all cases customers are informed they will be charged if an eventual order is not placed. That leaves our reps to make the decision later on whether or not to charge for the items. We believe our policy is fair and is in line with the rest of the industry. As several others have stated on their policy pages we offer top of the line products from proven vendors. We offer large photos and full product information which eliminates much of the need to see and touch a product. On large orders we insist on product proofs to insure the accuracy of a persons order. In short we take every step to guarantee an order is up to the expected quality and believe these steps circumvent the need for a pre-order sample in many cases.
As the industry continues to evolve we expect many will continue to tighten their belts with regards to samples. Somewhere along the line the remaining distributors offering totally free samples will realize it is a tremendous loss leader that takes valuable time away from productivity activities. Like one prominent industry official said recently “you don’t get free samples at Best Buy or Home Depot, why should you get them from me?” Obviously existing customers deserve samples as required for their loyalty but the economic situation dictates changes, and charges for most others.
Almost Time For Picnics And Fun
Despite the dreadful weather over parts of the USA spring has arrived and beach season is right around the corner. This means it is time for the beach promotional season and in kind we have rolled out several new beach themed items on our site.
Up first is the Hampton Picnic Set for Two is stuffed full of tools and equipment for a full day of fun at the beach. For a relatively low price you get everything from plates to wine glasses. If you like to grill on the beach try the Chill and Grill Outdoor Kit which actually includes a cooler and fully functional grill for just over $30. Combine the two for one super beach promotion that gives your client absolutely everything they could use for the summer – or almost. Add the Laguna Beach Mat Kit and give your target audience a 6 x 3 foot beach mat to sit on while grilling and a tote to carry the mat. The logo goes on the tote and presents some interesting decorating options. Together these pieces represent a total beach package.
Taking another route the Gemline Spectator Cooler Chair gives the best of both worlds, a comfortable seat at the kids ballgame and room to keep a drink or lunch cold while watching. To be more precise the cooler portion handles a whoping 24 cans. On the slightly less elaborate side is the Gemline Piccolo Cooler Tote offers very attractive colors at a very reasonable price. The cooler will handle up to a six pack and because it has a flat bottom is great for storing foods. The Gemline Life in Motion Cargo Cooler is one of the top selling coolers this season due to the versatility it presents. It fits great in the backseat between the kids or on the beach as an armrest. The cooler handles a dozen cans on the inside and 2 in the convenient chilled exterior holders. Last but not least the mono packs continue to be extremely popular and the Gemline Eclipse Mono Pack Cooler is no exception. With a full PEVA lining and heat sealed interior it is both easy to carry and affordable.
When considering any of these items keep your overall costs in mind. Some of these items are extremely bulky and therefore expensive to ship. We are still offering free ground shipping on all of these items in the lower 48 States. On any of these larger sized items it is always advisable to get a shipping quote firmly in writing before committing to your project. This prevents any unexpected surprises after delivery. Keep in mind shipping rates have skyrocketed along with the price of fuel and as a result these costs and markup are often passed onto the buyer. Lastly make sure you have the capacity to store these items if you buy a high quantity as items like the cooler chair take up a tremendous amount of space. Sometimes it makes sense to stagger the delivery to better accomodate the buyer and or recipient.
Recycled And Tested Safe Drinkware
One of the concerns we continue to have is the safety products in the marketplace. With so many of the products now originating overseas and with the frequency of negative news stories surrounding various contaminants being present in product it is nice to be able to offer items we can trust. The Aladdin Ecycle Tumbler is one of the first recycled items we are aware of that meets many or most of the FDA requirements for food safety and containers. As it comes from one of the largest and most respected brand names and suppliers we feel confident offering it to our clients.
Aladdin also makes a series of other nifty promotional items including the Aladdin Chill & Go which makes a great gift for the fitness enthusiast. It is capable of keeping your food cold for up to four hours which realistically is enough for most uses. Certainly when the size and convenience of this item is considered it is one of the best values running. Like all of our Aladdin items we offer it at a fantastic price which typically includes setup and shipping. Aladdin also makes the Aladdin Heat N Go which keeps your food hot versus cold. It’s slightly more expensive than the chill version but it is great for any season as it does keep food warm for a couple of hours. At around $12 delivered in high quantities it is reasonably priced when compared to similar items. The dual role Aladdin Snack & Go is great for carrying multiple varieties of contents at one time. The Snack & Go is also the lowest priced item of the group coming in around $5.45 with imprint at high quantities. All of these items are high quality brand names that carry your logo well. Stanley also offers a heated product, the Stanley Heatkeeper which carries the classic lines of the Stanley line but is a little more bulky.
As the price of brand name goods continues to drop we expect to see an increasing number in the corporate channel. Of some concern lately are the number of dual purpose suppliers which also have distributor arms, most of which are unknown to the larger distributor base. We have some reservations about offering their items as although they are pledged to not violate the principles within the industry – suppliers are just suppliers and do not compete against distributors – we have seen from many other corporations in the recent past a deviating moral compass. It is difficult to envision it ever happening but many would have said the same things about Bear Stearns or Enron. In short large organizations do what it takes to survive sometimes at the expense of those that trusted the. Chiefly this is why we stick to a core group of trusted vendors but market conditions dictate we offer a larger range of products. In doing so like many distributors before us we end up doing business with companies that some day may compete against us. This is part of the reason we are aggressively opening direct importing channels in 2008.
Over the next few days we expect to announce an unprecedented promotion which will likely be announced here first.
At Last, Finally Some Good Looking Organics
One of the major failures in previous attempts at launching successful organic business lines was the appearance of the actual items. Most were bland looking and indeed very organic in appearance and styling. With the introduction of several new items today we are happy to say that is all changing.
The Gemline Organic Piccolo Mini Tote is now available in a series of attractive colors. With the release of Indigo Blue and Clover Green we finally have some appealing decorating options. Granted these products still are someone generic but that is the very nature of the items. At higher quantities we have now dropped the piece to just above $8 which includes delivery. In addition the Gemline Organic Essence Tote which likewise is priced around $8.85 is available in the same attractive colors. This is probably one of the more stylish totes we have come across in either the recycled or organic category as of late. It is definitely a bit pricey but for the money you get a product that is totally green and provides unending positive press. Absolutely stunning the Gemline Organic Casco Bay Tote is the absolute top of the line in organic bags. At just over $15 this item is sure to be popular with the high end corporate gift buyers.
These are but three of the organic promotional items we now offer. Beginning April 1st we are offering an additional 5% off all eco-orders through Earth Day. This is in combination with the elaborate gift card program we are already offering which can provide the buyer with tremendous added value. We also offer direct credits for those looking to reduce order costs or in positions that strictly forbid any type of thank you gifts. All items in the eco friendly categories will automatically be credited in the cart or shortly after. Like always we continue to run hidden promotions which only appear at the cart or checkout phase. As dozens of customers have found over the last 24 hours this can sometimes be as much as an additional $500 off large orders.
Certified Organic For The Corporate Market
This time the movement to organic and recycled items and materials in the corporate marketplace has serious momentum. Unlike past attemps this years round of products has wide appeal and are actually quite good looking. Stock levels continue to be a problem for some vendors but that appears to be improving. With all this said we have added several new totally certified items at fantastic prices.
The Promotional Organic Cap and all of the products listed here are certified by what was previously known as Skal International. This means these items are guaranteed to be the real deal, are made from organic cotton and use nature friendly vegetable based dyes. The cap comes in at under $5 and ends up just under $4 in larger quantities. It is quite comfortable and offers a Velcro brand closure. It is slightly more expensive than comparable non-organic hats but most companies will appreciate the perceived value in going organic. The V-Natural Organic Colored Gusseted Tote can be purchased for as low as $3.99 and is a rather large tote available in multiple soft colors. This is also a pretty new development with most organic products still coming in only the natural coloration like the twin V-Natural Organic Gusseted Tote which is slightly less expensive. There is obviously a cost advantage in going with the products not dyed if the organic look works for your organization. The same price principles hold true for the V-Natural Organic Cotton Colored Flat Tote which is available in the same soft hues but is slightly more costly than the V-Natural Organic Flat Tote but with some flexibility in coloration. The flat totes are the least expensive of this entire line and are now on par with most regular totes. Last but not least is the V-Natural Organic Cotton Grocery Tote which crosses into the reusable department as an item that will have a long life. Please keep in mind when purchasing an item like this that most of your customers will request multiple items. Buy accordingly and plan on dispensing 2 or 3 of these per customer and have enough on hand to keep the masses happy. I think of all the items listed here today I like the last one the most as it really does have the potential to reduce long term environmental impacts. Just think of how many grocery bags you go through in an average year and now picture reducing that to perhaps five of these. There has been talk of retailers offering slight discounts to those that bring in recycled bags but we have yet to see it locally. Hopefully that will help to spur some conservation as well.
All of these products are reasonable alternatives to existing products. List prices tend to be higher but we are making a commitment to provide these products at prices clients can reasonably afford and budget. Especially in this existing economy price will play an important factor in most buying decisions. By reducing our margins on environmentally friendly items we hope to promote their use. We believe over the long term the greater good is served if these products succeed.
