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PROMOTA
The credit crunch:
broken down
CASE STUDY
FOCUS:
T
he terms ‘credit crunch’, ‘liquidity’ and resonance. The only way to get out of a credit
Non-Stop Promotions
‘administration’ have become part of most hole is indeed to stop digging, assess the
people’s day-to-day vocabulary of late, and situation and start to unravel where the
remains positive for
with Mervyn King, governor of the Bank of problems lie. Get in control of the situation by
England, suggesting that Britain is on the brink being positive about finance, rather than getting
2009
of an economic recession, companies are now yourself into a panic.
really starting to tighten up their belts. With this In a time of financial insecurity the most PROMOTA member Non-Stop Promotions is
in mind, PROMOTA has investigated the ways important thing is to be in control of your one of the UK’s most established promotional
that members of the promotional merchandise company’s finances. Understand where your merchandise distributors. We spoke to Philip
industry can remain positive and stay afloat money is going and how much will be coming McLaughlin from the company to get his
while others around them may be sinking in a back in. Keep on top of everything by keeping thoughts on 2008 and the credit crunch.
sea of panic. If offers the following advice to detailed records – organisation can really help if Philip reported that Non-Stop Promotions had
help companies stay in you need to back track not really seen a significant change in customer
business. an invoice, for example. behaviour or order numbers during 2008, and,
As company spending Understanding your unlike other businesses, had not noticed a
decreases, some finances will enable you change in industry mood. Looking back over the
promotional to become realistic. year, he thought that trading had remained the
merchandise companies Don’t spend money on same, sales levels were even, and no products
have been hit hard by a things which are were favoured over others.
decline in the amount unnecessary and don’t He suggested that Non-Stop had retained the
of orders being made. It aim for things which majority of its customers and had not lost any
seems that tighter you cannot afford. business in spite of the current economic
budgets across the Being realistic might climate. Non-Stop Promotions relies on
board have even forced mean making some continued sales and high volumes of order
some companies to savings around the numbers and luckily this year has shown no
cancel or postpone office. Can you cut difference in numbers, said Philip. He added:
orders at unimaginable down on printing or “Our old customers are still ordering from us,
levels. It could be photocopying? Or make and the types of orders have not changed.”
suggested therefore a concerted effort with However, the current economic climate had
that the demand for turning off lights and produced one negative for Non-Stop Promotions
corporate gifts could be on a downward spiral, machines at certain times to save on bills? and that relates to its relationship with the
and this will indeed remain to be seen in the run With this in mind it is also important to banks. Like many others in the business world,
up to Christmas and the New Year. remind clients that promotional products are not Non-Stop has been affected by the fact that
Clearly this forecast does not bode well for a luxury and therefore should not be cut back on banks are tightening up their lending and credit
business. It is important, therefore, in the run up in a recession. These products are a constant criteria.
to Christmas, to ensure that planning is put into reminder of a company logo or brand – those When asked about 2009, Philip suggested
place. Make sure that customers are made aware companies that continue to invest in marketing that there were many things that could be done
of your products well in advance to ensure that during difficult trading times have a tendency to in order to help the business in the coming year,
interest is still accumulated and orders are still weather the storm. one of which ultimately came down to an
made. Do not be afraid to ask for help or advice if understanding of the business. Philip discussed
What does this really mean for the printwear you need it. When the economic world is the importance of educating marketing
and promotional industry? In broad terms some unstable, tomorrow may be too late to seek the executives to see the potential in below- the-
may say that this is the time to panic, but there advice you need, so try and get some guidance line advertising.
must be a calmer approach. James Ellman, as soon as you start to see something going Looking forward to the New Year Philip
president of US hedge fund Seacliff Capital wrong. PROMOTA members can be reassured remained positive and hoped the success of
recently said: “When you’re in a pit, the first that they are being supported by a trade 2008 would continue for the company in 2009,
thing to do is to stop digging.” Looking forward association which can offer guidance on good despite the fact that the climate is still
to the New Year, this idea will have some business practice. uncertain.
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