A & e???

[Eric Jackson]

Has anyone else received this magazine (A&E). It's true that I am new in the business with my Epilog Helix, and am getting started with companies like JDS, Marco, Johnsons, Tropar, etc. But in looking to expand my business, according to this article, it would help to be a part of SAGE, PPAI, and ASI.
Any thoughts on this matter? Most of my advice has come from SMC and no one has lead me astray yet.

[Mike Null]

Eric

I don't know what your business is but the organizations you listed are in the promotional products business. It is a very competitive business with margins that are frequently pretty skinny. If you want to test the water I would go with PPAI as I don't think there's a cost to join.

If you don't yet have a customer base that can buy in fairly large quantities it will be difficult to get started.

[Dan Hintz]

Mike,

PPA has dues, which you can calculate on their website. I entered a few values from $10k-$100k... it was $600 for up to $50k, then jumped to $675 when I typed in $100k. A minor amount of money if you're actually doing $100k in sales, but something to be aware of.

[Eric Jackson]

See, I knew I should have asked. Based on your replies, this is a little out of my league right now.
I'm currently exploring the different opportunities out there to expand my laser business. We are trying to see what else we need to add based on our market. Living in a 10,000 population community, we need to be sure to hit this nail on the head.

[Dan Hintz]

With such a low population, you should shy away from personalization (or at least be prepared for business to drop off quickly after a few months). How is the building trade in your area? If population is increasing, consider architectural items, like high-end backsplashes for kitchens... if businesses are moving in, consider ADA signage and/or commercial/industrial tags. I just don't see a whole lot of business in promo products unless the commercial industry in the area is really booming.

[Eric Jackson]

Dan,
Thanks for the comments. I have thought about the construction aspect of signage. Our area is growing, in spite of the economic downturn, and that is a niche I would like to explore.

I am also considering churches. Many churches do small promo products for certain programs, plaques of appreciation, trophies for sports teams and bible drills and etc. They also do a lot of appreciation gifts for ministers and laymen. I know that in my state, there are over 3,500 Southern Baptist churches alone. That is a pretty good market to start.
Any thoughts?????

[Scott Shepherd]

I know that in my state, there are over 3,500 Southern Baptist churches alone. That is a pretty good market to start.
Any thoughts?????

Get paid up front.

[Eric Jackson]

Scott,
Did you get burned? I know churches are not above being late on their bills at times.

[Dan Hintz]

Scott,
Did you get burned? I know churches are not above being late on their bills at times.

Churches (or at least the religious figures running them) are also not above guilting you into lowering your prices to demonic levels. Nor are they above letting the bill slide for months claiming the collection plate has been somewhat empty lately (yet they appear to have no problem making their BMW payment).

Churches can be lucrative customers, but you have to pick the right products and make sure you stay on top of accounting. Start small with each new church, see how quickly they pay, and don't be afraid to fire a customer if they cause you too much grief (this could be said for all customers, not just churches).

[Mike Null]

I have 4 or 5 churches and they are good pay and pay my prices. Only one of them complains about prices--but they still pay.

[Phil Salvati]

It's true the promotional product business is pretty cut throat.

But! I find, Most of the major PP companies out there like to go for the big fish and can't be bothered with small orders from most of the mom & pop businesses like most of us!

I am a member of ASI and use it quite a bit. They have a search program for suppliers called ESP which finds products in seconds...while customers wait! You can set it up so the prices include your mark up as well. Also it helps in finding blank product that you can personalize in smaller quantities.

This way I don't ever send a perspective client out "shopping" for others that can do what I can't. Membership does cost a bit, but it pays off in dividends when your clients want a shop that can cover all their needs.

I have been told by many of my Larger companies, sports teams, banks, etc. on how easy we make their job...not having to make umteen calls and chasing multiple suppliers.

[AL Ursich]

I have been reading A&E and a few other magazines over the years and found them excellent sources of ideas and training. I was looking at my 5 year collection of magazines and thought I would gather them up and offer them on SMC Classifieds soon. For someone just starting it is a great resource.

I have a friend in the Promotional Item Market Industry and it is doing poorly from what I gather.

Joining groups like ARA.org has it's advantaged like trade shows. I learned so much from them.

Joining a Forum like this is a excellent way to learn and most are willing to share. I visit a Sign forum and I see new guys asking questions and getting stomped by members saying your Garage Sigh Shop will take money out of my pocket.....

Don't see that here, a great group willing to help and give honest advice.

Good Luck,

AL

[Tim Bateson]

...Don't see that here, a great group willing to help and give honest advice...

Al, That depends. I share pretty freely, BUT, I'm careful too as I know of at least 2 members here are my direct competitors (their shops are nearby) and these two are "silent" members here.

[Bill Cunningham]

Most promotional product suppliers will sell you blanks at the end price and the ABC discount. Most also offer a sample kit for usually very little money. These sample kits will primarily do two things for you. First it allows you to have some product samples on hand to show customers, Second, It allows you to have a good look at the product, and see if you really want to offer it to your customers. A LOT of stuff (most coming out of China) is crap of the first order. Most knives and other 'hardware' they offer will barely stay together, and can usually be bought in a dollar store for less. ALWAYS ask for a sample 'before' placing a quantity blank order, just to verify that it won't embarrass you by offering it to a customer. Most 'low end' promotional products are just that.. 'very' low end...