If there is one belief Americans can unite around, it is that the government is always spending too much money on something. Last week, the Orange County Register reported that the federal government has spent almost $23 million on promotional items to promote the 2010 Census. That's about $0.07 per person by 2009 population estimates.
If the story stopped there, we could watch the fallout on every major news outlet over the next few weeks. But the government, at least in this case, has a good justification for the spending. According to Stephen L. Buckner, a Census Bureau executive, this spending is actually saving taxpayer money - potentially hundreds of millions of dollars.
When combined with the money spent on other advertising efforts, the Census Bureau is spending around $0.42 per person to ensure census forms are returned. If forms are not returned, the next phase relies on census workers visiting door-to-door to collect census data, which will cost taxpayers $60.00 per person. So, for every percent of the population the government can persuade to return the forms through ads and promotions, they can save taxpayers $85 million.
Let's do some quick math. If $23 million in promotional pens, shirts and mugs reminds just 5% of the populace to return their census forms, the taxpayers will save $425 million. If only a 401(k) offered that kind of return.
The idea of promotional items as a money savers is counter intuitive to many. Most of us think of giveaways as a way to build brand recognition or create a buzz in our market. It could be argued, however, that promotions and premiums actually pack more of a punch when used internally.
A few examples:
- Companies like UPS have found great success using branded premiums as awards for reaching safety milestones, such as five years without a time-loss accident. They may spend hundreds of thousands in iPods, Bose stereos, and Wii consoles but save millions on increased insurance premiums, Worker's Compensation premiums, increased healthcare costs and OSHA investigations.
- Some large corporations have fostered growth by offering non-cash rewards to any employee that thinks up an effective money-saving or money-making plan that the company adopts. Hundreds of previously silent employees suddenly begin offering up ideas for the chance to get a new digital camera. The company saves big on consulting fees while improving employee morale.
- IDN, a nutritional supplement company, considered launching a nationwide weight-loss contest for their product users. Instead, they first started the contest internally - offering cash incentives for the winners and promotional incentives like water bottles, pedometers, hats and t-shirts for all the contestants. Participation was high, which not only boosted the health and happiness of employees, but helped the company fine-tune the program before launching it nationwide. Employee knowledge of the product-line and team-building also improved as a result of participation.
If you're new to the promotional products industry, don't get stuck thinking of promotions as only for customers. Sometimes it pays to first look within.
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