Hi Gang,
Back when you were starting, how did you decide what to stock for inventory? Trohpy parts, metals, plastics, plaques etc. Being so far away from it all, I must be careful when I order stock so as to keep my frieght costs down.
I am wanting to do some advertising in the "sports" page, and i believe that will bring me some "trophy" business, which is great, but how do I determine what "trophy" parts to carry?
Sigh......

Thanks for your help.

Hi Chuck... that is a question I was faced with not too long ago when I started but was helped along by a friend of mine that had started up not too long before me. He told me that whenever he had a job he would order at least one more piece or sheet of metal for stock for 'inventory' or god forbid, an error! I have followed that advice with typically adding two extra pieces of metal for inventory. I would make sure you have the samples catalog from Rowmark so you can accurately look at all of the actual colors & materials samples and just pick a few from what looks good to you. IE: red, black, blue, green, brass (satin & gloss) in both aluminum and brass. I mostly use brass stock. I have never used brass plated steel as I don't feel the cost savings are worth the extra wear on my shear and if I were to engrave too deep I know I will always have the brass showing thru.
I do a bit of trophies, but following my above rule I wouldn't ever 'stock up' on materials unless you have allready established a clientel specifying certain products, because most are fickle and would like a variety of options ...Again, I always order extra for mistakes or the occasional 'onesies or twosies' of small trophies. I also ordered a lot of different materials when a supplier offers something you like with their different sizes and colors offered in a promotional package. For example, I ordered sample set #BDRSET@ from JDS that is a collection of their Border Acrylic Clear-Plaqs that engrave both mechanically and with a laser beautifully. There was a good article in the ARA, I believe, March 2005 issue showing different awards that are popular currently. So, buying up some of these products and then making some samples work great for 'show and tell'. Also, one of my favorite placques are the new piano finish awards ... they really look 'high end' and is perfect for retirement or other presigous awards. I now buy them from JDS as a 'kit' which includes the placque, a fancy embossed plate, and a cardboard box.
Hope that helps ...??

John,
Thanks for the information. It's all useful, but being out in the middle of the ocean presents unique challenges regarding freight.
The most cost effective way is to ship things surface which typically takes about a month. I don't know many customers that will wait that long. Adding on "extras" which I know would be a good practice would eat up my profits in a hurry, but I suppose I would be able to make that up on a later job.
Right now I'm feeling like I don't have any product to sell. Maybe that is good, I can sell service instead.....

Thanks

Chuck,

You actually raised two different questions here, which is good!

1. What to carry as stock items. I only stock items that I know I will use on a regular basis. (yeah right, now go look at my shelves!)

All sizes of plaques, up to 10½" x 13" in both simulated & solid woods.
about 3 - 4 different sizes of trophy bases.
of course that means, rods, nuts, ferrules, check rings, felt feet.
For trophy figures: major sports like baseball, football, basketball, Soccer & cheerleaders.
Black brass is my common metal, but I also have red, blue, green and purple in both brass & aluminum.
In plastic the most common colors I use are White background with black, blue, red cores. Also the reverse color combinations are good to have on hand. Over time I have accumulated gold, silver, purple, several shades of green as well as yellow.

It will take time in determining what YOUR clients will be asking for. (just a hint, it will always be what is NOT in stock!) I'm sure I don't stock the same thing as my competitor across town let alone across the country (and ocean)

If you haven't already done it, sign-up for buyers programs with your suppliers (JDS, Discount, Continental, most all PDU distributors) . They will give you best pricing when you buy a case of an item.

2. The second item you brought up was advertising:

This could be a thread all by itself. I have attended siminars that say the main forms of advertising that work in this industry are:
1. Word of mouth
2. Yellow pages
you could probably add internet here now.

Radio, TV, newspapers, magazines are not as effective for the money spent because we are not a part of the "Have to have" items like a burger, phone or car. People driving down the street don't just suddenly hear a radio ad and say: "hey, I need a trophy!" When they find out they need a trophy or plaque, they will sit down and look at the phone book or ask a friend where they get theirs.

I have done trade outs for a couple of radio stations and have never really gotten any business from them, my regular customers told me they heard them on the radio, but not any sales except a couple of single t-shirt orders. I look at it as getting my name out there for when they are looking in the yellow pages and they run across my company name and that may help jog their memory.

I have also attended a siminar where Sam Varn tells how he spends big bucks for tv ads, but he is not just a mom & pop shop. Supposedely he is ready to go $3 million this year in sales. He really never did say how much he spends vs new orders placed but I'm sure it is much more than I would want to go.......
My yellow pages ads are more than my rent, because we have 2 yellow page companies in town and the newer one is climbing up in the ratings on the other one. I advertise in the following headings:
awards, advertising specialties, embroidery, engraving, plaques, ribbons, screen printing, trophies

After re-reading your original post, I have probably given you way more info than you asked for, but rather than delete it, I'm sure others might like the info and still others may have more to add.

John,
Never such a thing as too much info. It's always good to have it. I just put on my filter and take what I need and file the rest for future reference.
Donna and David Gray conduct seminars on how to run on a shoestring. If you have the chance take their seminar...lots of good information about how to capitalize on press releases etc. Which I can do eventually, but I'm feeling like ok, I am developing the skills, obtaining the equipment and the knowledge....by leaps and bounds....the question has become "now what?" (insert laugh here). This brings me back to what do I sell? Which brings me back to inventory.
THEN, working out of my house, HOW do I sell it? I seem to have this single minded idea that a "showroom" is a must.... my previous business was a service business where I went to the customer... it was different somehow....but I'm sure I"m missing something.... maybe "I'M" the missing link.... ( insert laugh here)

Thanks

I don't know if I could operate out of my home simply because I accumulate things, so I never have enough space to store everything.

I have taken a siminar from Dave & Donna Grey, I'm sure it is time for a refresher by now. Do ya think they will be in Vegas in July, I do love the heat. (but it's a dry heat!)

Vegas in July? What's going on in Vegas in July?

Nothing official, Just where I wanna be.......................

Hiya Chuck.

In the USA it seems to me that there are a few big suppliers like PDU etc and most guys keep little stock and buy and sell from catalogue. Problem with that is that everyone stocks the same thing and margins seem low.
I would apporach it a different way if you really want to make money. I would develop my own range and be a lot more creative which will remove the problem of keeping stock and will also set you apart from the crowd.
Just taking something like figurines , to offer choices one has to keep many different models , in different sizes and in gold and sliver , often that can translate to 1000's of figures. And that is only figures , if you get into assembly and need components then you need tubes , stems , feruules , rods , nuts , caps , bases and so on.
With a laser , you can EASILY manufacture your own custom awards at HUGE profit margins. You really need very little in stock barring some perspex , laserable materials and all you need to do is find a decent woodwork shop to make bases and plaques for you , the rest you can do from raw materials. Margins on cost of materials doing stuff this way can range from 400% upwards. Apart from any other advantages , each award is one of YOUR creations and is far more satisfying than cutting a rod and assembling.
Even stuff like medals can be created by you (make a master out of pex , send it to a spin caster whou would spin and plate your OWN medal - a 43mm diameter 3mm thick medal cost us about 30c to have spun and plated)
My suggestion would be this. Start off offering customized stuff where you DONT have to keep stocks and use materials you always use. I would see how it develops from there and if needed would then develop the line to incorporate the more traditional stuff. Apart from that , I would also have a look at importing components from Europe and China/taiwan as even tho the initial investment is high in terms of the quantites etc , the margins are correspondingly higher.
However , before getting into any of this , you need to do some market research. firstly , size up the competition , IE see who around you is offering what , this will allow you to gauge the market and the trends. Then ask yourself the questions - Who will be MY potential customers - What is the market worth- why would they want to deal with ME and how do I reach them.
In terms of the trophy market , the retialers tend to shape it , IE if there were only PDU stockists in your region , then the market will be for their products. We have found that customers will willingly pay extra for custom type awards , even in the higher volume cheaper lines.
To give an example , we import a marble block from china , a 2" x2" x 1" block which lands here at 25c (you could have a nice wooden block made locally , perhaps a retiree woodworker working from a garage?), We cut a square of 5mm black pex with a slot in it to cover the top and then laser and cut 3mm pex and glue it into the slot.
Apart from time and labour , the material costs of that job are well under $1 and the selling price you can get is easily in the $8-10 range for something 15cm (6") high. We often do high volumes of these instead of the traditional stuff.
In terms of engraving lams for awards or plates , Gold/black is what you need mostly so stock up on this (we use romark flexibrass and the thicker brushed gold black mostly). Learn a little about pex and plastic glueing , bending (so easy to do , so profitable) and fabrication.

Hi Rodney,
THANKS! Lots of great ideas....question, what is perspex? Plexiglass?

Thanks

Yep , cast or extruded acrylic (plexiglass)
Have a look at my site to get some ideas - under trophys and awards , we do a huge amount of pex awards and they go down real well
http://www.tokerbros.co.za
It's a great field to get into , and if you do your own , you can easily build up a nice sample range without hassling about carrying the stock to support a bought in sample range.

Your Desmond Tutu award is just eye catching! Some really nice work you have there!

- Noel