Distributor 4AllPromos sent out a press release this week titled “Promotional Products Industry Sees Rise in Pen Sales.” In it, they cite a PPB survey that says the sales of writing instruments have increased two percent since 2009, and as ancillary evidence the press release notes that 4AllPromos’ pen sales also increased during that period.
Is it true that pens are increasing in popularity, so much so that they “even beat out apparel as the most popular type of promotional product in 2010”? If so, what does that mean and what can we learn from it?
The press release specifically mentions the Javalina pen from Hub Pen Company, so I thought I’d reach out to them for comment. As a company that almost exclusively sells pens, if there are any trends in the writing instrument market, they should see them.
“Actually, our sales have increased,” said Joe Fleming, president of Hub Pen Company. “We’ve seen a trend toward more appreciation for pens that are a good value and have consistent quality that folks can rely on.”
The company’s numbers bear this out: revenue increased over 23 percent between 2009 and 2010, from $24,700,000 to $30,500,000. Hub Pen Company moved up six spots to number 38 on the Promo Marketing Top Supplier list this July.
Where in the writing instrument market is the company seeing an increase? “Your everyday pens, pens that are comfortable to write with are more popular than ever, regardless of cost. People are willing to spend for the quality of a long lasting pen,” Fleming said. “Customers want the pens that people want to use and hang onto.”
What this tells us is that there’s an increase in less expensive promotions, but not in products perceived as cheap. Looking at the Top 50 Suppliers list, we see several companies that focus on products in the $1 to $5 range—SnugZ USA, Hit Promotional Products, Gill Studios, Garyline—that saw multi-million dollar increases last year. Another thing these companies have in common is a tendency toward products with high utility: drinkware, lanyards and, of course, writing instruments.
This isn’t surprising. For all the talk of the recession being over and the economy stabilizing, the unemployment rate was still 9.1 percent by the end of September, virtually unchanged since May. The gross domestic product rate going into the busy four quarter is a low 1.3 percent, indicating that while there is growth, it has decreased since 2010. Current predictions by the World Bank indicate that the numbers won’t see a significant change in the first part of 2012.
With an increase in the volume and revenue of less expensive promotional products, and flat levels in the economy, a logical conclusion is that the trend “must be due to a decrease in advertising budgets,” as Fleming explained. End-buyers are looking to get more for their advertising dollar, and two surefire ways to do this are low-cost/large-quantity purchases, and products with longer lifespans. If it doesn’t make it past the closest trash can, it won’t make it into the budget.
So, what do we do with this deduction? Starting talking with your clients about 2012, and come prepared with the staples of the trade. You know what’s selling, and you know what your clients like: do your research in advance and find products in these categories that will appeal to your buyers. Order samples and prepare presentations. Forewarned is forearmed, and trends now are the best indicator for what will be popular in the immediate future.
This, of course, is just a cursory look at one example. A number of other promotional products are doing well this year: Our Top 50 list shows that apparel sales are as strong as ever, and I know a number of food suppliers have experienced significant growth. What trends are you seeing in your sales? What product categories do you expect will be popular next year?
