Our evolving industry business model continues to be a hot topic. Recently I started wondering how an online purchasing mentality, I’ll call the Amazon click-to-buy world, affects our industry. It begs the question, are we (aka distributors) really needed? It’s getting easier and easier for end-users to buy online or direct from suppliers.
However our industry evolves, change is happening whether we like it or not. Here is recent, personal “real world” experience:
One of my clients needed nice-quality cinch backpacks. These days, it is pretty common for clients to send me a link to what they find shopping online. That’s not necessarily a bad thing. They know what they want, and in today’s click-to-buy world, they are used to shopping this way. Many enjoy searching on their own. The challenge, of course, is where they find the product they think they want and what the pricing is. Typically, I don’t lose business to online companies.
In this case, the client found a bag they liked from a well-known online printing company that focuses on inexpensive business cards. This company is now in the promotional products business. It has plenty of business customers, so why not sell promo products? Everyone can be a distributor these days. That’s part of our “evolving” business model.
The client sent the link to me and asked if this was something I could get. I had not seen this product, but with the help of my online friends, discovered that the bag they liked came from a well-known supplier we work with. The online price was significantly lower than our company’s EQP pricing. This was a pretty good size order, and I was doing other products for the client as well. I didn’t want to lose this part of the order.
For my own reference, I decided I would walk through the sales process with the business card company and see how that could go for my client. They wanted a full-color imprint that is commonly done these days. I knew a full-color imprint was available through the supplier company, but did not see it as an option on the business card company’s website. Calling to check on that took some time. I waited on hold for 20 minutes. (Yes, really 20 minutes.) The representative, who I found out was from Tunisia, told me that wasn’t possible as the company only did one-color imprints.
Not knowing where Tunisia is, I discovered that it is in northern Africa. I pondered how much different Tunisia is from my Southern California life and my distributor company’s U.S.-based support. Ultimately, a price-focused client could care less about the customer-service location, and likely doesn’t know (or care) if the product they buy meets Consumer Products Safety Information Act (CPSIA) standards. They wouldn’t know if the bag they wanted really is available with a full-color imprint. The client probably wouldn’t expect to deal with someone on the other end of the phone who cared about protecting its brand, like a good promotional consultant would. Or understand why that’s important.
The click-to-buy business model works for some shoppers. But many clients do care about these things. It’s our job to effectively help them navigate to the product that best meets their needs.
I continued through the online ordering process for the bags at the business card company site and uploaded my client’s full-color logo to see what would happen. It just turned into a one-color imprint on the proof screen with no option or explanation.
In the end, even though my price was significantly higher than the online printing company, the client never questioned our cost. We needed to modify their artwork and had two artwork proof revisions in the process. My team stayed on top of all the details to get the bag order handled properly. Cookie cutter click-to-buy systems are not set up for that. The business card company is not positioned to provide that level of customer service and handle the artwork issues that are part of many promotional product orders.
Fully automated ordering processes, like the one the business card company has, may be OK if what a client needs will fit into that simple click-to-buy order process. It’s something Amazon has perfected. I’m not saying it’s right or it’s wrong. It just is. Personally, I love Amazon and purchase things from them regularly. It’s easy and if there is a problem, they take care of it. When it comes to custom imprinted products however, I don’t see how this model of order processing will work.
That said, some sophisticated distributors could be at the place where they have all the clients artwork in various formats; one color, multiple colors, vector files for screen-printing and .dst files for embroidery. The buyer can simply go online and order what they need without the interaction from a rep. This is where things are moving. Today’s click-to-buy Amazon-type shopper just wants to get their stuff and move on. The interaction with a live person is not as important as it once was.
Our industry offers cost-effective and powerful brand messaging. While many buyers are comfortable shopping online, they are missing out on the value added benefits of working with a skilled promotional marketing consultant. While things are changing, there are still many opportunities available for a good sales rep. Our expertise is not always available online. I think there is a happy medium in there between the two.
Promotional Products Association International (PPAI) has created Promotional Products Work! Week (May 18 through 22). This industry-wide event is dedicated to demonstrating the importance of promotional products as an effective advertising medium and communications tool. It also provides the opportunity to show the benefits of working with promotional products experts to design and implement creative and successful campaigns.
Celebrated annually, the weeklong event is designed for the entire industry–large and small companies, regional associations, distributors and suppliers, business services providers and multi-line representatives. It’s an industry-wide movement in support of demonstrating the power, value and effectiveness of promotional products. Get involved!
How will the Amazon business model affect our business? I think it makes us stronger. Good online companies like Amazon keep the bar high. They make it easy to do business with them and offer great customer service, even though it’s done with little personal interaction. The personal interaction we offer illustrates the value of our expertise. We can show how the effective use of promotional products transcends the use of the product. Amazon and other click-to-buy companies sell products—we sell solutions.
Jeff Solomon, MAS, is affiliated with a Top 10 distributor company and also publishes FreePromoTips.com, a popular industry resource. The PPAI award winning FreePromoTips.com website and twice-a-month e-newsletters are packed with beneficial information. You can opt-in to receive these informative twice-a-month e-newsletters here! Check out what’s new in the GP2: Good Products—Good Prices section of the site. Take advantage of free end-user safe product videos you can share from the YourPromotionSolution.com website. Like the FreePromoTips.com page on Facebook, follow it on Twitter and Pinterest, and connect with Jeff on LinkedIn.
