Even in the best of times, promo is still a madcap industry.

But this year – with rapidly disappearing inventory, lack of warehouse staff, and deliveries collecting dust in freight companies’ distribution centers for days (sometimes weeks) without explanation – has been another experience entirely.

And now we’re headed into Q4 – the craziest quarter of any year, but especially so in 2022.

It’s complicated, but promo firms say holiday demand is poised to surge. In fact, distributors are expecting a red-hot end to the year, despite inflation and other dire economic news. That’s great for year-end numbers, however it can take a toll on stress levels.

While the distributor mantra to end-buyers is the same year after year – “order as early as possible to avoid the rush” – it’s more than just a request this year. In 2022, there’s a good chance (maybe even a guarantee) that an end-buyer who approaches distributors with year-end orders too late in the game won’t receive their first choice – or even their second or third. “It’s difficult to execute an order when you’re waiting on an end-buyer, and we get that,” says David Katz, partner at Midnite Snax (asi/71685). “But as we move down the line through the quarter, we have to manage expectations as well, and we’ll make suggestions for alternatives.”

Instead of hand-wringing and panicking, here are four steps to seeing Q4 orders through … and making it a happy holiday season for all.

1. Offer Viable Options

As Q3 concludes and Q4 fires up, deadlines for year-end gifts will become increasingly strict. It’s imperative that distributors communicate early on with end-buyers about ordering earlier than usual, and that they’re honest from the beginning of an order about what’s feasible at that particular point in time.

“We’re upfront with what we can and can’t do,” says Jen Gangwish, CEO of College Hill Custom Threads (asi/164578). “We’re polite about it, but we’re clear about what we can make happen.”

Even with proactive messaging, there are sure to be end-buyers who approach distributors at the 11th hour needing gifts. The same principle applies – instead of trying to make the impossible happen, focus on what you can reasonably do.

“We’ll send nice reminders about ordering earlier, and clients are generally receptive,” says Kim Peters, owner of Fully Promoted Lethbridge (asi/483805). “But we’ll still have those customers who need items the next week. Though most B2B clients understand because they’re dealing with it in their trades. But clients have to know that if they order late, there won’t be as much choice.”

And have the confidence to say no if a customer’s idea isn’t viable. “If it doesn’t make sense and will just stress everyone out, say no,” says Gangwish. “Because the stress is all they’ll remember.”

2. Go to Preferred Suppliers

Simplify things by sticking with providers that have proven themselves trustworthy, proactive and diligent when it comes to staying in front of supply chain and staffing challenges. PowerStick.com (asi/51566), for example, anticipated Q4 challenges and made necessary adjustments ahead of time.

“Previously, products came to us by ocean,” says Nigel Harris, CEO at PowerStick.com. “We’ve shifted to air freight and either raised our prices slightly or absorbed the cost difference. Our distributors have a right to expect us to be there for them and their customers and to carry sufficient stock.”

Katz at Midnite Snax says they use a local supply chain and manufacture their own product and packaging, which helps avoid bottlenecks. “We ordered materials and inventory early and often,” he notes. “Those suppliers that can actually come through can be a buffer against some challenges.”

In anticipation of Q4 headaches, Gangwish’s team put together a detailed list of preferred suppliers to approach for year-end gifts, based on the product category that an end-client needs. “We’re educating our own team on who to turn to,” she explains. “Say the client needs a tech product; we put together the 10 suppliers to reach out to, their top five tech products and how to pitch them. We want to focus on what’s available.”

Peters recommends speaking with suppliers – and decorators if necessary – ahead of Q4 to find out their deadlines, and to communicate that to the sales team. “They’re going to have similar staffing issues,” she says. “We’ll reach a point when orders are a no-go because it’s too late in the season. So we have to work ahead on contingency plans and possible alternatives. We have to ask suppliers, ‘Can you do this? Is this a good plan B?’ We’ve also been working with more local people.”

3. Prepare for the Unexpected

Though planning helps to mitigate the chances of an end-buyer losing out, nothing is guaranteed. A pre-Q4 prediction from a supplier about inventory levels for a certain product can be rendered void with one major order from a large client, and that reality should be shared with end-buyers. Mike Fossano, vice president of account services at Premier Communications Group (asi/298496), says they’ve recently had challenges with apparel in specific colors.

“A customer wanted a specific shirt for its particular style, color and feel,” he says. “Several suppliers had all the sizes except Medium. We found an alternative, but we don’t always know until we reach out to suppliers. Clients will need 100 of a certain item and by the time we put in the PO, the inventory number has changed. Things are very fluid.”

Even after working ahead, having an idea of suppliers’ deadlines and submitting the PO, Peters continues to monitor inventory levels and keeps customers in the loop, which she notes has been a good thing. “We go to every supplier’s website and check inventory,” she says. “It’s a lot of extra work but it’s training us to ask more questions. We’re digging even deeper into what the client wants, and we’re more concise with our questions. We’re constantly looking at suppliers’ products now, and we’re seeing things we hadn’t found previously.”

Contract decorators may also experience logjams due to holiday demand, which can delay order fulfillment as well. That’s another link in the chain to take into consideration. “Lots of companies didn’t survive COVID,” says Gangwish. “Now there are two print shops in town when there used to be 20, so they have all this business coming out of nowhere.” Communicate with both suppliers and decorators, and work in tandem with their schedules and deadlines.

4. Manage Expectations Through Final Delivery

Even with everything in on time and on schedule, there’s a good chance there could still be what Fossano calls “hiccups” with overextended freight companies. Fortunately, says Gangwish, suppliers have generally been good with live inventory and offering updates on order progress, but once the delivery is in the hands of UPS and FedEx, there are few guarantees.

An order for one of Fossano’s clients recently took a several-week-long tour of the American Southwest, beginning in Los Angeles and making stops in Phoenix, Albuquerque and Denver before finally arriving in Vegas. Such circuitous routes are only going to become more common in Q4 due to staffing shortages and delivery companies spread too thin.

“No one was happy about it, but we all understood,” says Fossano. “There are just so many variables, including how large the order is and how many addresses the products are going to.”

Most important, be honest about the situation and keep clients in the loop. “If you overpromise and underdeliver, you’re in hot water,” says Gangwish. “The pandemic has had lasting impact on our industry and we’re still catching up. It’s going to take a couple years to get back to normal.”

Above all: remain calm. The reality on the ground is the same for everyone. Communicate early, do what you can and manage expectations. “Most customers who order in the crunch period between Thanksgiving and Christmas are forgiving, thankful and flexible,” says Katz. “By that time, the supplier may be out of steak and lobsters, so they go with the chicken. People understand.”

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