by Don Sanders, 10/22/2004
Most distributors don’t realize there is a unique network of suppliers that operate with an important mission in mind--to make real money for distributors who use their services. The distributors, who use this ‘secret’ group of suppliers, not only make higher incomes than those they sell against, but they also enjoy a competitive advantage when calling on new prospects.

Anyone who is in the promotional products business (that means your competitors), is regularly exposed to the very large suppliers. We all learn about them from a variety of sources: trade show booths, industry publication ads, mass mail outs, and from their salespeople or the multi-line reps who may call on you. With such extensive coverage, most distributors just fall in line beside their competitors and carry the larger suppliers’ catalogs on every sales call.


Don’t run with the “pack.”

Many salespeople never realize that a supplier’s size or its advertising budget don’t necessarily dictate the quality or creativity of its product offering. One group of suppliers, the members of the ‘secret’ supplier network, are selective with whom they do business, because they refuse to become large supermarket operations. They understand that they cannot sell all products to all people. Distributors, who recognize the value of doing business with these types of suppliers, set themselves apart from the majority of distributors (the “pack”) and stand to make more money as a result.


Stop fighting over crumbs!

Consolidation in business seems to be the trend and the promotional products industry is no different. Large suppliers buy up their competitors, and the uniqueness of the acquired smaller supplier is often lost in the process. It now appears almost everyone selling imprinted products is showing customers the same items offered by the same largest suppliers.

That’s not to say that industry consolidation is a bad thing. Quite the contrary. It has given distributors the chance to make even more money with the members of the ‘secret’ supplier network—those companies that still operate as independent entities.

See how the ‘secret’ supplier network has helped the following distributor:

For some years now, suppliers whom I trusted have been gobbled up by the
big boys. It saddened me, because I felt like I was losing relationships that
I had developed over many years. Instead of sitting idly by and watching my favorite suppliers being absorbed, I decided to take action. I made a conscious effort to place the majority of my orders with suppliers who wanted to
remain autonomous for as long as possible—companies like Eisenger Smith,
Flex Systems, and E-Mail Calendars.

In January of 2002, while attending the last Dallas PPAI Show, I visited the
Eisenger Smith booth—a smaller supplier new to me. The reason I did not
know them is because they choose to exhibit at only one trade show a year.
They do so in order to devote more time to the distributors they meet at that
enormous show. I’m living proof that their plan works. As a result of visiting
with the owner of the company at that show, I have sold eleven orders
of their high-quality golf-related items.

At the 2003 PPAI Show in Las Vegas, I found two more new gems--Flex
Systems and E-Mail Calendars. They both offer such unique products, that they
tend to be also new to my prospects and customers. Talk about getting ahead
of my competitors! I also like personally knowing the owners of these companies; and when I show their products on sales calls, I know that I am offering my clients something unique.


Where can one find members of the ‘Secret’ Supplier Network?

There are several ways to start identifying these special suppliers.

· Look on search engines such as Distributor Central

· Attend the largest trade show of the year--PPAI Las Vegas

· Ask supplier reps whom you trust about new suppliers

· Attend large regional shows such as SAAC and Promotions East

Here’s another story about a distributor who broke the ‘secret’ supplier network code:

I used to place most of my orders with a group of 20 well known suppliers.
I thought that by doing so, I was showing products that met my customers’
needs. However, , I found out there was a better way to do business when I
attended the SAAC Show in August of 2003.

Instead of following my usual pattern of first visiting my favorite suppliers’ booths, I decided to venture out to see some of the lesser-known companies.
And am I glad I did! Since making that change on that fateful day, I have
sold orders for ten different suppliers who were new to me at that show. Not
only have I broadened my base of supplier contacts, but I know that I am
showing my customers unique items that have not been pitched repeatedly
to them by my competitors.

The moral of the story is for you to make a concerted effort to meet as many unique suppliers as you can. The result will be increased profits! Anytime you go to a trade show, resist the temptation to initially talk to your old stand-bys. Save time for them
on the last day of the show. Instead, use the first day to find suppliers who are new to
you and take the following action steps:

1. Meet the owner of the company if he or she is there and ask about the history
of the company

2. Tell them that you are open to new products and ideas.

3. Explain that you want to establish a good, long-term working relationship

Most suppliers will welcome such interest. By talking these action steps with the new suppliers you meet, you are becoming more knowledgeable about products and services and you are potentially “buying” insurance for your future profits. Relationships with members of the ‘secret’ supplier network will accrue in greater cooperation, shorter order lead times, and higher profits. By keeping an open mind to doing business with unique suppliers, you are broadening your capabilities as a distributor.

And by the way--keep it a secret!