St. Louis Post-Dispatch from St. Louis, Missouri • Page 113

MONDAY, AUGUST 15, 1994 ST. LOUIS POST-DISPATCH 3BP ENTERPRISE Pushing Promos Washington Show Spotlights Firms That Produce Give-Away Items John Goessling Jr. and his dad, Jack Goessling, examine a mug made by their firm, Quick Point Inc. of Fenton, at a convention last week in Washington. the late 1930s we started with plastic items, molded plastic combs and shot glasses." A competing coffee-mug maker from Tennessee said new printing techniques are allowing manufacturers to print full-color pictures on ceramic mugs which is good, because novelty sells.

"No one in corporate America needs another coffee mug," he said. "They already have one. We know that. So we try to make them attractive so they will want another one." An Ohio printer named Jasper Meek is credited with creating the first promotional gift, printing the name of a book store on a book bag in 1886. Today's nylon tote bags advertising airline and motor oil and computers are the direct descendant A big hit this year are bendable pens.

"This is an interactive piece," said John Henrickson of Peoria-based Key Industries, happily bending a pen bearing the word ECON-O-LINE. "It's to get the attention of the recipient. They can play with it." Play plays a major role in the promotional gift industry kids coloring books with a safety theme and a cover that says "Your Imprint Here," brightly colored kazoos pushing TV Guide, flashing lapel buttons, even snorkel and flipper sets. But the staples of the industry continue to thrive. Staplers, pen and pencil sets, nylon windbreakers, calculators, watches, umbrellas, and aprons remain big sellers because, unlike television or magazine advertising, they may remain in front of the user for years.

Many promotional gifts arrive by mail. A new trend, "dimensional" mailings, is growing increasingly popular. Mail executives a two-dimensional paper calendar in an envelope and it runs the risk of being thrown out by secretaries who know their bosses' disinterest in junk mail. Mail executives a 12-sided plastic calendar in a 12-sided cardboard box and it is much more likely to land on a desk than in the trash. By Robert Manor Of the Post-Dispatch Staff WASHINGTON Dn a world of logo-laden luggage and corporate-message kazoos, one truth remains eternal you don't really need another coffee mug, but you may want one.

The Promotional Products Association International think of refrigerator magnets bearing the name of a plumbing company held its trade show last week in Washington, D.C. About 775 makers of business gifts and promotional items filled acres of space with nylon tote bags, prepaid phone debit cards, and neck warmers. "Please don't call them freebies," an association spokeswoman said. Although they may be free to the end user, they are a $6.2 billion-a-year industry for thousands of small manufacturers and distributors around the country. Neck warmers decorated with company names are big this year, but they aren't about to displace coffee mugs as a way of getting an advertisement into a customer's hand.

John Goessling an executive with Quick Point Inc. of Fenton, hefts a clear acrylic mug sporting the Gulf Oil Co. name and logo. "This one has better insulating properties than glass," he said. "That's a selling point." Quick Point's 150 employees manufacture or print on shamrock key rings, magnetic Band-Aid dispensers, first-aid kits in the shape of capsules, golf event kits in the shape of capsules, and insulated 16-ounce coffee mugs that won't overturn in your car or melt in your microwave.

Its a family business. John Goessling's father is Jack Goessling, whose father founded Quick Point in 1928. Today the company exports American-made items to Europe, Latin America and occasionally Japan. "We started out making mechanical pens and pencils in the 1920s," Jack Goessling said. "In Big Bucks In Freebies Promotional Products Industry Sales In Billions $6" 5- 1) 1988 1989 1990 1991 1992 1993 Sourest: Promotional Products Association International Post-Dtspatcti Chart SMALL BUSINESS Starting A Business? Don't Underestimate Your Expenses Then there are mailing and shipping expenses.

There are also license and permits fees as well taxes, including federal, state and city income taxes andor self-employment taxes. After you have calculated your start-up expenses, consider getting business insurance coverage, including fire, theft, personal liability and errors and omissions. A Business-owners Policy, or BOP, is often the best type of insurance for your new venture. If yon have employees, you will be required to purchase state compensation insurance. If you don't plan to hire anyone ele, you still have your salary and the associated benefits such as health and disability insurance and pension plan.

might find you need a separate fax line or a phone line for an 800 or 900 number. There also will be phone installation costs. In addition, you may be required to pay security deposits for telephone and utilities. Yoa might also have office furniture expenses. If you are going to open an office outside your home, you will have decorating, remodeling, and fixture expenses along with signage and an office lease.

Next there is business stationery, note cards, mailing labels and business cards. You'll also have costs for developing marketing brochures and sales literature for your business. This usually involves graphic design work, preparation of marketing materials and printing expenses. You also will have marketing and advertising costs. Last, estimate the costs of professional services you will be using, such as legal, accounting and marketing services.

Keep in mind that there always will be unplanned expenses and that some items will cost more than you initially budget Allocate some money to pay for personnel until money starts coming in from sales. Talk to other business owners in a similar business to determine what your start-up costs should be. Ask bow much money you should have in reserve for the unexpected expenses before you start. Courtney Price is director of the Institute of Entrepreneurship and Creativity at Metropolitan State College. By Courtney Price 1994, Scripps Howard News Service Q.

I'm starting a consulting business. Besides supplies, are there any other key expenses should budget for? A The most typical mistake for service businesses involves underestimating start-up expenses. Your expenses will be significantly less than a product-based business because there are no production materials or inventory to purchase. However, other start-up expenses can be substantial. First, consider the equipment you will be using: computer, printer, copier, answering machine and fax.

You will also have costs for computer software and diskettes. Telephone lines are another expense. You.