With a mission focused on safety and protection, it is no surprise that 70% of insurance and financial companies prefer to buy USA-made promo products. [1] Domestically sourced products are held to applicable safety and quality standards that align with the insurance industry. As the country and the promo industry braces for the new tariff impacts and inevitable price increases, it may be worth exploring why the insurance industry has long preferred items that are made in the USA.
Insurance and financial firms give away 91% of the promotional products they order, and spend 24% of their overall marketing budget on promo items. [2] Many insurance professionals value their brand equity as “expected future revenue” [3] and in an industry where experience and trust are important, the stronger brand will win. By giving away USA-made promo items to new and existing clients, insurers demonstrate their focus on performance, reputation and authenticity. [4]
USA-made items may not always compete on price, so they tend to be more competitive on quality, service and speed. 72% of insurance and financial companies find price and quality equally important when it comes to promo. [5] Insurers can feel confident spending a little more to place their brand on products made in the USA because American consumers place higher perceived value on both the item and the brand imprinted on the item. [6]
As impacts of tariff changes begin to take effect, price increases could help close the cost gap between USA-made and cheaper Chinese goods. Quick turn times, no tariff surcharges and pricing stability could help promo products made in the USA even more appealing to end users in the insurance and finance sectors. [7]
These factors could lead to an increase in industry-wide sales of made in the USA branded merchandise across all vertical markets next year, not just insurance. “We do expect to see an increase in these items toward the end of 2018 and throughout 2019,” says Melissa Ralston, CMO at BIC Graphic NA. [8]
BIC Graphic NA offers hundreds of products that are produced in the USA, including iconic Sticky Notes™ and many of our popular Triumph® brand calendars. Simply visit the Made in the USA section at bicgraphic.com to view a range of products that are sure to appeal to insurance and finance clients.
