PPB May 2015

A LOOK AT VARIOUS MODELS AND THEIR BENEFITS AND

CHALLENGES FOR DISTRIBUTORS AND THEIR CLIENTS

BY AARON MOSCOE

ROMOTIONAL PRODUCTS DISTRIBUTORS and

their salespeople are wise to learn the difference between

margin and markup, but for many that’s where the education

on pricing methods ends. Those tried-and-true methods for determin-

ing margin and markups may have been all that was needed years ago

and they are still valuable tools today. However, buyers have become

more sophisticated, and client relationships are often governed by

specifically tailored procurement contracts. Indeed, distributors should

make an effort to continuously educate themselves to understand and

navigate more complex pricing models in order to better serve their

clients, themselves and the promotional products industry.

Pricing

In The Promotional

Products Industry

70 •

PPB

• MAY 2015

THINK

201505_Pricing Feature_PPB 2013 4/14/15 6:23 PM Page 70