Promotional Products Buyer's Guide

Promotional merchandise pricing

Updated: September 2008

Pricing for promotional merchandise varies enormously depending on what items you choose. Prices can range from under a dollar per item for simple key chains and magnets to $5 to $20 for t-shirts, calculators, and leather notepads, to $40 or more for USB drives and lavish gift baskets.

Knowing the price per item that you're shooting for will help you narrow down your choices to a manageable range. Take a look at actual prices for promotional products as reported by other BuyerZone users.

As with any bulk order, your per-item price for promotional merchandise gets lower as your quantity increases. These discounts are tiered at pre-set levels, so be sure to ask what quantity you'd need to order to get the next price break: you can always distribute a few more of your items. Some distributors also get better discounts from manufacturers based on their overall volume.

In addition to the per-item cost, most distributors of promotional merchandise require a set-up fee of $20 to $100 to prepare your order. Many will also have a minimum order, which can be as much as 1000 pieces or $400. If you're looking for a small quantity of imprinted items, this can be an important factor in choosing a distributor.

If you don't supply the right type of artwork, most distributors will levy an expensive per-hour charge for converting your files into a usable format. If you don't have a graphics person on staff, you will save money by using a freelancer to prepare your files.

Whatever you decide, make sure you're getting the most for your dollar while not resorting to using shoddy materials. After all, whether it's a baseball cap or a bottle opener, the end result will be a tangible symbol of your company. Make it worthy of your company's logo.

Payment terms will vary from one distributor to the next. Some may require payment up front, while others may offer payment due on delivery only. Also, the longer you work with a particular distributor, the more likely you are to get breaks on pricing and terms. If your business demonstrates that you'll be making a couple of promotional merchandise purchases per year, you'll have a much easier time getting discounts and better terms.

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