When it comes to promotional branded merchandise, some businesses overlook the advantages of holding stock. Yet, stocking your branded items can be good decision with significant benefits
Pros of stock holding
- Costs – product unit costs fall with volume
- Speed – response times can be greatly reduced
- Creativity – planning and volume will allow for greater creativity when producing branded merchandise
Cons
- Obsolescence
- Shelf life of foodstuffs
Examining each in turn:
Costs
The primary consideration is cost. There is a substantial cost benefit to holding stock, largely due to the branded nature of these products. Branding involves setup costs—whether for print, embossing, engraving or embroidery. These are fixed costs, typically around 50 to 100 pounds. Importantly, these costs remain unchanged regardless of whether you order one item, ten, or a hundred. Therefore, ordering in bulk can significantly reduce the unit cost, a reduction which exceeds the costs of storage and other associated expenses.
Example; 25 basic notebooks printed with a single colour logo will cost around £5.50 each - £133.70
100 such notebooks will cost £3.05 each or a total of £305.00
BUT if you order in small quantities the 100 notebooks ordered as 4 x 25 will cost £534.80
That 40% premium on ordering in small quantities being due to paying for 4 setups instead of one.
The costs of stock holding – storage, pick and pack can be found here.
Speed of Delivery
Another significant advantage is speed. Once your branded merchandise is in stock, companies like PDI can pick, pack, and ship orders within 48 hours. This means faster delivery times for your business, allowing for quick responses to customer demands or internal needs.
Whilst lead times for promotional merchandise vary, the time from proof of an order to receipt is typically 10 working days - two weeks. Some items, like socks, can be significantly longer. Although exhibitions and events may be planned a year in advance, it is very common to have last minute changes to requirements. Stock holding may not solve the problem every time but at least you will have many more options.
Creativity Versus Standardization
Whilst it's possible to buy products which are branded within two days, this often limits the scope to the standard design of products like bottles, notebooks, pens, and tote bags. These items are popular, but if your brand requires creative flair or customisation, quick turnarounds may not accommodate these needs as effectively as planned stock can.
The value of promotional giveaways is significantly enhanced by providing something a bit different. Giving the same gift as everyone else is not without value but less than ideal.
Potential Downsides
That said, holding stock comes with its own set of challenges—chiefly, the risk of obsolescence. This could occur if the nature of the product involves a shelf life, such as food items, or if branding elements, like logos, undergo a redesign that renders existing stock unusable. Overestimation in stock levels can lead to waste, requiring recycling or disposal efforts.
Stock Management
It's essential to consider the systems used to monitor and manage stock, particularly if using an outsourcing company. While some businesses manage their stock internally, exploring available systems can streamline operations and mitigate potential risks.
PDI use a store front system which can give you visibility of stock levels and the product range, let you place and track an order and arrange for the pick up of event materials.
Details of the PDI stock systems can be found here
In conclusion, holding stock of your promotional branded merchandise can be a game-changer in terms of cost savings, delivery speed, and creative opportunities. However, it requires careful management and planning to ensure that stock does not become obsolete and therefore costly.
David Platt (BSc, BA, MBA, Dip M) – David as well as having senior level marketing degrees has worked in print and promotional products for over 25 years. He has a no nonsense, pragmatic approach to marketing and benefits from the knowledge and attention to details of the PDI team members.
Watch the Video HERE