Moore Promotions: ‘Extremely Hopeful and Excited’

Kelly Moore, owner

Kelly Moore’s Q2 is racing at a breakneck pace.

The solo-operating owner of Moore Promotions (asi/601617) is busy managing soaring sales at her independent Florida-based distributorship. And, the dog lover has launched a spinoff merch company – Arrrooo Apparel, of which 100% of the proceeds benefit a local dog rescue in St. Petersburg, FL.

“An initiative called ‘Hats for Hounds’ is our first rollout, and it has been amazingly fun and lets me be creative,” says Moore.

Meanwhile, April 2021 sales at Moore Promotions doubled compared to April 2020 – a month when pandemic shutdowns were at their height and business dived.

In a quirk that bucked the industry’s downward trend, Moore’s May 2020 sales were the best of any month last year. Even with that, she expects May 2021 to match or top the prior year’s monthly performance.

The return of in-person events is a key factor fueling the sales acceleration. “Outside events are taking off,” says Moore. “It seems like clients who haven’t even done them before are starting to plan and engage, just to celebrate the glimmer of hope that things are starting to head back to normalcy. I feel relief and joy in the air.”

Moore is also having success in providing employee appreciation gifts and solutions for job fairs. “Job fair clients are asking for mid-range priced items instead of the $1 to $3 they usually want to spend,” she notes.

While a certain number of Moore’s clients in the software/technology space aren’t spending on promo, the hard-hustling entrepreneur says that, in general, customers across industries are investing again in branded merchandise.

“It’s so diversified,” says Moore. “Wineries, healthcare providers, bars, lawncare businesses – you name it. I’m also doing a lot of jobs for marketing firms, who are in turn providing their clients with swag for various upcoming events they are holding this summer.”

A challenge Moore has encountered is that many clients are demanding extremely fast turnaround times. She says that’s led her to expand her supplier network. Moore further notes that profit margin has suffered some, but “I’m getting many new customers and am retaining them.”

Those customers include a high-end real estate company located on Martha’s Vineyard. “It took a lot of sourcing, haggling and research to find a third-party freight company that could deliver goods at a price the customer was comfortable with,” notes Moore.

Still, she’s happy for such challenges, as they’re all part of a robust return of traditional promo sales. “I’m not back to my 2019 sales levels yet,” Moore shares, “but I am extremely hopeful and excited.” – Christopher Ruvo

Full Line Specialties: Playing the Waiting Game

Sam Singh, president and CEO

In the first half of May, sales were down 25% at Surrey, BC-based Full Line Specialties (asi/199688), compared to the same two weeks last year as a result of a significant drop in PPE sales in 2021. The distributor continues to await lifting of restrictions for real economic recovery, as British Columbia has been under a strict lockdown since late March which continues to heavily impact business and sales.

“We’ve heard that things will start to loosen up later this month due to more people being vaccinated and case numbers dropping,” says President and CEO Sam Singh. “This should release repressed demand for promo, but could create another challenge with supplier inventory levels.”

Singh says Full Line is looking forward to a healthier Q4, both in sales and much lower COVID cases. “The American economy appears to be rebounding as things are fairly open and vaccination rates are high,” says Singh. “This optimism carries over to our corporate clients, which helps drive inquiries.”

Meanwhile, as Canadians continue to wait for lockdowns to lift, customer demand for fulfillment, warehousing and kitting services remains high for the Full Line team.

“Construction and logistics are still strong industries for us, and we don’t predict a change anytime soon,” says Singh. “Our event clients are looking for items as they plan on reopening, bringing back staff and engaging their clients.” – Sara Lavenduski

Jack Nadel International: Prepping for a Return to Normal

Craig Nadel, president

With a slow January and February, a March that showed a little sign of life and an April that had more momentum than any month since early 2020, Craig Nadel, president of California-based Counselor Top 40 distributor Jack Nadel International (JNI; asi/279600), says his company was a little different from most of the industry. “April was much better than January and February, but a little worse than March, and May is looking like April,” he says. “I think we’re in a semi-holding pattern until events, trade shows and sales meetings really start up again. So we’re much better than 2020, but a little worse than 2019. People are busy now and companies, including us, have back-to-the-office plans in place.”

Now that the demand for PPE has subsided, Nadel says tech and financial companies, in particular, are doing very well, and his reps are getting requests for higher-end wearables. “We can’t even find hoodies or nice blankets, which seems a bit strange given the season,” he says, touching on a recurring and some would say worsening issue in the industry – supply chain breakdowns and inventory shortfalls. “Most suppliers are pretty good at being transparent and communitive,” Nadel says. “I would also add a third issue affecting the industry, which is residential shipments. I would have, incorrectly as it turns out, suspected that with companies going back to work, the percentage of shipments going to people’s homes would start to fall again given the expense and privacy issues (where there are laws on the books in California), but that hasn’t happened yet.”

Regarding the other prevailing problem in the industry, and the U.S. overall – the dearth of workers to fill open job positions – JNI is experiencing that as well. “It’s always hard to find good people, but finding good salespeople and good tech people are probably the most difficult,” Nadel admits, touching on the U.S. growing pains with an economy poised to go full tilt, yet many wondering how fast is too fast for everything to snap back?

“That’s a good question,” Nadel agrees. “There was a past chairman of the Fed who once famously said his job was ‘to take away the punch bowl just as the party gets going.’ The Fed isn’t doing that now, and government spending is very high. … There may be some reasons to worry. However, part of the problem is looking at year-over-year numbers, and last year was an anomaly for obvious reasons, so a couple of bad reports shouldn’t be too stressful. Current Chairman of the Federal Reserve Jerome Powell seems very strong, and I really think the world of Treasury Secretary Janet Yellen. Neither seem too worried about inflation or growth, so I’m with them, at least for now.”

Nadel points out that California’s K-shaped recovery is more extreme than the U.S. “The people who are winning from the white-hot tech IPOs are doing very well indeed,” he says. “However, the laws and regulations required by more blue collar-type companies have gotten even more onerous over the last couple of years, and those companies aren’t doing well. In general, northern California is doing better than southern California, as there’s more tech in that area and more tourism and other business in southern California.”

And as Nadel has repeatedly pointed out over these last few months, when live events start coming back, so does the industry. “We’re scheduled for late September/early October for our first live JNI event since before the pandemic started, and the way things are going that seems likely,” he explains. “I just made my first trip, and it had been 14 months since I was on a plane or in a hotel room. The world seems to be getting back to normal, but it’s more personal than business travel now. The business-destination airports are still below normal, but the vacation ones – Miami, Phoenix, etc. – are getting busier. I think most people are comfortable traveling now; however, we’re probably no different than most companies, and we don’t want to do events until everyone is OK with it, and that comes after being back in the office, and schools reopening as usual.”

Speaking of a return to usual, Nadel says JNI just came out with its back-to-the-office plan, which will start in July. “We’re doing it in phases, and starting later June we’ll have people come in for a few days a week,” he notes. “Right now, we’re asking people to wear masks and that’s the requirement at this time, although I suspect that’ll change pretty soon. In fact, I went to see my doctor recently, and he was totally fine meeting without masks once he learned I was vaccinated.”

Nadel also acknowledges that like many businesses in the U.S., JNI isn’t planning to ask its staffers for proof of being vaccinated. “I know several people don’t want to do it, which seems to be the case in the country overall,” he notes. “From our point of view the good thing about that is almost without exception the people not vaccinated are the people not worried about COVID.” – Michele Bell

Whitestone Branding: Q2 Could Be a Record-Breaker

Joseph Sommer, owner

As summer approaches, Whitestone Branding’s (asi/359741) sales are hotter than a heat wave.

The New York City-headquartered distributorship, which has a remote workforce across the United States, is on track for its single-greatest quarter ever for sales. “It might just break records for our business,” says Joseph Sommer, owner/founder.

Q2 sales are being driven by businesses returning to the office, companies planning outdoor events and activations, the millennial entrepreneur explains. “Live entertainment is helping a lot,” Sommer says. “While we don’t have many clients in the entertainment space, we work with a lot of brands who show up to market and host activations at concerts and sporting venues. We’re getting a lot of opportunities across the board.”

Those opportunities include accelerating sales with clients as diverse as retailers and museums. “We’ve also been creating a lot of back-to-office products, whether it’s a kit or a small product, which are being used as desk drops,” says Sommer. “Companies are getting ready to open their doors again and invite their people back.”

Despite the sales surge, Sommer says some end-clients still have their checkbooks closed. “Nonprofits are not buying right now,” he says.

Whitestone’s gangbusters Q2 builds on a first quarter in which company sales increased 20% over the same three-month period in 2020 – a far better performance than the industry average, which saw distributors sales decline about 15% year over year.

Ultimately, Sommer expects Whitestone’s Q2 sales to double over the second quarter of 2020, when widespread societal lockdowns were in effect in April and May.

“It’s too early to tell how Q3 will compare year over year,” says Sommer, “but my feeling is that it will be higher, too.” – CR

Custom Logos: Inventory Remains an Issue

Jeff Golumbuk, co-founder and owner

Although orders continue to pile in for San Diego-based Custom Logos (asi/173183), getting products from suppliers has been an issue that’s preventing additional sales.

“There’s been a lot of demand for towels and outdoor products, but stock shortages and extended production times have been obstacles,” says Jeff Golumbuk, co-founder/owner of Custom Logos. “Based on our conversations with suppliers, we’re hoping to see improvement by the fall.”

It’s also been two months since Custom Logos’ office has been fully reopened with employees having the option to work remotely one day per week. Golumbuk says it’s been a great morale booster.

“Our unique office setup has always been central to our culture and the success of our company,” he says. “The vibe and energy we have is infectious. While some employees have been a little hesitant to come back after getting used to working remotely, we see that waning and are looking forward to returning to normal and hosting company events again on a regular basis, something our staff enjoys.” – John Corrigan

Fairytale Brownies: ‘A Taste of Hybrid Style’

Eileen Joy Spitalny, co-founder

As projected, Phoenix-based Fairytale Brownies (asi/53518) has entered its slow stretch of the year.

From April 1 to mid-May, sales were down from the same period last year. But, compared to that time frame in 2019, the company is experiencing double-digit growth. Business is expected to pick back up in the fall thanks to the rush of holiday gifting. For that key stretch, the supplier will be introducing a couple of new treat flavors and packaging designs.

Unfortunately, the company received zero submissions for its “Healthcare Hero” giveaway, its first attempt with an incentive program. “We did do some donations to nurses in the Phoenix area, so we were grateful to give back in that way to our local healthcare heroes,” says Eileen Joy Spitalny, co-founder of Fairytale Brownies.

On June 1, all employees will return to the office. Some would prefer to maintain a hybrid schedule, Spitalny says, citing the benefits of saving time and gas money.

“Camaraderie has been missed,” Spitalny says. “Team members at the bakery are looking forward to seeing the rest of the team come back and those at home are looking forward to seeing those at the bakery. But a taste of hybrid style has also been enticing for those whose job can be done that way.” – JC

Starline USA: Finding New Opportunities

Brian Porter, senior vice president of sales and marketing

Sales momentum continues to build as the country opens up again. Brian Porter, senior vice president of sales and marketing at Starline USA (asi/89320; Canada, 89213), says his company saw triple-digit sales growth in May compared to a year before.

Now, as people plan for summer vacations and “revenge travel” after more than a year of restrictions, Starline’s offerings for camping, backyard activities, golf and summer fun have been doing well, along with business accessories. “More orders for power banks and portable speaker orders have been coming in,” says Porter. “That speaks positively to the economy as a whole opening up.”

Of course, inventory issues have been a challenge to contend with, but Porter says they’ve been able to stay ahead of it. “We’re seeing containers come in almost weekly,” he says. “A steady flow of our top-selling products has kept us in good shape.”

There’s now talk of lockdowns easing across Canada, and Porter says they’re very optimistic that the Canadian side of the business will grow significantly in the second half of the year.

As for events, there’s been a marked turn toward in-person and away from virtual. The team is gearing up for national sales meetings and regional shows starting next month and looking forward to more offices welcoming back their employees and the promo opportunities that large-scale transition will offer.

“I don’t see us ever going back to business as it was,” says Porter. “I just think we’ve learned to be more efficient and effective for our customers across the board, and in turn, they’ve been able to do the same for their clients.” – SL

Compass: Reveling in the Outdoors

Josh Levy, CEO

Like for so many people working indoors, Compass (asi/46170) eagerly welcomes warmer weather and the urge to get outside. The difference? What might be considered a distraction for employees is a vital sales pipeline for the New York-based supplier which specializes in brand-name tools and outdoor items. And even though outdoor activities were popular during the height of the pandemic last summer, there’s a pent-up need to get out. That, combined with easing restrictions, should push activity even further this year.

“We continue to see sales of products that are geared to outdoor activities: camping, fishing, hiking, outdoor gatherings,” says Compass CEO Josh Levy. “Without a doubt people are looking forward to the summer, and I think people are going to have a new appreciation for getting outside and being active. They have had enough of sitting on their couches and watching Netflix and Hulu.”

Levy notes that the company’s MPOWERD solar power lanterns have seen a strong increase in sales. “It’s certainly a great item for camping and hiking,” he says, “but we’re also seeing people who are still working from home take these with them to their porch or backyard and get a change of scenery while still getting some work done.” The lanterns have a charitable component too: Compass donates the lights to people in need throughout the world – another incentive leading to strong sales.

Overall, sales of such products have contributed to an encouraging first half for Compass; the company was up 18% in 2021 year to date compared to 2020, and doubled its April 2021 sales compared to April 2020. In addition, May sales were on track to exceed the previous month’s by 15% – momentum that the supplier hopes to continue throughout the summer and fall. – C.J. Mittica

Rockland Embroidery: Keeping Busy in May

Andy Shuman, general manager

For Topton, PA-based Rockland Embroidery (asi/83089), May is “trending in the right direction,” says Andy Shuman, general manager of the contract decorating shop. It’s not quite as strong as April, he adds, but “things remain quite busy overall.”

Decoration orders have returned to typical items, like T-shirts and fleece, with only a few branded mask requests scattered here and there. With summer approaching, there are fewer high-end jacket and brand-name accessory orders coming in, but Shuman is still seeing an unprecedented amount of brand-name merchandise passing through his doors.

Perhaps the biggest change right now is the return of event and “outing” business. “We had been seeing that prior to mask mandates being lifted, so my suspicion is that we’ll continue to see a more rapid resurgence moving forward,” Shuman says. “It seems masks are only part of the equation. Event attendance capacities are also being increased, so for every event there will now be more people. I think this will factor into average order size as well.”

Still, challenges remain for Rockland – many of which are similar to what the rest of the promo industry is facing. For example, Shuman has been trying to hire new workers to help take on the increased workload, but that’s proved difficult. Other issues include inventory shortages, volatile product prices, shipping delays and “massive shipping cost increases,” Shuman says. “These collectively make things uniquely challenging,” he adds. “We’re fortunate to have a core team that’s up to that task.” – Theresa Hegel

Rowboat Creative: Bringing Back the Brand Activation

Lucas Guariglia, owner

May brought the return of the brand activations that have been a core part of the business for Chicago-based Rowboat Creative (asi/313715) in years past. The decorator recently completed a successful on-site branding program with Adidas that involved custom live embroidery, according to Lucas Guariglia, owner of Rowboat.

“Both Rowboat Creative and Adidas worked for a long time to ensure that all staff and consumers felt safe and followed specific protocol,” Guariglia says. “We both wanted to ensure our brands were being as responsible as we needed to be.”

The shop already has more live decorating projects planned for larger-scale festivals that will be returning this summer and fall, and Guariglia says he’s “very excited for these to come to light.”

In addition, Rowboat Creative is still fulfilling a lot of custom drop-ship programs and “experiential packs.” Merch, in general, has been scaling up as organizations plan the next phases of reopening. The diverse book of business helped Rowboat grow by another 20%, compared to April, according to Guariglia.

As the country continues to emerge from the pandemic, Guariglia says he and his team “feel an energized sense of accomplishment” and the intensity of persevering through adversity has brought staffers closer together. “Business is business, but we’re all people at the end of the day,” he says. “We’re all creators at heart, and we know how to make something out of nothing. The pandemic brought a lot of things down to ‘nothing.’ From there, we just continued to do our thing and stay true to our mission.” – TH