| Surveys show that caps are the 2nd or 3rd | | | | A Company's Use |
| largest selling item after shirts. Caps can be an | | | | Companies are not driven by self-esteem, but |
| opportunity to increase your screen printing sales | | | | rather a corporate purpose and cost. The purpose |
| and profits. Selling prices vary widely for caps. | | | | might be part of the entertainment of customers |
| Some sell for $30, and even the old foam front, | | | | and high priced staff where the corporate image |
| mesh back caps that used to sell for $3-$5 now | | | | is more important than cost. In most situations |
| are being marketed as "trucker caps" selling for | | | | the cost is an important consideration, and the |
| $15 and $18. These foam fronts cost under $1, | | | | decorator may be faced with competing bids. |
| and the 5 and 6 panel caps cost $2-$3. So there | | | | Marketing to corporations is more complicated |
| is plenty of profit potential from caps. | | | | than students. First, who makes the buying |
| Ask a teenager or college student what they paid | | | | decision? In a corporation that could be any one |
| for their cap, and you probably will be surprised to | | | | of a number of people. The Sales Department |
| hear prices that are much higher than are paid for | | | | may want caps for customers. Human Resources |
| shirts. The potential for high profit margins makes | | | | may want caps for a group outing. Production |
| caps a product to be investigated. | | | | might need to keep hair out of products. |
| Companies buy caps for many reasons. Hygiene | | | | Requirements like these might be fulfilled without |
| laws require occupations like food handlers and | | | | going to the Purchasing Department. |
| medical product manufacturers to wear caps. | | | | A purchasing department will be more driven by |
| Soiled caps get discarded rather than washed. | | | | getting the lowest cost than the other objectives |
| Restaurants have employee turnover and need | | | | of the requisitioning department. A large company |
| new caps. Companies like UPS want to project | | | | with lots of employees can have numerous |
| their image, and the local UPS manager has the | | | | potential buyers of caps. So understanding the |
| authority to buy locally. Power, gas and water | | | | decision making process is important. Then, once |
| meter readers need caps so homeowners will not | | | | a decorator knows who to talk with, who has to |
| be alarmed by a person in the bushes at the | | | | approve the purchase? At each level of approval |
| homeowner's house. A company might provide | | | | the caps have to be sold again to finalize an order. |
| caps as a morale booster, safety award or | | | | Decorating a sample cap to persuade each person |
| advertising bill board. Companies have lots of | | | | in the approval process is a measured gamble. |
| reasons to buy caps. | | | | Buyers frequently cannot visualize the product |
| The cap market is actually a collection of market | | | | they are being asked to buy without first seeing |
| segments. The cap an individual will buy for their | | | | one. A decorated sample of exactly what the |
| own use depends primarily on their age. | | | | customer will receive can be a strong "closer" to |
| Companies buy based on use. Knowing the buying | | | | a sale when the motivation to buy already exists. |
| habits of individuals and companies gives the | | | | However, creating art, and going through all the |
| decorator the opportunity to maximize the selling | | | | other steps to produce one cap is expensive. |
| price and order size. | | | | Therefore, decorating samples is probably an |
| A Person's Age | | | | unwise business decision, unless you know the |
| Students typically pay the highest prices. That | | | | sample is being presented to the decision |
| price could be $12-$30 per cap. However, their | | | | maker(s) and the decorated sample will |
| parents might only pay $8-$10 for a cap, and the | | | | substantially improve your chances of getting an |
| grandparents might only pay $5-$6. So age is the | | | | order. When these conditions do not exist, similar |
| first clue to who pays the highest prices. | | | | decorating for other customers should be used. |
| Although we recognize people by age, the actual | | | | Those samples may also serve as endorsements |
| differences are self-esteem and cost. To | | | | by other companies of the decorator's capability |
| students, wearing the right fashion or look in a | | | | to produce excellent work for the sales prospect. |
| cap is very important. Young people still growing | | | | So the starting point with corporations is finding |
| are concerned about their self-esteem. The "right | | | | out what their plans are, and how caps fit those |
| cap" identifies the young person with their peers. | | | | objectives. Company representatives may have |
| Only a 6 panel cap is acceptable for many of | | | | never considered using a cap to meet their |
| these young people. For a youngster on a skate | | | | objectives. Certainly many products are promoted |
| board, however, only a foam front typically worn | | | | on caps. Just watch a golf tournament on |
| crooked on their head communicates with friends | | | | television and almost every golfer is wearing a |
| that he is one of them. | | | | cap promoting something. Local businesses can do |
| Students frequently get the money to buy the | | | | the same, and get financial aid from their suppliers |
| cap from their parents and therefore are less | | | | that provide coop advertising money to have |
| cost conscious about price than parents who have | | | | their name or brand on the cap. |
| to earn the money before the parents buy a cap. | | | | Easier is going to companies known to use caps, |
| So students will pay more than their parents. | | | | and then displacing the current supplier. To displace |
| Grandparents are the least fashion conscious, and | | | | another supplier the offering will have to meet or |
| most cost conscious, because they are retired on | | | | exceed the conditions of the order. We all think of |
| fixed income and are the least concerned about | | | | price as a condition to an order, but often other |
| what others think about how they look. | | | | conditions are more important. |
| To find the student cap market, we first need to | | | | Many corporations are image conscious, and want |
| find what interests students. Their school, team | | | | the image on the cap to match the sign at the |
| and images that unify students are good places | | | | entrance to their business, stationary, packaging |
| to start. During basketball season a basketball with | | | | and sales literature. That means colors must |
| the name of the team written through the | | | | match PMS standards. The font or logo must be |
| basketball can be very simple and striking image | | | | a photographic duplicate. If you can meet this |
| that conveys a clear message. The same | | | | condition, and the other supplier cannot, then you |
| approach can be used for all sports. Artwork that | | | | have a better offering. |
| students consider "cool" will convert compliant | | | | Other conditions can be your proximity to the |
| buyers yielding to group norms into compulsive | | | | customer, how fast you deliver, the personality of |
| buyers who have to have that cap. | | | | the sales person, or help you provide to improve |
| The market segment for the cap can be clearly | | | | the art. To find out what conditions are important |
| identified to minimize sales time and cost. The | | | | to the customer, ask. When sales prospects talk |
| school will have a class president, student athletic | | | | about past purchases they will frequently reveal |
| association or similar organization that can take | | | | important conditions that were not met well by |
| pre-paid orders as a fund raiser using a sample | | | | another supplier. |
| decorated cap put on display. The same image | | | | After the customer has spoken at length about |
| can also be offered to older alumni who order the | | | | the execution of prior orders from art preparation |
| 5 panel cap on a pre-paid basis. | | | | to delivery, and you have asked questions about |
| This form of marketing can be extended from a | | | | the order, then ask, "and by the way, what did |
| school class or sport to events, tournaments or | | | | you pay?" If the price was too low, you will have |
| any occasion that brings students together. In | | | | to justify why your price will be higher. If the |
| each case, the sale should be to the students | | | | price meets or exceeds your expectation, then |
| with the students' agent acting as your sales | | | | you will know to charge what the other supplier |
| agent in return for compensation. | | | | charged, and take the order based on conditions |
| This method of selling allows using a retail price | | | | other than price. You want always to leave open |
| students will pay. That price can be determined | | | | the opportunity for higher prices. |
| by seeing what students pay at the shopping mall, | | | | Notice that no mention was made of contract |
| or by asking them what they have paid. The | | | | decorating. This market segment requires |
| decorator will yield a much higher selling price by | | | | substantial production assets that many shops do |
| selling direct to students with a discount to the | | | | not have. Also, contract work usually results in |
| sales agent than by approaching the school | | | | low prices for the decorator and less than optimal |
| administration that does not have funds budgeted | | | | pricing for the middleman. Financially you will do |
| for caps and which would solicit three competing | | | | better eliminating the middleman and drawing your |
| bids. | | | | own conclusions about what price a customer will |
| To sell to parents, we again need to find what | | | | pay. Contract work can also mean competing |
| interests them. That could be golf, fishing, hunting, | | | | with foreign production where labor rates are |
| team sports, patriotism, and a variety of other | | | | very low and employee benefits are even less. |
| themes. Using golf as an example, golf caps sold | | | | Conclusion |
| in the pro shop at a public golf course will | | | | When surveying local decorators you will most |
| command a high price with half of that price going | | | | likely find all the decorators - people with transfer |
| to the pro shop as their mark up. The selling price | | | | machines, screen printers and embroidery shops - |
| should match the prices being charged currently in | | | | are decorating shirts, but few sell many caps by |
| the pro shop. The net selling price received by the | | | | comparison to shirts. Caps are not as |
| decorator times the number of caps produced | | | | competitively priced as shirts. Decorating a cap is |
| per hour will show this market segment to be | | | | different from a shirt, and there is a learning |
| more profitable than shirts. Group and tournament | | | | curve to climb. However, the rewards can be |
| sales are the best way to get established at golf | | | | substantial. Caps can be that opportunity you are |
| courses, because custom decorating that is not in | | | | seeking to make this year a better year than last |
| the store inventory will be what the group wants. | | | | year. |