The promotional products industry is suffering a two-year case of “wicked whiplash,” said Jo-An Lantz, CEO of Geiger (asi/202900) and Counselor’s 2020 Person of the Year. “We have a real equilibrium issue. … Everything is out of whack.”

While it’s unlikely that balance will return to the industry – and the world at large – in 2022, Lantz and other industry leaders at ASI Orlando shared a slew of actionable strategies to help promo professionals rise to the continued challenges the year is sure to bring. ASI Vice Chairman Matthew Cohn led the panel discussion that also featured Counselor Power 50 member Nancy Schmidt, CEO of AIA Corporation (asi/109480); Lisa Hubbard, vice president of sales and marketing at The Vernon Company (asi/351700); and Sharon Eyal, CEO of ETS Express (asi/51197). The wide-ranging discussion covered topics from attracting younger generations and boosting diversity in the industry to how to handle supply chain snags and inventory issues. The leaders also shared their proudest moments – and biggest regrets – from 2021 and outlined their plans for making the most of the new year.

For ETS Express, 2021 was a tough year. Sales were down 13% compared to 2019, according to Eyal. But, he added, the “silver lining of COVID” from a business perspective was that it forced executives to look at their companies and “trim the fat.”

“We learned a lot about how to become more efficient,” said Eyal, who was Counselor’s Person of the Year in 2018.

Hubbard agreed, noting that Vernon focused on sharing knowledge and experience among team members in the last year to figure out ways to “work smarter, not harder.”

“I’ve always lived by, ‘If it takes more than 10 minutes, there’s got to be a better, easier, faster way to do it,” she added.

The company is investing in technology and platforms to help automate sales and operations. “We’re just scratching the surface on that,” she added.

Dealing With Inventory Challenges

When it comes to inventory and supply chain issues, panelists agreed that honesty and transparency are the best policies. Something Lantz said she learned over the last year is that “Lack of inventory is more than just lack of inventory.” There’s also a human element – and all the frustrations and emotions that go along with it – to contend with. “How do you deal with a customer who is so angry? We had a lot of really, really angry customers at certain points,” Lantz added.

The one saving grace, Hubbard noted, is that supply chain issues are widespread and something customers are dealing with in their personal, as well as professional lives, which sometimes leads to greater understanding and tolerance for the realities of the current business climate.

“Lack of inventory is more than just lack of inventory.” Jo-an Lantz, Geiger

Eyal, the only supplier on the panel, suggested distributors be upfront about inventory challenges and ask clients if there’s any flexibility with products. “When you take an order, maybe it’s a good idea to have option two or option three … so you have a better chance of success,” he said.

He also urged distributors to do a final inventory check with suppliers right before finalizing orders to ensure the most up-to-date stock information possible, since inventory levels can turn on a dime. With ETS Express, he said, stock is shared online in real time; after an order is placed, inventory is allocated to a distributor once ETS gets to that order in its queue. If a previously queued order already ate up that stock, it can become a problem. “It’s a real challenge to get products in,” Eyal said. “I’ve never worked harder in my life at ETS.”

‘Data Is King’

Success in 2022 is all about drafting a well-defined but nimble plan that’s backed up by rich data. “The best way to predict the future,” said Schmidt of AIA, “is to create it.” But when it comes to data, be sure to avoid using it “as a form of confirmation bias,” she added. Rather than using metrics to support what you already want to do, look at the trends and learn from them. “What story does the data tell?”

Indeed, noted Hubbard, “Data is king.” And “The more data you can capture, the more metrics that evolve as technology rolls out.”

Got questions about the most critical issues facing #promo? Now's your chance to ask the experts at #ASIorlando, during an 8:30 am panel in Tangerine Ballroom. pic.twitter.com/SiWxCSJTWG

— Timothy M. Andrews (@Tim_Andrews_ASI) January 5, 2022

ETS Express tracks both internal and external metrics – and has found that sales track with the stock market. So, if there’s a dip there, a week later orders will go down.

Geiger recently had to tweak some of the metrics it tracked to account for changes in the industry. In the past, Lantz said, the distributor tracked sales per full-time-equivalent employee. Now, however, with each order requiring more touches to be completed, she looks at sales per labor dollar. “How many dollars does it take to support sales?” she said. “We have to make sure our resources are balanced.”

Diversifying the Promo Industry

During the panel, Cohn also asked the promo leaders to share their thoughts on building diversity within the industry – as well as how to attract younger people. Their response? It’s all about being intentional, seeking out new voices and charting a deliberate path. “You have to want it,” Lantz said. “If you don’t want to do it, it’s not going to happen.”

She suggested seeking out established programs to help teach your employees about things like unconscious bias. And also to make sure your pay is in line with what younger people – many of whom are saddled with massive college debt – need to earn. “We’d better pony up and pay them,” she said.

Consider too the generational shift that’s coming, said Schmidt. “Boomers are leaving their careers, which is creating opportunities for millennials that weren’t there 20 months ago,” she said. “It’s going to change the way we do business.”

To be well positioned for that coming shift, the promo industry must do a better job of telling its own story, Hubbard said. “Coming into this industry allows you to live the American dream,” she said. “I would wish this on all my family and friends.”

Eyal agreed, noting that promo allowed “a guy like me with no high school diploma” to succeed beyond his wildest imaginings.

“I don’t understand why younger people aren’t interested in our industry,” he said. “This industry is the only one where the sky’s the limit. If you want to be a millionaire, you can do it.”