| Last week we discussed how buying the right | | | | them and don't change, however as more volume is |
| promotional products can separate your company | | | | ordered (1000+ units) the cost of labor goes down, so |
| from the competition, produce the greatest ROI for | | | | the price of the drive goes down. The casing runs |
| your promotion, and lead to sales generation over an | | | | about 30-60% of the cost of the drive. |
| extended period of time. We learned that a custom | | | | The last piece is the printing. This piece costs the least |
| branded USB drive will produce the best results | | | | of all. The cost of printing on a USB device is very |
| because of the ability to brand the inside and outside, | | | | small, only about 1-3% of the cost of the drive. |
| provide a product that will be widely used in many | | | | However, no matter how many times a logo has been |
| locations and in front of many potential clients, and last | | | | printed in the past, the company must charge a setup |
| for 10 years of excellent brand display. | | | | fee (usually $50-$100) in order to cover labor costs of |
| Today we are going to look at how to buy these | | | | changing the print device to a new logo. This fee is |
| products at the best price to fit your needs. | | | | sometimes waived if a large enough order has been |
| A Quick Review of How USB Drive Pricing Works | | | | made (Bizdrive waives the $50 setup fee at orders of |
| Promotional USB drives are made up of 5 key | | | | 1000 units or more). |
| components: | | | | How USB Drive Pricing Effects You |
| | | | When you are shopping for your custom branded |
| 1. The PCB (printed circuit board) | | | | USB drives, here's how to get the best price. |
| 2. The USB controller (the thing that sends/receives | | | | Order in volume. The more units you order the better |
| data) | | | | your cost per unit is. If you know that you are going to |
| 3. The flash chip (what stores your data) | | | | need 1200 units per year, buy them all at once instead |
| 4. The outer casing (including the cap, swivels, keyring | | | | of 100 units each month. The price difference between |
| loops, shell, highlights, basically everything you see and | | | | 100 units ordered 12 times against 1200 units ordered |
| touch) | | | | once is significant (usually around $1,000!). Plus you'll pay |
| 5. The printing on the case | | | | less for freight AND get your setup fee waived. |
| Each of these components have a price attached to | | | | Be a wholesaler. If you are buying custom USB drives |
| them. The PCB and the controller are both standard | | | | to resell, tell your provider! We love having customers |
| components that don't fluctuate very much. These | | | | who are continually buying drives in order to sell them |
| two components account for about 10% of the cost | | | | to their customers. USB suppliers will usually give |
| of the drive. | | | | significant price breaks to other wholesalers. Tell your |
| The flash chip does fluctuate however. Flash chips are | | | | provider what your intentions are in order to get the |
| traded (like gold and silver) on an open market and the | | | | best prices. |
| price of these chips are dictated by supply and | | | | Buy densities that fit your project. If you are buying |
| demand. As a fab (the industry name for the factory | | | | USB drives to give out at tradeshows, 1GB-2GB will |
| that makes semiconductor products) builds more chips, | | | | usually fit your purposes. Don't pay the extra money |
| the price goes down. But when they have built more | | | | for 4GB and up. However, if you are considering |
| chips than the market demands, they switch their | | | | reselling the USB drives, higher densities are advisable. |
| focus to a different product, say DRAM. The supply of | | | | Know your targets and what they want and purchase |
| flash goes down and the price is driven up. This is why | | | | accordingly. |
| the cost of flash drives is in constant flux and why | | | | Shop around. Don't just click on the first couple sites on |
| most companies require providing a quote instead of | | | | Google that you find. Usually smaller USB companies |
| providing pricing on their website. (Bizdrive has a pretty | | | | will give you better pricing than the big boys. The big |
| sophisticated pricing structure on our website that | | | | boys have more staff to pay for including a high sales |
| allows us to provide accurate pricing at all times. I'd tell | | | | commission and other SGA costs that smaller |
| you how but it's really boring...). The flash chip accounts | | | | providers don't. The other great (best) thing about |
| for about 40-80% of the cost of the flash drive, | | | | smaller providers is that they want to earn and keep |
| depending on what density the chip is (higher | | | | your business and will do more to make you happy |
| density=higher price). | | | | than the big boys. Don't be afraid of going to page 2 |
| The case is another piece that does not fluctuate in | | | | on a search for a great USB provider. |
| price, EXCEPT for when large volumes are ordered. | | | | Next, we'll look at the difference in quality of USB drive |
| The case is broken down into two parts: materials and | | | | providers and provide some pointers to avoid getting |
| assembly. The materials have a fixed cost attached to | | | | inferior product while staying within your budget. |