Promotional Products Procurement Intelligence Report, 2024 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)
- Published Date: Jul, 2024
- Base Year for Estimate: 2023
- Report ID: GVR-P-10595
- Format: Electronic (PDF)
- Historical Data: 2021 - 2022
- Number of Pages: 60
The pricing and cost analysis helps in deriving and forecasting the actual cost of products or services over the forecast period. It considers all the cost components and provides a competitive edge during supplier negotiations. Moreover, the outcome helps procurement leaders understand detailed and fact-based cost drivers.
In this Promotional Products procurement intelligence report, we have estimated the key cost components which include printing & engraving equipment, software tools, cost of the product, labor, marketing, rent & utilities, and others. Other costs include storage & transportation, printing ink and toner, maintenance and repair, administrative fees, and tax.
Key factors that influence the prices of promotional products include includes cost of an undecorated product, decorations expenses, setup expenses, and delivery expenses. The price of making the ink, screen, plate, or preparing the machinery needed to customize the products is known as the setup cost. Similar to the expense of decorating, this is typically charged according to position or color. The setup fee is a one-time expense that will cover the entirety of the work, indicating that a higher number will result in a much smaller setup cost per unit. The delivery location, weight, and cubic capacity all affect the freight cost. This implies that the cost of delivery will usually be higher for large, heavy items, and for far delivery locations.
Cost-plus pricing is one of the prominent pricing structures followed in the industry. The goal of this model is to increase suppliers' profits. It involves totaling all of the product's expenses and then adding a profit margin. Benefits of this model include consistency in rate of return, simplicity in computation, and dependability. Another pricing model followed is fixed pricing model, which entails maintaining a fixed pricing for products notwithstanding shifts in the market or in consumer behavior.
Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.
In 2023, the prices of promotional products in different regions stood as below:
a) UK
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Pens ranged between USD 0.22 and USD 149.84.
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Travel Mugs ranged between USD 0.37 and USD 50.68.
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Eco & Sustainable Products ranged between USD 0.22 and USD 10.26.
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Cotton & Tote Bags ranged between USD 0.98 and USD 4.65.
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Notebooks ranged between USD 0.95 and USD 19.21.
b) Australia
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Pens ranged between USD 0.27 and USD 117.98.
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Mugs ranged between USD 0.17 and USD 37.42.
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Eco Products ranged between USD 0.44 and USD 81.71.
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Bags ranged between USD 1.01 and USD 179.55.
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Pens ranged between USD 2.87 and USD 13.78.
To gain a comprehensive understanding of other aspects of rate benchmarking, please subscribe to our services and get access to the complete report.
Labor cost is one of the key components of the total cost incurred while offering a product or service. Therefore, an organization must decide whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.
According to our research, promotional products specialists working with 4imprint Group plc and Prominate Limited receive 10%-15% higher base salary than those working with Smidt‐imex and Total Merchandise Ltd. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).
Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the promotional products market over the last two years:
In April 2024, HALO Branded Solutions, Inc. announced the acquisition of Star Promotions. Star Promotions has been a reputed distributor of products offered in the industry. With this acquisition, Halo has enhanced its product and services, technology resources, creative and marketing, fulfillment, and operational capabilities.
In January 2023, Brand Addition Limited announced shifting to green promotional merchandising solutions. The key reason for the company to focus on sustainability is that consumers in the promotional products industry are more eager to support businesses that align with their beliefs, and many of them place sustainability at the top of their lists.
In January 2023, Champlain Capital acquired iPROMOTEu from Align Capital Partners. iPROMOTEu is one of the biggest and fastest-growing distributor organizations in the promotional products sector, with a network of over 1,100 distributor Affiliates and salespeople spread across the U.S. and Canada. This acquisition has been a valuable addition to Champlain’s portfolio.
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Add-on Services
Should Cost Analysis
Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process
Rate Benchmarking
Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier
Salary Benchmarking
Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house.
Supplier Newsletter
A typical newsletter study by capturing latest information for specific suppliers related to: M&As, technological innovations, expansion, litigations, bankruptcy etc.
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