Graham McClean, president and CEO of Global DocuGraphix, Chicago, reported promotional products sales as very robust. "It's becoming obvious to print distributors that clients use and need promotional products," said McClean. "As a result, it has become a very high growth area for us as well."
McClean noted that margins on promotional products are based on two components: company store and events driven sales, with the latter offering a much better margin and much less risk. But, he added that one might have to operate a company store in order to get the events-driven business. "The problem with company stores is inventory, which has to be safeguarded, managed and so forth," said McClean. "And, if the inventory doesn't move, then it costs the distributors."