It started with a simple Google search.
Out of curiosity, a distributor typed the letter codes from a supplier’s catalog into a search engine. In the branded merchandise industry, those letters have long served as shorthand for distributor pricing – information not intended for end buyers.
But this time, artificial intelligence delivered the answer instantly.
Suddenly, the codes were no longer a mystery. AI could explain exactly what they meant and what distributors might be paying suppliers. In theory, that meant a curious client could also uncover how products are priced, and how much margin a distributor might earn on an order.
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“I’ve worried about this for a long time,” says Karen Howell, senior account executive at Goldner Associates, PPAI 100’s No. 64 distributor. “Most of the purchasing groups already know what our codes are. We all mainly use factory websites now, but you shouldn’t be able to get pricing unless you have an account and are logged in.”
The moment raises an uncomfortable but increasingly relevant question for the industry: If AI can expose what were once trade secrets, how do distributors demonstrate their value?
Karen Howell
Sr. Account Executive, Goldner Associates
For many industry veterans, the answer is clear: The merch business has never been about codes or catalogs. It has always been about people.
Beyond The Price Sheet
Ultimately, the branded merch industry runs on creativity and relationships – two areas where distributors say human expertise still matters most. Sure, AI can generate ideas and summarize information, but it can’t build trust with a client, guide a brand strategy or design a promotional program that delivers measurable ROI.
“The discourse around AI is that it saves time and money, but AI is often wrong and lacks a human touch,” says Taylor Borst, vice president of vendor relations, marketing and events at ASB, PPAI 100’s No. 11 distributor.
“AI is an incredible tool and should be used, but it doesn’t replace the value we bring to clients. It may hurt the order takers, but strategic, program-based sales teams will never be more necessary than in the age of AI.”
Taylor Borst
VP of Vendor Relations, Marketing & Events, ASB
Pricing transparency has been evolving for years, and it reinforces the importance of remaining competitive in the marketplace. That said, when price becomes the single deciding factor, the relationship naturally shifts toward being transactional rather than experiential, according to Mary Jo Tomasini, MAS+, CEO of Competitive Edge, PPAI 100’s No. 85 distributor.
“The greatest value a distributor provides extends well beyond the product itself,” Tomasini says. “It includes strategic guidance, creative branding solutions, program management, product safety knowledge and the ability to deliver a cohesive brand experience. Many organizations recognize that expertise, reliability and thoughtful execution contribute significantly to the overall success of their initiatives.
“Distributors who lead with these strengths position themselves as partners rather than order takers.”
Mary Jo Tomasini, MAS+
CEO, Competitive Edge
Transparency Isn’t New
Debating over pricing transparency precedes AI by decades.
PPAI records show that Jack Nadel, founder of Nadel, PPAI 100’s No. 12 distributor, addressed the issue at the 1971 annual meeting, which marked the end of his term as board chair.
“We all serve a purpose in the industry – even the guy who is supposed to be a price cutter,” Nadel said. “He serves a function. And you know what his function is? He keeps you on your toes. You must give a reason, when you go out and see that customer, that you have something to sell that far exceeds the momentary price difference.”
Dean Linderman
Sales Account Executive, Concord Marketing Solutions
That sentiment holds true half a century later. “Clients rarely resent margin – they resent feeling like there’s no value behind it,” says Dean Linderman, sales account executive at Concord Marketing Solutions, PPAI 100’s No. 19 distributor.
“As distributors, our biggest value isn’t access to a catalog or a markup because most of us have the same access. The value is in the strategy, the creative direction, the speed and responsiveness to real problems and our ability to reduce risk while delivering at scale.”
Austin Hefner, business development specialist at California-based distributor Image Masters, argues that having to hide pricing codes isn’t even necessary.
“Most of my clients know that they could take my quote, go to another distributor, get a few cents cut and call it a day,” Hefner says. “But they keep coming back to me for a purpose.”
Austin Hefner
Business Development Specialist, Image Masters
He goes so far as to say clients who worry most about pricing are clients he doesn’t want, anyway.
“If we’re doing a good enough job for our clients,” Hefner says, “most of the time they’re going to trust that you’re not price gouging them and they won’t care about looking up how much profit our company is making from an order. Most of the time clients will understand that we’re a business, too, and need to make money.”
Beauty Is In The Eye Of The Beholder
In addition to AI exposing industry secrets, more customers want to rely upon the technology to generate their artwork, which doesn’t always produce the best-looking result.
Chris Pollan, owner of Mississippi-based distributor Pollan Promos, posted in the Promotional Products Professionals Facebook page that this is the response, crafted by ChatGPT, he’s now sending to those customers:
“Obviously, we can regenerate or vector about anything nowadays rather easily,” Pollan says. “However, there’s a great divide in some willing to pay for that time and effort when they detrimentally rely upon AI to generate something, leading them to think it’s print-ready when it’s simply not.”
As a result of more clients entrusting AI with their designs and logos, Pollan has shifted toward an educational role of answering the “why” such provided artwork doesn’t, well, work.
“This is no different than what we have done for decades, but it’s still a developing trend of clients trying to do more on their own and relying upon inferior AI to do things that the programs they’re using aren’t yet sufficiently capable of handling,” Pollan says.
A nearly 50-year industry veteran, Bob Steinbach, director of strategic sourcing at Barker Specialty, PPAI 100’s No. 89 distributor, has also received artwork from customers that he immediately recognizes was done through AI.
Bob Steinbach
Director of Strategic Sourcing, Barker Specialty
“I let them know I have to do a bunch of work on it to make it usable for our purposes,” Steinbach says. “If it’s nothing too complicated, we won’t charge extra, but if it’s something very involved that would take up a couple hours of one of our artists, then we would charge a modest surcharge.”
Steinbach doesn’t dismiss AI altogether; he admits it’s better than a client handing over a drawing on a napkin and asking if the distributor can turn it into artwork.
“I have some customers who don’t even ask me for the price,” Steinbach says. “They’ll say, ‘This is what we need. Just email me a quote so I can do a PO for ya.’ Those are the ones I’ll go out of my way for, and everyone else here at Barker Specialty will do the same.”
Shift The Conversation
So, when customers do leverage their newfound knowledge and try to negotiate a lower price, how do distributors handle it?
“I tell them that there’s a cost to doing business, and if you want us to operate our business the way we do and only make 10%, then we’re not going to be around too long to give the service that you want,” Steinbach says.
“I ask what do you think is a fair margin for me to make. If they say 30%, 35% or 40%, I’d say that’s fair. By the way, let me tell you about my art department staffed with three full-time graphic designers who will provide you artwork and spec samples at no charge. This is the value added we’re going to do for you that maybe you’re not going to get from an online supplier. You’re going to deal with a real, live person and see hundreds of items on display in our showroom and we’re going to take care of you.’
John Keith
Principal, Proforma SNYQ
Indeed, distributors who thrive focus on delivering services that extend far beyond a price sheet, such as integrated e-commerce solutions, kitting and fulfillment, creative strategy and brand support. These capabilities transform a transactional interaction into a strategic partnership, says John Keith, principal at Charlotte, North Carolina-based distributor Proforma SNYQ.
“Today’s clients are under pressure to accomplish more with fewer resources,” Keith says. “That’s where distributors can truly stand out by becoming indispensable. When you position yourself as a trusted resource, you shift the conversation from cost to impact.
“Encourage clients to focus on what they do best and take the operational and creative complexities off their plate. Responsiveness, integrity, competitive pricing and, most importantly, measurable value are what build lasting relationships.”
The Real Question: What’s Your Value?
For many distributors, the rise of AI simply accelerates a reality the industry has been confronting for years.
Madison Warran, sales executive at Perfect Promotions, PPAI 100’s No. 97 distributor, says pricing information has never been impossible to find. Even before the rise of AI, anyone motivated enough could find pricing structures or discount tiers with a quick Google search or industry connection.
The more important question, she says, is whether clients feel compelled to search for it at all.
Madison Warran
Sales Executive, Perfect Promotions
“A strong distributor relationship should be far more than a line-item charge or a discount percentage,” Warran says. “The goal, at least from a sales perspective, is to become such a trusted brand partner that clients don’t feel compelled to constantly price-check in the first place.
“Our value as distributors isn’t just in the product; it’s in the creative strategy, supplier knowledge, risk management, timing, fulfillment, sustainability guidance and, ultimately, advocacy for the client’s brand. When that value is clear, conversations move away from ‘What’s the margin?’ and toward ‘How do we solve this problem together?’”
Jill Wisner, sales development specialist at Spectrum Designs, PPAI 100’s No. 77 distributor, says organizations that clearly communicate their purpose and service will continue to stand apart.
“As a nonprofit with a mission to create jobs for people on the autism spectrum, our customers choose to work with us because of who we are and what we stand for,” Wisner says.
Jill Wisner
Sales Development Specialist, Spectrum Designs
“Our mission is part of our value proposition, alongside being a Sustainable Green Printer, a Verified Social Enterprise and a People + Planet–first organization. We offer customers the opportunity to feel good about their purchase while receiving exceptional service.”
Even if suppliers removed item codes from their websites, Wisner adds, distributors have the tools and industry knowledge to source what they need. “The real differentiator has never been secrecy – it has always been service, trust and purpose. For us, that purpose is mission driven.”
