Key Takeaways
- Distributors are narrowing their supplier networks in favor of trusted partners that consistently deliver quality, speed and reliability.
- Strong supplier relationships built on transparency and mutual trust help distributors meet rising client expectations.
End-buyer expectations for promo are at an all-time high. They want quality, unforgettable items, and a seamless, lightning-fast sales process.
That raises the stakes for distributors, who’ve come to rely heavily on suppliers that understand them and their customers’ needs while offering quick and easy fulfillment. So when they’ve identified those suppliers who deliver time and time again, they tend to stick with them.
The numbers bear this out. Counselor State of the Industry data shows that the percentage of distributors who report increasing the number of suppliers in their network continues to tick down – from 53% in 2022 to 42% last year. On average, distributors purchase from 20 different suppliers, with the numbers ranging from 10 for the smallest distributors to 75 for distributors with $5M and more in revenue.
Tightening Their Grip
Distributors broadened their promo supplier networks during the supply chain crisis to find vendors who could deliver, but have whittled it down in recent years as they prioritize proven relationships and reliability.
Distributors Increasing Their Number of Suppliers (%)
What lands a vendor on that coveted list? For Evo3 Marketing (asi/190628), trustworthiness, reliability, quality and speed are four key attributes. The Seattle-based distributor has seen an increase in overseas business over the past few years, and requires reliable partners to make magic happen amid a complicated supply chain and customs policy changes.
“They have to be able to ship across the U.K. and EU, as well as North America,” says Amy Wolf, owner and CEO. “Can they drop-ship to India for our tech clients? A successful project journey is so important for brand integrity, so we need to mitigate hiccups whenever possible. We’ve spent years cultivating client relationships. Even if we trust a supplier 95% of the time, the 5% is too much risk. It has to be perfect.”
“We’re not trying to build the widest network,” says Mike Fossano, president of Premier Communications Group (asi/298496) in Royal Oak, MI. “We want to build the right one. Reliability is more valuable than endless options. We prioritize suppliers who understand us and our clients. We want suppliers to solve a problem, not just fulfill an order.”
“We’re not trying to build the widest network. We want to build the right one.”Mike Fossano, Premier Communications Group (asi/298496)
Good suppliers understand that, says Brittany David, CRO of Counselor Top 40 supplier SnugZ USA (asi/88060), a Counselor Best Place to Work. “We support distributors as customers, not as random data sets,” says David, who’s a Counselor Power 50 member. “When we understand them and their clients, we can put together something thoughtful; we’re not just choosing randomly.”
Premier Communications Group’s customers run the gamut of industries, and often have very specific needs – like a government client who requires that all products are 100% USA-made. “We’ve established strong relationships with a few vendors because of that need,” says Fossano. “We don’t stop evaluating new suppliers altogether, but our bar is high. We look for unique capabilities, operational advantages and niche offerings.”
Kate Alavez, president of Counselor Top 40 distributor PromoShop (asi/300446) and a Counselor Power 50 member, says her criteria for working with a specific supplier comes down to this: Can she and her team ask – and get an answer to – queries around supply chain transparency, sustainability, compliance, data governance, inventory and turnaround times? “It’s not about being the biggest supplier, or who’s been in the industry the longest,” she says. “It’s about having enough stickiness with them to be able to delve into the tough questions. We intentionally reduce the scope of our network to offer a best-in-class experience.”
Looking Overseas
Nearly 8 in 10 distributors made at least one product purchase outside North America in 2025. Even as tariffs put the burden of importing costs when sourcing direct on the distributor instead of the supplier, the appeal of cost savings is still driving distributors to look globally. “Tariffs had a trickle-down effect,” says Mike Fossano of Premier Communications Group (asi/298496). “Everyone’s paying a lot more for everything, and they impacted budgets. The supply chain has been rocked and factories were telling us it was taking six weeks to get product onshore, so we approached factories that had more resources at their disposal to shorten lead times.”
Distributors Who Purchased From Suppliers Outside the U.S. & Canada (%)
So how do smaller and newer suppliers gain a foothold in the industry and prove they can support distributor clients? Rob Watson, CEO of Counselor Top 40 supplier Vantage Apparel (asi/93390) and a member of the Counselor Power 50, recommends that all suppliers look for opportunities to put together samples with a target end-buyer’s brand. Find out which distributor works with that client, and ship them a curated box.
“That way, the distributor is more likely to walk the products into meetings with that account,” he says. “It evokes conversation, and they’re more likely to request it. Suppliers often miss the mark on how we can promote ourselves.”
Suppliers should position themselves to be on inside sales’ short list, as well as buying groups’ preferred lists. “Some groups create a large network of vendors,” says Watson, whose company was named a 2026 Counselor Best Place to Work. “Others curate a smaller selection they believe is of greater value to members.”
Wolf advises going to in-person industry shows and events to network and build rapport with distributors. “We have to know you’re legitimate,” she says. “Being there in person gives you credibility. If you’re not, that’s a chasm your competitor will bridge.”
Sizing Up Private Equity
Continued private equity (PE) investment has driven industry consolidation – particularly on the supplier side, narrowing the choices for distributors when it comes to working with the largest suppliers. Only 1 in 5 distributors think PE investment is good for the industry. (Similarly, 21% of suppliers think PE investment has a positive impact.) Kate Alavez of Counselor Top 40 distributor PromoShop (asi/300446) says a dose of healthy skepticism combined with curiosity about PE’s current and future role in promo is needed. “I’m worried about the heart and soul of the industry, and the overanalysis on a spreadsheet,” she says. “But I also ask myself, ‘what can I learn from PE about global business practices and a strong financial model?’”
“I believe private equity investment in promo companies is good for the industry”
(Percent who agree)
While a distributor might not give an unfamiliar supplier big enterprise account business right out of the gate, Alavez says if they’re intrigued enough, they may give them an opportunity for a lower-stakes order, like a self-promo. “We can try them for smaller projects,” she says, “such as industry gifts to recognize milestones.”
To become an official part of PromoShop’s vendor network, suppliers have to go through a rigorous vetting process with the vice president of supplier relationships, who requires a formal contract, a copy of their privacy policy and a signed code of conduct, among other documentation.
“We want to remain relevant and not push ourselves away from innovation, so we welcome and honor new industry entrants,” says Alavez. “But there are things we can’t give on.”