Know-How Exchange : Strategy

Jeremy,
First, I have to tell you that you picked a VERY crowded industry in which to start. For the search term, "promotional products," Yahoo recorded 125766 searches in April.

Searches
125766 promotional product
53210 product promotional software xebra
30531 promotional product software
4705 custom promotional product
4588 imprinted promotional product
2609 product promotional thermometer weather
2469 promotional business product
2405 wholesale promotional product
1939 promotional product advertising
1787 promotional marketing product
1526 corporate gift product promotional
1196 cheap promotional product
1194 trade show promotional product
950 company promotional product
922 discount promotional product
779 custom imprinted promotional product
745 golf promotional product
652 automotive promotional product
617 corporate promotional product
525 promotional product company
458 promotional product supplier
358 norwood promotional product
312 advertising specialty promotional product
311 personalized promotional product
292 health care promotional product
288 unique promotional product
272 hit promotional product
261 real estate promotional product
240 promotional item product
232 creative promotional product
225 new promotional product
216 product business promotional gift
216 fitness health product promotional
216 hospitality promotional product
215 cool promotional product
213 customized promotional product
211 pen promotional product
210 promotional advertising gift product item
198 promotional product canada
196 promotional gift product
196 promotional logo product
191 custom printed promotional product
182 inspirational promotional product
167 promotional embroidered product
165 promotional product catalog
160 uk promotional product
159 printed promotional product
155 promotional product dallas
150 custom item product promotional
138 promotional office product
137 promotional product distributor
135 magnet product promotional
134 bic promotional product
134 impact promotional product
131 dealer promotional product
129 imprinted promotional product supplier
127 cheap item product promotional
126 chain key product promotional
124 product promotional advertising item
124 health promotional product
117 montreal product promotional
116 free promotional product
116 online promotional product
113 promotional product association
112 realtor promotional product
107 promotional product industry
107 product marketing promotional item
105 order promotional product
104 product promotional safety
102 promotional product sales
98 asi promotional product
98 blank promotional product
96 promotional product usa
92 leeds promotional product
90 imported promotional product
88 gallagher promotional product
87 canadian promotional product
85 promotional product association international
85 nursing promotional product
83 medical promotional product
82 dallas business promotional product
82 imported product promotional toronto
81 catalog francisco product promotional san
80 catalog product promotional toronto
80 francisco imported product promotional san
77 display product promotional
77 sage promotional product
74 school promotional product
73 low cost promotional product
72 plastic promotional product
71 article product promotional
70 sell promotional product
69 promotional product new york
69 promotional product sample
68 amsterdam promotional product
68 modeling product promotional
66 bag product promotional
65 promotional product china
65 san diego promotional product
65 promotional product manufacturer

There are over 30 million sites that come up for "promotional products." And 4.8 million for "promotional products china." This means that you are not going to be a price leader in this industry.

The first recommendation I would make is to differentiate yourself with service and quality. When someone does order from you, you will need to make sure the product is on time and right. You will have to work like a dog tracking it, communicating with the suppliers, and representing your customers' best interests. Additionally, since there are a million (several million, really) who do what you do via the internet, you need to show value by working closer with the customer than the internet order takers can. You need to realize how the promotion fits into the overall marketing strategy and what items will maximize the "mind share" for the customer. You will have to show your worth by recommending a better approach because you can't offer a better product or cheaper price. I would recommend you join Promotional Products Association International and become certified.

Now, to your question, how do you get into those big businesses - the answer is networking. You must join organizations like the chamber of commerce, Rotary Club, Business Network International (BNI), or other local organizations where you can meet people who know people in those organizations and get introductions. Additionally, it will help if you establish a reputation with the smaller businesses in the area so that when you meet someone who knows someone in the big organizations, they can recommend you to them with authority. Beware: This is an eight month to ten month process! You are going to have to fulfill 100 mug orders happily before you land the big fish. And then, once you are in at the appointment, you have to demonstrate more value to the big companies than handing off catalogs and giving samples. Also, you will have to continue to be connected with those biggies - being in front of them routinely, demonstrating your knack to suggest the unique...until the day when they get themselves over a barrel and need your "emergency service." When you save someone's butt, they will tend to come back to you even if you are a little more expensive because they will recognize your value.

I hope this helps.

Wayde

I feel your pain. Everyone starting a new business goes through the "why am I working like a dog for peanuts?" phase.

I suggest you keep pushing those 100 mug orders. When you handle the order well, ask for references, or a letter from the customer talking about the great job you have done. Build a portfolio of satified customers. Use this portfolio to drive new business.

That being said here are a couple of additional pieces of sales advice.

Not all customers are created equal. A 100 mug order from a customer capable of giving you the 100K mug order is a bigger order than the guy who only does one order a year.

Think Co-Op dollars. It is easier to convince people to spend someone elses money than their own money. If you aren't familiar with how co-op working in various industries, give me a call off line. I will give you some insite.



A

It is touch, but just start out slow and steady as you are doing. Get plenty of testimonials from happy customers and your business will grow.

If you need a push then look at either emailing or posting letters to potential clients (means renting a list!).

If posting, send out a samples (a reasonably good pen) so they keep it and are constantly reminded of your business.

Offer all customers something for free (Free P&P, or free Imprint, or a free product).

Good Luck