We live in an age of corporate due diligence which has forced many companies into the Tender or “3 Quotes” mentality. While there are obvious potential cost savings, this can come at the expense of great ideation.
“If you are going to choose your agency on price, then you are looking through the wrong end of the telescope. The selling power of the advertising is what is important.” David Ogilvy.
It is important to remember that promotional products are not a generic line; there are literally hundreds of thousands of ideas available both in the product and the customisation. If you tender each time you require products, then you are heading toward the Mainstream Mayhem strategy which is furthest from great ideation and innovation – welcome to the mass market of commoditization – enjoy fighting it out in the most congested segment of the marketplace.
You are far better at tendering to one company for a set period of time (at least 12 months, closer to 2-3 years even better). This allows the promotional company to dedicate time to learning about your business and your industry. It allows the promotional company to work on whole campaigns rather than just adding in pieces of the jigsaw without fully comprehending the full picture – are you really getting their best ideas in this scenario? Also, it allows creatives to go to the edge in innovative ideas without fear of “missing out on a sale.” Knowing they can come back if the initial ideas aren’t accepted frees their mind of conservatism.
“You want their best Promotional Ideas, not their best sales pitch”
What to Look For
1) Marketing/Advertising experience
2) Experience across a multitude of industries
3) Long relationships with existing clients
4) Willingness to challenge you (of course you must be open to being challenged)
Pricing
Generally, the price you pay for a promotional product is anywhere from 50%-80% cheaper than what you will find in retail. This is because you are buying in bulk, but more the case the Promotional Distribution chain is buying in bulk. The prices are still cheaper even accounting for the costs of decoration, and setup costs of at least 2 movements of freight (warehouse-decorator-client). Some items that have lower margins for distributors will come out nearer to their retail value or even a little above (when you take into consideration decoration, freight, and set-up costs) – the question is then – is it still worth doing when you don’t get this Perceived Added Value? It comes down to the pure cost of advertising and what you get back – ie number of impressions=ROI
