Small Distributors | ($250K and under in revenue)
Small Distributors
($250K and under in revenue)
Top Markets
1. Education
2. Healthcare
3. Construction
4. Nonprofit
5. Hospitality
Top 10 Products
1. T-Shirts
2. Drinkware
3. Caps/Headwear
4. Polos
5. Writing Instruments
6. Bags
7. Wearables (Other)
8. Flags/Banners
9. Buttons/Badges/Ribbons/Stickers/Decals/Emblems/Lanyards
10. Books/Cards/Postcards/Stationery/Giftwrap
Top 3 Challenges
1. Increasing size of customer base
2. Remaining profitable under pressure to cut prices
3. (tied) Recruiting and retaining well-qualified employees
(tied) Finding new product ideas to present to clients
Things are different for the thousands of small distributors in our industry. They’re the most embedded in the education market and sell the greatest percentage of writing instruments. They suffer the worst client retention of the four revenue classes and are least likely to get requests for eco products. That doesn’t mean there are no similarities; in fact, the majority of small distributors have sourced overseas, and they, too, feel the pressure to cut prices.
Median Number of Clients Served
47
Percentage of Clients Retained
74%
“My Clients Asked For More ____ Products In 2023 Than The Previous Year”
(% Who Agree)
offer kitting as an additional service.
Median Number of Orders
177
Average Value of Orders
$959
“Do You Source Products From Outside The U.S. Or Canada?”
(% Yes)
5%
are part of a buying group.
Medium Distributors | ($250K+ to $1M in revenue)
Medium Distributors
($250K+ to $1M in revenue)
Top Markets
1. Education
2. Healthcare
3. Construction
4. Nonprofit
5. Manufacturing & Distribution
Top 10 Products
1. T-Shirts
2. Drinkware
3. Caps/Headwear
4. Polos
5. Bags
6. Wearables (Other)
7. Writing Instruments
8. Shirts (Other)
9. Buttons/Badges/Ribbons/Stickers/Decals/Emblems/Lanyards
10. Flags/Banners
Top 3 Challenges
1. Increasing size of customer base
2. Remaining profitable under pressure to cut prices
3. Finding new product ideas to present to clients
These distributors tend to have more in common with their smaller counterparts – particularly a desire to grow their customer base and seeing the greatest demand for Made-in-the-USA items – than the larger distributors who surpass them in revenue. There are a number of troubling signs for this group that bear watching; order values as well as clients served/retained took noticeable dips in 2023. On the plus side, the average number of orders increased after a one-year drop.
Median Number of Clients Served
80
Percentage of Clients Retained
75%
“My Clients Asked For More ____ Products In 2023 Than The Previous Year”
(% Who Agree)
offer kitting as an additional service.
Median Number of Orders
510
Average Value of Orders
$1,308
“Do You Source Products From Outside The U.S. Or Canada?”
(% Yes)
22%
are part of a buying group.
Large Distributors | ($1M+ to $5M in Revenue)
Large Distributors
($1M+ to $5M in Revenue)
Top Markets
1. Education
2. Healthcare
3. Construction
4. Financial & Insurance
5. Nonprofit
Top 10 Products
1. T-Shirts
2. Drinkware
3. Polos
4. Caps/Headwear
5. Bags
6. Wearables (Other)
7. Shirts (Other)
8. Writing Instruments
9. Desk/Office/Business Accessories
10. Mobile Tech Accessories
Top 3 Challenges
1. Increasing size of customer base
2. Finding new product ideas to present to clients
3. Recruiting and retaining well-qualified employees
It’s at the million-dollar mark that a gap starts to emerge in the promo industry distributor comparisons. Large distributors dramatically expand their client roster and are much more likely to participate in strategies like sourcing direct. Impressively, this group matches the extra-large distributors in client retention rate (nearly 9 in 10 clients). Even though it wasn’t the most prevalent response among the cohort, a quarter of large distributors named “finding new product ideas” their top challenge, which far surpassed all other revenue classes.
Median Number of Clients Served
193
Percentage of Clients Retained
88%
“My Clients Asked For More ____ Products In 2023 Than The Previous Year”
(% Who Agree)
offer kitting as an additional service.
Median Number of Orders
1,200
Average Value of Orders
$1,601
“Do You Source Products From Outside The U.S. Or Canada?”
(% Yes)
25%
are part of a buying group.
Extra-Large Distributors | (5M+ in Revenue)
Extra-Large Distributors
(5M+ in Revenue)
Top Markets
1. Education
2. Healthcare
3. Manufacturing & Distribution
4. Retail
5. Construction
Top 10 Products
1. T-Shirts
2. Drinkware
3. Polos
4. Caps/Headwear
5. Bags
6. Wearables (Other)
7. Desk/Office Accessories
8. Writing Instruments
9. Electronics/Computer-Related Products (Non-USBs or Mobile Tech)
10. Mobile Tech Accessories
Top 3 Challenges
1. Increasing size of customer base
2. Finding new product ideas to present to clients
3. Recruiting and retaining well-qualified employees
Life is different at the top of the food chain. Extra-large distributors stand out in a number of ways, from being the most active in sourcing direct to seeing, by far, the greatest demand for environmentally friendly and socially responsible products. These distributors dominate in markets such as healthcare and retail compared to smaller firms. And after increasing their client retention and number of clients served for two consecutive years, it will be interesting to see just how far they can push the envelope.
Median Number of Clients Served
220
Percentage of Clients Retained
88%
“My Clients Asked For More ____ Products In 2023 Than The Previous Year”
(% Who Agree)
offer kitting as an additional service.
Median Number of Orders
3,900
Average Value of Orders
$2,574
“Do You Source Products From Outside The U.S. Or Canada?”
(% Yes)
49%
are part of a buying group.