As broad as the revenue spread is for distributors, the gap for suppliers is even wider, with the largest companies generating billions of dollars in sales. It’s not surprising then that each of the four supplier revenue classes faces unique challenges, along with the fact that higher client retention, longer payment terms and greater AI adoption are all evident as companies grow. Despite these differences, commonalities exist, including a desire to expand their customer base and a widespread concern over cybersecurity. The supplier snapshots presented here can help you understand where your company stands and identify areas for growth and improvement.
Small Suppliers | ($1M or Less in Revenue)
Small Suppliers
($1M or Less in Revenue)
Top Sources of Competition
1. Online companies in the promo industry
2. Industry suppliers already in their product category
3. Overseas companies that sell direct to distributors
Percent of Clients Retained
53%
Percent of orders that require five days or fewer turnaround.
21%
Days to Get Paid
17
are concerned with cybersecurity and ransomware attacks
57%
of company revenue is generated from promo sales
Average Profit Margin
29.2%
increased their sales in 2024
currently use AI for their business
Top 3 Challenges
1. Increasing the size of distributor/customer base
2. Remaining profitable under pressure to cut prices
3. Finding new product ideas for distributors
Medium Suppliers | ($1M+ to $5M in Revenue)
Medium Suppliers
($1M+ to $5M in Revenue)
Top Sources of Competition
1. Industry suppliers already in their product category
2. Overseas companies that sell direct to distributors
3. Manufacturers/ dealers outside the industry
Percent of Clients Retained
70%
Percent of orders that require five days or fewer turnaround.
27%
Days to Get Paid
28
are concerned with cybersecurity and ransomware attacks
68%
of company revenue is generated from promo sales
Average Profit Margin
31%
increased their sales in 2024
currently use AI for their business
Top 3 Challenges
1. Remaining profitable under pressure to cut prices
2. Increasing the size of distributor/customer base
3. Maintaining product/imprint quality without raising prices too much
Large Suppliers | ($5M+ to $25M in Revenue)
Large Suppliers
($5M+ to $25M in Revenue)
Top Sources of Competition
1. Industry suppliers already in their product category
2. Online companies not primarily in promo
3. Online companies in promo
Percent of Clients Retained
74%
Percent of orders that require five days or fewer turnaround.
37%
Days to Get Paid
29
are concerned with cybersecurity and ransomware attacks
70%
of company revenue is generated from promo sales
Average Profit Margin
35%
increased their sales in 2024
currently use AI for their business
Top 3 Challenges
1. Remaining profitable under pressure to cut prices
2. Increasing the size of distributor/customer base
3. Increased financial demands from distributors
Extra Large Suppliers | ($25M+ in Revenue)
Extra Large Suppliers
($25M+ in Revenue)
Top Sources of Competition
1. Industry suppliers expanding their lines to include similar products
2. Industry suppliers already in their product category
3. Overseas companies that sell direct to distributors
Percent of Clients Retained
89%
Percent of orders that require five days or fewer turnaround.
68%
Days to Get Paid
35
are concerned with cybersecurity and ransomware attacks
92%
of company revenue is generated from promo sales
Average Profit Margin
42%
increased their sales in 2024
currently use AI for their business
Top 3 Challenges
1. Increasing the size of distributor/customer base
2. Maintaining product/ imprint quality without raising prices too much
3. Remaining profitable under pressure to cut prices