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Lessons from Palessi

Influences to Brands

12/20/2018 | Joel Schaffer, MAS, The Take Away

We Didn't See the Future... 

1880-2001… We did not see the value of brands in fighting the internet interlopers. We did not see how the core of loyal, but innocuous, suppliers could be the first line of defense to protect our industry business model. We did not see the value of branding in a branding industry.

Ms. Customer...

I recognize you can, pardon the expression, take a crap shoot with an untested, unknown internet supplier and save a few pennies. However, you risk a heck of a lot and you are the responsible party. We bring you only 5-star, vetted and approved suppliers that you cannot buy directly from. We are their representatives to you. Companies such as Prime, Hit, Leeds, Logomark ... they are the best of the best and, when we order from them on your behalf, you have two great sources behind you.

I joined this industry in 1968 when suppliers were under a shroud of anonymity identified solely by an ASI number. Only a handful of suppliers were “out of the closet”. Generally, they were companies with a known retail brand. There were dozens of pen companies and only a few such as Scripto, Garland, Cross were known to buyers. This is how our industry grew and protected our supplier-distributor-end user model with the actual source of supply not being known.

We learned a great lesson about branding recently. Payless shoes, known for discounting and reasonably inexpensive shoes, experimented in marketing. By rebranding their name and image in a marketing experiment, Palessi shoes arrived in the public consciousness and offered a pricey brand. However, it was nothing more than the same shoe with an upmarket name, image, and price.

We are learning much more about the use of the internet to influence trends, promote product, and sources of supply… nano influencers. Every day on my Facebook page I see friends telling me they like American Express or American Airlines. You can’t tell the world you like a supplier if nobody knows who that supplier is or why you like them. I’d love to see these types of endorsements pop up on social media.

It will take a team to reset our industry. Suppliers need to brand and distributors need to brand it forward. Suppliers need to brand their shipping containers, brand their advertising, brand their packaging and create a brand image. Distributor websites need to tout these brands and consistently state that these are compliant 5-star companies only available through them.

We all need to step up our internet awareness and spend money to make money. I produce greeting cards but, my brand has zero recognition compared to Hallmark, American Greetings, Blue Mountain, etc. While I say on my website that Acclaim Greeting cards are only available through promotional product distributors…. “big deal” says a buyer… “who is Acclaim? Why do I need them?” Therein lies the problem. Were Soundline and Acclaim a known brand and only available through distributors, it would help protect them from internet cheap sales grabbers.

A simple USB drive available from hundreds of sources can be “Palessied” in a unique package with a quality guarantee. Any veteran will instantly recognize the black box with a red ribbon as a Prime product. A great packaging move by Bob Lederer, the founder of Prime, but not enough. The box needs a brand. Barlow was a pioneer in offering lifetime guarantees and they discovered virtually no cost in doing so. The Barlow brand grew on that premise. Buy Barlow and you are covered.

A few columns ago I wrote of the need for distributors to be aggressive with their own branding … this is only a follow-up to a broader need for branding.

So, I imagine a universe of suppliers where we are known to the world for quality, compliance, service, etc. and only available through the network of ad specialty distributors. That is a most compelling reason to buy from us all.

When I was on the PPAI Board, I floated the idea of Certified Promotional Products Suppliers. It did not get traction. I envisioned this certification as a Good Housekeeping Seal of Approval that would be a heavy influence in helping the buyer stay loyal to us. Maybe if a Board or staff member is reading this, they can bring it back to the table.

Joel D. Schaffer, MAS is CEO and Founder of Soundline, LLC, the pioneering supplier to the promotional products industry of audio products. Joel has 48 years of promotional product industry experience and proudly heralds “I was a distributor.” He has been on the advisory panel of the business and marketing department of St. John’s University in New York and is a frequent speaker at Rutgers Graduate School of Business. He is an industry Advocate and has appeared before the American Bankers Association, American Marketing Association, National Premium Sales Executives, American Booksellers Association and several other major groups. He has been a management consultant to organizations such as The College Board and helped many suppliers enter this industry. He is a frequent contributor to PPB and Counselor magazines. He has facilitated over 200 classes sharing his industry knowledge nationwide. He is known for his cutting humor and enthusiasm in presenting provocative and motivating programs. He is the only person to have received both the Marvin Spike Industry Lifetime Achievement Award (2002) and PPAI’s Distinguished Service Award (2011). He is a past director of PPAI and has chaired several PPAI committees and task forces. He is a past Chair of the SAAGNY Foundation, Past President of SAAGNY and a SAAGNY Hall of Fame member. He was cited by ASI as one of the 50 most influential people in the industry.

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