Counselor® PromoGram®
Volume 904 / March 22, 2012
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Cintas Reports 7.9% Sales Increase
Counselor Top 40 distributor Cintas (asi/162167) has announced its revenues rose to $1.01 billion in its fiscal quarter ended February 29, a 7.9% year-over-year increase. The Ohio-based company – whose offerings include uniform rentals and promotional products – also reported its net income increased 28.7% to $76.0 million. Quarterly earnings per diluted share jumped to $0.58, a 41.5% increase, prompting Cintas to raise its revenue and profit guidance for the remainder of its fiscal 2012.

"Our results continue to reflect our focus on selling value and growing our business profitably," said Scott Farmer, CEO at Cintas. "We continue to be pleased with the performance of all of our businesses and the execution of our game plan by our very talented team of employees."

Among product segments, Cintas reported rental uniforms and related apparel sales rose 8.4% to $721 million in its Q3. First-aid and safety revenues increased to $101.4 million, up 11.2% compared to the same time period last year. Document management revenues reached $80.6 million in the quarter, a 2% gain.

According to Farmer, Cintas now expects to generate 2012 fiscal year revenues of between $4.09 billion and $4.12 billion, higher than previous guidance of $4.075 billion to $4.125 billion. Per-share earnings are now expected in the range of $2.24 to $2.27. "As we enter our fourth quarter, we remain confident in our ability to execute our game plan of selling profitable business, managing our cost structure and improving efficiencies through process improvement," Farmer said.

With more than $155 million in annual North American ad specialty sales, Cintas ranks as the seventh-largest distributor in the industry.

ASI NEWS
Go Green
ASI’s Green Catalog contains eco tips, case studies and the newest eco-friendly ad specialties.
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Mad for March Madness Bet on massive interest in season-ending basketball tournaments with a hot list of March Madness products.
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ASI welcomes the following Suppliers to the LogoMall Network.
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Find, review, and purchase the latest exclusive ASI products...
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USPS Promotes New Business Tools
The U.S. Postal Service (USPS) has introduced a new campaign designed to boost small businesses through direct mail and other shipping services. "Small businesses are the backbone of the American economy," said Paul Vogel, president and chief marketing officer for the USPS. "We are providing a suite of mailing and shipping services tailored to the needs of small businesses to help them compete for customers and run their operations more efficiently."

A main component of the campaign is a tool called Every Door Direct Mail, a Web-based service that can be used for prospecting. Mailings, which don't require names or addresses, can be dropped off at a local post office and will later be delivered in a pre-specified neighborhood. The cost for postage starts at 15 cents per piece, with a variety of shipping sizes available for businesses to customize mailings and target areas. "They can really zero in on the streets and neighborhoods they want to reach," Vogel said.

The Postal Service has also announced that it will launch, by mid-April, a service called Click-N-Ship for Business. The service, which will include a downloadable desktop application, will be designed to boost efficiency at companies that mail 10 to 100 items per day. "The key to helping small businesses prosper is being innovative and responsive to their needs, and ensuring that our products are not only simple to use and affordable, but also offer our customers a way to generate positive return on investment from their marketing campaigns," said Vogel.




Counselor's How-To Minute: Choosing A Business Credit Card
In a video report, Counselor presents a business strategy video each week that focuses on how distributor firms can overcome a specific challenge, make a key decision or rise to the occasion on an opportunity in front of them. This week: How to pick from among dozens of business credit cards.

Wondering how you can get the best rate and avoid costly fees? Concerned about what terms are in the fine print? Worried a less-than-perfect credit score will leave you with no good choices? Check out the video.

In a quick, minute-long video, Counselor Senior Editor Dave Vagnoni walks viewers through three simple steps they can take to get the best deal on a business credit card. Click here to watch.




Apparel Industry Margins Likely To Improve
An anticipated ongoing decline in cotton prices could lead to higher margins in the apparel industry in 2012, according to a major credit agency. Moody's Investors Service expects the margin pressure that has weighed on the industry since cotton prices hit historic highs in 2011 to ease in the second half of this year.

Moody's, a ratings company, predicts that gross margins will grow an average of one to two percentage points, quarter-over-quarter, starting in the third quarter. "If cotton prices remain stable, margins will continue to improve into early 2013, though inflationary trends would again become evident," Scott Tuhy, vice president and senior analyst, told MarketWatch.

Companies that sell cotton-rich apparel at mid-level prices, such as Levi Strauss & Co., will likely experience the greatest margin improvement. Still, high-end brands like Ralph Lauren will see a margin uptick too, though the increase will not be as significant because such apparel makers already passed on costs to customers, meaning they did not feel margin erosion as keenly when prices spiked.

Cotton prices have been falling since March 2011. They're down to 81 cents a pound from record highs that topped $2.20 last year.




The Joe Show: Game On
In this episode of The Joe Show, Managing Editor Joe Haley highlights a host of new products that'll help you expand your roster of clients. Want a creative idea Elvis could rock to? Need a promotional product geared toward the travel industry? How about a giveaway for a youth baseball tournament?

Check out the video.

Click here to watch another brand-new episode of The Joe Show.

Want more videos? Subscribe now to our YouTube videos.




Podcast: Increase Customer Loyalty
On Tuesday's ASI Internet Radio Show, the hosts took questions from callers looking for advice on how they can retain clients. Looking for ways you can become a consultative seller? Searching for strategies to combat Internet-driven competitors? Wondering what programs will keep customers turning to you first for suggestions?

Click here to listen to this idea-filled segment from Tuesday's show. And, don't forget to join us for our next broadcast on Tuesday, March 27. Log on to www.asicentral.com/radio at 10:30 a.m. EST to check it out.




Last Chance To Vote For The Best-Designed Products
The results are in: Counselor magazine has selected the finalists for its annual Product Design Awards. Here's where you come in. Click here to vote for the products you think are the best-designed, considering both aesthetic appeal and functionality. You can select up to three products in each of the 14 featured categories.

It only takes a few minutes to vote, and your input is very important. However, only distributors are eligible to vote. The winners will appear in the May 2012 issue of Counselor. Click here to vote now.




2012 Best Places To Work Nominations Now Open
For the fifth year in a row, Counselor is setting out to identify the industry companies that employees simply love to work for. These are the distributors and suppliers that have a loyal work force and that provide a work environment which employees want to go to every morning.

Counselor will be unveiling its annual Best Places To Work issue in September, and it will undoubtedly include an elite list of industry companies. Do you want your company to be considered? Getting involved is easy – and it's completely free to participate. The only necessary qualification is that a company has at least 10 employees. To nominate your company, or any others in the market that you think deserve to be recognized, simply click here. Also, there's no risk to participating. Only the honorees – those companies with the best scores from the survey – will be published in Counselor.

So, don't delay. Click here to register your company to be considered for one of the most exclusive lists in the ad specialty market: Counselor's Best Places To Work.




In The News
Flexfit has partnered with nonprofit Hamylo to launch the official Flexfit Hamylo "H" custom-embroidered, special-edition hat. A portion of the proceeds from the sale of each hat will go toward rebuilding efforts in earthquake-ravaged Haiti. The hat will be available to the public in April.

Vitronic Promotional Group (asi/93990) has announced that Rory Campbell, regional sales manager, has been named Ohio Promotional Products Association Sales Rep of the Year.




People On The Move
Club Colors has hired Jason Abrahams as marketing manager.

Jornik Manufacturing Corp. (asi/63549) has announced that Jeff Stepp and his team at In Stepp Marketing have been hired as the company's multi-line sales group in the southeast U.S. In Stepp Marketing will be responsible for AL, GA, KY, MS, NC, SC, TN, VA and WV.

Newton Manufacturing Co. (asi/283300) has appointed Dan Livengood to the position of senior sales manager of business and professional development. Additionally, Kevin Peska has been hired as the senior sales manager, western region.



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