When Starline USA (asi/89320) “rolled into January” with its largest-ever backlog of orders, Chief Operating Officer – and Power 50 member – Jon Norris was worried it was just “supply chain hangover.” But when that backlog replaced itself and continued to grow throughout the month, it was sign of good things to come for 2022, Norris said during a panel of industry leaders at ASI Fort Worth.

Matthew Cohn (right), ASI vice chairman, was joined by a panel of industry leaders to discuss promo’s biggest challenges. The panel included (from left to right): Tracey Barton, director of promotional products sales for Deluxe/Safeguard; Mike Brugger, president of Fully Promoted; Lexi Fiegener, a sales rep with HALO Branded Solutions; and Jon Norris, chief operating officer of Starline USA.

“We’re optimistic,” he added. “We haven’t taken our foot off the gas.”

ASI Vice Chairman Matthew Cohn moderated a panel of four industry leaders: Norris; Power 50 member Tracey Barton, director of promotional products sales for Top 40 distributor Deluxe/Safeguard (asi/316203); Mike Brugger, president of Top 40 distributor Fully Promoted (asi/384000) and also a member of the Power 50; and Lexi Fiegener, a sales rep with Top 40 distributor HALO Branded Solutions (asi/356000). The panelists discussed the challenges of navigating price increases, labor shortages and fluctuating inventory. Ultimately, however, all four shared Norris’ optimism for 2022, and offered nuggets of wisdom to a rapt audience on how to make the most of the next 11 months.

Great industry panel session to open the first exhibit day at #ASIFortWorth. pic.twitter.com/9Dz9Jb3Kod

— Andy Cohen (@ASI_AndyCohen) February 1, 2022

One of the biggest things that’s changed, according to Barton, is what distributors are looking for in terms of products. “People used to say, what’s new? I want something new, different, sexy,” she said. “Today, you want deep inventory. You want to sell what you can deliver, not what may or may not be available in fuchsia next week.”

Many suppliers have helped meet those needs by investing in technology, upgrading their websites to include new tools and features like live inventory trackers and up-to-date pricing. “A lot of our suppliers really stepped up their websites that were in the dark ages” prior to COVID, Fiegener said. “That was really helpful.”

The other big piece of dealing with inventory and pricing changes is customer education. Asking the questions upfront and walking a client through the realities of sourcing so they have second, third and fourth choices lined up will “save you so much heartache,” Fiegener said.

Find creative ways to meet your clients’ needs that fit the reality of a post-COVID world. While events are coming back, attendance can sometimes be spotty, so rather than having a client get stuck with a lot of unused merch, consider solutions like giving attendees a voucher when they show up, rather than a fully stocked swag bag, Fiegener said. That way, they can choose items they want and have them shipped later.

Another solution is to offer on-site print-on-demand at events, Brugger said, as a way to keep inventory costs down by only printing apparel and products as they’re needed.

Cultivate close relationships with your suppliers so you can keep an eye on when prices will increase and how long they can be locked in for a client, Brugger said. “If you get a price, it doesn’t last for 90 days anymore,” he added.

Be cognizant of that reality. “I think we were spoiled as an industry,” Norris said about pricing. “I can’t tell Amazon I locked in a price.” He added that most of the time Starline will do its best to honor a price from its website and work with distributors, but that communication is key, and asking for a price from more than three months ago is unreasonable in the current landscape.

“I think we were spoiled as an industry with pricing. I can’t tell Amazon I locked in a price.” Jon Norris, Starline

The panelists also discussed the competitive labor market and how to handle it. “You have to treat people fairly,” Barton said. “Retaining people is much easier than recruiting.”

“My specific team has a lot of longevity in it,” she added, “and I take pride in that.”

Employee satisfaction and retention are paramount, and promotional products can be a key piece to supplement retention programs, Norris said – a potential boon for suppliers and distributors. Referral programs are also important. Starline has been offering a $2,500 referral bonus split between the new hire and the referrer as an incentive. “It engages your current workforce to go out and be your recruiting tool,” he said. “You have to make it attractive on both sides. The labor market is much bigger than our industry, and that’s what we’re competing with.”

Another important issue when it comes to staffing is making sure employees are cross-trained and can step in to take on other roles as needed, particularly in instances where COVID or other circumstances are causing staffing shortages. “Cross-training is so critical this year and moving forward,” Brugger said.

One trend that’s continuing to pick up steam, according to the panelists, is a focus on higher-quality goods. “We’ve been pitching a lot more name-brand items,” Fiegener said. “Clients are more willing to spend deeper on a lower quantity of products.”

Norris agreed: “We got a bad rap for ourselves for decades for cheap plastic stuff.” Now, however, clients are starting to realize that there can be real brand damage from insisting on inexpensive, low-quality items. “The focus on quality,” he added, “has been greater in the last two years than in the last decade.”