They'll never forget your firm if
you leave them trinkets and toys
By Christine Selvig • Bankrate.com

Promotional freebies keep on sending a company's message long after the typical newspaper ad has been recycled and the radio ad has been forgotten.

Each time a customer dons a T-shirt, picks up a pen or looks at a calendar with your logo on it, your promotional message is renewed.

Businesses must be convinced of the power of freebies, considering how much they spend on them: Last year, businesses spent more than $13 billion on promotional products, according to a recent Baylor University study.

These promotional goodies may be free to consumers, but they're not all equally valuable to a small business owner looking to stretch a promotional buck.

Every impression's important
The experts suggest evaluating the cost of product promotions by looking at an item's cost per impression (CPI). Add up all the costs -- the base cost, any setup or extra charges, plus shipping costs -- and then divide that sum by the number of exposures your gift will receive. That gives you the item's CPI.

For example, a set of playing cards with your company's logo might receive as many as 500 exposures during a single bridge game. The CPI would be a half a penny if the deck cost $2.50.

Some of the ways businesses use promotions are:

• To motivate and recognize employees
• To build customer traffic
• To introduce new products
• To thank customers
• To increase brand awareness
• To encourage safety
• To spice up a sales meeting

Whether you seek advice from a promotion product consultant or opt to develop your own marketing strategy for a giveaway, experts suggest taking the following steps:

• Begin with an objective in mind. Write down what you expect the promotion to accomplish.
• Target the customers you want to reach.
• Establish a budget by deciding how much money you can reasonably invest in the project.
• Look for a quality product that relates to your business and/or the promotion's theme.
• Consider production times and shipping times as you begin to narrow your search for a product. Avoid stress by selecting products that will ship at least a month before your projected delivery date.
• Request and talk to at least two references from your supplier.
• Ask to see a preproduction proof of the artwork.
• When the promotion is over, take time to evaluate the results. This information will provide you with a valuable tool for future promotional planning.

Finding the right consultant
Experts give these tips for selecting promotional products consultants:

• Look for consultants who update their product information regularly.
• Look for a consultant who offers product prices that are accurate and all-inclusive.
• Check out a potential consultant's "creativity ratio" by asking for examples of a few of the company's favorite premium packages.
• Talk to a few of the company's existing customers. When you talk with them, ask whether the product was delivered when promised.
• Will your consultant be involved in the ordering, shipping and receiving process? A consultant who is involved in the whole process helps you by taking on any problems that may occur with shipping delays and product quality problems.

Terms of the trade
Here are some terms you may run into as you shop for and price promotional items:

• Artwork preparation charges -- Added when a supplier's art department creates a logo or design for imprinting. You can avoid these fees by providing your own camera-ready art.
• Camera-ready art -- Crisp, clear, artwork sized to fit the imprint area.
• Change of imprint color charge -- A charge added by companies offering promotional products for each time production is stopped and then restarted with a different color of ink.
• Cost per impression (CPI) -- A measure of how much it will cost for each glimpse of your promotional item. To calculate CPI, divide the product cost by the number of exposures an imprint is expected to receive each time your message is viewed.
• Electronic or digital artwork -- Usually requested in compatible files that can be supplied either on a disk or in a downloadable file.
• Exposures -- The number of times your customer receives the message on your promotional product.
• Setup charge -- Reflects the labor costs for setting up the equipment for your particular order.
• Preproduction paper proof -- An exact replica of what will be imprinted on a product.
• Production time -- The estimated time a company needs to complete and ship your order.
• Promotional products consultant -- A salesperson who specializes in creative marketing products and campaigns.

-- Posted: Oct. 25, 1999