(This article was originally published in April 2017 but was updated Sep 2023).
Whether you are an aspiring entrepreneur just getting started, a mid-size distributor looking to scale, or a larger distributor looking for growth, the promotional products industry is a pretty great place to build a business: It’s a $26+ billion industry, and the demand for branded merch has skyrocketed to new heights.
This is the good news.
The bad news is that because the barriers to entry are low, and because most distributors have access to the same products, and (often) offer the exact same services as their competition (shops, kitting, fulfillment, creative), the industry has become extremely competitive.
Differentiating your distributorship has never been harder.
In this guide, we will give you 9 tips, tools, and resources to help distinguish your promotional products business from the competition and also create a roadmap for a more robust future.
The biggest trap distributors fall into is the “I can get any customer any promotional product” trap.
Resist this urge. Stop and focus. It may be easy money in the short term, but you will pay the price down the road. Here are some things to consider when identifying a target market:
Where is your client expertise? Often, we don’t even realize we’ve developed an expertise but if you’ve worked with clients in any capacity, you’ve likely developed a client expertise. Example: Are you working with a few companies in the same industry? Perhaps you work with Credit Unions and you know everything there is to know about working with financial institutions, including what to do and not to do, and the intricacies of their inner workings.
What is your specialty? You likely have developed a specialty even if you don’t know it. That last successful onboarding kit you created for a client is an example. Or perhaps you launched a few new shops for customers and they were a huge success. Or maybe your specialty is importing or completely bespoke merch. Yes, others might have done similar things but your special strength is that you’ve done enough to master them and have become efficient at execution.
Look at your network. Often we are so busy just taking care of clients that we do not realize that we are leaving a lot of money on the table. Look within your existing client network. If you work with ABC Company’s HR department, what about arranging an intro with procurement or marketing? Beyond your customers, what sectors do your friends and family work in? Is there someone in your current network who could be a connection to an opportunity (LinkedIn is a great asset here).
What types of people do you want to be around all day? The best clients are those who share your worldview and want to see you succeed. Do you want to spend time working with clients who cause you stress? Paint a picture of the perfect personality type and then target those people. You will always do your best work for people you like and respect.
If you can answer these questions, you will have a clearer view of the market you want to serve.
For an additional resource on discovering your strengths, check out our article, “Curiosity Killed the Promo Cat.”
Your true competitor is not the generalist promotional distributor that sells anything to everyone. Your competitor is the distributor that sells into your market already.
Do a quick Google search for “promotional products XYZ target market”. Ask any friends of yours where they currently buy promotional items. Study your competition:
How have your competitors positioned themselves in the market?
How are they differentiating themselves?
Are they competing on price?
Are they competing on design?
Are they competing on product selection?
What’s their silver bullet?
Where are they weak compared to you?
Why are you starting this company? What makes you different from the competition? Why should anyone buy from you over the competition? It's important to remember that customers naturally put their vendors into a box. This can be a bad thing, but if you are unique enough, that box is your angle. That’s your goal. While “competitive prices,” “creative ideas,” and “great service” are important elements to have in your business, these are table stakes for any business today in the promotional industry. You need to go further. Ask yourself these questions:
How do I stand out from my competition?
What opinion do I have about my client’s business?
What problem is your target audience grappling with?
How do you want your customers to remember you?
Do I understand my client’s business objectives?
Do I know what keeps my client up at night?
If you can clearly answer these questions, then you are well on your way to having a unique angle for your business.
For an amazing resource on this, check out our convo with SVP of Brand Strategy at Imprint Engine, Mike Schwandt, on the topic of “Brand Strategy Before Brand Identity.”
It is essential you create a unique point of differentiation in the marketplace. The trap many distributors fall into at the beginning is they take the easy path and sign up for a service with a white-label site with a generic product catalog that looks like everyone else. This is seductive because it costs very little money and takes almost no effort. Don't do this. Take the time to create your own brand. Armed with answers from above you should now have a pretty decent understanding of who you want to serve. Build a brand that caters to this audience. For those reading who already have an established identity, if your brand is virtually the same as when you started but your services have expanded or your clientele has dramatically changed, then it might be time to consider rebranding your business. Some things to consider:
Pick a distinctive name that people will remember. The industry is currently littered with bland and forgettable company names. Stand out from the crowd!
Hire a designer to help create a brand identity for your company. This brand identity should be consistent across all of your materials (website, promotional materials, marketing collateral, etc). Treat this designer as an important part of your team. Get them invested in your vision.
Ditch the white-label product sites. Build a case study, story-centric site using a tool like Squarespace, WordPress or Wix. Your designer will also be able to help you.
Focusing on case studies and solutions you have built vs. showcasing generic product catalog on your site will keep you from having to compete against deep-pocketed e-commerce promotional product distributors. Remember, the generic product catalog is available to all of your competitors for very little money. Take the path less traveled and showcase your own ideas. That can’t be copied.
Some great examples to look at include Fairware, Buzztag, Anthem Branding.
For additional insight, check out our conversation with Kate Hallet, CMO at Harper + Scott, on “How to Craft a Visual Identity That Sparks Curiosity + Speaks Truth.”
Armed with an understanding of your target audience, you now have an opinion on the kinds of products that appeal to your customer base. Now, build a collection of ideas that will resonate with your customers by creating strategic supplier partnerships.
Ask yourself these questions as you source products:
Which supplier partners best fit my particular market?
What sourcing story can I tell my client about this product?
How will this product help drive business for my client?
Does this product fit into the worldview of my client?
A great example of a perfect match between a distributor and a supplier is a distributor (like Fairware) who focuses on sustainable product for their customers; in this case, partners like Gemline and PCNA make great sense.
While it’s important to remember that you make money as a distributor when you sell products, it’s also important to think beyond the product as you differentiate yourself in the eyes of your customers.
The advantage to thinking this way is that you open up two revenue streams: (i) for the service and (ii) for the product. As a bonus, the product sale now becomes part of the package and can’t be shopped around as easily.
Examples include:
Graphic design services
Fulfillment and kitting services
E-commerce stores or shops (check out our shops solution here)
Content marketing and social media services
Event planning
Selling complementary product lines like packaging or print products
Overall, what you are going for here is a consultative-based approach where you dig deep into what they are trying to accomplish. Sell your customers a ROI on their promotion; don’t just sell them a cheap widget.
commonsku was designed and created by people who understand the challenges of the industry. Born in 2005, commonsku was built to power RIGHTSLEEVE, a respected promotional products agency, and evolved into a comprehensive sales and marketing tool for the industry. In 2019, RIGHTSLEEVE was sold to Genumark and today, commonsku is a stand-alone technology company that serves 750+ distributors comprising $1.5B in sales.
When RIGHTSLEEVE was started in the late 90s, all customers, vendors, presentations, orders, and invoices were managed through Excel, Word, handwritten POs, Quickbooks, and a filing system. It was a joke, but it was a joke that worked at the time. It was all also desktop software, so information could only be accessed at the office.
Today, no modern promotional products distributor could compete in today’s market without the speed and complexity required to be successful, which must include a cloud-based, sophisticated technology solution.
Whether you choose commonsku or another order management solution on the market, here are some things we learned in our journey:
Select a 100% cloud-based software solution. This will allow you to work anywhere, on any computer (PC and Mac). It will also give you a platform to grow if you add employees in other parts of the country or world.
Product research software is important but is less important than it was 10-20 years ago when it was harder to find suppliers. If you are taking a focused approach to your business, then your product line and suppliers will be focused and curated, too. Don’t run your business searching for products all day long. The best distributors are already on top of product trends, they’re not solely relying on search engines for ideas.
Off-the-shelf software can only work if you are prepared to customize the workflow yourself. Beware though, the promotional products industry is complex, and off-the-shelf software does not often tie the promotional products workflow from beginning to end, thus requiring multiple systems.
Content marketing has quickly become an essential part of the overall marketing strategy for today’s most successful brands.
The key to great content marketing is having good, quality content. This is made that much easier after you have completed the steps above. Armed with a target audience, a point of differentiation, curated suppier partnerships, and a strong brand, it’s so much easier to present yourself as a thought leader and create appealing content to draw in prospective clients.
Here are some other marketing ideas to explore:
Social Media: Facebook, Twitter, Instagram, TikTok, LinkedIn are the most high-profile social sites and represent great opportunities for you to build a community around your company. Once you have that tribe/community, you create a wider moat around your business.
Blogging: Create your own blog on Squarespace or WordPress and publish topics relating to your business. You could also look at guest posting on partner blogs where a built in audience already exists.
eBooks: like blogging, there are many advantages to creating an eBook. They’re mobile, inexpensive to create and distribute and provide value to potential clients. You can also collect leads easily by creating a landing page with a form that is required to be filled out before the eBook is delivered to their inbox. For inspo, here is s a collection of our ebooks .
Podcasting: If you like to interview people and tell stories, you might connect with your audience through podcasting. Podcasting tools are very easy, it’s preparing the content that takes the time. To produce commonsku’s podcast, we use a Blue Yeti mic, Zencaster to record, Soundcloud for publishing and work with a freelance editor to clean up the files.
Public speaking: Create a presentation on trends or some other macro topic that will help your audience be more successful in their line of work.
Knowledge is power in the promotional products business. It’s critical to invest in ongoing education so you can stay in touch with trends, product information, and what’s happening in the industry.
Free Resources:
The Backpack: The Backpack is our bimonthly newsletter that features trends in merch, top articles and podcast episodes, and global news impacting merch life. Packed full of new content on the first and third Friday of each month it’s an inspiring resource for your weekly grind!
PromoKitchen: Promokitchen is a non-profit organization devoted to education and mentorship for the promotional industry. It’s a great resource for new and experienced industry professionals alike. PromoKitchen features content via its blog, podcast and offers mentorship opportunities through its mentor program.
DistributorCentral: DC is a solid option if you are looking for a free product search engine. There is no downside to signing up if you are looking for a quick and free way to find products and suppliers.
PromoMarketing: Like DistributorCentral, PM is a free search database with hundreds of thousands of products. It’s a good resource for distributors looking to see what’s available without any cost.
Top Industry Blogs for Distributors: Check out this list of fabulous industry blogs that are geared toward distributors.
commonsku blog: This is where you will find a range of articles and podcasts on how to run a modern promotional products business.
Paid Resources:
PPAI – The industry’s largest non-profit association. PPAI offers education, trade shows, a search engine (through SAGE) and publishes a popular industry magazine (PPB). While the base membership will cost you a little under $1000/year, there is ample value here for a new business getting into the industry.
Regional Associations: Affiliated with PPAI, there are several regional associations that cater to distributors and suppliers in the smaller markets. They are quite affordable and offer educational and networking opportunities with other professionals in your immediate market.
ASI – the industry’s largest for profit industry trade association. Like PPAI, ASI offers education, a product search engine (ESP), trade shows and publishes their own magazine (Counselor). The cost for a basic distributor membership is about $50/month.
In the spirit of transparency, commonsku has business relationships and integrations with ASI/ESP, PPAI, SAGE and DistributorCentral.
Like any business, building a successful distributorship takes time, patience, and lots of hustle. We have found that when a distributor takes a focused, disciplined, and brand-centric approach to their company they end up creating a valuable business that goes well beyond the owner-salesperson’s book of business. They end up creating a defensible business where business comes to you, strong margins are maintained, and your customers can’t live without you.
Now, that’s something to be proud of.
Want even more resources? Our blog is full of even more business resources, sales and marketing tips, and industry updates. Book a demo of commonsku’s business management software to help you save time, gain efficiency, and unlock new levels of growt