Abby Koss recently sat down with her ASI counterpart, Dan Brown, along with key contacts at two of the biggest supplier names in our industry, Rob Newell from SanMar (asi/84863) and Aaron Gunderson from The Magnet Group (asi/68507). They discussed the state of the industry, tips for navigating the current landscape, what’s trending and more. Here are the biggest takeaways from their discussion.

Q: What’s the most rewarding thing to you about our industry?

Rob Newell (RN): As a strategic account manager, I work with a group that really focuses on the Top 40s who are SanMar's largest customers. It's fun, challenging and I absolutely love it.

Aaron Gunderson (AG): All the relationships and the great people. Some of my best and longest lasting friendships are customers of mine.

Dan Brown (DB): The most rewarding thing for me is working with newer distributors, seeing them still in the industry years later and realizing how much they’ve grown their business.

Q: What trends are you seeing at ASI?

DB: Although we lost about $5 billion in industry sales during the pandemic, since Q4 of 2020, every quarter has beaten that same quarter from the year before. I would predict that as we get to the end of 2023, we will be back at those 2019 numbers, which was a record year for our industry.

AG: There’s fantastic growth with high-end products like drinkware, tech accessories and bags. Items that are $10 and above are selling better than most products under $10. A little contradictory, but our magnets are also selling really well since they’re easy to buy in bulk and distribute.

RN: I agree. Retail brands, especially in apparel, bags, and accessories, are just hot. Apparel is growing a little faster than the rest of the market. Taking care of employees and gifting is also going to be a key factor for companies to motivate their employees in the future.

Q: What advice would you give to distributors around discussing price increases with their customers?

AG: Be honest and be transparent. From personal to corporate life, prices everywhere are increasing. Tell them if cost is a concern, it’s better to order sooner than later because the cost could go up again.

RN: Communicate, be transparent, use a consultative sales approach and offer a lot of solutions. I call it the 3 C's: Figure out the category, then the color and lastly the cost. Now, you can actually find a solution. Don’t be afraid to offer the more expensive alternatives because upselling is the key to success. Sometimes budgets can be stretched.

DB: Plan ahead. It’s important with costs and turnaround times. And use a consultative approach. By providing a service and being an idea generator for your client, you become a consultant and not just product provider, making price less of an issue. Also, remind clients that they will stand out more with a better quality product, which is the whole point of advertising.

Q: What tips would you give someone who's just getting started in the industry or looking to grow their business?

RN: Invest in yourself, period. Whether it's technology, education tools, relationships, getting to know your suppliers, etc. Piggybacking off of Dan, you need to plan ahead. Ask customers lots of questions, get to know their business and how they're operating, what they're thinking and what they're planning for the future. The closer you get to your customers, the more it will help in the long run. Also, diversifying your business and having backups for when things don’t go to plan will help.

AG: Look to be a solution provider, not a product provider. Leverage all the tools suppliers have to help distributors grow their business, gain new customers and break into new markets. Most of the industry’s best suppliers have all the materials you need to promote your business, but many distributors don’t bother to ask suppliers for help.

DB: The biggest tip I have is everyone uses promo, and you’d be hard pressed to find a business that doesn’t. If you're an existing business, like a print or sign shop or a screen printer and you want to grow, you can sell promo to your existing customers. My second tip is stay informed on what’s happening in the industry through ASICentral.com. ASI’s editorial and research team constantly publishes articles about market trends, upcoming products and even shortages or supply chain issues. You have to educate your end-buyer because they don’t have access to the same information as you, and this also makes you more of a resource than a salesperson to them.

Q: What would you say are three things that every successful distributor does? And then on the other hand, what mistakes have you seen made by those who may not have been successful?

DB: To be successful, the number one thing to do is market using as many different channels as possible, but especially social media and promo products. Number two, partner with a strong group of 10-15 suppliers. The third thing is to have a research tool that you can use to find products and highly rated suppliers quickly. Now, the number one mistake people make is giving up too soon. You have to build your business up and put time, effort and energy into it. The second mistake is not doing a solutions selling approach. You have to provide more than just a product to be successful.

RN: Successful distributors develop strong end-buyer relationships. Follow up is key. A mistake distributors make is putting all their eggs in one basket. Don’t make your entire business rely on one huge account because if you lose it/they get acquired/your contact leaves, you could lose your entire business. Sell to different markets and have multiple contacts at every account. Another mistake is when  distributors try to source product themselves from overseas. They often get burned.

Q: What’s the biggest selling opportunity as we head into the end of the year or that people should think about for Q1 and Q2 for next year, whether it's markets or products or general opportunity?

RN: Holiday gifting is now, so get in front of it. Preplanning is important, especially with pricing concerns. In the near future and over the next 5 to 10 years, expect huge growth in the healthcare category.

AG: Holiday gifting and employee appreciation season is upon us, which is especially important with so many people and different business segments still working from home. There’s a big kitting opportunity, just make sure you work with suppliers who offer kitting and have drop shipping capabilities.

DB: Traditional promo like apparel, drinkware and writing instruments are back. We have the same top markets, like healthcare and education. Remember to educate yourself. There are plastic bag bans in certain areas of the country, and for distributors who knew those ordinances were coming, they started selling totes ahead of time.

Q: How can a new distributor market themselves best?

RN: Have a marketing calendar and make sure you have a plan. Mark seasonal or cyclical events for the industries you sell to. Use multichannel advertising, especially promotional products, and stay active on social media. Stay in touch with your customers and present products that meet a need. Stay in touch with customers and sign up for Google alerts so you can follow what’s going on and present products that meet their needs.

AG: Use a multiprong approach, stay consistent and be diligent.

DB: Have a strong online presence, starting with a great website that shows promo and allows people to search. Also, claim your Google My Business page, which will help build your online reputation. And lastly, be smart about your social media, especially so you can reach young buyers the way they want to be reached. Don’t just post pictures of products, but tell stories about products and remember to have fun.

Q: Do you see any marketing campaigns that larger companies are doing that have resonated, or different activities that other smaller distributors could potentially replicate?

AG: The things we just talked about, like multichannel marketing and having a strong social media presence. If you’re not savvy with social media, don't be ashamed to hire a young employee or a college intern because they’ve grown up with it. You can outsource everything, so if you’re not good at something, hire someone who is.

RN: Create a customer experience with professional packaging and customization. Another thing is, know your customers and keep track of their preferences and other details with a CRM. For example, if you know your 30-year-old buyer doesn’t like Facebook, don’t send them a message that won’t be read. Another marketing tactic I really like is influencer marketing. Use your customers as resources to rate you’re a product and talk about it on social media.

Q: Any closing comments or general tips or resources for people looking to get into the industry? Is there anything on your respective websites that you would point people towards?

RN: For general tips, focus on diversifying your business as much as possible. It's safer. You'll definitely be able to sleep at night. Use tools your suppliers have to help you grow your business. SanMar has a lot of different marketing tools to help you grow your business, digital tools, video content, images, social content, a newsletter and a blog. SanMar University is a one-stop shop that has learning paths on how to position a product and how to ask the right apparel-related questions; trending content; decoration trends and tips and tricks. We take you through things step by step.

AG: The Magnet Group’s website is also a hub for information. You can search and filter products very much like you would on Amazon and check live inventory. There are also options to filter products by higher inventory. You’ll can find compliance documents, audits, all of our electronic catalogs, brochures and sales flyers which you can also customize. They’re easy for you to grab, add your logo and send to your customer. Make sure you use our website – we also have hundreds of employees ready and willing every day with anything specific.

DB: ASICentral.com is a great resource where you’ll find industry news coverage. Our State of the Industry talks about what products and markets are hot and who the Top 40 suppliers are. The Global Ad Impressions Study provides specific info on what end-users think of promo, broken down by demographics like location, gender and age. All of this can help you educate customers. ASI also wants to help you, which will help build relationships and find the right suppliers to work with. We’re here to help you with whatever you need.

Want to learn more? Watch the entire conversation here.