Distributor Survey FINAL REPORT.pdf - PPAI

P R O M O T I O N A L P R O D U C T S A S S O C I A T I O N I N T E R N A T I O N A L
Distributor
Business
Survey
2011
Research
Your Research Authority

Dear Distributor Member-Owner:
The 2011 Distributors Business Survey is a comprehensive, up-to-date compilation of data
about how distributor members of Promotional Products Association International conduct
their business. This survey is the result of information supplied by member companies and is
intended to provide other PPAI members with comparable statistics about how companies of
similar size perform in many business categories.
Methodology... The 2011 Distributors Business Survey was e-mailed to 6,124 distributor
members of PPAI at the end of September 2011. Of those, 790 member companies responded
with completed questionnaires for a return rate of 12.90 which is a representative sample of
the membership. The margin of error for the survey is +/-3.25% at the 95% confidence level.
The survey consisted of 115 questions and features thirteen major parts: In 2008, we got 446
responses for a return rate 11.02%.
Business Organization.............................................................................. Page 2
Business Practices................................................................................... Page 4
Imports, Exports and Products................................................................ Page 8
Sales Organization................................................................................... Page 14
Orders, Rebates, Policies and Practices with Suppliers............................Page 20
Client Sources........................................................................................... Page 23
Other Business Practices.......................................................................... Page 25
Promotion................................................................................................ Page 26
Meetings,Training & Recruitment............................................................ Page 30
Special Services........................................................................................ Page 34
Commissions............................................................................................ Page 38
Financial................................................................................................... Page 40
Key Metrics.............................................................................................. Page 44
* PPAI released a seperate Technology Report in November 2011. PPAI will also release a
Compensation and Benefits study in 2012 . These two components were previously part of this
report but are now seperate studies.
How to Use This Report... This report, as it is designed, is a tool for you to compare your
methods of operation with the methods of others of similar size, as well as with the industry as
a whole. It is not our intention by publication of this report to suggest that all distributors should
run their businesses in a like manner or attempt to maintain uniformity of policy.
This report is to be used only by individual member companies. Because of
the antitrust restrictions concerning discussions about price and related
topics, this information should not be the subject of joint discussions
between members. Each distributor should decide singly how, and if, the
data should be utilized in reference to his or her own company operations
and procedures.
Responses Shown as Percentages... Survey responses are presented as
percentages. Some respondents did not answer every question, and the
missing responses were not counted as a part of the calculations. Also,
questions that allowed a respondent to check more than one answer do not
total 100 percent.
Responses Classified by Company Size... Survey results have been
compiled by sales volume classification for comparison purposes. The
ranges of each category and the number of responses in each category are
listed below. Categories have been grouped together to get valid results for
each group.
Confidentiality... Completed questionnaires were sent directly to the PPAI
Research Department. Individual responses are not identifiable and the
report is presented here only in aggregate form.
Thank you... The association would like to extend a personal thank you to
everyone who took the time to respond to the survey. Only with your
support, were we able to put together such valuable information about
distributors in our industry.
For more information contact:
Saritha Kuruvilla
Manager of Research, PPAI
E-mail: SarithaK@ppai.org or Research@ppai.org
Phone: 972-258-3043
D00 - D-2 D-3 - D-04 D-5 - D-6 D-7- D-16
Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
361 283 106 40 790
PPAI Page 1 of 49 December 2011

BUSINESS ORGANIZATION
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Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
1. Is your distributorship a: Proprietorship 33% 32% 6% 3% 28%
C-corporation 18% 20% 27% 48% 21%
Partnership 4% 3% 8% 3% 4%
S-corporation 21% 23% 40% 33% 25%
LLC 23% 21% 20% 15% 22%
2. What is the primary industry UPIC 1% 3% 1% 5% 2%
identifier that your company ASI 17% 28% 48% 55% 27%
uses when conducting PPAI 50% 43% 27% 18% 42%
day to day business SAGE 25% 23% 18% 15% 23%
Other 7% 4% 7% 8% 6%
3. How many employees (other 1 17% 19% 7% 0% 16%
than sales people) do 2 30% 37% 7% 0% 28%
you have (Count 2 3 to 4 32% 32% 37% 3% 31%
part-time employees as 1 5 to 7 8% 6% 29% 8% 10%
full time.) Select the 7 to 10 6% 3% 7% 25% 6%
number of emplyees below: 11 to 49 5% 2% 12% 45% 7%
50+ 2% 1% 2% 20% 2%
PPAI Page 2 of 49 December 2011

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Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
4. How long has this 1 to 5 years 36% 26% 10% 3% 27%
distributorship (not you as an 6 to 10 years 19% 22% 15% 8% 19%
individual) been in business 11 to 15 years 15% 15% 24% 15% 16%
16 to 20 years 8% 12% 18% 10% 11%
21 + years 23% 25% 33% 65% 27%
5. In how many states does 1 state 76% 76% 64% 36% 72%
your firm have a presence (an 2 to 3 states 17% 15% 18% 18% 16%
office or salespeople 4+ states 8% 9% 18% 46% 12%
that generate sales)
6. Is the majority owner (at A woman 46% 48% 37% 30% 45%
least 51% owned, controlled A minority 12% 7% 7% 0% 9%
and managed) of your company: Neither 47% 47% 60% 70% 50%
*Total may be greater than 100% because this is a multiple response question.
7. Is your main/primary office: Rented space 28% 25% 51% 48% 31%
Company owned space 12% 9% 15% 20% 12%
Principal owned space
leased to the company 6% 6% 22% 30% 9%
Part of your residence 53% 59% 11% 0% 47%
Other 1% 1% 1% 3% 1%
PPAI Page 3 of 49 December 2011

BUSINESS PRACTICES
8. Does your company operate
from a formal/written business
plan (Please check one.)
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Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
Reviewed and revised
monthly 3% 1% 2% 13% 2%
Reviewed and revised
quarterly 6% 6% 9% 20% 7%
Reviewed and revised
semi-annually 3% 5% 10% 13% 5%
Reviewed and revised
annually
No - do not operate from
21% 23% 18% 25% 22%
a formal business plan 67% 65% 60% 30% 63%
9. How often is a profit and Monthly 31% 34% 60% 93% 39%
loss statement or statement Quarterly 22% 24% 21% 5% 22%
of income prepared for your Semi-annually 8% 5% 2% 0% 6%
business (Please check one.) Annually 34% 30% 17% 3% 28%
Never 6% 6% 0% 0% 5%
10. What types of insurance do Product liability 23% 27% 50% 63% 31%
you carry (Check all that apply.) General liability 90% 93% 95% 100% 92%
Errors & omissions insurance 11% 13% 14% 38% 14%
*Total may be greater than 100% because this is a multiple response question.
Legal insurance 13% 13% 14% 33% 14%
Key Man insurance 9% 13% 19% 53% 15%
Other 7% 5% 5% 5% 6%
PPAI Page 4 of 49 December 2011

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Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,001
11. Do you belong to a group
We belong industry
affiliated affinity group 5% 3% 5% 3% 4%
providing employee benefit
We belong to an out of
industry group 20% 23% 21% 24% 21%
or insurance services
We have an individual
plan 61% 57% 66% 74% 61%
(Please check one.) Other 14% 17% 7% 0% 13%
12. What are your prompt Discount under 10 days 9% 7% 7% 10% 8%
payment terms Discount under 15 days 2% 1% 1% 0% 2%
(Please check one.) Discount under 30 days 5% 3% 5% 10% 4%
No prompt payment terms 78% 84% 83% 72% 80%
Other 6% 5% 5% 8% 6%
13. What are your standard C.O.D.- receipt 20% 14% 11% 5% 16%
prepayment terms of sale Deposit with order 48% 49% 42% 51% 48%
(Please check one.) Upfront full payment 14% 13% 18% 5% 13%
Credit card guarantee on order 19% 24% 28% 38% 23%
14. What are your standard terms Net 10 days 14% 17% 6% 13% 14%
of sale (Please check one.) Net 15 days 15% 15% 13% 5% 14%
Net 20 days 4% 4% 4% 5% 4%
Net 30 days 55% 51% 67% 78% 56%
Other 13% 12% 10% 0% 11%
PPAI Page 5 of 49 December 2011

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Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
15. Do you charge a monthly 1%-2% 25% 24% 30% 23% 25%
finance charge on delinquent More than 2% 4% 2% 4% 0% 3%
account(s) No charge 71% 74% 66% 77% 71%
16. Who collects delinquent Office staff 41% 42% 59% 69% 46%
accounts (Please check all Salespeople 12% 20% 31% 46% 19%
that apply) Principal 52% 56% 45% 21% 50%
*Total may be greater than 100% because this is a multiple response question.
17. What payment methods do
you accept (Please check
Attorney 2% 3% 5% 10% 3%
Collection agency 6% 5% 8% 23% 7%
Small claims court 2% 3% 6% 8% 3%
Dedicated collections dept. 1% 1% 2% 13% 2%
Other 5% 3% 2% 5% 4%
Bank cards (Visa,
MasterCard) 73% 73% 90% 95% 77%
Credit cards (AmEx,
Discover) 59% 56% 82% 88% 63%
all that apply.) ACH transfers 28% 27% 47% 63% 32%
*Total may be greater than 100% because this is a multiple response question.
Wire transfers 25% 24% 41% 80% 30%
Paypal type online
electronic transfers 30% 23% 28% 40% 27%
Do not accept electronic
or card payments 15% 15% 5% 0% 13%
Other 18% 19% 7% 8% 16%
18. Do you use an industry affinity Bank 37% 35% 49% 67% 40%
service or your bank for credit
Industry related affinity
service 28% 25% 34% 26% 28%
card processing (Please
Do not accept electronic
or card payments 20% 22% 5% 3% 18%
check all that apply.) Other 18% 19% 14% 5% 17%
*Total may be greater than 100% because this is a multiple response question.
PPAI Page 6 of 49 December 2011

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Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
19. Do you charge a processing or Yes 9% 8% 17% 25% 11%
handling charge for credit No 91% 92% 83% 75% 89%
card orders
20. How often do you take Never 23% 18% 6% 8% 18%
discounts on supplier invoice Rarely 27% 28% 40% 15% 28%
payments Occasionally 25% 23% 23% 28% 24%
Fairly often 7% 10% 8% 5% 8%
Most of the time 8% 10% 11% 15% 10%
Always 9% 12% 13% 30% 12%
21. Do you have a certified Yes 9% 7% 10% 38% 10%
accountant on staff No 91% 93% 90% 62% 90%
22. Do you use an outside Yes, for bookkeeping 25% 25% 24% 8% 24%
bookkeeping or accounting firm Yes, for taxes 72% 77% 86% 75% 76%
for the following: (Please No, Yes, do for not audit/review use ouside 24% 25% 44% 65% 30%
check those that apply.)
bookkeeping or
accounting firm 23% 18% 11% 15% 19%
Other 2% 4% 3% 3% 3%
*Total may be greater than 100% because this is a multiple response question.
23. Does your firm belong to a Yes 37% 41% 51% 65% 42%
regional promotional product No 63% 59% 49% 35% 58%
association
PPAI Page 7 of 49 December 2011

IMPORTS, EXPORTS AND PRODUCT
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Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
24. Do you sell and ship to Yes 25% 25% 44% 80% 31%
customers located outside No 75% 75% 56% 20% 69%
the U.S.
25. What percentage of your sales 1% 55% 42% 41% 45% 47%
do these exports that you 2-3% 14% 25% 22% 33% 22%
refer to above amount to 4-5% 11% 12% 20% 18% 14%
6% or more 20% 22% 18% 3% 18%
26. Do you buy products that are Yes 36% 44% 55% 60% 43%
shipped directly from supplier No 64% 56% 45% 40% 57%
factories located outside the
U.S.
27. What types of products that Wearables 35% 37% 47% 56% 40%
you buy are shipped directly Bags 45% 31% 56% 67% 44%
from overseas (Please check Games/Toys 13% 11% 11% 22% 13%
all that apply.) Recognition Awards/Jewelry 12% 20% 18% 26% 17%
Stickers/Decals 6% 2% 5% 7% 5%
Drinkware 19% 8% 19% 37% 16%
Texiles 13% 7% 13% 26% 12%
Electronic Devices 23% 31% 31% 33% 28%
Writing Instruments 19% 17% 31% 37% 22%
Desk Accessories 11% 9% 16% 22% 12%
Sporting Goods 8% 7% 3% 7% 7%
Buttons/Badges 11% 12% 6% 11% 10%
Automotive Accessories 5% 1% 5% 7% 4%
Housewares 7% 6% 6% 11% 7%
Other 19% 18% 11% 15% 17%
PPAI Page 8 of 49 December 2011

28. What percentage of your sales U.S. based suppliers
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Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
is attributed to products 0% 3% 1% 1% 0% 2%
sourced from the following 1-10% 0% 1% 0% 0% 0%
Please enter a number for 11-20% 0% 2% 2% 5% 1%
each: 21-30% 1% 2% 2% 3% 2%
31-40% 2% 2% 2% 0% 2%
41-50% 5% 4% 7% 5% 5%
51-60% 1% 2% 2% 5% 2%
61-70% 2% 3% 5% 5% 3%
71-80% 9% 11% 12% 25% 11%
81-90% 13% 18% 12% 18% 15%
91-100% 62% 54% 55% 35% 56%
US based non-industry
suppliers
0% 42% 37% 33% 9% 36%
1-10% 36% 43% 45% 54% 41%
11-20% 12% 9% 8% 20% 11%
21-30% 5% 5% 4% 6% 5%
31-40% 1% 3% 1% 3% 2%
41-50% 2% 2% 4% 6% 3%
51-60% 2% 1% 3% 0% 1%
61-70% 1% 0% 0% 0% 0%
71-80% 0% 2% 0% 3% 1%
81-90% 1% 0% 0% 0% 0%
91-100% 1% 1% 1% 0% 1%
PPAI Page 9 of 49 December 2011

28. What percentage of your sales U.S. based brokers
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Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
is attributed to products 0% 64% 56% 73% 40% 61%
sourced from the following 1-10% 26% 27% 21% 56% 28%
Please enter a number for 11-20% 4% 8% 2% 0% 5%
each: (continued) 21-30% 2% 6% 0% 0% 3%
Overseas based brokers
31-40% 0% 0% 2% 0% 0%
41-50% 2% 2% 0% 4% 2%
51-60% 0% 1% 0% 0% 1%
61-70% 0% 0% 2% 0% 0%
71-80% 0% 0% 0% 0% 0%
81-90% 0% 0% 0% 0% 0%
91-100% 2% 0% 0% 0% 1%
0% 62% 66% 58% 41% 62%
1-10% 31% 27% 31% 53% 31%
11-20% 1% 7% 8% 6% 5%
21-30% 2% 1% 2% 0% 1%
31-40% 0% 0% 0% 0% 0%
41-50% 2% 0% 0% 0% 1%
51-60% 0% 0% 0% 0% 0%
61-70% 1% 0% 0% 0% 0%
71-80% 0% 0% 0% 0% 0%
81-90% 0% 0% 0% 0% 0%
91-100% 1% 0% 0% 0% 0%
PPAI Page 10 of 49 December 2011

28. What percentage of your sales
Overseas factory w/o a
middleman
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Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
is attributed to products 0% 56% 64% 31% 25% 53%
sourced from the following 1-10% 28% 23% 44% 58% 31%
Please enter a number for 11-20% 5% 8% 14% 0% 7%
each: (continued) 21-30% 4% 5% 11% 0% 5%
Other
31-40% 0% 0% 0% 8% 0%
41-50% 4% 0% 0% 0% 1%
51-60% 1% 0% 0% 0% 0%
61-70% 0% 0% 0% 0% 0%
71-80% 0% 0% 0% 0% 0%
81-90% 0% 0% 0% 8% 0%
91-100% 1% 1% 0% 0% 1%
0% 56% 55% 44% 25% 53%
1-10% 32% 29% 38% 75% 33%
11-20% 0% 0% 0% 0% 0%
21-30% 0% 2% 6% 0% 2%
31-40% 0% 4% 0% 0% 2%
41-50% 5% 0% 6% 0% 3%
51-60% 0% 0% 0% 0% 0%
61-70% 0% 2% 0% 0% 1%
71-80% 2% 8% 0% 0% 5%
81-90% 0% 0% 6% 0% 1%
91-100% 5% 0% 0% 0% 2%
PPAI Page 11 of 49 December 2011

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Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
29. In addition to your awards and trophies 37% 36% 38% 50% 38%
promotional embroidery 60% 64% 64% 53% 62%
products, do you sell any of Fund-raising programs 15% 11% 13% 10% 13%
the following products/ office supplies 19% 11% 18% 18% 16%
services sourced from printing 47% 54% 46% 50% 50%
outside the promotional premiums 14% 14% 17% 38% 16%
products industry silk-screening 51% 57% 64% 45% 55%
(Please check all that apply.) sporting goods 13% 11% 9% 23% 12%
*Total may be greater than 100% because this is a multiple response question.
stationery/gift shop/souvenirs 12% 18% 18% 10% 15%
incentives 17% 24% 16% 30% 20%
business gifts 31% 36% 32% 48% 34%
custom packaging 14% 19% 28% 48% 20%
None of the above 13% 13% 13% 5% 13%
Other 6% 6% 10% 5% 7%
30. Please estimate the 1-10% 13% 4% 8% 13% 9%
percentage of your 11-20% 12% 5% 8% 5% 8%
total gross sales from 21-30% 13% 4% 6% 10% 8%
promotional products 31-40% 5% 8% 8% 3% 7%
(excluding premiums) 41-50% 7% 10% 8% 3% 8%
51-60% 3% 7% 9% 8% 5%
61-70% 6% 9% 6% 3% 7%
71-80% 5% 9% 10% 3% 7%
81-90% 12% 13% 11% 18% 13%
91-100% 25% 31% 29% 38% 28%
PPAI Page 12 of 49 December 2011

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Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
31. Does your firm have any None 74% 77% 69% 49% 73%
proprietary product lines 1 6% 5% 5% 13% 6%
2 5% 3% 9% 18% 6%
3-4 6% 7% 9% 5% 7%
5 or more 9% 7% 8% 15% 9%
32. Please estimate the 0% 33% 31% 29% 13% 31%
percentage of your 1-10% 35% 41% 41% 68% 40%
total gross sales from 11-20% 12% 11% 10% 5% 11%
premiums. 21-30% 5% 6% 5% 3% 5%
31-40% 3% 3% 4% 8% 3%
41-50% 3% 1% 4% 0% 2%
51-60% 2% 1% 2% 0% 2%
61-70% 2% 1% 1% 3% 1%
71-80% 0% 2% 1% 0% 1%
81-90% 3% 1% 1% 3% 2%
91-100% 3% 2% 3% 0% 2%
33. If your company handles invoice as normal 87% 93% 94% 94% 91%
premium programs, what is factory direct invoice 3% 2% 1% 6% 3%
your invoicing policy other 10% 5% 4% 0% 6%
34. If your company handles client 50% 62% 63% 53% 57%
premium programs, who distributor 39% 30% 29% 28% 33%
owns the inventory (prior other 11% 8% 9% 19% 10%
to fulfillment)
35. Do you work with yes 32% 37% 41% 71% 38%
premium reps no 68% 63% 59% 29% 62%
PPAI Page 13 of 49 December 2011

SALES ORGANIZATION
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Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
36. How many full-time 1 53% 49% 13% 3% 43%
salespeople do you 2 26% 31% 28% 5% 27%
have including owners and 3-4 13% 15% 32% 21% 17%
management 5-10 7% 4% 24% 33% 10%
11 or more 1% 0% 3% 38% 3%
37. If you have salespeople Primarily:
other than company independent contractors 38% 41% 34% 16% 36%
principals, how are they commissioned employees 32% 33% 47% 54% 37%
classified salaried employees 15% 15% 13% 22% 15%
other 15% 11% 7% 8% 11%
38. Please estimate average sales Under $50,000 49% 30% 10% 3% 30%
revenue per salesperson $50,001 - $75,000 17% 16% 11% 3% 14%
$75,001-$100,000 8% 16% 16% 13% 13%
$100,001 - $200,000 14% 21% 18% 8% 17%
$200,001 - $300,000 13% 11% 19% 8% 13%
$300,001 - $400,000 0% 3% 9% 16% 4%
$400,001 - $500,000 0% 2% 6% 5% 2%
$500,001 - $750,000 0% 2% 4% 32% 4%
$750,001 - $1,000,000 0% 1% 3% 11% 2%
Over $1,000,000 0% 0% 3% 3% 1%
PPAI Page 14 of 49 December 2011

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Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
39. Do you have a full-time yes 17% 11% 21% 29% 16%
sales manager(s) no 83% 89% 79% 71% 84%
39a. If yes, how many sales 1 96% 100% 92% 50% 90%
managers 2-3 4% 0% 8% 13% 5%
4 or more 0% 0% 0% 38% 5%
40. Does the sales manager yes 91% 92% 100% 73% 91%
also sell no 0% 8% 0% 27% 5%
Have selling and nonselling
sales managers 9% 0% 0% 0% 3%
41. Does your distributorship No minimum 55% 56% 45% 53% 54%
have a required minimum 15-19% 5% 4% 6% 5% 5%
gross profit margin for 20-24% 7% 7% 9% 8% 7%
accepting a standard order 25-29% 9% 8% 5% 3% 7%
30-35% 12% 15% 23% 20% 15%
36-40% 8% 7% 10% 5% 8%
41% or higher 3% 3% 2% 0% 2%
other 2% 1% 2% 8% 2%
PPAI Page 15 of 49 December 2011

42. Generally, what Independent Contractors
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Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
percentage of the gross 45% or lower 15% 13% 10% 3% 13%
profit does each of the 46-50% 13% 20% 33% 36% 20%
following receive 51-54% 2% 1% 4% 6% 2%
55% or higher 1% 1% 3% 6% 2%
sliding percentage based
on volume 5% 2% 6% 3% 4%
percentage based on
gross sales 4% 4% 6% 9% 5%
No independent
contractors 61% 59% 36% 36% 55%
Commissioned salespeople
45% or lower 15% 12% 21% 41% 17%
46-50% 10% 13% 21% 18% 13%
51-54% 0% 2% 3% 3% 2%
55% or higher 0% 5% 2% 3% 2%
sliding percentage based
on volume 5% 4% 5% 6% 5%
percentage based on
gross sales 5% 6% 9% 9% 6%
No commissioned
salaried salespeople 64% 59% 38% 21% 55%
Salaried Employees
45% or lower 14% 12% 21% 23% 15%
46-50% 3% 4% 13% 7% 5%
51-54% 1% 1% 0% 0% 1%
55% or higher 0% 0% 0% 0% 0%
sliding percentage based
on volume 8% 6% 5% 3% 6%
percentage based on
gross sales 4% 3% 8% 13% 5%
No salaried salespeople 69% 72% 54% 53% 67%
PPAI Page 16 of 49 December 2011

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Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
43. What is your minimum no minimum order 71% 71% 73% 72% 71%
order size for a catalog minimum 10% 12% 6% 3% 10%
commission payment up to $49 0% 0% 0% 0% 0%
$50-$99 3% 4% 1% 0% 3%
$100-$149 4% 3% 7% 10% 5%
$150-$249 2% 2% 1% 5% 2%
$250 or more 4% 5% 7% 3% 5%
Other 6% 3% 5% 8% 5%
44. What is your policy Percentage of commission 5% 3% 3% 8% 4%
concerning salespersons' Percentage of cost 6% 5% 8% 15% 7%
errors
error is put into the cost
of the order 15% 24% 30% 28% 22%
They are charged: salesperson receives
no penalty 6% 2% 9% 5% 5%
split cost of error with
salesperson 10% 12% 18% 23% 13%
no set policy 46% 45% 22% 13% 40%
other 12% 8% 9% 8% 10%
45. Please indicate Sample Kits
how you normally 100% 6% 11% 7% 13% 9%
charge your split cost 12% 12% 15% 16% 13%
salesperson(s) for no charge 54% 55% 67% 58% 57%
the following: don't use 28% 22% 11% 13% 22%
Catalogs
100% 1% 5% 2% 5% 3%
split costs 4% 2% 4% 8% 4%
no charge 72% 79% 85% 82% 78%
don't use 23% 13% 8% 5% 15%
PPAI Page 17 of 49 December 2011

45. Please indicate Random samples
D00 - D-2 D-3- D-4 D-5 - D-6 D-7- D-16
Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
how you normally 100% 7% 13% 13% 15% 11%
charge your split costs 12% 9% 23% 26% 14%
salesperson(s) for no charge 63% 65% 58% 54% 63%
the following: (continued) don't use 19% 12% 6% 5% 13%
Personalized samples
100% 16% 25% 30% 26% 23%
split costs 21% 19% 23% 41% 22%
no charge 33% 35% 35% 18% 33%
don't use 30% 20% 11% 15% 22%
Samples with dist imprint
only
Business gifts
Speculative samples
Mailings
100% 3% 9% 7% 8% 6%
split costs 9% 7% 14% 15% 10%
no charge 58% 66% 69% 74% 64%
don't use 29% 18% 9% 3% 20%
100% 15% 21% 21% 23% 19%
split costs 19% 22% 34% 41% 24%
no charge 40% 39% 35% 28% 38%
don't use 26% 19% 9% 8% 19%
100% 9% 18% 18% 13% 14%
split costs 22% 20% 27% 38% 23%
no charge 44% 46% 42% 44% 44%
don't use 25% 17% 13% 5% 18%
100% 8% 14% 6% 10% 10%
split costs 12% 16% 19% 28% 16%
no charge 51% 46% 58% 56% 51%
don't use 29% 24% 17% 5% 23%
PPAI Page 18 of 49 December 2011

46. Do you utilize a written independent contractors
D00 - D-2 D-3 - D-04 D-5 - D-6 D-7- D-16
Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
contract with your: No contracts are utilized 74% 72% 59% 44% 69%
The contract will restrict
his/her future
employment 12% 14% 23% 29% 16%
The contract will NOT
restrict his/her future
employment 15% 14% 18% 26% 16%
employee salespeople
No contracts are utilized 69% 74% 54% 32% 66%
The contract will restrict
his/her future
employment 16% 15% 37% 57% 22%
The contract will NOT
restrict his/her future
employment 15% 10% 10% 11% 12%
sales managers
No contracts are utilized 74% 79% 62% 58% 73%
The contract will restrict
his/her future
employment 11% 12% 29% 29% 16%
The contract will NOT
restrict his/her future
employment 15% 8% 9% 13% 11%
PPAI Page 19 of 49 December 2011

ORDERS, REBATES, POLICIES AND PRACTICES WITH SUPPLIERS
D00 - D-2 D-3- D-4 D-5 - D-6 D-7- D-16
Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
47. How many orders did fewer than 100 39% 17% 4% 0% 22%
you process last year 100-249 22% 39% 8% 5% 26%
250-499 16% 23% 15% 8% 18%
500-999 8% 12% 24% 13% 12%
1,000-2,499 9% 6% 33% 16% 12%
2,500-4,999 3% 2% 10% 16% 5%
5,000-9,999 2% 0% 4% 18% 2%
10,000 or more 1% 0% 3% 24% 2%
48. How many prime 1 to 5 42% 22% 4% 5% 26%
suppliers (five or more 6 to 10 25% 39% 24% 10% 30%
orders a year) do you 11 to 20 19% 24% 26% 13% 22%
work with 21 to 30 7% 8% 18% 13% 9%
31 to 40 4% 5% 11% 8% 6%
41 to 50 0% 1% 7% 8% 2%
51 or more 3% 1% 11% 44% 6%
49. Of all the suppliers you work 0% 62% 56% 25% 15% 51%
with, what percentage of 1% -10% 28% 39% 61% 59% 39%
of then give you rebates 11% - 20% 5% 2% 4% 3% 3%
21% - 30% 1% 2% 6% 3% 2%
31% - 40% 0% 0% 1% 5% 1%
41% - 50% 2% 0% 1% 5% 1%
51% - 60% 1% 1% 0% 0% 1%
61% or more 1% 0% 3% 10% 2%
50. By what means do you No rebates 49% 43% 21% 10% 40%
monitor supplier rebate Order management system 6% 6% 11% 33% 9%
programs Manually 19% 23% 33% 36% 24%
Do not monitor 25% 28% 35% 21% 28%
PPAI Page 20 of 49 December 2011

D00 - D-2 D-3- D-4 D-5 - D-6 D-7- D-16
Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
51. How many suppliers 1 to 5 73% 61% 40% 15% 59%
provide products for the 6 to 10 19% 30% 34% 41% 27%
TOP 20% of your orders 11 to 20 7% 6% 21% 15% 9%
21 to 30 1% 2% 2% 10% 2%
31 to 40 0% 0% 1% 3% 0%
41 to 50 0% 0% 1% 8% 1%
51 or more 1% 1% 1% 8% 1%
52. Do you try to No specific extra support 26% 16% 16% 5% 19%
use/order/show their
support your preferred
products first 64% 74% 78% 87% 72%
suppliers over other advertise/put on website 25% 29% 38% 49% 30%
suppliers when possible prominent placement 14% 14% 25% 44% 18%
*Total may not equal 100% because this is a multiple response question.
extend special pricing 19% 27% 34% 46% 26%
email flyer 20% 24% 26% 38% 24%
Commission incentives on
preferred lines 2% 2% 2% 18% 3%
other 2% 1% 0% 0% 1%
53. Do you have a No showrooms 69% 71% 43% 21% 63%
showroom 1 showroom 31% 28% 53% 67% 35%
2 showrooms 0% 1% 2% 10% 1%
3 showrooms 0% 0% 2% 0% 0%
4 showrooms 0% 0% 0% 3% 0%
Have one in all of our offices 0% 0% 0% 0% 0%
PPAI Page 21 of 49 December 2011

D00 - D-2 D-3- D-4 D-5 - D-6 D-7- D-16
Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
54. If yes, how often is the less than 5 times 60% 66% 43% 53% 57%
showroom used for client 5-10 times 21% 18% 23% 41% 23%
presentations (per month) 11-15 times 6% 3% 11% 3% 6%
16-20 times 3% 5% 7% 3% 4%
more than 20 times 10% 8% 16% 0% 10%
55. What percent of gross No house accounts 62% 59% 37% 28% 55%
sales is attributed to house 1%-2% 3% 5% 5% 10% 5%
accounts 3%-5% 3% 2% 10% 13% 4%
6%-10% 4% 3% 9% 10% 5%
11% plus 28% 30% 40% 38% 32%
56. What period of time do 1 year or less 15% 13% 19% 23% 15%
you specify for account 18 months 2% 5% 6% 15% 5%
protection 2 years or more 5% 5% 7% 10% 5%
as long as original
salesperson calls on client 8% 13% 27% 23% 14%
no account protection
offered 20% 14% 8% 10% 15%
no specific policy 50% 51% 33% 18% 45%
PPAI Page 22 of 49 December 2011

CLIENT SOURCES
D00 - D-2 D-3- D-4 D-5 - D-6 D-7- D-16
Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
57. What are your main Yellow Pages ad 12% 8% 6% 8% 9%
sources of new clients cold calling 50% 48% 52% 57% 50%
for your salesforce referrals from clients 81% 90% 81% 97% 86%
internet/e-mail/website
inquiries 42% 30% 42% 54% 38%
business
organizations/clubs 51% 55% 46% 46% 51%
*Total may be greater than 100% because this is a multiple response question.
networking 68% 73% 71% 92% 72%
telemarketing 7% 11% 13% 19% 10%
direct mail 13% 20% 13% 27% 17%
advertising 16% 14% 16% 24% 16%
trade shows 22% 25% 22% 32% 24%
Inherited from peer 9% 19% 23% 35% 18%
Other 2% 2% 4% 5% 3%
58. What are your main Yellow Pages ad 9% 7% 10% 0% 8%
sources of new clients cold calling 36% 37% 34% 38% 36%
for your distributorship referrals from clients 85% 89% 90% 86% 87%
internet e-mail/website
inquiries 35% 39% 49% 51% 40%
business
organizations/clubs 46% 56% 47% 43% 50%
networking 65% 76% 62% 78% 70%
telemarketing 5% 9% 9% 16% 8%
direct mail 14% 22% 22% 30% 19%
advertising 15% 17% 22% 19% 17%
trade shows 21% 24% 24% 24% 23%
business acquisition 5% 5% 10% 22% 6%
via salesperson acquisition 7% 11% 24% 46% 13%
Other 2% 3% 2% 5% 3%
PPAI Page 23 of 49 December 2011

D00 - D-2 D-3- D-4 D-5 - D-6 D-7- D-16
Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
59. What percentage of your 1-5% 23% 16% 19% 16% 19%
business comes from 6-10% 27% 34% 35% 34% 32%
new clients in a year 11-20% 25% 28% 34% 39% 29%
21-30% 11% 13% 10% 8% 11%
over 30% 15% 8% 3% 3% 9%
60. For your salesforce, which of Chamber of Commerce 53% 60% 52% 24% 54%
the following are important special events 50% 50% 48% 59% 50%
networking events to prospect public speaking 7% 5% 9% 9% 7%
for new clients
leads grps (BNI, Le Tip,
etc) 24% 35% 17% 29% 28%
services clubs like Rotary,
Kiwanis, etc 22% 24% 22% 18% 22%
trade associations 34% 27% 31% 26% 30%
marketing associations 21% 20% 27% 35% 23%
other 5% 4% 6% 12% 5%
61. For your distributorship, which Chamber of Commerce 50% 54% 52% 30% 51%
of the following are important special events 56% 52% 60% 52% 54%
networking events to prospect public speaking 6% 8% 14% 21% 9%
for new clients
leads grps (BNI, Le Tip,
etc) 20% 34% 16% 15% 25%
services clubs like Rotary,
Kiwanis, etc 22% 23% 18% 12% 21%
trade associations 32% 28% 31% 30% 30%
marketing associations 18% 22% 26% 33% 22%
other 6% 6% 4% 15% 6%
*Total may be greater than 100% because this is a multiple response question.
PPAI Page 24 of 49 December 2011

OTHER BUSINESS PRACTICES
D00 - D-2 D-3- D-4 D-5 - D-6 D-7- D-16
Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
62. Regarding allowing sales- encourage 61% 62% 75% 89% 67%
people to contact suppliers restrict 24% 25% 17% 6% 21%
directly, do you generally . . prohibit 16% 13% 8% 6% 12%
63. How often is the No sales manual 85% 87% 79% 47% 83%
sales manual revised updated annually 10% 7% 13% 29% 10%
or updated pdated bienially 1% 1% 1% 5% 1%
updated continually 4% 4% 7% 18% 5%
64. Does your firm mark- freight/std order shipping 56% 66% 75% 79% 65%
up the following: overnight shipping 44% 35% 49% 64% 42%
*Total may be greater than 100% because this is a multiple response question.
artwork 86% 81% 84% 82% 83%
other 5% 3% 3% 6% 4%
65. Does your firm have a No 82% 78% 71% 50% 77%
standard handling charge By average dollar amount 15% 16% 21% 32% 18%
per order By average percent of sale 1% 3% 0% 11% 2%
Other 3% 3% 7% 7% 4%
66. Do you pass freight discounts yes 51% 62% 63% 49% 57%
along to your customers no 49% 38% 37% 51% 43%
67. Is you company part of yes 10% 16% 13% 29% 14%
a distributor network no 90% 84% 88% 71% 86%
Note: 91 respondents said their company was part of a distributor network. Responses included AIA, Premier Group, SAGE, Press-A-Print and various buying groups.
PPAI Page 25 of 49 December 2011

PROMOTION
D00 - D-2 D-3- D-4 D-5 - D-6 D-7- D-16
Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
68. For your salesforce, what retail display advertising 16% 8% 16% 6% 12%
self-promotion methods do broadcast e-mails 31% 36% 43% 67% 39%
you use internet 48% 39% 51% 61% 46%
yellow pages ads (not
listings) 7% 7% 15% 11% 9%
promotional products (to
promote yourself) 80% 88% 84% 94% 85%
advertising in
business/trade
publications 9% 14% 17% 17% 13%
*Total may be greater than 100% because this is a multiple response question.
your website 71% 73% 82% 81% 75%
publicity/local press 13% 12% 11% 17% 13%
exhibiting at trade
shows/fairs 21% 29% 34% 44% 29%
direct mail 22% 32% 34% 53% 31%
customer shows 13% 15% 17% 39% 17%
Birthday/holiday gifts/
anniversary gifts 15% 19% 17% 25% 18%
telemarketing 6% 8% 9% 11% 8%
open house 14% 10% 17% 22% 14%
industry-prepared direct
mail publications 12% 4% 6% 11% 8%
ads in local newspapers 12% 7% 4% 3% 8%
random or spec samples 36% 43% 47% 58% 43%
social media 33% 31% 34% 50% 34%
PPAI Page 26 of 49 December 2011

D00 - D-2 D-3- D-4 D-5 - D-6 D-7- D-16
Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
69. For your distributorship, what retail display advertising 14% 9% 16% 3% 12%
self-promotion methods do broadcast e-mails 31% 40% 46% 51% 38%
you use internet 47% 55% 63% 70% 54%
yellow pages ads (not
listings) 9% 8% 26% 8% 11%
promotional products (to
promote yourself) 79% 90% 87% 84% 85%
advertising in
business/trade
publications 10% 14% 20% 19% 14%
*Total may be greater than 100% because this is a multiple response question.
your website 76% 78% 81% 86% 78%
publicity/local press 13% 12% 18% 16% 14%
exhibiting at trade
shows/fairs 24% 32% 37% 38% 30%
direct mail 19% 35% 39% 43% 30%
customer shows 16% 15% 20% 38% 17%
Birthday/holiday gifts/
anniversary gifts 23% 21% 16% 22% 21%
telemarketing 7% 10% 9% 8% 8%
open house 7% 8% 18% 27% 11%
industry-prepared direct
mail publications 8% 7% 9% 14% 8%
ads in local newspapers 9% 6% 5% 0% 7%
random or spec samples 34% 48% 43% 41% 42%
social media 31% 39% 33% 38% 35%
PPAI Page 27 of 49 December 2011

For your salesforce
D00 - D-2 D-3- D-4 D-5 - D-6 D-7- D-16
Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
70. Which of the above retail display advertising 1% 1% 0% 0% 1%
would you consider the broadcast e-mails 6% 7% 11% 9% 8%
one most successful yellow pages ads internet (not 10% 5% 4% 6% 6%
promotional medium:
listings) 2% 0% 1% 3% 1%
promotional products (to
promote yourself) 34% 41% 43% 36% 39%
advertising in
business/trade
publications 1% 0% 1% 0% 1%
your website 14% 12% 14% 12% 13%
publicity/local press 2% 2% 1% 0% 2%
exhibiting at trade
shows/fairs 5% 5% 7% 0% 5%
direct mail 2% 7% 5% 6% 5%
customer shows 1% 1% 0% 6% 1%
birthday gifts/holiday
gifts/anniversary gifts 0% 0% 0% 0% 0%
telemarketing 2% 2% 0% 0% 1%
open house 6% 2% 3% 0% 3%
industry-prepared direct
mail publications 0% 1% 0% 0% 0%
ads in local newspapers 1% 0% 0% 0% 0%
random or spec samples 7% 13% 7% 21% 11%
social media 7% 3% 3% 0% 4%
PPAI Page 28 of 49 December 2011

For your distributorship
D00 - D-2 D-3- D-4 D-5 - D-6 D-7- D-16
Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
70. Which of the above retail display advertising 1% 1% 0% 0% 1%
would you consider the broadcast e-mails 6% 6% 6% 15% 7%
one most successful internet 8% 5% 5% 3% 6%
promotional medium: yellow pages ads (not listings) 2% 0% 2% 3% 1%
(continued)
promotional products (to
promote yourself) 33% 38% 36% 27% 35%
advertising in
business/trade
publications 1% 2% 0% 0% 1%
your website 19% 15% 17% 27% 18%
publicity/local press 2% 0% 0% 0% 1%
exhibiting at trade
shows/fairs 5% 7% 12% 3% 7%
direct mail 3% 7% 10% 0% 5%
customer shows 2% 3% 2% 6% 3%
birthday gifts/holiday
gifts/anniversary gifts 1% 0% 0% 0% 0%
telemarketing 2% 2% 0% 0% 2%
open house 2% 1% 2% 0% 2%
industry-prepared direct
mail publications 0% 1% 0% 0% 0%
ads in local newspapers 2% 0% 0% 0% 1%
random or spec samples 7% 8% 5% 12% 7%
social media 5% 3% 2% 3% 4%
71. If you send broadcast e-mail weekly 9% 9% 17% 22% 11%
specials to your monthly 19% 23% 26% 39% 23%
customers, how often do quarterly 7% 7% 9% 6% 7%
you send them occasionally 29% 36% 20% 19% 30%
never 35% 25% 28% 14% 29%
PPAI Page 29 of 49 December 2011

MEETINGS, TRAINING AND RECRUITMENT
72. What type of formal or
standard training methods
D00 - D-2 D-3- D-4 D-5 - D-6 D-7- D-16
Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
Owner/principal of the
company does the
training 46% 51% 63% 61% 52%
Internal sales manager
does the training 6% 4% 13% 26% 7%
do you employ Peer salesperson training 7% 10% 15% 53% 12%
Outside training
consultant 4% 6% 5% 21% 6%
Industry sponsored
seminars, workshops,
audio visuals, etc. 22% 29% 29% 39% 27%
*Total may not equal 100% because this is a multiple response question.
Industry suppliers come in
to train salespeople 6% 8% 12% 45% 10%
We do not conduct formal
sales training 41% 39% 24% 8% 35%
Other 0% 2% 3% 0% 1%
PPAI Page 30 of 49 December 2011

D00 - D-2 D-3- D-4 D-5 - D-6 D-7- D-16
Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
73. How do you recruit Social Media 16% 17% 16% 31% 18%
salespeople Trade publications 3% 2% 3% 11% 4%
*Total may not equal 100% because this is a multiple response question.
Newspapers 15% 8% 11% 8% 11%
Social media networking 9% 12% 7% 28% 11%
Referrals 72% 78% 83% 81% 78%
Recruiter/employment 6% 7% 5% 17% 8%
Industry job banks 3% 1% 1% 6% 2%
Through internet job
banks 13% 3% 4% 11% 7%
Through multiline supplier
reps 6% 3% 11% 31% 9%
Paid referrals from our
salespeople 4% 2% 7% 14% 5%
Unpaid referrals from our
salespeople 4% 12% 16% 17% 11%
Government hiring
programs 1% 0% 1% 0% 1%
By business acquisition 3% 2% 4% 33% 6%
Networking groups 15% 17% 16% 28% 17%
Paid referrals from reps in
the market 0% 2% 1% 3% 1%
other 4% 6% 4% 11% 6%
74. How often do you hold weekly 13% 18% 25% 41% 19%
sales meetings monthly 9% 11% 15% 22% 12%
*Total may not equal 100% because this is a multiple response question.
quarterly 11% 7% 10% 8% 9%
annually 2% 1% 10% 11% 4%
do not conduct 63% 62% 41% 19% 56%
PPAI Page 31 of 49 December 2011

75~77. Please indicate PPAI Expo
D00 - D-2 D-3- D-4 D-5 - D-6 D-7- D-16
Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
which meetings are office staff 48% 54% 40% 49% 49%
attended by which principal(s) 63% 75% 74% 81% 71%
type(s) of personnel: sales reps 46% 51% 54% 75% 53%
Traveling shows
Regional shows
Premium/incentive shows
ASI Shows
Your company sales meetings
Customer/Enduser shows
Supplier Rep/MLR visits
office staff 40% 45% 37% 42% 41%
principal(s) 52% 62% 45% 43% 54%
sales reps 48% 50% 48% 69% 51%
office staff 53% 59% 62% 64% 58%
principal(s) 63% 71% 75% 54% 68%
sales reps 60% 63% 80% 75% 67%
office staff 10% 11% 13% 15% 11%
principal(s) 18% 21% 14% 22% 19%
sales reps 15% 14% 15% 36% 17%
office staff 39% 29% 31% 30% 33%
principal(s) 44% 38% 43% 49% 42%
sales reps 41% 32% 38% 50% 38%
office staff 29% 26% 45% 55% 33%
principal(s) 21% 21% 39% 70% 27%
sales reps 33% 30% 44% 64% 37%
office staff 11% 6% 15% 24% 11%
principal(s) 13% 10% 17% 27% 13%
sales reps 12% 10% 20% 33% 15%
office staff 15% 27% 42% 52% 28%
principal(s) 19% 31% 42% 59% 30%
sales reps 21% 27% 43% 58% 32%
PPAI Page 32 of 49 December 2011

75~77. Please indicate Supplier Webinars
D00 - D-2 D-3- D-4 D-5 - D-6 D-7- D-16
Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
which meetings are office staff 32% 30% 21% 27% 29%
attended by which principal(s) 40% 45% 19% 32% 38%
type(s) of personnel: sales reps 26% 28% 17% 44% 26%
(continued)
Industry education events
Other Shows
office staff 23% 25% 17% 18% 22%
principal(s) 24% 32% 22% 22% 27%
sales reps 18% 23% 16% 25% 20%
office staff 3% 1% 4% 0% 2%
principal(s) 4% 2% 6% 0% 3%
sales reps 3% 1% 4% 0% 2%
78. Do you have a customer yes 7% 7% 21% 39% 11%
or client show no 93% 93% 79% 61% 89%
*Note: Most respondents stated that they had an open house mostly assisted by suppliers or factory reps. Other resposnes were too varied to compute.
PPAI Page 33 of 49 December 2011

SPECIAL SERVICES
D00 - D-2 D-3- D-4 D-5 - D-6 D-7- D-16
Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
79. Does your company use Random samples 89% 93% 95% 92% 92%
the following samples Virtual random samples 51% 58% 67% 68% 57%
*Total may not equal 100% because this is a multiple response question.
Virtual speculative samples 48% 57% 68% 84% 57%
Speculative samples 38% 57% 71% 82% 54%
None of the above 6% 2% 3% 3% 4%
80. How frequently do Actual Specs
orders result from rarely 8% 5% 2% 0% 5%
the following samples occasionally 30% 30% 22% 8% 27%
Virtual Specs
fairly often 37% 45% 52% 68% 45%
most of the time 25% 20% 24% 24% 23%
rarely 10% 8% 7% 6% 8%
occasionally 43% 46% 44% 47% 45%
fairly often 34% 37% 37% 44% 36%
most of the time 14% 10% 11% 3% 11%
PPAI Page 34 of 49 December 2011

D00 - D-2 D-3- D-4 D-5 - D-6 D-7- D-16
Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
81. Which of these are the catalogs 57% 51% 57% 32% 53%
three most important sample kits 24% 14% 23% 5% 19%
sales aids to your random samples 46% 44% 33% 21% 42%
distributorship personalized samples 21% 16% 17% 11% 18%
speculative samples 11% 21% 30% 42% 20%
display/showroom 10% 11% 19% 13% 12%
direct mail 3% 6% 6% 5% 5%
your own website 39% 37% 40% 53% 39%
Electronic posting on
social media sites (i.e.
Facebook, etc.) 1% 4% 1% 8% 3%
*Total may not equal 100% because this is a multiple response question.
Electronic posting on
buyer/sourcing websites
(i.e. Alibaba) 0% 0% 0% 0% 0%
e-mail 27% 36% 30% 29% 32%
supplier website 14% 15% 10% 18% 14%
virtual samples 17% 19% 14% 29% 18%
Industry research or
presentation tool 12% 20% 10% 21% 15%
82. What types of marketing free samples 84% 82% 86% 89% 84%
support do you receive virtual samples 62% 67% 71% 89% 67%
from suppliers free flyers 73% 78% 80% 76% 76%
*Total may be greater than 100% because this is a multiple response question.
dedicated inside reps 32% 34% 49% 73% 38%
specials 64% 72% 70% 78% 69%
Full artwork presentation 15% 10% 20% 51% 16%
Website or web pages 42% 39% 31% 41% 39%
Joint sales calls with
supplier reps or multi-line
reps 11% 11% 18% 51% 15%
other 1% 2% 1% 3% 1%
PPAI Page 35 of 49 December 2011

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Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
83. Do you prefer to work with yes 31% 34% 43% 68% 37%
supplier rep groups/multi- no 69% 66% 57% 32% 63%
line reps in your area
84. Which special services artwork 79% 78% 76% 89% 79%
do you offer in-house to imprinting 25% 18% 24% 19% 21%
your clients layout/paste-up 42% 47% 49% 59% 46%
*Total may be greater than 100% because this is a multiple response question.
copywriting 21% 26% 20% 35% 24%
screen printing 25% 23% 20% 27% 23%
online company stores 22% 26% 40% 76% 30%
printing 24% 19% 15% 22% 20%
warehousing 21% 23% 43% 78% 29%
fulfillment 24% 29% 41% 81% 33%
gift wrapping 15% 18% 14% 38% 18%
packaging 19% 25% 25% 62% 25%
embroidery 27% 20% 27% 30% 24%
engraving 15% 11% 10% 24% 13%
other 8% 3% 4% 3% 5%
PPAI Page 36 of 49 December 2011

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Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
85. Which of the above artwork 58% 62% 57% 39% 59%
special services do imprinting 67% 72% 61% 61% 68%
you outsource to layout/paste-up 15% 20% 22% 26% 19%
other companies to copywriting 13% 17% 25% 45% 18%
provide for you screen printing 81% 87% 78% 74% 82%
*Total may be greater than 100% because this is a multiple response question.
online company stores 12% 14% 13% 21% 14%
printing 59% 68% 53% 55% 62%
warehousing 18% 20% 19% 24% 19%
fulfillment 21% 23% 21% 26% 22%
gift wrapping 11% 15% 20% 26% 15%
packaging 18% 24% 28% 32% 23%
embroidery 73% 83% 73% 82% 78%
engraving 59% 64% 71% 68% 63%
other 1% 1% 0% 0% 1%
86. Do you charge a fee to yes 22% 22% 27% 21% 23%
clients for creative no 45% 39% 45% 32% 42%
services/idea generation
only if client uses our
idea but does not place
order with us 7% 15% 8% 18% 11%
in addition to the cost of sometimes 25% 23% 19% 29% 24%
merchandise other 0% 1% 1% 0% 1%
87. Do you sell: co-op programs 18% 25% 33% 47% 25%
*Total may not equal 100% because this is a multiple response question.
a company store 19% 32% 47% 84% 33%
sales programs 17% 22% 32% 61% 24%
Incentive/safety programs 19% 32% 44% 63% 31%
Fulfillment programs 17% 24% 42% 74% 27%
None of the above 61% 45% 29% 13% 46%
PPAI Page 37 of 49 December 2011

COMMISSIONS
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Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
88. Total commissions are the order is sold (booked) 6% 1% 8% 8% 5%
primarily paid when: the order is billed 6% 8% 22% 25% 11%
the order is paid for 88% 91% 71% 67% 84%
89. What is your minimum A dollar amount 4% 2% 3% 3% 3%
commission payment: No minimum 63% 70% 60% 62% 65%
percentage of gross margin 20% 19% 26% 32% 21%
percentage of gross sales 14% 9% 10% 3% 10%
90. If you pay your sales every quarter 6% 5% 15% 19% 8%
representatives an advance or every six months 2% 0% 0% 11% 1%
a draw against commission, annually 2% 1% 5% 11% 3%
how often is it adjusted N/A 88% 90% 75% 47% 84%
other 3% 4% 4% 11% 4%
91. Do you pay commissions on Yes 43% 64% 77% 83% 61%
overruns No 57% 36% 23% 17% 39%
92. What percentage of net sales 0% 54% 48% 31% 38% 47%
did you write off last year 1% 24% 23% 35% 38% 26%
as bad debt 2% 10% 10% 19% 11% 12%
3% 3% 6% 5% 8% 5%
4-5% 4% 9% 6% 3% 6%
more than 5% 5% 4% 5% 3% 4%
PPAI Page 38 of 49 December 2011

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Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
93. If you charge back commission Commissions only 11% 14% 27% 24% 16%
Commissions plus split
on bad debts, how do you do it
total loss 8% 10% 19% 38% 13%
Total loss 9% 12% 12% 16% 11%
N/A (Do not charge back
commission on bad debts) 69% 62% 38% 19% 57%
other 4% 2% 3% 3% 3%
94. Do you have a bonus or
incentive plan for your sales
force
Yes for independent
contractors 7% 6% 7% 5% 7%
Yes for commission only
salespeople 8% 6% 12% 24% 9%
Yes, for
salary+commission
salespeople 5% 8% 13% 24% 9%
No 80% 81% 68% 46% 76%
95. Is the bonus paid to a As percent of sales 38% 32% 23% 14% 30%
salesperson: As percent of earnings 8% 18% 21% 38% 18%
On sales volume increase 14% 16% 21% 5% 15%
On gross margin increase 6% 13% 10% 14% 10%
Other 34% 21% 26% 29% 27%
96. How often do you conduct Monthly 4% 3% 7% 0% 4%
sales contests Quarterly 4% 2% 4% 19% 4%
Semi-annually 2% 2% 8% 11% 4%
Annually 1% 3% 2% 3% 2%
Do not conduct sales contests 85% 88% 76% 62% 83%
Other 3% 2% 2% 5% 2%
97. Do you pass on special supplier Yes 57% 73% 82% 92% 71%
pricing or offers to your No 28% 15% 7% 0% 17%
salespeople Sometimes 15% 13% 11% 8% 13%
PPAI Page 39 of 49 December 2011

FINANCIAL
D00 - D-2 D-3- D-4 D-5 - D-6 D-7- D-16
Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
98. What is the average age less than 30 days 60% 50% 38% 25% 50%
of your promotional 30-45 days 35% 44% 55% 67% 45%
products accounts 46-60 days 5% 5% 6% 8% 5%
receivable more than 60 days 0% 0% 1% 0% 0%
99. What is the average age of less than 30 days 68% 64% 58% 43% 63%
your promotional products 30-45 days 27% 34% 37% 51% 33%
accounts payable 46-60 days 4% 2% 6% 5% 3%
more than 60 days 1% 1% 0% 0% 1%
100. What is the dollar amount $1 - $250 13% 4% 5% 3% 7%
of your average $251-$500 40% 31% 20% 17% 31%
promotional product $501-$750 16% 28% 22% 20% 23%
order $751-$1,000 13% 21% 29% 26% 20%
$1,001-$1,500 9% 8% 14% 11% 9%
$1,501 to $2,500 5% 6% 6% 14% 6%
$2,501 to $3,500 2% 2% 1% 6% 2%
$3,501 to $5,000 1% 0% 2% 0% 1%
more than $5,000 0% 0% 1% 3% 1%
PPAI Page 40 of 49 December 2011

D00 - D-2 D-3- D-4 D-5 - D-6 D-7- D-16
Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
101. What percentage of your 0% 4% 3% 5% 14% 5%
distributorship's total 1-10% 5% 2% 7% 30% 5%
dollar volume of sales is 11-20% 3% 3% 10% 16% 5%
contributed by the owner 21-30% 3% 1% 8% 8% 3%
or chief executive 31-40% 2% 5% 7% 5% 4%
41-50% 3% 5% 12% 11% 6%
51-60% 4% 5% 10% 3% 6%
61-70% 8% 4% 10% 5% 6%
71-80% 4% 10% 15% 5% 9%
81-90% 9% 14% 7% 3% 10%
91-100% 54% 48% 12% 0% 41%
102. What is your firm's 1% or less 21% 14% 18% 30% 18%
marketing and promotion 2-3% 24% 25% 28% 33% 26%
expense (Specified as a 4-5% 19% 23% 24% 27% 22%
percentage of net sales) 6-8% 14% 10% 15% 0% 11%
9% - 10% 11% 17% 7% 3% 12%
11% - 15% 4% 5% 5% 3% 5%
16% - 20% 4% 3% 3% 3% 3%
more than 20% 4% 3% 1% 0% 3%
103. What is your firm's cost less than 40% 36% 22% 32% 34% 29%
of goods sold 40-50% 26% 28% 22% 6% 25%
(Specified as a 50-60% 17% 22% 11% 16% 18%
percentage of net 61-65% 15% 17% 20% 22% 17%
sales) 66-70% 4% 9% 14% 13% 9%
More than 70% 1% 1% 2% 9% 2%
PPAI Page 41 of 49 December 2011

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Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
104. What are your firm's less than 12% 66% 54% 52% 33% 55%
commission and selling 12-20% 23% 35% 34% 48% 32%
expenses (Specified 21% or more 11% 12% 14% 18% 12%
as a percentage of net
sales)
105. What are your firm's less than 3% 41% 28% 18% 6% 28%
general and admin- 3-10% 35% 40% 42% 41% 39%
istrative expenses 11-20% 13% 19% 32% 41% 22%
(Specified as a per- 21 or more 11% 12% 7% 13% 11%
centage of net sales)
106. What is your firm's net 0 or less 12% 5% 4% 0% 6%
income or loss before taxes 0.01 8% 6% 10% 13% 8%
(Specified as a percentage 2-6% 34% 31% 27% 41% 31%
of net sales) 7-10% 27% 27% 31% 34% 28%
11% or more 20% 31% 29% 13% 26%
107. What is your active 25% or less 31% 17% 20% 10% 21%
customer ratio 26%-50% 31% 33% 32% 39% 33%
(# of active customers / 51%-75% 22% 31% 29% 26% 28%
total number of customers) More than 75% 16% 19% 19% 26% 18%
PPAI Page 42 of 49 December 2011

KEY METRICS
D00 - D-2 D-3- D-4 D-5 - D-6 D-7- D-16
Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
108. How has your gross margin 21% or more 7% 5% 2% 0% 5%
changed since 2010 11%-20% 13% 8% 10% 6% 10%
6%-10% 12% 15% 8% 8% 12%
1% to 5% 22% 22% 29% 44% 25%
-1% to -5% 5% 12% 17% 19% 11%
-6% to -10% 8% 7% 5% 3% 7%
-11% to -20% 2% 1% 2% 3% 2%
-21% or more 3% 2% 0% 0% 2%
no change 28% 29% 27% 17% 27%
CHANGE IN GROSS MARGIN SINCE 2010 - ALL COMPANIES
PPAI Page 43 of 49 December 2011

D00 - D-2 D-3- D-4 D-5 - D-6 D-7- D-16
Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
109. How has your gross revenue 21% or more 11% 13% 9% 8% 11%
changed since 2010 11%-20% 16% 14% 19% 39% 17%
6%-10% 16% 16% 19% 14% 16%
1% to 5% 18% 17% 15% 11% 17%
-1% to -5% 9% 9% 19% 6% 10%
-6% to -10% 9% 10% 4% 6% 8%
-11% to -20% 3% 4% 4% 0% 3%
-21% or more 4% 5% 3% 0% 4%
no change 14% 13% 08% 17% 13%
CHANGE IN GROSS REVENUE SINCE 2010 - ALL COMPANIES
PPAI Page 44 of 49 December 2011

D00 - D-2 D-3- D-4 D-5 - D-6 D-7- D-16
Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
110. How has your order count 21% or more 8% 8% 3% 6% 7%
changed since 2010 11%-20% 14% 12% 13% 6% 12%
6%-10% 20% 14% 19% 33% 18%
1% to 5% 18% 24% 21% 25% 22%
-1% to -5% 10% 12% 21% 3% 13%
-6% to -10% 7% 8% 5% 6% 7%
-11% to -20% 1% 4% 1% 0% 3%
-21% or more 3% 2% 0% 0% 2%
no change 19% 15% 17% 22% 17%
CHANGE IN ORDER COUNT SINCE 2010 - ALL COMPANIES
PPAI Page 45 of 49 December 2011

D00 - D-2 D-3- D-4 D-5 - D-6 D-7- D-16
Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
111. How has your advertising/ 21% or more 5% 5% 0% 3% 4%
marketing budget changed 11%-20% 5% 4% 4% 6% 4%
since 2010 6%-10% 10% 8% 6% 8% 8%
1% to 5% 20% 16% 23% 17% 19%
-1% to -5% 6% 6% 9% 6% 6%
-6% to -10% 3% 4% 1% 0% 3%
-11% to -20% 1% 2% 0% 0% 1%
-21% or more 2% 2% 0% 0% 1%
no change 49% 53% 56% 61% 53%
CHANGE IN ADVERTISING AND MARKETING BUDGET SINCE 2010 - ALL COMPANIES
PPAI Page 46 of 49 December 2011

D00 - D-2 D-3- D-4 D-5 - D-6 D-7- D-16
Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
112. Have your company's stayed the same 10% 9% 10% 16% 10%
promotional products sales grown 1% - 5% 21% 12% 13% 8% 15%
grown or decreased in the grown 6% - 10% 17% 15% 13% 8% 15%
past three years grown 11% - 20% 10% 13% 13% 32% 13%
grown 21% - 30% 7% 8% 11% 3% 8%
grown 31% - 50% 4% 5% 7% 8% 5%
grown 50% or more 5% 7% 4% 5% 6%
declined 1% - 5% 4% 6% 4% 3% 5%
declined 6% -10% 5% 8% 11% 5% 7%
declined 11% - 20% 8% 5% 10% 5% 7%
declined 21% - 30% 5% 6% 4% 3% 5%
declined 31% - 50% 4% 6% 3% 3% 5%
declined 50% or more 2% 2% 0% 0% 1%
CHANGES IN PROMOTIONAL PRODUCT SALES IN PAST THREE YEAR PERIOD: -ALL COMPANIES
PPAI Page 47 of 49 December 2011

D00 - D-2 D-3- D-4 D-5 - D-6 D-7- D-16
Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
113. Has your company's stayed the same 25% 26% 21% 40% 26%
non-promotional products grown 1% - 5% 16% 18% 13% 17% 16%
sales channel grown or grown 6% - 10% 10% 12% 19% 11% 12%
decreased in the past three grown 11% - 20% 8% 9% 8% 9% 9%
years grown 21% - 30% 4% 8% 11% 3% 7%
grown 31% - 50% 7% 3% 2% 6% 5%
grown 50% or more 5% 3% 4% 3% 4%
declined 1% - 5% 5% 4% 5% 3% 5%
declined 6% -10% 10% 7% 3% 0% 7%
declined 11% - 20% 3% 3% 5% 6% 4%
declined 21% - 30% 2% 2% 4% 0% 2%
declined 31% - 50% 2% 3% 4% 0% 3%
declined 50% or more 2% 2% 0% 3% 2%
CHANGES IN NON-PROMOTIONAL PRODUCT SALES CHANNEL IN PAST THREE YEAR PERIOD: -ALL COMPANIES
PPAI Page 48 of 49 December 2011

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Under $250,001- $1,000,001- Over Total
$250,000 $1,000,000 $5,000,000 $5,000,000
114. Are you considering more Get more acquisitions 25% 22% 19% 47% 24%
acquisitions in 2012 Are Stay the same 74% 76% 78% 53% 74%
the plans to: Sell out 1% 2% 3% 0% 2%
PPAI Page 49 of 49 December 2011

Research
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