Convinced the Promo Industry Is Changed Forever?

Are you thinking that the drastic changes because of the pandemic might leave you on the outside looking in? Perhaps you’re already in a difficult situation because the economics of COVID-19 have you temporarily furloughed and you’re unsure if, or when, that might change. Our focus in several articles over recent months has been to tap into the experience of promo experts to help readers find ways to change their thinking, and perhaps find ideas that can help them now, and in the future. My latest conversation is with Les Dorfman, CAS, BASI, a 40-year veteran of promo marketing and sales.

Some background beforehand is appropriate here. Les Dorfman spent all but one year of his long career working on the supplier side. He spent his last year at iPROMOTEu as senior vice president, gaining invaluable insight and preparing to pivot himself during the COVID-19 pandemic to start his own consulting company, LD Consulting Services. Les was president and CEO of award winning AITG which specialized in imported gifts and awards. AITG was one of the first importers in the promo industry, buying in Taiwan and Mainland China. After selling AITG in 2008, Les was an executive with Visions Awards and High Caliber Line. To say that Dorfman understands the promo products industry inside and out is an understatement — that’s why I was excited to speak with him.

I kicked off my conversation with Les by asking for his thoughts on how much havoc the pandemic is wreaking (and might continue to wreak), on the promo products industry. Les replied, “I agree that our industry will be different after the pandemic but not as much as many think. The changes to the landscape before ‘RONA were already in full swing with many suppliers selling direct, and distributors doing their own importing and decorating. What I see as being really different is the new ZOOM world we live in, and we will need to embrace virtual connections for a long time to come. In the short term, it’s really just what we’ve always done — suppliers selling and educating distributors and distributors then turning around and doing the same for their clients. But I also still believe strongly in the personal touch, and I’m confident that trade shows and office visits will resume at some point — we know that. A nice blend of personal interactions when we finally can, added to the virtual meetings we’re doing today, will get our Industry back to the $25 billion dollar plus it was before ‘RONA.”

For those in a difficult situation because of pandemic-related cuts and layoffs, Dorfman has some solid advice. “Go to your strengths and look outside promo for companies needing talent right now, and in industries not effected as greatly as ours. My personal pivot to consultant has been good for me, but certainly it’s not a fit for most. I believe that jobs will come back in promo, though it may take a while. In the meantime, stay strong and do whatever it takes to bring income in. This too will pass!”

Dorfman is targeting his consultancy toward smaller suppliers, looking to help them grow without the large overhead of full-time executives. He believes the value proposition is considerable for suppliers of a certain size to work with knowledge-based consultants and fractional executives to help guide the future- especially in situations where companies are working with lean staff, and he shared that his work so far is proving that out. Dorfman also takes the approach that bigger is not always better — smart, strategic partnerships are incredibly valuable. “For the smaller distributor, I strongly urge aligning with a bigger distributor to give you more time to evaluate your current clients and using the resources of the larger distributor to help make you more money in the long term.”

Speaking of bigger, investment from private equity firms has created a lot of change in the promo landscape. “If you really look closely at the companies owned by private equity” says Dorfman, “most have lost what makes our Industry so great...HEART!  I see private equity gradually leaving our industry as they just will not see the return that they projected in their sales cycle of three to five years. I have strong admiration for the few that have embraced our industry in the right way, but those that will be exiting shortly have been overly interested in just counting the beans.”

So, what are the takeaways from this discussion that you can benefit from? First, a perspective that change is less worrisome if you consider that a lot of it was already underway in the industry. Perhaps you will also recognize that a switch to virtual interactions is really just an opportunity to sharpen the skills that are destined to be the way of business for now, and in the future. Finally, like other industry veterans, Dorfman advises that you stick with your strengths and hang in there, leveraging your current relationships and aligning yourself with larger distributors to avoid adding overhead you don’t need.

There’s been a lot of great advice in this series of articles, and we hope that you have learned something you can really use to help your sales, and your outlook. Is there something you can share to help others? Drop me a line, I’d really like to hear from you, and include your thoughts in an upcoming post!