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Ideas/Section-5
Bumper sticker sales
can be a lucrative source of income
for one who is willing to learn good selling techniques,
anticipate customer needs and plan ahead.
One company sells bumper stickers kits
-- a few strips of
adhesive paper, some magnetic letters and a couple cans of
black fats-dry spray paint.
The blank bumper sticker paper is placed
on a metal surface
and magnetic (to keep them from slipping ) letters arranged
to spell out the message. Then, the spray paint applied.
When the letters are removed, the "message"
shows in the
original color of the paper strips on a black (or whatever
color spray paint is used) background.
Of course, there can be many variations
in this process and
some do make a few dollars with these kits at fairs and
flea markets -- but this is more a novelty than a business.
The real bumper sticker business is quire
different. It
involves going out and getting orders for a high quality,
commercially prepared (screen printed) products.
Virtually anything that will fit on a bumper
sticker can
be printed on one. The printers require a choice of letter
size and styles (they have all those) and actual size, copy-
ready art work. They can do the art work from sketches, but
it costs more.
The real "secret" to making real
money in this business is
in combining orders. Bumper sticker sales people make 40% to
50% on normal orders, but they can increase their profit margin
substantially by planning ahead.
Professional screen printers that make
bumper stickers give
many price breaks at different volume levels. The reason is
that much of the actual cost is for setting up the screen
printing apparatus and changing inks (colors).
To encourage larger orders and channel
orders towards the
most efficient (therefore, cheapest) production, printers
offer a ("copy change" option. This option allows you
to
pay a one-time fee for changing the copy (to an entirely
new bumper sticker) and combine two or more smaller orders
into one large order.
A copy change is when they "stop the
presses" to insert a
new master screen. Obviously the material must be the same
size and there can be no additional colors for the second
(and succeeding) orders.
Theoretically, they can also change the
paper color (to
black for instance). If the original order is red and green
on white paper, the second can be red, red and green or
green on white paper at no additional charge except the copy
change fee (usually about $15).
If they run 2500 red, green and white stickers,
then change
and run 2500 more red and white, that is ONE ORDER FOR 5,000
plus a copy change charge -- not two orders of 2500 each.
The 5000 rate will be about 25% less, even with the copy
change fee! If the customers each pay the 2500 rate, someone
can make a tidy extra profit!
To show how this works, let's assume you
sell John 2500 red,
green and white bumper stickers.
The retail price for 2,500 two color (no
charge for the
white paper - the "third color" stickers is $525 (5000
would
have been $775), or 21 cents each. Then, we sell another
order of 2,500 to Jones Co. in the same size and same (or
less) colors, also for $525.
The salesman's share if these two $525
sales is 40%, or
$420 (the company gets the other $630). But, wait a minute!
If the salesman combines these orders into a single 5,000
order, he only owes the company 60% of $775, instead of 60%
of $1050 (the two separate $525 orders). That is, 60% of the
5,000 price ($465), plus the $15 copy change fee, or a total
price of $480 instead of $630 -- for an ADDITIONAL $150
profit ($570 instead of $420).
This increases the salesman's commission
from 40% to a
whopping 54%! With this amount of "cushion" the salesman
can
afford to do some bargaining -- like offering a discount to
accept a certain size or color combination that will enable
him to combine orders.
Another excellent opportunity in this business
for those who
can plan ahead is taking advantage of situations that arise.
For example, suppose you have an idea to
promote your city's
motto or school basketball team -- by having special bumper
stickers made an selling them.
If you place an order for a thousand of
them they will cost
about 20 cents apiece (the 1,000 price with your discount).
But, if you wait until you have an order for, say 2,500 and
design your idea to coincide with that order, you can get
them at your share of the 2,500 price or about 13 cents each
(counting the $15 copy change fee).
That is good news, but not THE good news:
if you buy 2,500
instead of 1,000, they will cost you the same as 1,000! This
is because the your order of 2,500 brings the total order to
5,000, which means you pay the company for the first 2,500
as well as the second batch (your order) at the 5,000 rate.
The discount you get on the first half
helps to pay for the
second, and you still can deduct your commission. A good
bumper sticker sales person should have several "possibles"
in reserve to use when the opportunities arise. An order of
10,000 might enable you to buy 1,000 at 4 or 5 cents each.
There will also be occasions when the customer's
order gets
close to the price break line, but doesn't touch it. And
order of 9,000, for example, would enable you to get an
order of your own for the 1,000 it takes to reach the
10,000 price break line -- and probably not cost you a
cent!
A third major opportunity for bumper sticker
sales is
promotions. Banks are usually willing to contribute to the
high school sports program.
For example, they might donate $1000 to
the football team
boosters. But, if they contributed that same or even smaller
amount towards bumper stickers that advertise the team, the
booster clubs would realize much more, by selling the stickers
for fifty cents apiece. Not only that, but the bank could put
their name in small letters in the margins!
Enter salesmanship: convince OTHER businesses
to contribute
(to get their name printed on some of the stickers) to increase
the size of the order until you end up paying at the 10,000
rate while the sponsors pay rates according to the size of
their orders.
You pay the copy change fee, but you benefit
from the price
breaks, which is much better. You can even get a sponsor for
the paper backing on the self-adhesive stickers.
One salesman had a local fast food store
make them into coupons
for free sodas with orders -- having the backs printed costs
the same as one additional color. Promotions can also be used
strictly to get business.
One entrepreneur sold an order for 10,000
in an small town by
selling each of the nearly 30 merchants small orders of the
same sticker that advertised their town. Each merchant's order
had the same design, but included their name in half inch
letters at the bottom.
They paid the $10,000 rate for however
many stickers they
wanted, plus the copy change fee, which meant they got a
pretty darned good deal. In fact, after the "deal" was
completed, the only complaint was that they should have
ordered more -- a lot more!
The next year, the "deal" was
much easier to sell. In this
case, the sales person worked with the Chamber of Commerce
and did not make a bonus -- but the commission itself
amounted to a little over $500.
Note that the sales person could have ordered
similar
stickers, but with totally different "copy" at the 10,000
price, less commission.
A clever entrepreneur should have many
ideas for bumper
stickers -- political slogans, sports names, city mottos
and cartoons or funny sayings. Some businesses pay "regular"
prices to have their slogans printed, and then retail and/or
wholesale them.
As a bumper sticker dealer, however, you
are in an ideal
position to wait for the right opportunity, than have your
own stickers printed for a tiny fraction of what an "ordinary"
order would have to pay.
The screen printing companies that make
bumper stickers
also print many other products; virtually anything that can
be provided in "camera ready" form or can be printed.
Some of the other products are decals,
stickers, truck signs,
for example, are much better and cheaper than painted signs
for fleets of trucks, when purchased in even small volume --
and they can be waterproof and/or have a permanent adhesive
(they must be removed with a grinder).
These orders can also sometimes be combined
for extra sales
commissions. The business of bumper stickers automatically
includes many other screen printed products -- and will lead
to even more of a variety, depending on your locale, interests
and the needs of your customers.
A person going into the bumper sticker
business should have
some good quality business cards printed (use the raised print,
so it looks "screened") and give them out when calling
on
potential customers.
Make it a point to consistently call on
as many clients as
possible -- and to periodically call back. always have several
potential plans or promotions ready to suggest to potential
customers. Look at their situation and try formulate plans
that will benefit them at reasonable cost.
The banks want to be visual in community
support; the real
estate companies want to promote the area; the merchants want
their name and/or product seen around town, the city wants to
advertise the annual festival, organizations want to publicize
their works and charities, and of course, everyone wants the
local football team to win (and their name to show in the process).
then there is pure advertising -- "We
bought our used car from
Honest John"; "Watch Channel 16"; "Danville
CB Club," etc.
Finally, there are the politicians. About
6 weeks before
election filing time, visit both party campaign offices to
find out who will be running for what. You can offer
individual deals,or combined when the opportunity arises.
Here are a couple of possible problem areas
to watch out
for. The first is copy (wording, spelling, type and
positioning of illustrations). Get all desired copy IN
WRITING, have the customer initial the order (signifying
that they checked the copy), and then KEEP A COPY.
If the customer makes a mistake, be in
a position to
PROVE IT to them (some will actually forget what they
ordered).
If it is the printer's fault, be able to
prove that, too.
But, when it is your fault, take your medicine and learn
a lesson. These can be very powerful lessons, especially
the 10,000 orders!
Let's hope a word to the wise here will
save you from the
latter. The other possible problem is payment.
Unless you are CERTAIN the customer will
apply you upon
delivery, it is best to get your money UP FRONT. At the
very least, get the part you must pay the company, or
about half down.
To go into this business, contact several
companies and
STUDY, STUDY, STUDY their pricing structures. You must know
all the "ins and outs" to be able to take advantage of
them.
Next, get your business cards and invoices.
These can be
purchased from a five and ten or stationery store -- and
must be in duplicate (or triplicate), so both you and the
customer can keep a copy.
An inexpensive rubber stamp can be used
to stamp the
original of each invoice with your company name and address.
explain what you have to offer and let them know where to
find you when they would like to consider bumper stickers
(or any of your other products).
While you are there, drop a suggestion
or two as to the
possible advantages -- like how nice it might be to have
their name on a bumper sticker that advertises their town
or football team, and how much longer a bumper sticker
lasts than a radio or newspaper advertisement.
Between calls, look for situations where
some of your
pockets might be put to use (upcoming events, elections,
new businesses, sales promotions) -- tell those in charge
how you might be able to help them achieve their goals
effectively and inexpensively. After you have promoted a
couple of successful operations, others will seek your
services.
Place occasional ads, list in the yellow
pages if you can
afford it and keep making those calls. About once a month
would be about right for most larger businesses like banks,
real estate brokers and markets.
When you have developed your knowledge
of pricing and
screen printing capability and your self confidence, start
contacting large accounts, like chain stores and trucking
companies. By then, you will be able to professionally offer
them realistic plans that can benefit them (and you!).
BUSINESS SOURCES
GILL STUDIOS, Box 2909, Shawnee Mission,
KS 66201,
913/888-4422. Wholesale bumper stickers, decals, banners,
self-stick truck signs, etc. Excellent company.
MAGIC SYSTEMS, INC., Box 24153, Tampa,
FL 33623-9990.
Sells bumper sticker, rubber stamp, hot (gold) stamping
and T-shirt printing "kits" under similar company names.
BANNER SIGN CO., 1010 Raymond Way, Anaheim,
CA 92801,
714/241-2131. Wholesale flags, banners, decals, etc. Free
catalog.
THE TRENBY CO., 8044 W 3rd St.,Los Angeles,
CA 90048,
213/655-9635. REUSIT kits large (6-8) letters that stick
inside show windows (by static electricity). Wholesaler.
NATIONWIDE (nap), 3523 Crosspoint, San
Antonio, TX 78217,
512/646-0511. Wholesale flags, pennants, printed vinyl products.
TACTYPE, 127 W. 26th St.,New York, NY,
1001. Wholesale dry
transfer lettering and symbols (rub-on).
ST PUBLICATIONS, 407 Gilbert Ave.,Cincinnati,
OH 45202.
Publisher of SIGNS OF THE TIMES, "the" trade magazine
for
sign and related industries.
