Costs & Margins of Promotional Products

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By Seth Barnett, VP of Operations, Think Promo Now

Promotional products are among the most cost-effective, highly visible and naturally tangible forms of marketing and advertising in existence. Advertiser recall of branding displayed on these products is unmatched at nearly 20 percent higher than any other form of marketing. In addition to this, the promotional industry continues to grow, year over year. In fact, the industry today represents $23 billion in annual revenue and is ranked fourth among the largest advertising and marketing spends for businesses from Fortune 500 to one-person storefronts. 

Products in the industry can range in price for consumers from 10 cents to over $1,000. However, the average cost of promotional products is near $1. In this, the cost-effectiveness of the medium can begin to be seen. Cost per impression is even better. Cost per impression, or CPI, of promotional products is 3 cents meaning that it cost your client just 3 cents every time there is an impression of their brand, logo or message made. This is the best return of their advertising and marketing investment that is possible. Combine this with your understanding that the message recall is among the highest in existence and you begin to see the absolute value here. 

Now to let you in on a little industry secret. The average margin for products for the reseller (you) is 40 percent. This means that not only does your client get the best value for their marketing spend, you get the positive business growth in return. In fact, the Think Promo Now system is built with a 40 percent margin base included in its websites. This is so that you benefit from this industry standard. There is a reason why the promotional products industry continues to grow, the value for the product and the protection of those in the supply chain are paramount. 

We want you to be part of this continual industry growth. Because of the natural crossover between printing and promo, Think Promo Now brings this industry to your fingertips. We want to share an industry with you that has been built to be functional and deliver business success to both you and your clients. 

To learn more or connect with us, visit www.ThinkPromoNow.com

Sam Beurthe