Tugboat helps steer companies' promotions
By KATHLEEN DREESSEN
Register Correspondent
When Gavin and Kara Long met at Cal Poly, San Luis Obispo, little did they know that one day they would own a promotional marketing company, the type of business that applies company logos to everything from Frisbees to leather jackets. They didn't realize that they would grow the business, named Tugboat, into an industry leader recognized among 17,000 other promotional marketing companies nationwide.
"I started on the computer tech side, working in Silicon Valley," said Tugboat principal Gavin, a Napa native. "In the computer industry, I used to be given a lot of logo'd items like stress balls. Although I was in computers, it had always been my dream to own my own business. In 2002, when we heard DT Specialty Sales in Napa was for sale, we analyzed the financials and decided it was a solid business."
"Gavin's mom was so happy we moved back to Napa," said Kara, vice president of client services. "We renamed the business as was part of our strategy. We chose a name that was friendly, that had customer service built in. For a brand, it has good imagery. 'Tugboat' is simple, hardworking and guides companies through the clutter and puts them back on their way. It's memorable."
They've used the Tugboat theme throughout their 7,500-square-foot facility in Gateway Park in Napa. The nautical sign above the conference room reads "Bridge," the lunchroom is the "Galley," and porthole windows allow viewing between the showroom and the 21-head computerized embroidery production area.
That sort of detailed thinking goes into the merchandise selection for their clients. "We ask them their objective, where will it be used and what they are trying to achieve. Then we discuss budget and timing."
Many clients stay in a rut. "Some businesses have ordered the same promotional piece for five years," said Gavin. "We ask them if it is still effective. We want to know if it is used as a sales incentive, for a safety program, human resources or marketing."
What's new in logo'd gizmos and gadgets? "The industry takes its cue from the retail market, especially fashion," Kara said. "For years there was a lack of women's apparel, but now women's clothing is better fitting. There's even maternity wear and baby and youth clothes. New ideas are portable (computer) memory sticks that are being combined into gifts. Some companies are loading their sales presentations onto the sticks, eliminating printed material, and giving the sticks to their customers. Of course, that's not inexpensive."
Lance Armstrong-like silicone bracelets are very popular, but there's bad news for fans of the "gimme hat" with the high front, mesh back and adjustable strap. "Trucker hats are out. Finally," Gavin said with an air of relief.
Calendars are always a big seller, keeping the message in front of the customers 365 days a year. Hand sanitizers, mints, health care products and portable soaps are popular. "Next year a big category will be anti-germ phone receivers and anti-microbial pens, which will be used in hospitals and public areas such as banks."
Since it seems that everyone is commuting, automotive accessories are hot. "The manufacturing companies have researched how people are living," Gavin said. "Cell mates that stick to the dash, air fresheners and Post-It Note holders that clip to the visor are popular."
Pens, key chains and T-shirts still remain staples of the promotional marketing industry. "There's not a lot of hugely innovative products introduced each year, but the key is for clients to use them in creative or innovative ways. For example, I saw a duck call with the slogan, 'Don't duck my call,' on it. That's memorable." Kara said that new items often tend to be gimmicky, such as plastic brains or eyeballs that you throw against the wall and go splat.
"We try to remind our clients that the promotional material reflects on their business, their quality," she said.
Since moving to the current location two years ago, the company has expanded its showroom. The showroom has a revolving display of apparel and promotional products and is so impressive that Tugboat received special recognition from the Advertising Specialty Institute for its achievement in incorporating style, function and creativity in its showroom and display.
"The showroom is especially helpful for our local clients to see the wide range of products we have available," stated Kara. "There are so many items, we've found that even our existing customers don't know all that we can do."
Tugboat has international vendor sources for everything imaginable. "There are 10,000 vendors in our industry," said Gavin. "We work with preferred vendors to find quality products that last. We have to stay on our toes to make sure we're getting the best value for our clients."
If a product doesn't exist, the company can find a source to manufacture it to specification. "The sky's the limit," Gavin explained. "If the quantity is large enough, we can create it. With time and the budget, anything can be done."
It may come as a surprise, but the company does not stock inventory of their merchandise. "Companies need to plan in advance when they will need a product," said Kara. "But, even then, we have suppliers of pens, for instance, who can turn around the imprinting in one day. The company would have to pay for that fast service, of course. Even for custom embroidery, which we can turn on a dime, we don't stock anything."
The company has 10 employees at the Napa facility and two sales representatives, who work in Oregon and the East Bay. Tugboat employees currently operate two embroidery shifts and may go to a third. The Longs' goal for next year is to increase their West Coast presence. "We attend two to three trade shows a year," Gavin said. "We have an advantage because of our space and sales volume, the (manufacturing) reps bring products to us for review."
The company receives many requests for donations and focuses its efforts on supporting schools, primarily with in-kind contributions. Tugboat is a member of the Napa Chamber of Commerce and Gavin belongs to Napa Sunrise Rotary and is on several community boards. "We've made an investment here, we're a local company," he said.
The owners of Tugboat hope their clients enjoy finding the right promotional material. "We want the experience to be fun," Gavin said. "We try to make the process as easy as possible and enjoyable. We try to keep it fresh."
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slammin211s wrote on Sep 18, 2008 2:23 PM: