Introducing the 2003-2004 Deluxe-Lite Catalog of Awards
The new 2003-3004 Deluxe-Lite is hot off the presses. Lite by design, but deluxe in the wide range of award selections, the new edition of the PFI Deluxe-Lite catalog packs a powerful motivational punch featuring 800 brand name awards (8% increase) on 64 pages (4 more pages than the 2001-2002). More items and additional pages means an even better selection of popular new brand names including Fitz & Floyd, Evenflo, Noritake, Troy-Bilt, Black & Decker (appliances), Tommy Hilfiger, Revlon/Helen of Troy and Bolle.

Like the Deluxe book, this is a point-based catalog. Unlike the Deluxe catalog, over 50% of the items in the Deluxe-Lite Catalog are valued under $100 and less than 10% are over $500.

Here is a breakdown of the Deluxe-Lite catalog by the numbers:

Awards By Category:

The best news of all is that the Deluxe-Lite is still lite on your customers’ budgets. The price of the catalog remains at $0.95 each, $1.15 with a $0.20 stock cover. In addition to the low price, this catalog costs far less to ship than the Deluxe book—an all-around great value.

The catalog has a two year life.  Expires March 31, 2005

Revisiting Cash Vs. Merchandise
This is a never-ending battle that has been raging in the incentive marketplace since the industry began. Unfortunately, sales managers and company executives often lean toward the use of cash as a reward option when economic times are lean. Many PFI marketing partners have reported a number of occasions where their merchandise position has been challenged in favor of using cash awards.

Cash, in our opinion, can be defined as not only dollars, but dollars issued in the form of Gift Certificates and Debit Cards. As a review, here are some of the most compelling reasons to avoid the use of cash as an incentive reward.

• Participants receiving cash or debit card rewards tend to spend their earnings on purchases with little to no trophy value, such as gas and groceries or even to pay their bills. Studies have shown that participants remember specific awards they have earned for years, whereas cash incentives are quickly forgotten.

• You can’t share cash rewards like you can share a new CD player. After all, who is going to brag to friends or colleagues about winning $500 in cash? There will be little hesitation to brag about winning a flat screen TV, however.

• You can’t beat the convenience of a merchandise award program where you can shop for thousands of awards with proven motivational appeal from the comfort of home 24/7.

• Merchandise catalogs provide hundreds of proven motivational awards that satisfy participant wants, not needs. Participants don’t call them wish books for nothing!

• You must pay 100% of the tax on dollars awarded via cash, debit card and gift certificates vs. only 70-80% of the merchandise award value (as low as 60-80% when you exclude freight and state sales taxes).

Studies Show Merchandise is More Effective Than Cash!
A company can obtain as much motivation and improved performance from $600 in merchandise incentive awards as they can from $1,000 in cash awards. According to recent studies of three major incentive programs where homogeneous groups were offered cash vs. trophy valued awards results were analyzed; Merchandise Groups clearly outperformed their Cash Group counterparts by 70%-80%. Consider these additional facts:

• More and more companies are beginning to recognize the limitations of cash and debit card programs. In fact, their popularity peaked in 1997 as fewer companies are continuing their use, according to the latest research. In independent surveys of over 4,000 U.S. businesses in 1997- 2000; 45% of respondents who had operated a debit card program previously, said they would discontinue their use for many of the reasons cited herein. (Study of 6,500 Likely Incentive Users, Ralph Head & Assoc. LTD.)

• A major restaurant chain has offered its managers substantial cash and merchandise awards (equal amounts from $600-$3,500 each annually) since 1990 for attaining chain goals, with tremendous results. However, the managers when surveyed over which of the two award components they would least like to see go away, overwhelmingly voted to eliminate the cash award component vs. merchandise awards.

Ending a Cash Program is Difficult
Ending a merchandise awards program provides continued participant goodwill and improved behaviors long after the program earnings period deadline. Award redemptions continue for months after the program ends, and the rewards for the home and family act as lasting reminders of a job well-done for many years to come.

Ending a cash program often fosters resentment and a sense that salaries or compensation are being cut. Participants also see the ending of a cash program as a reduction in their company benefits

The negative sentiments associated with ending a cash program are challenging to overcome. Companies that have opted to reverse course and reinstate merchandise programs have had to go to extra lengths to communicate that the new program was the same or better, even when they were spending more than the cash program.

What About A Debit Card Program?
A debit card program is simply an addition to compensation, rather than an awards program. People spend their additional debit card cash much like they do regular compensation. As such, the extra benefits get lost in the participant’s disposable income, and they are less likely able to clearly identify the awards fully earned from the incentive program from those purchased from their normal income.

It’s January, Time To Step Out Into Prospecting . . . Cold Call That Is!
After public speaking and death, one of the biggest fears faced by even the best salesperson is the dreaded "Cold Call." Cold calling can be challenging, frustrating and if done improperly, a counter-productive task. Successful cold calling means being prepared. Being prepared means knowing in advance what you plan to say. This goes for leaving a voice mail message as well as if you should actually get a live person on the phone. Being prepared also means knowing the basic information about your contact, their company, the products and their market. There is no sure-fire success formula for cold calling, but if you’d like to heat up your prospects for future sales, here is a list of ten basic cold-call blunders to avoid. Some of these may seem obvious but they represent the most common mistakes made.

1. Don’t use openers that build resistance

2. Don’t be reluctant to get the buyer’s commitment to the next step

3. Don’t misunderstand objections

4. Don’t be unprepared

5. Don’t use inadequate questioning

6. Don’t misuse or abuse screeners (they can be an ally)

7. Don’t demonstrate poor listening skills

8. Don’t fail to review the contents after the call

9. Don’t display a poor telephone image

10. Don’t send unnecessary literature

Cold Calling Is A First Step To Successful Cold Calling
Cold calling is the first step of the much larger and important sales process known as prospecting. There is no beginning or end to the work of prospecting. When you’ve turned a prospect into a sale, you’ve gained a client but lost a prospect. Prospecting is a numbers game. Just look at these "rule of thumb" statistics used by many successful incentive sales managers.

• 1 sale needs 6 qualified presentations
  (white papers, face-to-face meetings etc.)
  

• For 6 presentations you need 24 prospects
  

• To have 24 prospects you need 100 suspects

Knowing the difference between a prospect and a suspect, what the basic characteristics of a qualified prospect are, and where to find prospects all form the foundation for a successful prospecting effort. With real, "qualified" prospects identified the selling process begins.

Need More Sample Materials. . . Just Let Us Know
Hopefully 2003 finds you busy planning to expand your incentive merchandise business. Throughout 2002, Partners For Incentives updated two major catalogs that you will need to help you succeed in the year ahead. New catalogs include an updated Deluxe Catalog and a new Deluxe Lite Catalog.

To receive updated materials or samples just call, fax or e-mail your request (see box below for contact information).

If you would like a sample of all of our core materials request the Resource Kit which contains the following:

• Bound 2003-2004 Plateau catalogs (13 levels bound as a single catalog—Individual levels can be requested)

• Mini-Max, Sr. Mini Module and Jr. Mini Module award brochures

• Deluxe and Deluxe-Lite catalogs (organized by award category for point-based programs)

• VacationMakers and VacationPoints individual travel brochures

• Play-it-Safe brochure (turnkey safety incentive program)

• T.O.P.S. and You Make The Difference brochures (turnkey employee recognition programs)

• Reflections brochures (a lifestyle award-based service award program)

• Sample award point certificate and point bank account statement

• Sample stock covers

• Information and Pricing Guide (a comprehensive overview of all our products and services as well as our standard pricing models)

PFI is uniquely positioned to assist you in all facets of developing and implementing the full spectrum of merchandise incentive programs. No other company in our industry offers you the scope of products, services and most important, support, as PFI.

2003 is your year to profit through merchandise incentive programs and we are ready to work with you to make incentives happen.

Please contact Sales and Marketing Department at:

PH:1-800-292-7371 
Fax:1-216-881-7413

E-mail:Info@spihq.com