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. Online companies that aren’t in the promo industry
3. Upgrading their website
Top Challenges
1. Increasing the size of distributor/customer base
2. Remaining profitable under pressure to cut prices
3. Non-industry suppliers selling to distributors
Nearly one-quarter of orders (24%) require five-day or less turnaround.
While their medium and large colleagues are often more in unison with their concerns and priorities, small suppliers tend to stand on their own within these promo industry supplier comparisons. Out of the three revenue classes, small suppliers are most worried over competing with online companies while being the least affected by price pressures. Even though their health rating is the lowest, half of small suppliers increased sales– perhaps leaving room for even more to grow in 2024.
Supplier Health
feel online sellers pose a significant threat to their business.
Percent of Clients Retained
Small Suppliers (2023)
Medium Suppliers | ($1M+ to $5M)
Medium Suppliers
($1M+ to $5M)
Top Sources of Competition
1. Overseas companies that sell direct to distributors
2. (tied) Industry suppliers in their product category
(tied) Online companies in the promo industry
Top Challenges
1. Increasing the size of distributor/customer base
2. Remaining profitable under pressure to cut prices
3. Recruiting and retaining well-qualified employees
of orders require five-day or less turnaround.
These companies share many of the same concerns as their larger counterparts, especially when it comes to who they regard as their biggest competitors. This group was the only one whose self-rated health exceeded last year’s forecast, and they’re the most optimistic about the rest of this year. One thing to note: even though nearly three-quarters of these companies (74%) retained their clients last year, the figure represented a drop from 79% and bears watching for a further decline.
Supplier Health
feel online sellers pose a significant threat to their business.
Percent of Clients Retained
Medium Suppliers (2023)
Large Suppliers | ($5M+)
Large Suppliers
($5M+)
Top Sources of Competition
1. Industry suppliers in their product category
2. Overseas companies that sell direct to distributors
3. Industry suppliers expanding into their lines
Top Challenges
1. Remaining profitable under pressure to cut prices
2. Increasing the size of distributor/customer base
3. Increased financial demands from distributors
of orders require five-day or less turnaround.
The biggest suppliers are built for speed and have the personnel needs to match. They’re the only revenue class where growing their customer base isn’t their biggest challenge; meanwhile, they most acutely feel both competition from other suppliers expanding into their category as well as increasing financial demands from their distributor customers. A greater percentage of large suppliers increased their sales compared to the other two revenue categories – a trend likely to continue this year.
Supplier Health
feel online sellers pose a significant threat to their business.