Innovative Business Products, Inc.
Insights & Ideas Newsletter
October 2005
A Few Words From John- Differentiation Through Education As the nineteenth century turned into the twentieth century, Schlitz was the number five beer in the country and going nowhere fast. Desperate to capture market share, they retained a new advertising firm. The new firm's first action was taking a tour of the brewing plant. During that tour they learned the process that allowed beer to be cooled without picking up any impurities. They learned how white wood pulp in the filters guaranteed the cleanest beer possible. They saw that each pump and pipe was cleaned twice and each bottle sterilized four times before receiving any beer. They asked if Schlitz's customers knew about these processes. "This process is nothing special," came the answer, "all beer is made this way." "Even so," replied the advertising firm, "do your customers know that?" It turns out none of the beer companies had ever explained the complicated process of making beer. So, Schlitz came out with an advertising campaign that educated the marketplace about the intricate processes Schlitz used to make their beer. Within months they had moved from fifth place into a tie for first in the market. The lesson is clear. Each of our organizations performs difficult tasks while serving the client that are unknown to the client. What is it about your business that requires greater effort, but your expertise makes the process seem transparent? What is there about your service that your client would be impressed with if they only knew? Give it some thought. Then differentiate yourself through education. John Loftis Publisher The Anatomy of a Rush Delivery Not a week passes without several clients needing what we would call a "walk on water" delivery. Usually, we can make the deadline and end up with a grateful, "thanks" coming from the client. However, it is not easy. There is a process. We thought you might like to look inside the anatomy of a rush delivery. Our first step is to verify the need. Assuming the need is real, we then speak with production to learn the status of the current backlog. If the backlog is too great, we begin moving up the management ladder until we either get the delivery or are certain the delivery cannot be met. If the delivery cannot be met at that facility we have to move the job. That may involve new plates, negatives, etc. Moving a job from one facility to another is expensive. We do it to meet the client's needs, but all of us are better off when the job can find a home and remain there. During the course of the delivery we are in contact with the plant daily. If anything happens that may jeopardize the commitment we need to know it quickly and then share that with the client. On the day the job ships we are in contact with the plant
to be sure it is on the dock properly marked with next day delivery. We usually try to save the client some expense by shipping only the smallest amount neccessary next day air with the balance of the shipment to follow via regular shipping methods. Invariably, we hear the question, "will there be a rush charge?" Our policy is clear: If we can make the delivery without charging a rush charge we will do so. We do not charge a rush charge simply because the client is in trouble. By the same token, depending on the type of job, manufacturing plants often charge rush charges because it is the only way they can maintain the flexibility to respond to the request. If there were no rush charges, then everyone would need it "tomorrow". A rush charge separates those that really need it from those that don't and allows the plant to recover some of the extra cost they have from breaking into normal production schedules. There are several things you can do to help us solve your critical delivery problems. Most importantly, be sure the need is real and then give us all the facts. Having three days for production instead of only two gives us 50% more "wiggle room." If you think you need a rush, please let us know up front. We much prefer being in "rush mode" from the beginning than receiving a call later in the process when it may be too late to respond. Lastly, know it is our commitment to make every delivery if at all possible. Sometimes, the request simply cannot be met. Before reaching that decision we will exhaust every possibility in order to solve our clients’ rush needs. Proposed Postage Rates For 2006 Months ago we reported the U.S. Postal Service would probably be asking for a rate increase in 2006. The purpose of the increase is to cover the $3.1 billion escrow fund Congress mandated it pay by September 30, 2006. The escrow fund provides the necessary reserves to cover retirement benefits being paid out through the pension plan. According to Postal Service officials, the increase is unnecessary because the escrow fund is already large enough to handle the requirements of the plan. Congress suspended the funding requirements for several years and is re-instating them. The Postal Service has reported it will not ask for the rate increase if legislation is enacted to withdraw the funding requirements. There is still time to write your congressional representatives. However, it is difficult to imagine Congress giving up this easy way to raise $3.1 billion. If the rate increase goes into effect, the requested rate for a one-ounce first class stamp will rise from $.37 to $.39. The proposed rate for automated mail ranges from an increase of $.015 for 5-digit pre-sorted to $.017 for Mixed AADC. Note the continuing trend to offer smaller increases to mailers that take advantage of presorting. The Postal Service is firm in its desire to push mailers toward automation. Potholders, Brooms and Kool-Aid This past weekend I manned a table at a local high school fund-raising fair. It was a very successful event with about 30 booths and all kinds of vendor items. Since I was stationed near the door, I was able to see what the hot items were and it occurred to me that there were some valuable lessons in promotional product selection.
The lady across from my table had home sewn decorative items: scented potholders, placemats, tablecloths and matching napkins in holiday prints. Nothing special, I thought. But her booth was like a hive of bees buzzing in and out and she was constantly restocking her table. What was her reason for success? Relevancy. With a couple of months before the holidays, people’s thoughts turn to entertaining. Could she have sold pretty floral prints reminiscent of spring? Sure, but not a lot of them. Your promotional products need to be relevant or timely to your audience, not just something to give away. Another of the hottest items at the fair was straw brooms. The local Li ons club were selling their famous straw brooms which were flying (pardon the pun) off the table. The lesson? Branding. Think Boy Scouts and popcorn, Girl Scouts and cookies, you get the picture. Say you give your clients calendars year in and year out. Boring, some would say, but your clients expect your calendars and associate them with you. Offer something that ties in with the calendar, say, a marker for them to write in their appointments. Finally, I get to Kool-Aid. Another of the hot items was handbags made out of KoolAid pouches. Every girl from 5 to 15 was begging her parents to buy her a Kool-Aid bag. No, we can’t go around imprinting Kool-Aid on our promotional items. But to take a cue, know your recipients. Be creative and have fun, but give them what they would like and use. There are thousands of promotional items available to choose from. However, if you keep the ideas of relevancy, representation of your brand and what your prospects want in mind, the selection will be much easier to make. Cindy Braman We Are Reporting Level III Charge Card Transactions Within the next few weeks we will begin offering level III reporting for charge card transactions. This is important because it allows clients to make purchases using corporate "P Cards." Increasingly, companies are using P Cards to offset the cost of processing paper based purchase orders and invoices. Normal charge card reporting, like your personal Visa card, simply reports the vendor processing the order and the amount of the order. When you use your card at a store the statement reports the name of the store and the amount of the purchase. It does not report the details of the purchase. That may be convenient when the statement is mailed home, but it doesn't work well in the corporate world. Level III reporting captures all the details of the transaction and prints them on the statement. The information reported on the statement is the same that is reported on our invoice to the client. The P Card allows corporations to receive one invoice from the card company taking the place of possibly hundreds of individual invoices coming in from multiple vendors. Then, the corporation writes only one remittance to clear out the invoice.