The main objective is to achieve profit balance.

The main objective is to achieve maximum profit by developing a balanced strategy.

The A,B,C and D’s of the promotional products business:

Supplier Type Account Industry Industry # of Distributors Industry Volume
$ A $5 mm + 433 $10.8  billion
$ B $1-$5mm 1524 $4.5 billion
$ C $500k-$1mm 1489 $1.2 billion
$ D $1k-$500k 10914 $2.7 billion
Source: ASI 2023 CreditConnect Reporting distributors only A 25mm , B 3mm , C 750k , D 250k , these are averages

There are two set of A, B, C, D accounts. One being the industries and the other being the suppliers. Understanding how these two work individually in your game plan is crucial to the success of the suppliers future growth and profitability. The short and long-term goal is to bring both the industry and suppliers’ accounts closer together.

This is achieved by focusing on these 5 areas and applying the 5P formula:

1. Pricing – balance attack & margins (kiss theory)
2. Rebate /Incentive- Flexible to achieve growth
3. Marketing programs that sell with ROI.
4. Compliance/Sustainability/Cause.
5. Exceptional Service

Developing a successful sales and marketing strategy for the promotional products industry is achieved by understanding who the supplier is selling and marketing too.

The 5P Promo formula goes through a process of understating where you are in this equation and developing a 1–5-year game plan to maximize sales and profit.

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