Incentive - February 2008 - (Page 33)

PricePOINT Merchandise Incentives $25–$300 you’re talking about portables or ones that stay in your car,” Andersen says of the GPS. “There are some market leaders in that space, but there are also a lot Right Roads: GPS devices like of different suppliers Garmin’s nüvi are popular in the $150 and up range. coming to the fore with great navigation products.” Remigi points out that prices are coming down at the same time and features such as directory assistance are increasing, making GPS devices a good value. Remigi recently worked on a program for San Francisco-based Protiviti, where the 10 rewards’ values fell between $250 and $300. The risk consulting firm had reached a company milestone and wanted to thank its relatively young staff for their hard work. “They wanted some cool gifts that would do well with a bunch of young guys,” Remigi says. “They offered ten items; six were electronics. Ninety percent of redemptions were for the electronics items.” Among the products included in the program were a Bose iPod docking station, iPods and GPS devices. The $150 to $300 price range also opens the door for a large selection of digital cameras, which are highredemption items in all types of programs. “People are moving on to their second or third digital camera; they’re trading up,” Andersen says. “Prices are going down and features are going up. Four years ago, you got a four-megapixel camera for $399; now you can pay $200 and get seven megapixels.” This price range is most appropriate for long-term years of service and sales contests. “That’s where you get into the bigger-ticket items,” Remigi says. “You want something with cool factor, something aspirational, things that are changing and cutting edge.” But it’s not all about electronics. Home appliances, home spa equipment like that available from HoMedics, and home fitness equipment also do well in this category. Service awards should be distinguishable from performance awards even if they fall under the same budget constraints. “You want it to be different from something that was earned for, say, doing a great job on a project for a week,” Remigi says. “It should be something that’s going to increase in value rather than decrease in value over time. We also find that for length of service, the symbolic application becomes significant. The ideas of time and corporate symbolism still seem to be extremely valuable to clients.” Whatever your program’s price ranges, offering choices is key. “You want to make sure you have several categories covered—sporting goods, travel, home goods, electronics, etc.,” Andersen says. “Give people the variety they want. You only need five or seven different items to offer someone variety. That’s the art part of putting together a merchandise assortment.” ■ Bangs for the Buck UTILIZE SETS Everyone is looking for a good value, and one way to achieve it is purchasing a set of some kind. Carlson’s Jill Andersen notes that her luggage business has grown in sets versus individual pieces. Cookware, tools and luggage sets all “look like a lot in a photograph,” drawing the attention of incentive winners and buyers who want to get more for their achievements without breaking the bank. ACCESSORIZE “When you package products and throw in extras, you get more value,” says Rick Green, Carlson’s business development manager for merchandise and fulfillment. “If you buy yourself a PlayStation 3, you just get one game with it. Well, throw in two or three games and an extra controller, and you’re not just giving them a bonus, but you’re saving them the hassle of a trip to the store to buy those accessories.” This tactic works in other categories as well. Package some smaller-size beauty products with a spa gift certificate, add a gourmet cookie mix to a bakeware set, or choose travel gear that comes with a lifetime service guarantee. BRAND BUZZ When it comes to maintaining high perceived value, esteemed brand names can be both friend and foe. “Brand names are always very important,” Andersen says. “When people are scanning through a catalog and see a Bose or a Cuisinart, that is something that people are very aware of.” Once you’ve raised the brand bar, be careful about going back. “You definitely want to make sure that you keep the same level of brand name,” Andersen says. “That’s one way that people pick up on that you’ve downgraded from the past. If you’re offering more generic brands or something that has a cheaper perception, that’s a red flag.” However, smaller products from a leading brand with a lower price tag—brand-name fashion accessories or smaller electronics components, for example—can give your program added cachet. Sometimes reaching for a lesser-known brand can allow you to include a product type that you couldn’t afford before. O.C. Tanner’s Rex Remigi points to the digital music category as an example. “Coby [electronics] has some very good players priced under fifty dollars,” says Remigi. “That allows you to include a really popular item in a price category where it’s not really expected. Also, Philips has an incredible line this year. They have a player with a screen for half the price of an iPod.” Set to Cook: Le Creuset’s Seven-piece Spatula Set in citrus (above) retails for $70; Four-piece Spring Heart Ramekins (at left) cost $40. SPECIAL SECTION February 2008 | 33

Table of Contents Feed for the Digital Edition of Incentive - February 2008

Incentive Magazine - February 2008 Editor’s Note: Archie and the Boys In The News Cover Story: On The Ball Incentives Incentive Primer: How to Use Sporting Events Incentive Interview: Jim Avery on Doing the Right Thing Employee Empowerment Motivates and Pays Dividends Hospitals, Nurses Win With Flexible Scheduling Legal Ease: Safety Programs and Unions Case Study: The Weitz Company Retains Its Boomers Potentials: Here and Now Star Power in the Kitchen Awards: Gift Card Trends for the New Year Travel News The Manhattanization of Las Vegas Classics Renewed: Monaco and France Advertiser Index Off The Cuff: Tumi’s Mike Landry

Incentive - February 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.