It has been quite some time since we last updated this space primarily due to the whims of the business world and schedules.  We did get some feedback that users appreciated our discussions of releases as they became available so we have decided to resume regular updates here but will focus on general issues versus releases.

As the normal course of business is beginning to resume we believe we will have more time to provide relevant updates.

 

One of the hallmarks of this current downturn has been that many businesses have looked to cut back budget while still being able to get their message out.  This opens the door for the Gemline Writer's Pad to take a prominent position on the desk of every marketing manager.  Providing the best of all worlds in both a unique branding opportunity and the functionality of a writing pad stamped with a logo there are few more functional gifts.  The Primary Writing Pad looks the part and gives the feeling of a more prestigous item but in reality it runs around the same.  Both are made from the finest simulated leather which have greatly improved in appearance and similarity to real leather over time.  In both cases the writing pads are the standard sizes and can be replaced later on by the end customer.

 

What will be difficult this fall is keeping sellable inventory.  Suppliers cut back so much during the recession they are ill equipped to handle what should be a reasonable expansion.  This is going to lead to a lot of issues with orders not shipping in time this fall.

It seems we are about to head right back down the garden path when it comes to making risky loans.  With Hyundai, Ford, General Motors and others now announcing similar plans designed to guarantee payment if the guarantor loses their job we have the makings of the next credit debacle.  The problem being we know that the program has been succesful for Hyundai in terms of getting people to buy cars but are they attracting people that have a higher risk of defaulting?  We will not know for at least six months but my guess is Hyundai and now General Motors will notice sharply higher default rates on the new loans.  What is even worse is the promise that there are no negative reprucssions if someone walks away from their car under this program which only promotes the negative behavior.

 

With the summer travel season upon us it is a great time to use promotional travel bags as a giveaway.  Granted they are fairly expensive for a simple tradeshow but they are usually a hit with customers and therefore should be considered if you have a customer you want to appease.  We particularly like the Wenger 24" 4-Wheeled Spinner Upright among other bags in the Wenger line.  You are a little limited in what you can do in terms of decoration but again the focus is on the travel aspect and almost all of these bags will travel very well.

 

The economy took a bit of a hit again today with some seriously negative housing data from Case and Shiller showing record falls in value.  There is not much that can be done at this point other than promoting a brighter future which NAR continues to do.

With the economic news pouring in and almost all of it varying between horrific and horrendous it clearly is the worst of times for our economy.  So why the headline of best of times?  Because there are still opportunities even in a retreating economy for smart business owners.

 

We have found over the last few weeks that contrary to what most would expect pricing is not the most critical factor in making a purchasing decision.  Customers are looking for quality and care in service just as much as they are a low price.  We are finding that customers purchasing the Leeds Recycled Leather Ring Journal as well as all of our promotional products this week are keying more on overall value than absolute bottom line price.  Going forward and with the economy still heading into the tank it will be clearly more important to focus on value to the customer.

 

 

The promotional products industry has enjoyed strong growth over the last several years.   Historically speaking the growth  rate has averaged 4-5% with spikes higher or lower during that time period.  Preliminary reports from suppliers show a marked downturn in the months leading up to the new year which could portend a slump in 2008.

 

Our take on the state of the industry is that sales will level out in 2008 while margins shrink.  Customers are actively seeking bargains and as more and more business is conducted online customers have instant price checking capability.  We are finding on our promotional items store that price is important but more important is a strong customer service presence.  

 

As we move later into the winter we expect to see sales begin to rebound as the overall economy settles into a recession.