I realize that this thread started when Chris asked "Who Is Amsterdam Printing??" and then answered his own question, but I had a similar experience and I wanted to find out if anyone has run into American Identity who is functioning as a huge Promotional Products distributor and selling promo goods at or very near our costs for the same items. I ran into them when I tried to compete on an umbrella order for a client and attempted to quote on a Shedrain (PPAI 112963)
www.shedrain.com specialty umbrella priced at $18.00 on (A) for me. Then my customer shows me an ad for the same piece from American Identity,(
www.americanidentity.com) Trademarked and all, for a $ 8.60 quantity price direct. I didn't know what to say in reply, because even if I try to reduce to a 20% margin I'm at $10.80 and no one can survive long term on less than 20%OA. So how does American Identity resell at $8.60 ? They have to be buying the same piece for about $5.00. AI has a large distributor organization and a large phone and internet presence and have to have relativly large overhead, also they belong to none of the standard groups ASI, PPAI, SAGE, or any local orgs that I can see. So who are they, and where do they buy all the stuff they sell. It has to come from the same people we buy from but how come the margins are so hugely different?? Are you going to try to say their volume justifies a 100% better price and that they can buy in volume ahead from overseas and get these huge advantages but they never get stuck with their huge purchases and don't have large inventory handling and carrying charges? Please, we're all in the same business here and inventory and decorating is a big cost so I repeat how do they get the costs down so far as to sell below my costs?
I remember that old Saw "Lose a little on every order, but make it up in Volume"
we all know that's a fallicy, so how come these guys can get such great prices to be able to sell at our cost and below, and still be profitable? Apparently they've been in business a long time, even longer than some of our subscribers who can claim 25,30 and 40 years. Something is going on, I wish I understood it better.
We just have to go out and find customers who will not be trying to kill their vendors by seeking those direct sales elsewhere!
Hank Keller
HK Promotional Sales