Cotton Prices on the Rise…Again

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An article released today by www.business-standard.com details the rise of cotton prices over the past two months. Apparel manufacturers were waiting to see if prices would fall or stabilize, but instead, have seen an upward tick in pricing, causing them to consider 10-15% increases to apparel.

In the promotional products business, we see the effects of such price increases mainly in the week-to-week costs of tshirts. Tshirts are considered a commodity item, and pricing can fluctuate wildly when cotton pricing is unstable. This can cause it to be extremely difficult to hold pricing on quotes for longer than a week or two.

At The Creative J, we have many sources for our blank apparel, which help us to keep your costs down. When quoting apparel pricing, we search through a multitude of vendors to find the best current pricing so we can pass the savings on to our customers. You can be assured that the price we quote has been thoroughly researched by the time it reaches your eyes.

Click here to read more about the current cotton situation.

 

CPSIA and Child Safe Products

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For the past year, manufacturers and importers of consumer products have been required to show proof of compliance with third-party testing for lead in children’s products. These new regulations are commonly referred to as CPSIA (Consumer Product Safety Improvement Act) This impacts the promotional product industry since many promo products are intended for or handled by children. It’s important to be aware of these regulations as they pertain to the marketing items you chose for your promos.
 stuffed lamb toy

What is Defined as a Child”s Product?

Basically anything designed or intended for use by children under 12 fall under these regulations. However, this definition can get a bit sticky. Some items although not necessarily intended for children, may fall under this regulation due to the imprint placed on the item. For example, if you decorate a water bottle with a fun cartoon, then it can be determined to fall under this regulation. That same water bottle with a company logo on it can be exempt.
What About Items Not Intended for Children?
Items not intended for children, but handled by them, are exempt from the testing requirements. It is only if the items primary target audience is children under 12 that the requirements come into play.
What Products are Deemed Safe?
Products which have passed the testing guidelines for CPSIA will have proper labeling  and test results. Most manufacturers are now including these reports on their websites. Products which are deemed child safe will also have a tracking label directly on the product. Again, the gray area of this issue is on products which before decorated are not considered to be children’s products, but after decoration are. These items may not have gone though the testing process.
For a more in-depth explanation of this issue, read this article provided by the Promotional Products Association:  click here.
To view how some of our favorite suppliers comply with these regulations, check out their compliance pages:
Bulletline
Gemline
Norwood

A good rule of thumb for any promos you purchase for your marketing efforts:  Take a couple minutes to review the audience which will be receiving your items to determine if children are part of that audience. Then take a few moments to review the items to see if any of them appear to be intended for children, or appeal to children. The last thing you want in your marketing campaign is to hand out an item which could be potentially dangerous to a child.

The Power of Promotional Products

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PPAI, the non-profit trade organization for the promotional products industry, has just released their latest research on the power of promotional products. The findings reinforce past studies — consumers like receiving promotional items, they tend to remember the company that gave them out, and they tend to hold on to the item, creating multiple impressions of the product or brand.

The study also shows that promotional products advertising has a 15-50% higher recall rate than tv, print and online advertising — a great bang for the buck.

Some quick facts:
• 83% of consumers surveyed like receiving promotional items
• 48% would like to receive them more often
• 69% generally will keep the item if it is useful
• 36% generally will give it to someone else if they don’t have a use for it, expanding it’s exposure
• 35% generally keep the product if they like the advertiser
• Decreases in advertising dollars are the least for promotional products as compared to other mediums
• A significantly more positive impact on brand image is projected by promotional products than other mediums

The PPAI website has a host of research and facts about the impact of promotional products. It’s a great source when you are considering your advertising budgets and the impact you wish to create.

The Creative J vs. the Internet

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Why are memory prices increasing?

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Seems memory prices keep increasing lately. According to the AppleInsider, October 9 edition, the demand for flash memory has outstripped the supply due to the popularity of devices like the iPhone and iPod Touch.

Demand in the third quarter exceeded supply by 1.3 percent, and expected to grow to a 3.3 percent deficit during the upcoming holiday season.

Demand is expected to grow 81 percent in 2010 due to the growth of smartphone sales. It’s expected for manufacturers to meet that demand in the first half of the year, but by the end of 2010, demand is expected to outstrip supply again.

We’ve noticed here the past year that memory prices change on a weekly basis with most of our suppliers. Now with this announcement, it’s important to keep in mind that the quote you get on Wednesday will most likely change Friday afternoon.

The Creative J will always do our best to search out the best pricing for your flash memory needs. However, as memory becomes more and more in demand and supplies lessen, our options may not be as plentiful as earlier in the year.

The Buy The Big O Show!

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Last week was Omaha’s annual “Buy The Big O Show!” Every fall, the with the help of a few corporate sponsors and the Omaha Chamber, businesses both large and small gather at the Qwest Convention Center to show off their services.

Being in the business of trade show giveaways, I love to see what businesses will give away to attract new clients. This year, the winner of the most unique giveaway was Creighton’s Werner Institute. Their giveaway was a harmonica! I loved it. It was
fun and had a nice size branding area. The real kicker was that no one else was giving them away.

As for the businesses, it was pens, pens and more pens. But, as I always tell my clients, people love their pens. The AIM Institute gave away tech-like looking pen. Mutual of Omaha Bank and the UNO MBA progam gave away the trusted simple retractable pens.

My favorite pen was the Valley Boys pen. It was bright orange with black trim. It had a solid feeling plunger/retractor, which is exactly what you want from a roofing company.

Another favorite included the Inter Tech Auto Collision nail file, bright with a big and bold logo on something so practical. I also liked Children’s Hospital’s First Aid Kits. All of the above are excellent ways have branded merchandise become lifestyle giveaways.