New Supplier Guide Your Intro to Promo
Break into a new market and get in front of 45,000 users. 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 term PR. What are promotional products? Promotional products are an incredibly powerful marketing tool since they allow a brand to connect with consumers in a deeper way than traditional advertising. 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 organizations 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, like a trade show. 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? That’s you! 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. Suppliers can also be decorators. Who are End Buyers (Clients)? End buyers use products to promote their message. They are 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. They are the target audience of the business that purchased the items from the distributor.
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 Why would a distributor 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? Sometimes the manufacturer sends items to the supplier, and sometimes the manufacturer and supplier are 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.
Packaging Home/Kitchen Automotive Cards Office Hats Food & Beverage Bags Drinkware Apparel 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 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%
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.
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
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
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 (you!) will then provide an artwork proof for the distributor to have approved by the customer prior to production. Many suppliers will offer free proofs; others 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 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
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.
Reach Your Potential as a SAGE Advantage Member Must supply promotional products to distributors. What are the qualifications to be a SAGE supplier? Becoming a SAGE Advantage Member is a no-brainer! We’ll help you maximize your visibility in the promotional products industry, expand your customer base, and build your brand with impactful advertising opportunities. So, break into a new market of over 45,000 distributor users and start growing your business today! A physical presence within the US, its possessions, Canada, or Mexico. This includes a warehouse or sales, manufacturing, or distribution facility (virtual addresses and mail houses don’t qualify). Residences are subject to additional verification. Sell decorated or imprinted products (exceptions include blank apparel companies or premium/incentive companies). Provide industry-coded pricing (exceptions include blank apparel companies or premium/incentive companies). A website that contains your promotional product information. If your entire site is not geared towards promotional products, there should be a dedicated section or tab with this information.
Here’s How to Get Started Complete the New Supplier Information Form. Fill out your SAGE Advantage Application. Send us your PPAI or PPPC Number. If you don’t have one of these numbers, you will need to submit two invoices or purchase orders from verified promotional products distributors for over $100 within the last 12 months. Sample orders don’t qualify. Your invoices/POs must also include the same company name, address and phone number as what is listed in SAGE. Invoices/POs must be from two different companies – different locations or different store numbers with different account numbers don’t qualify as two invoices/POs. Submit your product sheet. Show industry-coded pricing, product number, product image, decoration method, set up charge, and imprint area. Send us your website containing promotional product information, or a promotional product section. If your website does not contain promotional product information, you will need to add it or create a separate site. Your website must be end buyer safe or have a separate area letting distributors know to contact you for wholesale pricing. 1. 2. 3. 4. 5.
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, a SAGE Advantage Membership is an excellent way for you to increase your visibility in the promotional products industry. It’s the only database with Verified by Supplier certification so distributors know they’re getting the most up-to-date information about your products. There are no limits to the number of products you can put in the SAGE database. Get in front of both distributors and end buyers with SAGE’s multitude of advertising opportunities. From email campaigns to front page banner ads— we’ve got what you’re looking for to expand your business. Track how your products and advertisements are doing with the SAGE Supplier Center. Expand your knowledge with a wide range of FREE educational resources and support from your personal Account Advisor.
Become a SAGE Advantage member today. For more information contact your Account Advisor today.
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