Credit Crunch Impacting our Industry

Here's a little industry scuttlebutt I picked up this week while visiting with some decision makers on the supplier side of the promotional products industry. As we move toward the last quarter of 2009, we're now seeing the after effects of the credit crunch that has crippled so many companies over the course of this year. Suppliers have seen their credit lines reduced -- in some cases dramatically -- and where this affects us right now is with product inventory.

As America finally emerges from this awful recession, business is (finally) starting to pick up and products are now starting to sell out. A lot of these mugs, pens, hats etc have been sitting in supplier warehouses since last fall and because nothing had been moving, the suppliers stopped buying.

These products are finally selling, but now that credit has dried up, suppliers are finding their financial resources reduced and it's forcing them to make some hard decisions about which products they're going to restock -- at least for the short term. So this means some products which are now out of stock -- aren't going to be replaced anytime soon.

Over the past few days, I've been calling around to try to obtain the best pricing that I can for my clients on certain items, and what I've been hearing is certain colors - or in some cases all colors of some products - are out of stock with no replacement inventory due in at least until the end of the year. And based on what I've heard, expect this situation to continue for some time.

What does this all mean?

For me, it means I'm not placing an order until I check inventory levels first to make sure there's enough available to fill it. And if you're a buyer of promotional products, whether you work with me or someone else, get a confirmation that stock is available before committing to a project -- especially one with a deadline. Or at least have a plan B in mind if your top choice falls through.

Like the economy in general, this situation will correct itself over the long term. But from now through the end of 2009 be advised that stock on many items may well become an issue.

Raymond Geiger School Dedicated

Congratulations got out to the Geiger family for the recent dedication of the brand new Raymond A. Geiger Elementary School in Lewiston, ME. Ray Geiger, a legendary figure in the promotional product industry was the Grand Poobah of Geiger (then called Geiger Brothers) for 60 years. In addition to serving as editor of the Farmer's Almanac for all of that period, Ray moved the company from its original New Jersey location to Lewiston in 1955. He passed away in 1994.

Ray was a huge supporter of public education in his community and his company has continued that legacy with son Peter leading the way. However many Geiger Associates have donated their free time in support of this cause over the years and those efforts were duly noted at the dedication ceremony which took place September 9.

Some Cool Trade Show Giveaways

These come courtesy of MSNBC. A recent edition of the network's Your Business with host J.J. Ramberg covered the topic of unique Trade Show hand outs. The guest was Rich Fairfield, VP and Publisher of ASI (Advertising Specialty Institute), the largest media and marketing organization serving the promotional products industry.

Obviously lots of factors need to be considered in assessing whether any promotional product will be the right fit - things like target audience, intended message, budget etc. - but there are some pretty cool items shown in this clip which may give you an idea or two for your next event.

If you would like additional information on any of the items shown, just drop me an email at sboyages@promoresource.com. Geiger, incidentally, is ASI's biggest customer.




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More Farmers' Almanac Links

The Almanac has received some terrific exposure on a number of media outlets in recent days - including CBS Late Night TV.

Here's a sampling:

Craig Ferguson 2 (starts at about the 2:50 mark)

Craig Ferguson 2

WPRI TV Providence, RI

WBZ Radio, Boston, MA

Peter Geiger on New England Cable News (NECN), Boston, MA

2010 Farmers' Almanac Unveiled

The 2010 Farmer's Almanac is out and the prediction for New England is average to normal temperatures -- that's the good news. But it's also calling for plenty of snow -- the bad (or good) news...depending on your point of view. The Midwest, meanwhile is going to get walloped.

Geiger, in addition to being one of the largest promotional product companies in the country, is also the publisher of the world famous Farmer's Almanac - the oldest continually published Almanac in the United States. It's been out every year since 1818, has been in the Geiger family since the mid 1930's, and the latest edition of America's most beloved publication was officially rolled out to the general public this week.

Peter Geiger, Philom, is the editor of the Almanac and over the next few days he, along with Managing Editor Sandi Duncan, will make the rounds to various media outlets, including network TV, to promote this year's edition.



Why am I mentioning this? Because the Almanac, in addition to being fun to read, is a great promotional item. People enjoy getting it. It tends to hang around because of both the forecasts and the great information inside. You get the front cover and the entire back cover for your ad - a ton of space -- and associating with the Farmers' Almanac ties your organization's name to a time tested brand with a national reputation for reliability and traditional values. It's also a great 'green' product because it focuses on sustainable living.

The retail version of the Almanac is available in places like Barnes & Noble and Walgreen's. And the promotional product version (basically the same thing but your ad is the only one in it) is available only through your organization.

The Almanac's annual publicity campaign promotes the Almanac itself, but it's also done to help our clients who use it promote their businesses.

If you would like a sample of the Farmers' Almanac or more information about how it can help your branding efforts, please contact me at sboyages@promoresource.com. If you have a few minutes, check out the links below.

Boston Herald Story

Video on the History of the Farmers' Almanac

www.farmersalmanac.com

AOL Story

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Child Product Safety Part 2 - Case History

The new Child Safety guidelines that I detailed in my previous post went into effect August 14 and last week we at Geiger experienced our first case history. One of our reps in California has a client who runs a program where they hand out promotional items for children. One could easily conclude that the primary target audience was kids under age 13.

They had already committed to ordering imprinted kites and in fact had placed the order prior to the 14th. When our representative became aware of the new guidelines (thanks to the recent heads up Geiger management sent our way), she checked with the supplier and found that they could not produce documentation verifying the safety of the product.

So she did some research and came up with this item as a suggested replacement: Click Here .

Notice the CSPC certificate link in the lower right hand corner? There's the supplier guarantee that these kites meet the newest CPSIA guidelines and are safe to hand out to children 12 and under.

The client went along with our rep's recommendation that they switch products, and all ended well. The original supplier understood the situation and agreed not to assess an order cancellation charge (and I assume is now in the process of getting their kite and similar products tested).

But I mention this as just an example of how we at Geiger are trying to stay on top of this and all other current issues affecting the promotional products industry and of course you as our clients.

It's part of what the slogan 'Geiger Gets It' is all about, and part of the added value you receive when you place your business with us.

New Children's Product Safety Regulations Take Effect

This one has kind of flown under the radar, but some new safety regulations aimed at products for children ages 12 and under took effect this past Friday. While these were adopted to focus upon children's toys sold at retail, they also apply to promotional products aimed primarily at this same age group.

Labeling. As of August 14, the government has begun enforcing specific measures improve product safety as required by the Consumer Product Safety Improvement Act of 2008 (CPSIA). Manufacturers now must include permanent tracking labels (no stickers allowed) on children’s products and their packaging so that the manufacturer, production date, and lot can be determined. Specifically, this applies to items primarily aimed at children 12 and under, toys, and child care articles.

Allowable Lead and Phthalate Content. Coming into effect on the same date were new lower limits for allowable lead content – 300 parts per million in substrate, 90 ppm in paint – in products for children, toys, and child care articles. These limits apply to new production, as well as products already in inventory. There are also limits on phthalates (a chemical used to make in plastics more pliable) and a myriad of other things that must be complied with.

We’ll Make Sure You’re Covered

We’ll Recommend The Right Products, And Give You Documentation. If you're using promotional products that are aimed at the children 12 and under age group, we’ll make sure the products you use are fully in compliance. Geiger and our core production partners are on top of these new regs and are taking them very seriously. Work with us on your promotional aims, and we will recommend products that have been tested to meet these requirements. We will also provide the testing documentation to back up our assurances, if you wish.

One Less Thing To Worry About. These regulations have come about, in part, because of a flood of stories about unsafe and unhealthy toys and children’s products. Indeed, we both want to be sure the products that carry your message are nothing but fun and memorable. Please know we are actively staying on top of the latest product safety regulations. Work with us, and this is one thing you won’t have to worry about.