Businesses invest significant money on corporate merchandising programs and gifts. In fact, this industry is an $18 billion dollar business, according to Promotional Products Association International. And roughly 4,200 suppliers offer about 500,000 different products for buyers to consider -- everything from pens to refrigerators.
But which supplier do you choose? Often, event planners and others rely on personal referrals or their own online shopping efforts. That’s fine, but it’s more effective to understand who’s who in this industry, and who will help make you look good in the process.
Promotional Products Distributors
These companies serve as brokers between suppliers of promotional products and corporate clients. They are either independent firms and contract directly with 10-20 different industry suppliers, or independent representatives of national distributors that manage industrywide relationships and leverage buying power.
Pros: Event planners may reap financial savings for their promotional products budgets, depending on the company selected.
Cons: Get to know a distributor before buying. How long have they been in business? What kind of discounts can they offer?
Incentive & Promotions Agencies
These firms offer clients a higher level of program support, such as graphic design, branding, communications, and other planning services.
Pros: These tend to be boutique firms that help event planners and others with their corporate gift needs, and understanding the strategic importance of promotional products.
- Cons: Most firms tend to have less than $1-2 million in direct revenue through promotional products sales, so it’s best to make sure the firm can demonstrate their expertise in this area. Ask questions about the individuals and backgrounds of those who are part of the firm’s services.
Direct Distributor
Some companies in the promotional products industry sell direct to the client, eliminating the broker role that distributors play. They create online and printed catalogs that include their products and allow direct buying.
Pros: Direct distributors can save clients money -- a good thing for those who are most interested in shopping by price.
Cons: The direct distributor owns the client relationship. The client loses the negotiating role that a national promotional products distributor or promotions agency may leverage with their collective buying power to assure improved quality and service conditions.
