Dale Denham, President & CEO - April 1, 2022

Perspectives: What Is A Distributor, Anyway?

Dale Denham, President & CEO - March 16, 2022

The term distributor in our market vastly understates the work and the value added, but it’s definitely better than what they used to call them.

The industry adopted distributor in 1963 when the ASNA (Advertising Specialty National Association) replaced the term jobber, which was synonymous with a wholesaler or intermediary. At the time, distributor was a huge step up in terms of professionalism, but I think it still does not go far enough in describing the value that has come to be added by the companies and people in these roles.

Other changes in nomenclature have been key to the success and growth of our industry over the years. In 1992, we adopted the term promotional products instead of specialty advertising. PPAI itself has undergone three name changes since 1963 reflecting the changing markets, yet our industry distributors are still called distributors. Supplier hasn’t changed during this time to reflect current value, either.

Furthermore, as far as most buyers understand, the distributor is the supplier, making the term supplier confusing. Speaking of our buyers, outside of purchasing departments, very few purchasers of promotional products would prefer to be called a buyer.

It’s time we recognize the value added by all the firms in our industry and ensure the terms we use reflect this value while also reducing confusion for the clients who purchase promotional products.

PPAI’s new vision for the industry is, “Promotional Products are universally valued and essential to every brand.” And our new mission is, “Be the voice and force to advance the Promotional Marketplace for the benefit of our community.” This means PPAI needs to expand our messaging even more than we have over the last few years.

As part of fulfilling that mission, we have launched Promotional Products Work, which includes providing valuable content on PromotionalProductsWork.com and hosting an online event exclusively for buyers invited by PPAI distributors where they can participate in inspiring education as well as visit exhibitor booths.

The Promotional Products Work Expo will leverage our Direct-2-You online platform, which ensures that only approved information is in the booth and will allow distributors to engage with their clients as well as access a history of all communication on the platform between their clients and the suppliers. You can learn more about Promotional Products Work Expo and the immense value of buyer-facing events in general in the cover story of the issue.

Our goal is to utilize the most appropriate terms as we further reach out to buyers through these new efforts. Please share your thoughts with us on what terms best reflect all our industry organizations by emailing us at correspondence@ppai.org.

Here are the existing terms most often used in the industry today:

Overseas Manufacturer – The original factory or factories that produced the blank item
Domestic Supplier – The firm holding stock and decorating items, primarily domestically (including domestic manufacturers)
Distributor – The firm identifying the needs of the buyer and fulfilling those needs with suppliers and manufacturers
End Buyer – Purchaser of the promotional product
End User – The individual who receives and uses the promotional product

It’s been 60 years. It’s time we recognize the value in our supply chain by updating our terms.

Dale Denham is president and CEO of PPAI.

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Comments (10)

Hillary Feder

May 23, 2022

Dale, It is time. The value add that distributors contribute in creativity, packaging, presentation from small and large organizations is demonstrating the change that is taking place in the industry. So many things in the industry are changing to be relevant and on trend for what is happening in the environment ...

Derrell Conway

April 18, 2022

I like and agree with Todd and Julie, with "promotional products agency" possibly being the way to go. We DO get involved with clients by being creative, making suggestions regarding design, color, etc., so why not use the term "agency" in the description? I think part of the problem is that we end up doing and being so many things to people that they often don't know the terms we use now. I think I describe to prospects and clients who we are and what we do more than anything else; so I don't know if whatever the industry decides will change that. My two cents worth is that agency sounds more professional than distributor. Distributor has more of a warehouse sound and feel to it.

Mary Rivadulla

April 6, 2022

I'm totally IN. I've never pictured myself as a "Distributor" which means: "an agent who supplies goods to stores and other businesses that sell to consumers". We are much more than that. We are advertising and marketing specialists in promotional items.

Lance K Murray

April 6, 2022

Was there a suggestion as to the new term for Distributor?? I find the change in Procurement to Supply Chain a great enhancement to that career ladder as a good example to change the optics. Draw stem students to the profession. New terms are a good thing. Cheers Lance

Ben Roberts | SVP Marketing, Outdoor Cap

April 1, 2022

Such a great topic with a core irony.. we are an industry that drives brand awareness yet we can't quite figure out how to brand ourselves as an industry. Thanks for leading this charge and conversation, @Dale. I haven't seen many comments from the 'Supplier' side of things here or on Linkedin but one aspect we struggle with is 'Brand' identity and being treated differently than the retail brands we compete with. As a supplier we have high expectations from our distributor and decorator customers as well as ourselves, but we don't get quite a level playing field because brands (UA, Nike, North Face, Patagonia, etc.) have the ability to keep their brand and drive consumer sales without worrying about what our industry thinks about them doing it. The companies that have been labeled traditional suppliers in our industry have to depend on our customers to do consumer marketing and drive awareness. Conversations like this and an agreement that we are "all in this together" will improve the health of our industry and allow suppliers to be the brands they really are. I would like to see some sort of committee or task force formed to tackle the identity problems Dale outlines head-on.

Abigail

March 28, 2022

Very interesting to read about the history of terminology in our industry. I do still struggle on occasion to really describe what I do to certain people. Even to my own small children, actually! It's not as simple as saying, "My mom is a teacher" or "I am a doctor." I'm glad to hear this is on the radar for PPAI and really look forward to updated terminology that can be more universally understood.

Julie Rafeedie Haar

March 18, 2022

I agree with Todd Wallace that "Agency" is the way to go--"a business or organization established to provide a particular service, typically one that involves organizing transactions between two other parties"--that's exactly what we do. When I describe what we do to prospects I use "promotional marketing agency". With Proforma we offer services beyond promotional products so I find "marketing" more comprehensive. However, I struggle a bit with the overlap of the academic definition used for promotional marketing--this tends to include special offers to raise interest & awareness, contests, and other typical strategies like promoting a free soda with the purchase of two slices of pizza. It's a broad spectrum of strategies that are considered promotional marketing beyond the products in our industry. I believe that the real objective as this new wave takes shape to re-frame our agency position is to change our position with academic circles. Reach out to those that are training new marketers. They can help define our position in the marketing mix, research more and teach the value of using promotional products as a powerful part of the students future marketing strategies as they go out into their careers.

Matthew Bruno

March 17, 2022

Well said Dale!

Todd Wallace

March 17, 2022

I agree with both of you. Coming from the client-side, working for a top 10 recognized brand for 25 years, I can better see the value of this industry now. I have been using the phrase Promotional Products Agency when referring to what we do. Like advertising, PR, Social Media, and Activation agencies, we have a strategic approach to creating lasting branded value for our clients. I am not looking to charge for our creativity and research services. Still, I would like the same professional approach to working with us that brands have with the organizations above. Often, we cannot deliver the best options and products to our customers because our piece of the marketing mix is not brought in until the very last minute. If branded wearables and promotional products were considered and included at the start of marketing plans, we could deliver an even better brand impression and ROI for our clients.

Cliff Quicksell, MAS+

March 17, 2022

Dale, as I stated in my post back to you on LinkedIn - You Are SPOT ON My Friend - your comments and initiative, both echo's and validates what I have been preaching and sharing with marketers in our industry for years. When we look at where we have come from, the vast majority of "distributors" have elevated their game to a more sophisticated level. Why shouldn't the marketers in our industry get paid for their innovation, creativity, and ingenuity? Agencies do it all the time, what makes our folks any different. If you need any, and I mean ANY assistance in pushing this message, I'm all in. It is now time for us to get our industry practitioners to finally realize their true value in this sales and marketing chain. BRAVO for your having the foresight to move this forward. BRAVO! Cliff Quicksell, MAS+