Promotional product distributors provide branded apparel and other products for various groups, including companies, charity organizations and sport teams. For those with a passion for the industry, financial success is possible as a promotional product distributor. Whether working as a distributor or a supplier of promotional products, success will depend on your tenacity and the ability of your salespeople to translate contacts into sales.
Industry Overview
Figures compiled by the Advertising Specialty Institute, the industry's leading marketing organization, show that sales of advertising specialties topped $19.8 billion in 2008. The advertising specialty industry, commonly referred to as the promotional product industry, helps organizations of all sizes market their brands, services and products. Products commonly used in promotional advertising include apparel, office products and fun giveaways, such as spa gift baskets and chocolates.
Distributors
Several types of firms within the promotional products industry act as distributors of promotional products. The term distributor is used within the industry to describe a firm that employs salespeople to connect with the end buyers of promotional products, typically companies and organizations. Distributors can bring in substantial revenue by connecting suppliers and buyers of promotional products. The top distributor in 2011, as ranked by the ASI, brought in an estimated $364 million in revenue in 2010.
Suppliers
Distributors use suppliers within the industry to fulfill client orders. Suppliers distribute both blank and finished product. Blank product, such as plain polo shirts, may be sent to an embroiderer for further customization, while finished product is embroidered, screen-printed or engraved by the supplier. As a distributor of promotional merchandise, suppliers can also bring in substantial revenue. The top supplier in the industry brought in just over $385 million in revenue in 2010, according to the ASI.
Considerations
Distributing promotional products can be lucrative for various industry entities, including sales personnel and support staff. Success in the industry stems from focusing on building relationships with other industry professionals and clients. These relationships help distributors secure the best pricing, thus resulting in optimal profit margins, and help provide suppliers with a trusted stream of orders and revenue.
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