vol 119 / May 27, 2010
www.stitches.com

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In this issue:
Video
Business View
Markets to Watch
Quick Hit
Webinar Calendar
News Briefs &
Product Releases

Ask Phil
Embroidery Terms
Calendar
VIDEO

More Fashion Finds From The ASI Show New York
Looking for cool apparel items to wow your clients? Nicole Rollender, editor of Stitches magazine and director of ASI Education, shopped the New York ASI Show exhibit hall to find some of the most innovative styles on the market today.
Click here
to watch the video.

What did you think of this video? Send your feedback to nrollender@asicentral.com.

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BUSINESS VIEW: Motivate Your Employees the Smart Way

First, some bad news. Your top performers may be getting ready to jump ship. At least that's what the results of a recent survey indicate. Right Management, a career consultancy, asked more than 900 workers in North America if they planned to pursue new job opportunities as the economy improves in 2010. Sixty percent said "yes." Another 20% indicated they would be updating their resumes and attending networking events "just in case" a better opportunity comes along.

Those numbers don't surprise Michelle Smith, vice president of business development for O.C. Tanner, an incentive management company. "Many workers are feeling underappreciated with their leadership right now," Smith says. "As the job market thaws, they're going to go somewhere they feel more valued."

One of the main source of workers' discontent these days, Smith contends, is the fact that their companies didn't spend as much time – or resources – focusing on employee recognition last year. "Unfortunately, too many businesses pulled back on incentivizing employees last year, and now businesses are going to feel the effect of that," she says.

Now, some good news: If you make the effort now to connect with your salespeople and motivate them to succeed, you can gain their loyalty. The key is in retooling your recognition and rewards programs – immediately. You need to give them a reason to feel connected with your company other than a paycheck. That may have worked last year, but not now.

And, don't fall into the trap of continuing to use the same motivation and rewards programs that you've always used, Smith warns. "Your business has changed in the last 18 months," she says. "Make sure you update your recognition plan accordingly."

Engage Employees Sooner Rather Than Later
Traditional incentives are long term, in the form of annual achievement awards or year-long sales incentives. But companies that aren't finding ways to reward employees the moment they join the company are at risk of losing those employees, Smith warns.
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"The first 90 days of a new employee's job are the most vulnerable," she says. "That's an awkward time when the person is going to constantly ask himself, ‘Do I really enjoy this work? Does this company really care about me?' If the answers are, ‘no,' you're dead in the water."

For this reason, Smith says, many of her clients are focusing on on-boarding programs, where new hires are recognized early on for their achievements. Indeed, Margaret Dickinson, founder of a graphic design firm, gives new hires a welcome basket stocked with promo items featuring the company's logo, including a pen set, a company mug and a notepad. Every month for the new hire's first year (assuming good performance), she adds additional items to the employee's desk. "It's kind of a game to see what I'll give next," she says.

One recent month, Dickinson rewarded a new hire with a desk clock. The month before, it was a colorful mouse pad. "I also use this gift-giving sessions as a chance to check-in with the person," she says. "I'll say, ‘What are you working on?' and ‘Are you doing the kind of work you expected?' and ‘How can I help?' Often, what results is a great conversation, which will help me learn more about what makes this person tick."

Wells Fargo & Company recently completed a merger with Wachovia and is in the midst of developing a new recognition program for the 26,000 members of its technology and operations group. According to Lisa Massiello, group recognition manager, Wells Fargo also makes a point to check in with new hires several times within the first year. After their first year with the company, employees are acknowledged with a Wells Fargo pin or other token of appreciation.

Such programs are crucial, Smith says, especially at companies that are planning on ramping up their staffs this year. "It's critical to make sure that everybody is rowing the boat in the same direction, right from the start," she says.

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New Course Available on ASI Education's Online Learning Center
Did you know you can take self-paced, on-demand courses at ASI Education's Online Learning Center? This is the newest and most convenient way for decorators to get educated. In our newest course, "Customer Service Tactics to Increase Sales and Snag Market Share," we'll teach you how to implement 14 proven customer service strategies at your company that will help you keep customers loyal and increase your bottom line. Register now at www.asicentral.com/onlinelearning.

Get a sneak peak! In this video, Nicole Rollender, Stitches editor and director of ASI Education, talks about one smart customer service strategy: the best ways to obtain client feedback. Click here to watch the video.

Coming Soon:

Cold-Calling Clinic: Get More Appointments Now
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MARKETS TO WATCH: Travel & Leisure

Luxury is in. Seems counterintuitive to the current economic climate? Well, luxury travel is seeing a renaissance of sorts this year. "For 2010, you'll see a growing pressure in the industry to provide exotic travel and customized, ultimate experiences," explain the editors at Scene Advisor. "The jet set isn't just populating five-star hotels anymore. Now you'll see them jumping out of helicopters to go skiing, taking safaris, getting high-speed car tours around major cities, arranging personalized art tours and more."

Eco-tourism is also becoming a lucrative market, with travelers looking to visit beautiful, untouched nature that they can interact with without creating a negative impact.

So, what does that mean for decorators with regard to resortwear sales? A lot of opportunities. Instead of arranging for a spa gift card or pricey free meal, decorators can help hotels and resorts attract customers with gift baskets containing promotional apparel, flip-flops, beach bags and many other items that guests will perceive as an added-value to their room rate and hospitality experience. Decorators can also help hotels and resorts maximize profits by providing them with high-quality, attractive and tempting items for their gift shops and boutiques at the right price. Travelers will not expect a gorgeous bathing suit at rock-bottom prices, and may be more willing to splurge on these items if they know they are getting a good deal on their trip.

Luxury and eco-tourism is a great niche market to target right now. Luxury accommodations require the top-of-the-line robes, towels and in-suite gifts to keep their high-maintenance, high-spending audiences happy. They're also going to be looking for high-quality convenience, such as high-fashion swimsuits and other resort apparel available in the gift shop. The eco-tourists are going to be looking for something quite different. Interested in limiting their carbon footprint throughout their vacation, they won't want swag bags filled with non-biodegradable goodies. Instead, decorators can approach these types of resorts and hotels with some of the industry's best eco-friendly apparel, from RPET plastics to organic cottons.

When contacting resorts and hotels, it's important to know what they'll be looking for, know how to put together a great sales pitch, and to keep on top of the trends.

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QUICK HIT: How to Raise Your Prices

While decorators were focused on attaining any business they could get last year, one major element of their go-to-market strategies suffered: prices and margins. Indeed, decorators were often forced to cut their prices and accept lower margins as they convinced reluctant buyers to sign on the dotted line.

Now? It's time to raise prices again and return your profit margins to higher levels. Not only will raising your prices result in more revenue for your business, but it will also give you a way to prove your worth to clients. Cheapening the products and services that you provide certainly isn't going to achieve that goal. Plus, many customers are conditioned to accept some inflation. No, they don't necessarily want to pay more this year than they did last year, but that doesn't mean you have to provide the exact same products. The trick is in raising prices on items they may have not purchased from you before.

The key, though, is how you approach this delicate strategy. Losing a customer – or turning them off – is definitely not what you want. So, you have to take care and strategically plan out how you're going to communicate a price increase.

Here are three key steps to follow to raise your products successfully – you'll gain more revenue from current clients and keep them loyal to you.

Step 1: Look in the mirror. Before decorators even think about getting down to the nitty-gritty with their clients regarding price increases, Barry Hults, founder and director of The School for Professional Marketing, an industry consulting and coaching firm, says they must first prove to themselves that they warrant such an increase. How do you view the products and services you provide? Do you know the ROI that your clients have achieved on the programs you've created?

Initiating a price increase can often best be done by a decorator first understanding that their previous price was too low. But to do that, you have to recognize the value that clients receive from your programs.

"The biggest inhibitor to margin for decorators is the value they place on their work," Hults says. "If they get it in their head that their work has value, and if they deliver exceptional service, they should be able to be comfortable quoting higher margins."

And sometimes that mindset can be nurtured by working with clients who understand and respect the value of what you provide. Gerry Barker, president of Barker Specialty Co. Inc. (asi/132690), says it's always easier to justify price increases to clients who recognize and value your commitment to quality. "Simply focus your energies on clients who appreciate and respect the hard work you offer every day," he says.

Step 2: Unbundle your charges. By charging separately for certain services, you can gain the perception of a lower-priced decorator and still have the ability to increase your prices when needed, Barker says.

Barker relays the story of one of his client relationships where he was up against a retail competitor. The competition would quote shirts at their catalog prices, plus an additional charge for embroidery. Barker's company, on the other hand, was providing a single quote for the whole service that ended up looking like he was charging more than his competitor.

"I found that whenever I quoted against them, it looked like my prices were high," Barker says. "When I started to quote the embroidery separately, I actually was able to charge more than originally planned, because the client was only comparing the base cost of the shirt. Unbundling prices for certain customers is worth a look."

Make a point to change your invoicing process with current customers, so that they actually see itemized charges for all that they receive from you. This process of unbundling will make them more accepting of higher costs because they'll get a better picture of everything you provide.

Step 3: Practice gradualism with current clients. When you're determining just how much you want to increase the cost of your goods for current customers, trying a phased approach can often be the best strategy. "My thinking is that you don't want to raise prices so much that you chase customers off," Hults says. "Gradualism works best."

Hults suggests that decorators increase their costs to current clients by 2% every six months until they achieve a satisfactory profit margin. He has been advocating this method in his seminars for nearly two decades. "I ask the audience if the cost of a cup of coffee would cause them to lose a $1,000 order," he says. "If you raise the price 2%, that's only $20. It's almost painless to the end-user. In 18 years, nobody's ever come back to me and said, ‘I've lost an account because of what you told me to do.' "

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NEWS BRIEFS & PRODUCT RELEASES
Animal Fair (asi/36235) has announced that top executives from its parent company, Princess Soft Toys, recently met with Congressional leaders to discuss safety and compliance issues in the toy industry.

Colman and Co.
now offers "Patch Kits," which contain all the necessary supplies to create patches, badges and emblems for any application that is ordered in quantities of 50 pieces or under. The Patch Kit includes 1 yard of white or black patch material, 1 yard of heat-seal material, a hot knife and universal cutting tip.

Flexfit has announced that it will be the title sponsor of Agenda Show NYC, which is known for showcasing cutting-edge and artistically inspired streetwear and action sports apparel and accessories. The first East Coast edition of the famed California trade show will take place on July 19-20 at 190 Mercer St. in New York's trendy SOHO district.

McBee Supply, a distributor of Workhorse equipment, offers a monthly training class on how to get started in screen printing. It's an affordable two-day training program that covers how to print a T-shirt from start to finish. Topics include screen making, press setup, registration, proper squeegee stroke techniques, and a variety of production tips and tricks. The next class is scheduled for June 25-26 at the company's Houston location. For more information, visit www.mcbeesupply.com.
Pantograms has announced it has improved the white ink technology of its WIMS (White Ink Management System) that keeps ink moving to aid in preventing clogs or ink waste. Also, as the exclusive distributor for Meistergram Embroidery Equipment in the U.S. and Canada, the company offers the PRO1504 multi-head embroidery machine. This 15-needle, four-head machine has a new ergonomic design control panel, a 10-inch color LCD monitor, and a built-in USB port for increased data-processing efficiency.

River's End Trading Co.
(asi/82588) has announced that Chris Thies has joined the company as the new Regional Sales Representative for northern and eastern Minnesota and western Wisconsin. He spent the last two years working with PremiumWearas a senior service specialist. Charlie Cochran joins River's End Trading as the new sales representative for Mississippi and Alabama; he owns Cochran and Co. Inc., a multi-line rep firm in the Southeast. River's End has also announced its purchase of certain assets and inventory of the Clarksville, TN, decorating and distribution facility formerly owned by PremiumWear.

S&S Activewear
(asi/84358) has announced the launch of its new customizable websites for embroiderers, screen printers and promotional products distributors, available at no charge for registered customers, at www.ssactivewear.com. With the new website tool customers can: upload their company logo; select what brands and styles appear on their site; customize a home page design completely or select from several templates; and more.
SOS From Texas has added an organic cotton infant's one-piece snap-crotch outfit that's free of any harmful substances; the cotton is grown, cut and sewn in the U.S. This infant's onesie (style 140) features a crew neck, short sleeves and three-snap crotch. It comes in sizes 0-6 months, 6-12 months and 12-18 months.

SWF East Inc. has announced the launch of its www.SWFDTG.com support website, with a searchable database of over 500 videos, industry articles, machine repair instructions, tip and tricks, and operation instructions for SWF embroidery equipment and DTG garment printers. The company has also announced its new four-head, 15-needle 1504-K multi-head embroidery machine; it offers improved thread tension for uniform stitches in high speed and it can store up to 100 designs with a basic memory capacity of 2 million stitches, among other features. Finally, the company will host the Embroidery and Direct To Garment Extravaganza 2010, a two-day education and workshop conference devoted to apparel decorating; this two-day event will be held July 23-24 in Pittsburgh at the Radisson Hotel.

UPS, an ASI affiliate, has partnered with P&T Express to establish UPS Vietnam as a joint stock company. Per the deal, UPS will extend its express pickup and delivery service to 63 provinces in Vietnam and offer later pickup and cut-off times, growing its intra-Asian capabilities.

World Emblem International (asi/98264) has been honored with the Dale Carnegie Training Leadership Award, recognizing excellence in innovation and organizational creativity.

 

Lori Coulter's product is a must-have for resorts: swimwear. "A wrap or swimsuit cover-up is a great gift for guests, employees and everyone in the resort environment," she says. "If you have water activities planned, a wrap is a must. It's something everyone can use, it's not size-specific, and everyone appreciates the ability to show as much or as little as they want around the pool."
From Lori Coulter (asi/46771), this stylish, yet wearable, sheer tunic (534) is the essential cruise, pool or beach cover-up. It's perfect for corporate travel incentives and gifts. This tunic is made of 90% nylon/10% spandex and has a plunging V-neckline, three quarter-length sleeves and hits above the knee.

Coulter, owner of Lori Coulter (asi/46771), also stresses the importance of bringing a model to any sales appointment. "The thing about swimwear is that it never looks as good on a hanger as it does on a model," she says. "The model should be attractive; he or she doesn't have to be perfect, but, he or she should be realistically representative of the person who will wear the suit – it makes all the difference in the world."

Coulter also suggests looking beyond the retail sales at resorts. "There are a lot of promotional events that go on at resorts," she says. "Branded bikinis are the number-one thing we sell for clients like beverage companies. You've got to think beyond normal resort operations."

Here are a few more tips from Coulter on how to sell swimwear to your resort clients:

1. Look for styles that are forgiving and will work for different body types – a basic halter, for example, is a great option that looks good on most people.

2. For retail resort shops, remember that hanger appeal is everything; offer a grouping of three to four sets with mix-and-match tops and bottoms so shoppers can coordinate their own custom suit.

3. Don't forget about water sports and employee uniforms, which are two key resort markets.

Deadline Extension:
Stitches
Golden Needle Awards
Call for Entries
We've extended the deadline to June 2! Enter the 2010 Stitches Golden Needle Awards now and show off your embroidery and digitizing skills and creativity! Finalists will be selected by a panel of veteran embroiderers and digitizers – and then we're opening the voting to Stitches readers. Winners will be featured in the November 2010 issue of Stitches and online. So, select the entry category that fits your skills, and show us your talent. Click here to learn more.

Did you know that you can get a new Tip of the Day every day on Stitches.com? Here's just one of the business-building tips you'll find online:

"Meet your deadlines. Nothing is more aggravating to a customer than not receiving an item on the promised date. If you deliver when you say you will, customers will trust you to get the products to them when needed."
   Eugina Moore, co-owner,
   Unique Greek
WEBINAR CALENDAR
ASI Education has lots of great new webinars to increase your knowledge. Here's our June schedule:

June 2010 Webinars
Apparel Sourcing: Find the Right Partners
June 10, 2-3 p.m. ET

Learn to source apparel in the most efficient way possible, so you can deliver to clients the decorated apparel they need by their event deadlines – every time.
Register here.

Top 15 Ways Small Businesses Can Save Money
June 15, 2-3 p.m. ET

Savvy distributorship owners share their best ideas for cutting costs – and reinvesting those dollars back into their business in ways that grow their bottom lines. Register here.

Business-Building Strategies: Sneak Peak Counselor SOI 2010
June 22, 2-3 p.m. ET

Get a sneak peek of the top sales, marketing and operations strategies included in Counselor's 2010 State of the Industry issue. Register here.

EMBROIDERY TERMS
If you're new to the decorating industry, here's a crash course in some of the top embroidery and decorating terms you'll need to know.

Appliqué:
1.) An embroidered motif, aetzed or cut, which can be used as a separate embroidered figure (Schiffli embroidery). 2.) Fabric, which may or may not be previously embroidered, sewn to another piece of fabric or to a garment.

Chain Stitch: Named for its resemblance to a chain link, this stitch is usually applied using a single-head embroidery machine.

Chenille: A form of embroidery, widely used in the college apparel markets, in which a large loop stitch is left on the top of the fabric. This embroidery utilizes the chain stitch described above.

Density: Amount of stitches in a given area.

Emblem: An embroidered design with a finished edge, commonly an insignia of identification, usually worn on outer clothing. Also known as a crest or patch.

Monogram: An embroidered design composed of one or more letters, usually the initials in a name.

Stock Designs: Digitized generic embroidery designs that are readily available at a cost below that of custom-digitized designs.

CALENDAR
JUNE 2010
June 3-5, Indianapolis

The NBM Show
(966) 893-7682; www.nbmshows.com

June 13-16, Marlboro, MA
New England Apparel Club Show
(781) 326-9223; www.neacshow.com

June 14-18, Vancouver, Calgary, Edmonton, Winnipeg
Advantages Roadshow
(800) 546-3300; www.advantagesroadshow.com 

June 18-19, Louisville, KY
Embroidery and Direct to Garment Extravaganza
(813) 846-6031; www.swfeast.com

 

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ASK PHIL

Dear Phil,
I'm looking for some nice golf shirts that come in size XXL Tall. The customer doesn't want mesh, waffle or ribbed shirts, just a plain pique with plastic buttons. I'd appreciate any help in finding some nice polo golf shirts in XXL Tall! — Bonnie

Believe it or not, there are plenty of styles to choose from! First try Bodek and Rhodes (asi/40788), (800) 523-2721, www.bodekandrhodes.com; product number 8535T. This is the Ultra Club Tall Classic Pique Polo, and it's available in four colors. Also, check out Blue Generation (asi/40653), (888) 744-7887, www.bluegeneration.com; product number BG2201. This Egyptian cotton pique polo comes in a range of sizes. Also try Cutter & Buck (asi/47965), (800) 929-9299, www.cutterbuck.com; product number BCK02482 – a Big & Tall pique polo shirt that comes in six colors.

Got a question for Phil? If you can't find what you're looking for in the Embroiderers Sourcing Guide, write to: Stitches, Attn: Phil Stitch, 4800 Street Road, Trevose, PA 19053. Or fax your question to: (215) 953-3107. For the quickest response, e-mail askphil@asicentral.com. For RN inquiries, visit www.stitches.com for the RN Database link. Although I try my best, I can't always answer every request, so please continue your search on your own. Remember, if you call the companies that I mention, tell them you heard about them here!
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