New Distributor Guide Your Intro to Promo
We offer the software and solutions you need to manage your business so you can focus your time and energy where it matters - on your clients. Now that you are a part of the promotional products industry, we invite you to explore and discover the power of promo and everything you need to know to get started! Welcome to SAGE!
Promotional Products Promotional products are useful and tangible items imprinted with an advertiser’s name, logo or message that are utilized in marketing and communications programs. Promotional products that are distributed for free are often referred to as advertising specialties, and the items that are given as an incentive for a specific action are known as premiums. Aside from those common designations, promotional products can also be called business gifts, awards, commemorative items, and the recently popular terms giveaways or swag. What are promotional products? Promotional products are an incredibly powerful marketing tool since they allow a brand to connect with consumers by engaging their senses. As one of the only forms of advertising that allows consumers to interact with a brand on a physical level, promotional products can leverage the greatest audience reach, promoting brand recall, favorable impressions, and repeated exposure. Why promotional products? Promotional products are purchased by companies to boost brand awareness. These items can be as simple as pens given out to everyone who visits their place of business, or more elaborate for a specific advertising initiative. A useful tool for any advertising agenda, several industries consistently spend a good portion of their advertising budget on promotional products. Who buys promotional products? Who are Suppliers? Suppliers manufacture, import, convert, imprint, or process promotional products that are offered for sale through promotional product distributors. Who are Multi-Line Representatives? Multi-Line representatives are sales agents that are hired by a supplier company to represent their product offering in a given territory, market, or to a specific account. Who are Distributors? Distributors, also known as consultants, develop ideas for using promotional products in a marketing or promotional campaign, buy them from suppliers and sell them to end-buyers. Who are Decorators? Decorators are companies that provide a decorating service, such as screen printing, embroidery, and etching to distributors in the promotional products industry. Who are End Buyers (Clients)? End buyers use products to promote their message. (The retail/business that purchases the items from a distributor) Who are End Users (Recipients)? End users receive a product for their own use from an end buyer. (The customer of the retail/business that purchased the items from the distributor) What are Business Services? Business services are available to those in the promotional products industry to provide everyday business solutions such as a research tool. What is an Association? Industry associations provide their members comprehensive networking, education, legislative, and business-saving benefits.
Packaging Home/Kitchen Automotive Cards Office Hats Food & Beverage Bags Drinkware Apparel Supply Chain A supply chain is a system of organizations, people, technologies, activities, information, and resources involved in moving materials, products and services all the way through the manufacturing process, from the original supplier of materials supplier to the end customer. The American Production and Inventory Control Society (APICS) What is a Supply Chain? What Does the Promo Products Industry Supply Chain Look Like? Factory Supplier/ Wholeseller Distributor Client End User Recipient Importer Decorator Service Provider, Agency, Exhibit Co., Estore, Pop-up Promo Industry Stats Top 10 Promotional Product Categories Top 5 Promo Products Buyers 1 | Healthcare: Hospitals, Nursing Homes, Clinics 2 | Business Services: Consulting Firms, Management, Training, Communications 3 | Retail: Gift shops, Online Stores, Retail Merchandise 4 | Financial: Banks, Savings & Loan Companies, Credit Unions, Stockbrokers 5 | Manufacturing: Factories, Warehouses Why not go straight to the manufacturer? Since distributors are partnered with many promotional products manufacturers (suppliers), they’re aware of all the unknown risks that may befall a simple transaction. They’re responsible for ensuring product quality and safety and overseeing any legal or logistics concerns for each purchase. Their established relationship with a supplier can accelerate a purchase order and open the opportunity for repeat initiatives. Also, for these reasons, most manufacturers and suppliers will only work with a distributor and not end-buyers. If the supplier isn’t manufacturing the products, then who does? The manufacturer sends the items to the supplier, and the manufacturer and the supplier are sometimes the same people. Suppliers collaborate with distributors and wholesalers to ensure that other parties can get the goods or services they need. Distributors have the necessary channels and marketing skills to sell their products to wholesalers and retailers. Suppliers need the support of a distributor to get their products out there. PPAI.org 7 in 10 distributors expect positive profit growth in 2023 Promotional products make up a $26.78 billion industry that’s continually growing. The industry grew 2.63% in 2024. 2025 Consumer Study, PPAI Research Apparel - 64% Drinkware - 50% Bags - 48% Food & Beverage - 46% Hats - 36% Office - 33 % Cards - 32% Automotive - 29% Home/Kitchen - 28% Packaging - 28%
Regional associations help promotional products industry professionals gain expertise and develop business ethics through education, certification, and the exchange of ideas in a variety of business and social environments. Regional associations provide educational opportunities, tradeshows, and networking events for their members. Regional Associations Via the SAGE Affiliate Program, SAGE caters to 26 regional associations in the United States that are involved with promotional products. The SAGE Affiliate Program is a unique, customized program designed to give regional association members in the promotional product industry special incentives, including discounts on SAGE products and services. SAGE Affiliate Program Who are PPAI and PPPC? Promotional Products Association International (PPAI) was founded in 1904 as the primary industry trade association. PPAI advocates the power and value of promotional products in the marketing and advertising professions to ensure the success of its members and the global industry. PPAI Founded in 1956, Promotional Product Professionals of Canada (PPPC) is the national not-for-profit association of suppliers and distributors of promotional products for business gifts, rewards, incentives, premiums, and specialty advertising products. PPPC SAGE and PPAI entered into a strategic alliance in 2011 to provide the industry with the combined benefits of a PPAI membership and SAGE products and services. As part of the alliance, PPAI distributor members have access to SAGE Workplace (1 subscription license per membership), and SAGE Workplace subscribers have PPAI membership support through one low membership price, supported by two of the strongest organizations in the promotional products industry. PPPC and SAGE have teamed up to provide the Canadian promotional products industry with the combined benefits of a PPPC membership and SAGE products and services. As part of the relationship, all PPPC distributor members will receive a two-user subscription to SAGE Workplace plus membership to PPAI. In addition, all PPPC supplier members will receive a SAGE Advantage Membership with their PPPC membership. This partnership provides the comprehensive benefits of PPPC with the cutting-edge technology solutions and business services provided by SAGE.
Sales Process Raw Materials Manufacturing Suppliers Distribution Customers Consumers The distributor then sources products through a research tool. When quoting a customer, you must establish yourself with the supplier and make sure you’re accounting for all the additional charges that may be required. The customer then selects their preferred product and supplies the necessary information and artwork. The distributor then works with the supplier to ensure all order details and artwork are correct. The supplier will then provide an artwork proof for the distributor to have approved by the customer prior to production. Many suppliers will offer free proofs, however some will charge a nominal fee. The customer will revise or approve the proof. The distributor will proceed processing the order. The supplier will then ship either to the distributor or to the customer directly. 2 3 4 5 6 7 8 A customer needs promotional items and reaches out to their distributor. 1 Industry Pricing Pricing to distributors is based on the suggested (catalog) retail price less one of the following percentages. The industry standard is 40% and if you can offer 50% off retail, that’s even better. It’s rare for an item/product to be on a J or Y making 5%. If more than one code is given, the codes correspond with the quantity discounts. A - 50% profit based on suggested retail B - 45% profit based on suggested retail C - 40% profit based on suggested retail D - 35% profit based on suggested retail E - 30% profit based on suggested retail F - 25% profit based on suggested retail G - 20% profit based on suggested retail etc... J - 5% profit based on suggested retail P - 50% profit based on suggested retail Q - 45% profit based on suggested retail R - 40% profit based on suggested retail S - 35% profit based on suggested retail T - 30% profit based on suggested retail U - 25% profit based on suggested retail V - 20% profit based on suggested retail etc... Y - 5% profit based on suggested retail OR
Artwork Terms • Blank Goods: Refers to promotional products without decoration/imprinting. • Digitizing: The process of scanning printed text or logos into a computer. Also, the process where a design is plotted in a computer language that an embroidery machine can read. This is the process needed in order to take art from camera ready to a readable format in order to reproduce an embroidered design. Often a cost is associated, but once the original is created, you can reuse the file and avoid costs in the future. • Vector Image (EPS): A vector image is made of points instead of pixels. What that means in layman’s terms is that a vector image can be blown up to a much larger size without being blurry. The reason for this is that the points join paths (think, connect the dots), whereas with pixels, there is only a finite amount – the total amount that makes up your image. Generally, vector artwork is preferred for imprinting so that it can be sized up or down without losing image quality. • PNG: A .png file (pronounced ‘ping’) does not lose quality during the editing process. The .png file type was designed to transfer images via the internet and, therefore, is the ideal file type for web graphics. • Print-Ready File: The print-ready file, depending on the size of the item you are printing, could be extremely large and possibly take a long time to download or even require a special delivery method such as We Transfer, Dropbox, or Hightail. • Proof: A proof is a much lower resolution version of the actual print file, which is ideal for sending via email so the recipient can see a visual representation. • Pantone Color Matching (PMS): A standardized color matching system that allows a designer to accurately match color across all forms of media. A PMS number tells the printer how much of each color to use when printing an image. Industry Terms to Know • Set Up Charge: A charge by a supplier for preparation work required to produce an order that is not included in the product price. • Repeat Set-Up: This charge applies if a distributor is repeating a previous order with the same artwork and will typically be less than the initial set-up charge. • Die Charge: A charge by suppliers for creating a physical implement used for imprinting products. • Imprinting Charges: A charge for adding decoration to a blank promotional product that is not included in the published price of the product. • Additional Color Imprint: If a product’s pricing doesn’t include full-color imprint, there is likely an additional charge for additional colors beyond one color. • Less Than Minimum (LTM): Refers to the lowest quantity below the smallest quantity listed in a supplier’s product pricing grid available for purchase. Less than minimum orders may incur a special charge. • End Quantity Pricing (EQP): Refers to the last (highest) quantity pricing level or price break for stock items listed in a supplier’s product pricing grid. Sometimes a supplier will offer EQP on orders where the order quantity is lower than the last quantity listed as a deal or incentive. • Net Pricing: The actual cost to the distributor for a product or service provided by the supplier/ manufacturer. • Column Pricing: Refers to the quantity pricing levels or price breaks for stock items. • Lead Time: The time between the placement and completion of an order. • Drop Shipping/Blind Shipping: A term that refers to the direct shipment(s) from the supplier/ manufacturer to one or more locations other than the distributor as specified by the advertiser/end buyer. • FOB Shipping (Free On-Board Shipping): Refers to the legal transfer of ownership of goods from the supplier to the distributor. This notation typically will indicate a specific location, e.g. factory location or delivery location. • Freight Claim: A legal process that may be initiated by a supplier or distributor for financial reimbursement for a loss or damage of a shipment while in transit. • In-Hand Date: Refers to the last day that a promotional products order must be delivered. • Over/Underrun: Number of products plus or minus that a supplier/manufacturer may ship a variance of order quantity. • S&H (Shipping and Handling): Refers to any additional charges for preparing an order for shipment and actual shipping costs which will be added by the factory to the distributor invoice. • Shipping Date: The date an order should be shipped from the factory to the delivery address. • 3rd Party Shipping: Refers to the use of a distributor-requested shipping company and account number for order shipping charges. Pricing Terms Shipping Terms
Industry Education Each month we bring you live webinars so you can get inspired, learn to use SAGE products like a pro, level up your marketing, and gain valuable insight into tons of important industry topics. SAGE Webinars The promotional products industry is chock-full of educational resources. Be sure to check out what the industry has to offer through webinars, trade shows, guides, and more. Increase your industry knowledge, level up your marketing game, and become a SAGE wizard! Our curated resource collection includes: • Webinars • Training Videos • Industry Guides • Cheat Sheets SAGE has everything you need to get inspired and grow your business! Find all of these resources and more here. SAGE Resources • White Papers • One-on-One Sessions • And More! Certification is an investment in yourself and your career. PPAI Professional Development designations are highly respected and the recognized credentials in the promotional products industry. As the industry benchmarks, they establish your professional credibility to colleagues, clients, employers and peers. PPAI offers a professional certification program for all stages of your career: • Trained Advertising Specialist (TAS) certificate • Certified Advertising Specialist (CAS) certification • Master Advertising Specialist (MAS) certification • Master Advertising Specialist Plus (MAS+) certification The PPAI Certification Program is an all-inclusive industry-wide program and does not require membership with PPAI. Associated certification costs for both members and non-members are the lowest in the industry. Source: PPAI PPAI Certification PPAI delivers the best-of-the-best in online learning opportunities to thousands in the promotional products industry. The PPAI Online Education platform is a growing database of hundreds of live recorded sessions and on-demand webinars, offering a wide range of content: marketing and advertising, business management, corporate responsibility, sales, technology, social media, decorate, small business solutions, etc. PPAI Online Education offers live webinars, which provide the most up-to-date and relevant content to the promotional products industry, presented by expert speakers. PPAI Online Education can be accessed anytime and from anywhere, 24/7. All on-demand webinars are complimentary to PPAI members and members also receive discounts off on-demand PPAI event recordings. Source: PPAI PPAI Resources As a new distributor, it’s imperative to start making connections so you can discover what the industry has to offer! See the latest education offerings from industry experts and find the nearest trade shows and events with PPAI’s Industry Calendar here. To view SAGE’s upcoming events, follow us here. Trade Shows and Events
Getting Started Selling Promo • Tax ID: Set up your business with the state and get a Tax ID. • State or Province Resale Certificate: You will need to provide this to every supplier that you order from for the 1st time. • Sales Tax: Since you are reselling products purchased from suppliers, you don’t pay tax, but you must collect sales tax when applicable and selling to your customer. Most states require you to pay the sales taxes that you collect every quarter, be sure to visit your state comptroller’s website or speak with a tax expert for additional details. You will need a Tax ID as well as a State or Province Resale Certificate Being verified as a promotional products distributor allows you full access to the industry and everything it has to offer. Verification is like your professional stamp of approval, proving to industry suppliers that you are an established distributor with proper industry knowledge and business practices. Why receive Distributor Verification with SAGE? We need a total of two or more qualifiers in order to verify your business as a promotional products distributor.** What are the qualifications for verification? If your company name indicates that you provide services related to the promotional products industry, and you have a state or province certification verifying your registered company name, your name and certification can be used as one of the two required qualifiers for distributor verification. Is your company name promotional and registered with your state or province? This refers to a promotional website or an active promotional social media page that promotes and sells products or services related to the promotional products industry. Do you have a promotional website or social media page? This includes a promotional industry group membership or affiliation. Are you a member of a regional promotional products association? If so, which one? This includes a proof of purchase indicated via an invoice from a promotional product supplier. Can you provide a minimum of one invoice? This includes proof of industry experience, reference letters, reference inquiry, industry referrals, etc. Have you worked for another distributor? Do you have an email from another distributor or supplier vouching for you? Tell us your story or additional information you would like to provide for verification. If you have attended a promotional products tradeshow or are involved in a distributor group, please include that information. Any other information you would like to provide? Your Pathway to Verification Once acquiring two or more qualifiers, you will be able to apply for verification through sageworld.com, PPAI.com, PPPC.ca, or your SAGE Account Advisor. To learn more, visit Your Pathway to Distributor Verification Guide here. **Providing two or more qualifications for verification does not guarantee distributor verification.
Creating Accounts with Suppliers and Decorators A good way to establish a relationship with a supplier is to request samples. Samples may be ordered at a lower cost or free with pre-paid shipping. Samples are a great way to show what promotional items you can order your customers. You can also create a sample kit or set up a display in store. These should include an array of the types of items your clients can purchase such as business cards, pens, signs, banners, name tags, etc. Think of items a new business might need and combine them into a small display case. Your clients can then easily envision what their logo would look like with your products! Samples Order promotional items to represent your company and promote your business! Design logoed apparel, drinkware, banners, and more to display. Much like samples, self-promo items are usually ordered at a lower cost. This is a great way to promote your brand and show more examples of the types of promotional items you can provide to your customers. Self-Promo Search for local decorators to establish a relationship. Decorating services might include embroiderers or screen printers, etc. You can search for a decorator in SAGE Workplace by decorating service, location, by rating, and more. Decorators Start the Conversation Promotional products are an easy solution to increasing your ROI with your existing client base. Acquiring a new client can cost 5 times as much as retaining an existing client. Print products are your specialty, and if you add promotional items into the mix, your business becomes a one-stop-shop! Here are some questions you can ask your existing customers to get started: • Do you order other products with your logo on them? • How often do you order those products? • What additional types of promotional products would you be interested in? Pitching Your Existing Customers Start with people and businesses you know. You can also seek out new customers by connecting with your community. Finding New Customers Ask for referrals regularly and consider creating a referral program wear your brand and pass out your business cards Get in touch with your local Chamber of Commerce Attend small business events Visit your local farmers markets Connect with schools, leagues, and teams in your area Utilize your self-promo in public spaces,
Websites Having a company website is essential in this day in age. Make sure it is easy to navigate, is complete and through, and offers a positive user-experience. Ensure your contact information is readily available in multiple locations on your website, including the footer, not just your contact page! If you have a clear and concise CALL TO ACTION, users will find the website easier to navigate when making their selections. First time ordering promo? CONTACT US! If you don’t have a website, don’t fret, SAGE is here to help! Go to sageworld to get started! CLICK HERE to receive your free consultation VIEW MORE to find our best sellers! Social Media Tips Plan ahead on what you are going to post for the week. It can be as simple as a weekly calendar where you jot down what you want to post each week, so long as you’re able to clearly visualize what needs to be published, where, and when. Plan Ahead Keep all your posts on brand is an easy way to make your social media presence cohesive across all platforms. That way, you clients can build brand recognition with you company! Stay On Brand Whenever someone comments on your posts, make sure to respond! Starting conversations and engaging with your audience is essential to creating a connection with your customers. Engage Your posts are supposed to help drive traffic to your website, so instead of typing out lots of info, try a short, exciting caption that entices the reader to click through and read more. Keep it Simple! Make sure your contact info is easily available. Link to your website in your bios of each social media platform. That way, you can drive clients to your website! Keep Your Contact Info in Sight! Developing a social media strategy for a small business involves setting clear goals, knowing your audience, and creating engaging content tailored to each platform. Consistency, analytics tracking, and community engagement are crucial for success, as is staying adaptable to changing trends and algorithms. Develop Your Strategy
You need a research tool. See why over 45,000 distributors choose SAGE. SAGE is the leading provider of information, marketing and business management solutions to the promotional products industry. Trusted by small businesses and industry giants alike, SAGE Workplace is the complete and seamless solution to handle all the aspects of your business. Explore over one million promotional products in our extensive industry database. It’s the only database with Verified by Supplier certification so that you can trust accurate product information and pricing. Enjoy an unparalleled range of search and sort options, surpassing any other research tool. Stay up to date with continuous live data updates from SAGE staff and suppliers. With SAGE Project Management, you know where each of your projects are, so you can easily hit deadlines and get results. Elevate your customer service with our comprehensive Customer Relationship Management (CRM) module. Stay organized and efficient with a robust Order Management tool that seamlessly integrates with QuickBooks™. Unleash your creativity and impress your customers with our powerful presentation publishing tool. Expand your knowledge with a wide range of FREE educational resources and support from your personal Account Advisor. Visit TRYSAGE.com for a FREE 30-day subscription. For more information contact your Account Advisor today.
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