Business Gifts Increase Share in Promotional Industry |
07 May 2006 |
| The exhibitors at the Promotional Products Association International trade show at America's Center have enough refrigerator magnets on display to cover every Frigidaire, General Electric and Amana at an appliance supercenter. But the higher-end merchandise at the show, which brings together 5,000 manufacturers and distributors of promotional products, explains why the industry posted double-digit sales gains the past few years. For every magnet or plastic pen, exhibitors offered fresher more distinctive items - like wind chimes decorated with company logos, or beveled acrylic trophies for use as employee or customer awards. Sales of all such merchandise jumped 25 percent last year to $11.9 billion, the Promotional Products Association International says. "More and more companies are seeing the value of promotional products as a marketing medium," said Stephen Slagle, the group's president. The gains are attributable both to higher volume and to higher prices. "People want bigger, more expensive things," said John Dickerson of Zeit Co. of Salt Lake City, a maker of acrylic awards. When Zeit got into the industry nine years ago, the average selling price for its awards was $10 to $15, Dickerson said. Today, the figure is $30 to $40, he said. Business gifts account for more of the promotions market these days, and cheap giveaway items account for less. |
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