Promotional Products Industry 101
The Promotional Products Industry is composed of a network of suppliers that produce or contract production of products which are sold through a network of promotional products distributors who interface directly with the customers. While this structure is not unlike the retail industry where a supplier like American Apparel distributes clothing to department stores which then sell it to the customer, the distributor-customer relationship is even more essential in the promotional products industry in order to support the customization of products with the customers logo and/or decorations.
There are thousands of suppliers of promotional products and customizable apparel that serve the industry. These suppliers range from small business focused on one product to large, international corporations that produce multiple product lines. While most suppliers produce products exclusively for the promotional products industry, some also have separate retail product lines sold through consumer channels.
In most cases, the suppliers not only handle the production of the products but will also perform the customization (e.g. logo engraving, etching, etc.) of the promotional products. The most common exception to this rule is for customized apparel (e.g. t-shirts, polos, button down shirts, fleece, sweat shirts, caps, etc.). While some suppliers of apparel do customize the garments, in most cases the decorations are applied by separate companies specializing in silk screening, embroidery, laser etching or other decorating techniques.
Suppliers establish the retail pricing structure for their products based on volume. Because of economies of scale (think Costco and Sams Club) as well as the fact that larger quantities can be customized more efficiently, prices typically decrease at specific incremental order quantities. Because the prices are presented in a table format with pricing associated with specific prices, it is referred to as column pricing. Each column is also referred to as price breaks representing the quantity required before reaching the next lower pricing level. The right most column represents the highest order quantity and lowest price and is referred to as End Column Pricing or End Quantity Price. It is common for the industry to advertise prices as from the End Quantity Price. Depending on the cost of the product and relative cost of customizing the product, the pricing for larger quantities may be slight or significant. In addition, suppliers and decorators will often establish a minimum order quantity, referred to simply as minimums, for most products based on the cost effectiveness of processing and customizing the product. Typically, lower cost items will have higher minimums while high cost items may have minimums as low as one. Some suppliers will accept orders below the minimums for an incremental fee, referred to as a below minimum charge.
Suppliers will typically specify what decorating method is included at the listed prices. While a one color imprint in one location on the product is common, it is not a standard. Catalogs and websites which sell promotional products will typically identify what imprint method is included in the pricing specified. While some suppliers will only sell decorated/imprinted products, others will sell products without decoration which are commonly referred to as blank goods. In most cases, suppliers will require an incremental charge for initial orders, referred to as set up charges, associated with decorating the product. These set up charges are associated with the costs of creating screens, dies, pads, digitizing tapes and other one-time efforts associated with imprinting a specific product. In addition, suppliers will typically provide samples of the artwork in the size/shape as they will appear on the product, referred to as proofs. These charges are typically waived on any reorder of the exact same product with the exact same logo and/or decorations. In addition, many suppliers will offer additional decorating options including additional colors (e.g. for 2 color logos, for example) and additional imprint locations based on the product and their imprint capabilities. Its important to note that there will typically be additional costs for printing each additional color and/or location which are referred to as run charges as well as additional set up charges.
A factor often overlooked when selecting products and suppliers is the costs associated with shipping products from the supplier and/or decorator to the final destination. This can be especially important for heavier items such as ceramic coffee cups. In some cases, while a supplier may offer less expensive prices on a per-piece basis, if they are located across the country the costs for shipping may increase the final costs over those of a closer supplier.
Another key factor to take into consideration is your need date for the product. Often, this is one of the primary factors in driving the selection of both a product and a supplier. The lead time required for a supplier to fulfill an order is referred to as the production time. It is important to note that the production time is an estimate based on the suppliers typical workloads. The production time begins only after orders have been officially placed and artwork proofs been approved. Many suppliers offer expedited production or Rush production services for an additional fee. Some suppliers offer a selection of products which are eligible for Rush production at a discounted rates or even free. It is important to note that, the production time does not include shipping after the product is completed. Shipping from coast to coast can take up to 5 days or more depending on the method of shipping. While expedited shipping options are often available, the costs can be significant.
Those who have searched the internet for promotional products may have noticed that there are often multiple suppliers offering comparable products but with varying prices, price breaks, minimums, run charges and set up charges. In many cases, the products may be nearly identical while in others there may be differences in quality, color options or other features.
As you can see, even beyond finding your ideal promotional product, there are a number of variables involved in selecting the supplier that will produce your product. This can be overwhelming even for those familiar with ordering promotional products. Thats where a a reliable, experienced promotional products distributor comes into play. The promotional product distributor helps customers not only select a product that fits their image and meets their needs but also navigates the subsequent decisions to ensure that you get the product you want, decorated in the manner you prefer and delivered in support of your need date. A dependable promotional products distributor will help to ensure that you get the best value for your dollar considering all the factors associated with the product, decorations and shipping. In addition, the distributors experience within the industry can be instrumental in the selection of a reliable, high-quality supplier.