Promotional products are a lucrative business, with the industry hitting $25.8 billion in 2022. Businesses and organizations continue to find value in distributing items imprinted with their logo, and the average person enjoys receiving them (how many logoed tees do you own?). You can easily enter this industry and start selling products like pens, phone chargers, and tote bags to places like banks and hospitals. Here\u2019s how you can get started.<\/p>\n
Step 1: Register Your Name<\/strong> Step 2: Connect With Suppliers<\/strong> It makes more sense to join a promo products membership company to find good quality suppliers. Once you become a member, you\u2019ll have easy access to the company\u2019s supplier members. Membership companies have online marketplaces and catalogs where suppliers list their products. The suppliers are also rated, so you can filter based on the quality of the supplier. Membership companies also hold trade shows and other events where you can network with suppliers. Step 3: Set Prices<\/strong> Step 4: Launch a Website<\/strong> Step 5: Reach Out to Prospects<\/strong>
\nCome up with a name for your business. The best names are simple and make it clear what you\u2019re selling. If you opt for a cleverer name, keep it on the shorter side. After all, you want it to be easy to add your business name to your promos! Once you select a name:
\nVisit business.gov to register your business with a county or city.
\nApply for a vendor\u2019s license from your county admin office.<\/p>\n
\nIn the promo products industry, manufacturers and wholesalers (companies that make or warehouse physical products) are called suppliers. Finding good suppliers will be your key to doing business and getting quality products for your customers.
\nIf you don\u2019t mind doing a lot of legwork, you can research online to find your suppliers. While this is free, it will take a lot of time and you won\u2019t have the luxury of knowing how good the supplier is (since you\u2019ll be taking their word for it).<\/p>\n
\nAs the saying goes, never put your eggs in one basket. You\u2019ll want to develop relationships with multiple suppliers so that if a supplier is out of a certain product, you can quickly go to another one to fulfill an order.<\/p>\n
\nMost suppliers provide pricing grids that include the suggested final cost of the item. Often, the cost to you is 60% of the list price, giving you a 40% profit margin, but you have flexibility beyond that to set whatever price you want. The average profit margin for promos in 2022 was 36%. You want to be very careful when setting prices to not go too low. Profit margin is everything, so while it\u2019s okay to discount a little to close business, if you discount too much, you\u2019ll be doing more work than you\u2019re getting paid for. Shoot to remain competitive, but always make it worth your time. You can visit other distributor websites to try to get a feel for the pricing they\u2019re charging.
\nKeep in mind that your profit margin will be higher on special orders, like small orders or orders with custom packaging.<\/p>\n
\nOf course, you can set up a website on your own, but it\u2019s much easier if you belong to a membership organization that provides websites. You\u2019ll simply select a template, add your logo, select your brand colors, customize the contact info, and launch it! Some of these websites even allow your customers to order directly from you!
\nAdd your web address to all business collateral (business cards, invoices, etc.), email signatures, and social media profiles.<\/p>\n
\nYour customers can be just about anyone, but good businesses and organizations to reach out to when you\u2019re getting started include schools, hospitals, banks, restaurants, real estate firms, and small businesses. A good contact to ask for is the person in charge of marketing (although other contacts like human resources and principals might also be point people). Tell them you sell promotional products and ask if they need any branded merch. Schedule appointments and come prepared to show products.<\/p>\n