As the economy reopens in fits and starts, some companies are preparing to fill open positions by hunting for the right candidate among droves of hopeful job seekers. They could turn to a headhunter or staffing agency, or they could use a company they already know: their trusty promotional products distributor.

That’s the premise that JH Specialty (asi/232445) of Fort Wayne, IN, is banking on. The distributor offers digital marketing and unique recruitment strategies in addition to the typical array of branded pens, tote bags and water bottles. JH Specialty has consultants ready to help clients rise above thousands of job postings with lead ads, video ads and automated email responses that offer a unique personal touch – ensuring eager applicants that their submission has been received and they’ll hear from the company soon.

At Your Services: Distributors have pushed hard to diversify themselves in recent years with a wider array of services beyond promo.

Leaders in the promotional industry have long touted the importance of being a one-stop shop – a trend that has noticeably picked up in the last three years, according to Counselor SOI data, as distributors have increasingly offered a variety of additional services. That diversification strategy has proved especially crucial during the coronavirus pandemic. With buyer needs completely shifted, companies that expanded beyond promotional products had something more to offer clients. “The services side of the business has been able to make up for the losses that we’ve seen in the promotional side of it,” says John Henry III, founder and CEO of JH Specialty and Counselor’s 2019 Distributor Entrepreneur of the Year. “Our strategy where we go to market with multiple services has worked out well for us to weather this storm.”

Ultimately, marketing comes down to communication, and a distributor’s job is to help market its clients, be it through promotional products or other offerings, says Michael Fossano, vice president of account services at Premier Communications Group (asi/298496). The distributor offers a range of services that include graphic design, digital marketing, trade show promotions and public relations. “We’ve had to think on our feet a bit because that’s what our clients are relying on us for,” he says of the last few months.

The benefit of diversification during these unprecedented times, though, was that even though traditional promotional products sales took a major hit, one-stop shops could help make up for the loss through other ways – especially digital services.

At JH Specialty, requests for digital services have been “through the roof,” according to Henry. Prior to March, the demand for promotional products and digital services at the company was pretty evenly split. During the pandemic, the increased demand for digital has helped offset losses in promo product sales. “Like many companies, we were poised to be in a great position, and if the COVID pandemic hadn’t happened we would’ve been making hay right now,” Henry says. “We’re not making hay, we’re making bread – but at least we’re making something.”

Money Makers: Comparing the revenue streams of small and large distributors tells an illuminating story. While large distributors are much more likely to focus on promo, by comparison smaller companies are more invested in other services, such as printing.

Having a diversified strategy is key to staying nimble in a rapidly evolving business landscape. “We’ve been in constant contact with our customers,” says Elizabeth Tate, CEO of Memphis, TN-based Signet Inc. (asi/326636), which offers warehousing, kitting and company stores, among other services. “We’ve had our ear to the ground; we’ve been pivoting with them.”

For many clients, pivoting meant moving business online by redesigning a website, refining marketing platforms, executing email campaigns or creating micro-websites specifically to update customers with whatever data is relevant to them. Some distributors have hosted virtual trade shows or merchandise meetings to showcase products, as they would have to prospective clients in person.

“The services side of the business has been able to make up for the losses that we’ve seen in the promotional side.” John Henry, JH Specialty

Others have provided promo kits that companies would’ve gifted to guests at events, award ceremonies or end-of-the-year parties. Distributors have also sold promotional employee gift kits, as companies try to maintain their own cultures. For example, Signet helped a client distribute NASCAR-themed “pit kits” in lieu of a corporate event at the racetrack. Consolidated Marketing Services (asi/154912) in Sommerville, MA, produced Disney-themed gift boxes for a client filled with treats obtained from a Disney park, substituting for a company trip to Disney World. Distributors may provide custom packaging for the gifts as well.

Consolidated Marketing Services has received orders to distribute bottles of wine to a client’s employees ahead of a virtual happy hour, according to company President Charleen Smotrycz. The distributor has continued warehousing during the pandemic, providing pick-and-pack branding to clients.

The coronavirus has even spurred some distributors to take on the role of sounding board, lending a sympathetic ear and welcome distraction during difficult times. It’s all about being a positive influence, whether by making a client laugh on the phone, generating revenue through e-commerce or getting a promo order for a graduation party, Henry says. “Our tagline is ‘A Partner You Can Rely On,’” he adds. “Our whole goal is to find customers that have a pain point or problem and help them overcome that and be that partner.”