St Charles, IL (PRWEB) July 19, 2006
The thinking that Point of Purchase (P.O.P) Display companies are a commodity to be bid out job by job has hidden costs that you pay for even though you gave the job to the lowest bidder.
Twenty to Forty percent of the costs of each store fixture you buy are covering the cost of someone else’s program that did not sell. That’s right. Your suppliers need to recoup their overhead. Fifty to Seventy Five percent of the promotional display programs that are bid on never make it into production or are lost to the competition.
Sales forces and the creative departments are expensive to maintain. The majority of their efforts with cold calls and free display designs are not turned into profitable sales. The sales that do sell need to pay for those that do not.
This is the result of an industry that considered it-self a vendor of store displays. A biddable commodity, not as a long-term partner with its clients to supply in-store marketing.
Some years ago, when advertising agencies began buying Point Of Purchase Display companies, it seemed like a logical marriage. The agencies could now be a one-stop shopping center, servicing their clients with media advertising, promotion and store fixtures. Unfortunately, the divorce came because the two cultures could not meld. Agencies consider clients as long term contractual partners. P.O.P. companies look for immediate results in metal, plastics and paperboard. Neither party could figure out in this new relationship how to bill clients. Hourly billing by P.O.P display companies was unworkable as clients looked on them as producers of biddable commodities and agencies were certainly not going to sell their efforts job by job.
Today the marketplace is changing, and along with this change many P.O.P. Display companies are no longer manufacturers of retail displays. They are now in-store marketers and consolidators of manufacturing.
It made sense in yesterday’s marketplace to have all production under one roof. Labor was not expensive, technology was limited and the computer didn’t exist. Today no company can afford this luxury. It makes more economical sense to use outside partners who specialize in the various components that make up a Point of Purchase display, and then act as a consolidator of the final product. Concentrating on marketing, creative and engineering provides more value to the client than hammering nails.
DNI Marketing Group (http://www.dnimarketing.com) is one of those companies that has changed. We no longer consider ourselves a vendor of retail displays. We are an In-store Marketing company and a consolidator of manufacturing. As a result of this change, we are looking for clients who believe, as we do, that long-term partnerships are more beneficial than the biddable short-term job-by-job relationships.
If you believe this could be of benefit to your company, we can offer you an advantage over your competition. With a long-term partnership, we can utilize our In-store marketing expertise to meet your marketing goals. The Design, manufacturing and distribution of your store fixtures will be less costly and we guarantee the savings will be passed on to you. This is a “WIN WIN” situation for you and your company
About the Author
JEFF PACELT, PRESIDENT – DNI Marketing
Jeff was brought up in the Point of Purchase display business. His father Fred Pacelt worked for a company called Poster Products, Which was one of the first major display companies in this country. Leaving Poster Products in 1984 Fred started the predecessor to our present company, Fred Pacelt, Inc.
In 1985 Jeff joined the company after graduating from Drake University with a major in accounting. His college background was immediately put to good use in the production. For the next 11 years he worked in all areas of the company doing everything from shipping to production. During this time he became an expert in corrugated, die cutting metal fabrication, woodworking, molding in polyurethane and various plastics, heat bending, and all of the various processes it takes to produce a display.
The company closed when Fred retired in 1995. The following year in 1996, Jeff founded Display Network, Inc. Through his leadership the company has grown tenfold retaining many of the original customers of FPI while gaining many new clients.
Jeff and his wife Brenda along with their four children live in Aurora Illinois not far from the office. When he is not at work he indulges in his hobby of building and riding custom motorcycles, knife making and tournament pool.
About DNI Marketing
The DNI Marketing Group (http://www.dnimarketing.com) is a family owned and operated company, headquartered in ST. Charles, Illinois. The company offers a total In-store marketing service. This includes market research, the design and production of retail displays, interactive kiosks and complete store design. DNI Marketing also provides clients with warehousing, distribution, store installation, online ordering and inventory management of their account. Current clients include: AT&T, Verizon, Cricket Communications, Wilson Sporting Goods, Eureka Vacuum Cleaners, Everpure, HFC, and Sony.