How do I check a promotional products distributor’s repeat corporate accounts?

Ask for invoices grouped by client over several years. For each corporate account, note the first order, the most recent order and the gaps between them. Reorders that come around the same time each year, such as a conference, a holiday gift or a new hire kit, are a pattern. One large event order that never repeated is a different thing and should not be counted as ongoing.

Next ask who holds the relationship. Is it the owner, a salesperson or the client’s own purchasing person? When people move jobs, accounts sometimes move with them. Ask how the distributor learns of changes at the client, and whether any accounts are on a preferred-supplier list that a new owner would need to be re-approved for.

Finally, check payment. Ask your accountant to review receivables from the largest accounts, and ask what happens when a job is disputed or reprinted. Artwork and past orders on file make reordering easy, so ask whether the distributor’s system holds them and whether the client would find it painful to move elsewhere. Ask which products reorder most easily, such as items with a standing logo.

Key takeaways

• Group sales by client over several years and separate true reorders from one-off events.
• Find out who owns each relationship and whether the client’s buyer has changed.
• Check receivables for the largest accounts and how reprint disputes are handled.