Counselor® PromoGram®
Volume 670 / December 17, 2009
Click here to read this and past issues online.


River's End To Acquire Additional Brands

As part of a deal first discussed in August, Counselor Top 40 supplier River's End Trading Company (asi/82588) is moving closer to acquiring the rights to several brands currently provided to the industry through supplier PremiumWear (asi/72725). Upon completion, River's End will offer merchandise from Page & Tuttle, Forsyth, Munsingwear and Jockey. Distribution and decoration of Munsingwear and Jockey products will continue to be serviced out of PremiumWear's facility in Tennessee. "We'll be taking over a lot of sales revenue," said Tim Klouda, president of promotional products at River's End, in an interview yesterday with Counselor. "Our industry is shrinking. As a vendor, you have to either take market share away from competitors or complete acquisitions."

Anticipating a "substantial" increase in revenue through the deal, Klouda is hopeful River's End will begin offering the above-mentioned brands by January 4. The acquisition of brands is the latest step in what Klouda calls a "totally new business model" employed by River's End in the last two years. "You can't do business as usual anymore," Klouda says. "We're sort of a hybrid in that we're a wholesale distributor, a vendor and we offer decoration as well."

According to Klouda, River's End was first approached about a potential deal by a firm hired by PremiumWear. Calls for comment made to PremiumWear management by Counselor have not been returned. Like River's End, PremiumWear is also a Top 40 supplier, generating 2008 sales of $48 million. Currently, its products are marketed under its Page & Tuttle and Forsyth brands, while the Munsingwear and Jockey brands have been held under licensing agreements.

In business for 27 years, Minnesota-based River's End reported 2008 sales of $85 million. Along with its private label, River's End also offers brands such as Tommy Hilfiger, Lacoste, IZOD and Jerzees. Its current acquisition agreement with PremiumWear is pending, following the signing of a letter of intent.


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Bailout Fund Could Help Small Businesses
In the latest attempt to funnel capital to small businesses, the U.S. Treasury Department is now actively seeking ways to further expand the Troubled Asset Relief Program (TARP), recently boosted by billions in bailout money that's been returned by large banks. The Treasury's goal is to provide more TARP capital to community banks, hoping the money will then be lent to small businesses for job creation. "Job growth is essential to that vision of shared prosperity in all times," said Gene Sperling, a Treasury official, while appearing before a Senate committee this week. "It demands greater urgency and emphasis as we seek to emerge from a profound recession and financial crisis."

In addition to less restrictive lending, the Treasury is also encouraging Congress to add small business tax incentives to spur growth. "In so doing we should look at the jobs cycle, and ask whether at this moment – as growth is reappearing – there are tax incentives that could accelerate the pace at which companies move from adding hours for existing workers to hiring new employees," Sperling said.

If Congress is willing to back new legislation, TARP resources could also later be used for direct job creation programs. Hoping to gain support for his initiatives, President Obama has asked Congress to increase the size of loans guaranteed by the U.S. Small Business Administration. Obama is also pushing a plan that would give small businesses a temporary reprieve from capital gains taxes and accelerate their write-offs on new equipment.

In a separate action yesterday also aimed at trying to reduce unemployment, the Federal Reserve maintained its pledge to keep interest rates at all-time low levels, near zero. In response, commercial banks' prime lending rate, which applies to home equity and some consumer loans as well as certain credit cards, will remain about 3.25%.


Podcast: ASI Radiothon Benefits The G.I. Go Fund
This week, the hosts of the ASI Radio Tuesday Morning Show dedicated their show to the first-ever ASI Radiothon. The effort was a charity drive to benefit The G.I. Go Fund, an organization that provides assistance to veterans when they return to the United States. Click here to listen to a podcast clip from the show – an interview with Jack Fanous, executive director of The G.I. Go Fund.

While the show contained an auction for high-end promotional items, as well as listeners calling in to make pledges to the cause, you can still participate in the charity drive. To make a donation to The G.I. Go Fund and help returning veterans acclimate back to the U.S., go to www.gigofund.org/asiradio.

And, don't forget to join us next Tuesday, December 22, for our next broadcast. Log on to www.asicentral.com/radio at 10:30 am eastern time and give us a call at 215-953-4979 or e-mail us at radio@asicentral.com to participate on the show. We want to hear from you.


Promo Products Create Revenue Stream For Brands
Searching for new ways to bring in revenues as their traditional lines of business have been impacted this year, corporations are increasingly looking to branded ad specialty items as a new revenue channel. While hats and t-shirts with their own logos on them will never become their primary business, these companies appreciate the extra dollars as well as the extra advertising impressions they get from selling these items.

This month, PepsiCo launched www.ShopPepsi.com. Here consumers can purchase shoulder bags, t-shirts, hoodies and belts as well as ice cream scoopers, clocks and canister sets – all emblazoned with the Pepsi logo. The products feature an array of designs ranging from contemporary to vintage looks. Through the holidays, consumers could even receive a 20% discount and free scarf with purchase.
                  
At the same time, Coca-Cola announced its merchandise plans for the 2010 holiday season. The number-one cola company struck a multi-year licensing agreement with Paramount to produce co-branded Coca-Cola and "It's a Wonderful Life" merchandise. Coke is featured prominently in scenes shot in Gower Dugs. The film will celebrate its 65th anniversary with branded apparel, drinkware and other items.

Of course, it's not just the largest brand names that are turning to logoed items as a new revenue stream. The Crack Team, which is a franchise of concrete repair specialists, has also embraced such items. Its mascot, "Mr. Happy Crack" adorns thongs, t-shirts, toilet paper, golf balls, temporary tattoos and even baby onesies.
"It's a fun part of our business," says Crack Team CEO Bob Kodner. "At some point we'll put more emphasis on growing it, but for now it's a very nice compliment to our repair business."

Although the business is based in St. Louis, orders arrive from coast-to-coast and occasionally, even, internationally. "This morning we received an order from the United Kingdom," says Kodner. "I'm always pleasantly surprised by overseas customers and how they find us."


Call For Entries: Counselor Product Design Awards
Counselor magazine is looking for innovative products for its Product Design Awards competition. Suppliers are invited to nominate their favorite eye-catching products in the following categories:

• Apparel/Caps
• Awards & Recognition
• Bags
• Calendars
• Computer Accessories
• Desk Accessories
• Drinkware
• Electronics
• Gift Cards
• Housewares
• Meeting Products
• Sporting Goods
• Watches & Jewelry
• Writing Instruments

In order to enter, please submit the following three items: 1. A sample of the product. (We recommend that the product be exclusive to the supplier that is submitting it, although this is not a requirement.); 2. A quick description of the product, including any special features; 3. The category that the product should be considered for. There is a limit of one submission per category, per company. All submissions will be judged on the following areas: design appeal, functionality and the ability to attractively feature a logo (when appropriate). Winners will be featured in the June issue of Counselor.

Please send all entries to: Karen Akers, Awards Editor, Counselor Magazine, 4800 Street Road, Trevose, PA 19053. Questions? E-mail Karen Akers at kakers@asicentral.com. Please note that only products from North American suppliers will be considered and that submissions will not be returned unless specifically requested.


New Course Available on ASI Education's Online Learning Center 
Be sure to register at http://www.asicentral.com/asionlinelearning for some exciting new courses available exclusively to ASI members. Brought to you by ASI Education, Online Learning is the newest and most convenient way for distributors to get educated. Here are some of the courses from our New Distributor Success Track available now:

NEW
Building Profitable Client Relationships.
In the advertising specialty industry, 75% of the average distributor's revenue comes from repeat clients. That's probably because it costs anywhere from five to eight times more to gain a new customer as opposed to retaining the ones you have. In this course, we'll explore ways to build profitable client relationships. This includes: tactics to turn one order into repeat business by building a positive relationship with your client; how to creatively reach out to clients; and how to patch things up when you've made a mistake.

Course Track: New Distributor Success
* Nailing Down the Basics
* Write Your Business Plan
* Marketing Your New Business
* Steps to Selling Success
* Creative Case Studies
* Avoid These First-Year Pitfalls
* Managing Your Business
* Wearables Crash Course
Coming in 2010: 
* Green Apparel From A-Z: Grown Your Eco-Wear Business
* Social Networking Tactics That Deliver Results



ASICentral: How Well Do You Know Designers?
Everyone knows pop icon Gwen Stefani ... lead singer of the 90's band No Doubt, successful solo recording artist, wife of Gavin Rossdale, mom. But did you also know she designs clothes?

Of course you did! But do you know who she's designed clothing for? A-ha! Bet you know a lot of designers, but the brands they've worked for might not be so obvious. So, we've come up with a game that tests your knowledge of designers. Introducing the ...

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Got questions, comments or any type of feedback regarding anything ASICentral, don't hesitate to contact us at feedback@asicentral.com. Also, follow ASICentral at Twitter Facebook YouTube.


In The News
A4 (asi/30121) announced that it has launched its spring 2010 redesigned women's collection.

The Premier Promotional Group has announced the addition of J. Charles Crystalworks Inc. (asi/62985) to its organization of independent suppliers and distributors.

The Quality Certification Alliance has announced that seven suppliers have recently joined the organization. They are: Bullet Line LLC (asi/42424); ETS Express (asi/51197); Garyline (asi/55990); Hit Promotional Products Inc. (asi/61125); Jetline (asi/63344); North Attleboro Jewelry Co. Inc.; and SnugZ/USA (asi/88060).


People On The Move
Adventures In Advertising (asi/109480) announced that it added five new affiliates in November. They are: Lane Allen, LA Brands, Decatur, GA; Mike Dunaway, PSI Direct, Jacksonville, FL; Chris Jimenez, The Swag Source, Camarillo, CA; Bob Legge, Legge Marketing, Orange, CA; Marc Shubb, GNP Media, Calabasas, CA.

Bankers Advertising Company (asi/131650) has appointed Steve Horner as director of business development.  


ASI SHOW

The following are the dates and locations for The ASI Show in 2010:
Orlando: January 3-5
Dallas: February 1-3
San Diego: February 24-26
New York: May 4-6
Chicago: July 13-15
Holiday & Incentives Expo, Las Vegas: September 14-16

Plus, don't miss the ASI Advantages Roadshow, the industry's #1 traveling show. Visit www.advantagesroadshow.com for the complete schedule!