It is not a secret to anyone that the economy has not been the strongest over the past 6 years, and this holds just as true for the labeling market. The labeling industry, as well as many others, has been experiencing a soft – or buyer’s – market. There are three main reasons for the occurrence of the soft market that we are currently in, starting with the Gross Domestic Product.
CURRENT MARKET OVERVIEW
The GDP declined steadily throughout the 2014 year, in both the United States, as well as internationally. While the national GDP has slowly began to rise for the 2015 year, international economies have yet to balance, causing further uncertainty. This is the ultimate driving factor for the economy as a whole, and will cause the economy to slow over time. The lower than average GDP has contributed to the current state of the economy, along with the following issues:
- Lower Gross Domestic Product creates a lack of disposable income in the average American household. The average family income in America is $4,000 lower than it was six years ago.
- While gas prices have lowered over the past six months, gas prices are still on average $0.50 higher than they were 10 years ago.
- Grocery prices are near an all time high, averaging over $1 more than they were at the end of 2005, a decade ago.
These factors have caused Americans to focus on buying the essentials, and foregoing items they don’t deem necessary. This causes problems for the label market, because two of the largest sectors that people spend disposable money in – housing and automobiles – are also two of the largest users of labels.
LABEL SALES TECHNIQUES
Although it may seem like the odds are stacked against you, here are 3 ways in which you can have strong label sales in a soft market:
1. New Technologies
By using newly developed label technologies, such as Linerless or ThinTek labels, you will be able to add value for your customer, helping retain their business and possibly expand the label sales within the account. For example, linerless labels allow the same benefits of a standard label, while adding 60% more labels per roll, and also contribute to a significant reduction in waste due to the lack of a liner.
2. Speciality Labels
Products such as the PaintMask or OilTak labels will allow you to penetrate deeper into an account, finding a niche need that is otherwise underutilized by a method that is often something other than a labeling solution.
3. Utilize All Label Types
This may seem like an obvious idea, but by utilizing the whole line of available labels, tags and wristbands, you have the ability to tackle a number of different industries and potential customers.
For more information on the Black Rhino™ Label line or a specific label or tag, contact your account manager or: