sales volume update 2013 - pppc · and quebec make up over 60% of the total national sales volume....

N OV E M B E R 2 0 1 3

P R O M O T I O N A L P R O D U C T P R O F E S S I O N A L S O F C A N A DA

Sales Volume Update 2013

Table of Contents 2

Sales Volume Update - 2013

Page

Study Overview 3

Number of Businesses 4

Weighting the Data 5

Definitions 6

Study Limitations 7

Overview of the Results – Distributors 8

Overview of the Results – Suppliers 12

Detailed Results – Distributors 15

Detailed Results – Suppliers 30

Appendix A – All Distributor Results by Key Groups 43

Appendix B – All Supplier Results by Key Groups 62

Study Overview

Methodology and response rates:

Each of the two segments – distributors and suppliers – were contacted via e-mail and each segment followed a link to an online survey.

The distributor survey invitation was emailed to 4,292 members and prospects. 874 e-mails were undeliverable and 47 potential respondents chose to unsubscribe. Of the remaining 3,371 a total of 96 distributor surveys were completed for a response rate of 2.9% (1.4% among non-members and 7.0% among PPPC members).

Supplier survey invitations were emailed to the 415 PPPC members. There were 6 bounce backs and two unsubscribe requests. 47 suppliers responded for a response rate of 11.5%.

3

The main purpose of the 2013 Promotional Products Industry Sales Volume Study is to provide current estimates of the size of the promotional products industry in Canada. Specific study objectives of the research are to:

Estimate the total gross revenues for industry suppliers and distributors;

Estimate the number of employees in the industry;

Determine the level of growth since the last study in 2010; and

Measure profitability among distributors.

Number of Businesses 4

There is no formal registration of businesses that participate in the promotional products industry. Accordingly, there is no “official” number of distributors or suppliers that is known. For the purpose of this study, estimates of total industry revenues and employees are based on the number of distributors and suppliers in PPPC’s member and prospect database. As of August 2013, PPPC’s databases contained records for:

5,224 promotional product distributors

925 promotional product suppliers

Weighting the Data 5

“Weights” are data corrections that make the results representative of the industry at large

Distributor data was weighted by region (East/ Ontario/ West) within PPPC member status

There were 6 target “cells” for weighting: 3 regions x 2 possible PPPC member statuses (member vs. non-member).

Example weighing calculation: At the time of this study, according to PPPC databases, 18.1% of distributors were non-PPPC members in Western Canada. Since only 9.4% of survey respondents were from this “cell,” then those respondents were assigned a weight of 18.1%/9.4%, or 1.926.

Supplier data was weighted only by region (East/ Ontario/ West)

There were 3 target “cells:” East, Ontario, and West.

Example weighing calculation: At the time of this study, according to PPPC databases, 53.1% of suppliers were in Ontario. Since 57.4% of survey respondents were from this “cell,” then those respondents were assigned a weight of 53.1%/57.4%, or 0.925.

Definitions 6

Definitions: Mean, Median and Confidence Interval

Throughout the report, we use the terms “mean” and “median”. The mean is simply the arithmetic

average of a set of numbers. It is the sum of all values divided by the number of items in the list.

While it is an extremely useful statistic, the mean can be dramatically affected by extreme values in

the dataset.

For this reason, the median, is often used. The median is the “middle” value and is unaffected by

extreme values. When the data are arranged in order of magnitude, half of the data will be smaller

than the median and half will be larger.

In a number of tables we use the term confidence interval. This term refers to an estimate of the

reliability of the mean. Based on a given sample size we estimate the actual mean will be within +/-

percentage points of the stated mean. Therefore, specific tables will show a mean followed by Lower

and Upper limits or boundaries. We can say with 95% certainty that the actual mean will fall within

these limits.

Study Limitations 7

When interpreting the results of this study, it is important to keep in mind that there are the

following limitations to consider:

Industry revenue and employment estimates are as of August 2013 and are based on the

number of suppliers and distributors in PPPC’s member and prospect databases. These

databases are estimated to represent 90% or more of the industry. As such, estimates in this

report should be viewed as conservative.

Industry averages and estimates (revenue, employment, profitability, sales breakdowns, etc.)

as well as other data are based on survey responses and are only as accurate as the data

provided by survey participants.

Results for sub-groups (e.g., organization size, region, etc.) should be interpreted with

caution due to small sample sizes as they carry high margins of error.

Overview of Results – Distributors 8

Reported sales volume in 2011 and 2012 (See pages – 16 and 17)

We calculate total distributor sales in 2011 to be $1.91 billion and $1.93 billion in 2012. This

represents a decline from the previous three studies and represents a return to levels last

seen in 2002. Two factors appear to be at play. First, we have a decreased number of

distributors and a decreased average revenue reported by individual distributors – from

$480,000 reported in 2009 to $370,000 as reported for 2012. The second page in this section

provides a provincial breakdown of sales within the largest provinces. We note that Ontario

and Quebec make up over 60% of the total national sales volume.

Reported Employment (See pages 17 and 18)

Reported employment by distributors has also fallen. In 2008, we saw the largest number of

employees at 23,842 FTEs. This fell in 2009 to 20,424 and again in 2012 to 18,650.


Product Category Breakdown (See page – 19)

• Based on gross sales revenues, wearables/apparel (other than golf) make up 23% of gross

sales revenues. Golf garments account for an additional 9%, bringing total

wearables/apparel up to 32%. Writing instruments (9%), Calendars (7%), Buttons/badges,

ribbons, stickers magnets make up an additional 6%.

Distributor Programme Type (See page – 20)

• Distributors were asked to identify their most common programme types. Brand awareness

(18%), business gifts (17%) and employee relations and events (12%) are the three most

frequent mentions.


Distributor Expenses and Profit (See page – 21)

Distributors were asked to indicate the portion of their gross revenue allocated to cost of

goods (COGS), selling costs, other expenses and profit. Just under half (47%) goes towards

COGS. Selling costs account of 16% and all other expenses amount to 22%. This leaves an

average net profit of 15%. These elements are relatively consistent with previous years of the

study.

Determining Selling Price and Margins (See page – 22)

• Applying a mark-up remains the most frequently-mentioned approach of determining the

selling price of a product (mentioned by 55% of distributors).

• Based on 2012 numbers, the average mark-up is 113.2%. This represents a rise from 95.3%

recorded in 2009. The average gross profit margin stands at 53.1%. This number has been

steadily rising since 2002 when it stood at 42.9%


Distributor Type (See pages 23 and 24)

Slightly over half of our sample (54%) consisted of owner/operators who describe

themselves as strictly promotional product distributors. An additional 26% place themselves

into the category of agency style, i.e. full service.

Twenty-eight percent of our distributor sample were PPPC members. Sixty-one percent

import products from outside of Canada. This number is down slightly from the 68%

reported in 2009.

Common Job Functions Dealt With and Top Sectors (See pages – 25 and 26)

• In the majority of cases, distributors are dealing with the owner of the client organization.

Alternatively it tends to be marketing/advertising or purchasing. There are four key sectors

that are the most-frequently mentioned elements within the client base of distributors. In

descending order, these are: the not-for-profit sector (36%), construction (35%),

government (32%) and manufacturing (32% - exc. automobiles).

Overview of Results – Suppliers 12

Reported sales volume in 2011 and 2012. (See slides – 31 and 33)

• Amongst suppliers, we calculate total sales volume in 2011 to be $2.33 billion and $2.08

billion in 2012. This represents a decline from the highpoint of $2.5 billion recorded in 2008.

Reported employment 2012. (See slides – 32)

• Despite a reported decline in sales volume, we do see an increase in full-time equivalent

positions on the supplier side. Suppliers report 15,919 FTEs in 2012. This is an increase from

the 13,566 reported in 2009.


Supplier Profile (See pages 34 to 36)

• The sample of suppliers was comprised of four key classifications: manufacturers, importers,

printers and other. Manufacturers make up almost half of the sample (47%).

• Ninety percent of the sample are members of the PPPC. The majority of all suppliers (72%)

say that they import products from outside of Canada. This percentage is consistent with

68% of suppliers who said they imported from outside of Canada in 2009.

• Suppliers were asked about instances in which they sell direct to corporate buyers. 57%

claim that they never sell direct. Amongst those that do, 20% admit that there are special

circumstances when they will do so. These circumstances are “very large orders [but] with a

commission to the distributor”, “very large orders” (with no mention of a commission) and

“to long-time corporate customers”.


Supplier Profile (See pages – 37 to 39)

• Suppliers indicate that in 2012, 61% of their revenue was derived from the sale of products to

members of the PPPC. This is a slight increase from the 59% mentioned in 2011.

• Approximately one-half (49%) of suppliers derive their revenue from products supplied by

Canadian sources. The remainder is made up of 22% U.S. suppliers and 28% sources outside

the U.S. and Canada.

• On average, suppliers are spending a little over $35,000 on printed material. This average has

not changed a great deal since 2009.

S A L E S VO L U M E U P DAT E 2 0 1 3

Distributor Results

Distributor Sales Volume by Year 16

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

1993 1994 1998 2002 2006 2008 2009 2011 2012

$806 $808

$1,157

$2,088

$3,470

$3,974

$3,143

$1,911 $1,935

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The large decrease in

total Sales Volume

reflects:

A decreased number

of distributors in the

PPPC databases,

down from 6,554 in

2010 to 5,224 in 2013

A decrease in the

average revenue

reported from survey

respondents, down

from 20o9’s $480,000

to $370,000 as

reported for 2012

Sales Volumes shown are in millions of dollars, so 2012’s $1,935 represents $1,935,000,000

Distributor Sales Volume Confidence Intervals and Employment by Region and Member Status

17

Estimated Sales Volume (millions)

Sales Volume Confidence Interval (millions) Employees

Lower Upper

TOTAL

Total $ 1,935.28 $ 1,033.62 $ 2,836.95 18,650

Region

British Columbia $ 369.10 unavailable unavailable 1,671

Alberta $ 321.11 unavailable unavailable 2,820

Prairies/ Territories unavailable unavailable unavailable unavailable

Ontario $ 632.67 $ 354.69 $ 910.65 7,264

Quebec $ 533.18 $ 210.61 $ 855.75 6,584

Atlantic unavailable unavailable unavailable unavailable

Member Status

PPPC Member $ 1,195.41 $ 385.86 $ 2,004.95 7,814

Non-member $ 741.04 $ 406.72 $ 1,075.35 10,802

A Confidence Interval is an estimate of the reliability of the estimated mean. In this case a 95% Confidence Interval was used, so we are 95% sure that the mean is between the Lower and Upper bounds.

Distributor Employment by Year 18

-

5,000

10,000

15,000

20,000

25,000

1994 1998 2002 2006 2008 2009 2012

6,689

8,294

14,250

22,874 23,842

20,424

18,650

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The general reduction

in business reflected

for 2012’s Revenue is

also shown in this

year’s Employment

numbers.

According to this

year’s respondents,

there are fewer

workers making less

money for fewer

businesses in the

promotional product

distribution industry.

Distributor Product Category Breakdown

Automotive Accessories 4%

Buttons/ Badges/ Ribbons/ Stickers/ Magnets

6%

Calendars 7%

Computer Products 1% Desk/ office/

business accessories

5%

Drinkware (coffee mugs)

4%

Drinkware (Other drink ware)

3%

Electronic products,

devices, and accessories

1%

Food Products 1%

Games/ Toys/ Playing Cards / Inflatables

1% Housewares 1%

Jewellery/ Watches/ Clocks

2%

Leisure products 4%

Personal/ Pocket-Purse Products

1% Plaques/ Trophies

2% Sporting Goods (specifically golf

accessories) 4%

Sporting Goods (other than golf)

2%

Textiles 5%

Tools 1%

Travel Products and Accessories

2%

Wearables/ Apparel (golf

garments) 9%

Wearables/ Apparel (other than golf)

23%

Writing Instruments 9%

Other 2%

19

Distributor Programme Type Breakdown

Brand Awareness 18%

Business Gifts 17%

Customer Referral 4%

Dealer/Distributor Programmes

2% Employee Incentive Programmes

6%

Employee Relations and Events

12%

Employee Safety and Education

4%

Employee Service Awards 4%

Marketing Research 1%

New Customer/Account Generation

8%

New Product/Service Introduction

5%

Not-for-Profit Programmes 3%

Public Relations 6%

Trade Shows 7%

All Other 3%

20

Distributor Expenses and Profit

Cost of Goods Sold 47%

Selling Cost 16%

All Other Expenses *

22%

Net Profit 15%

21

* All Other Expenses includes fixed overhead – 9%, IT costs – 4% and all other expenses - 9%.

Distributor – Determining Selling Price and Margins 22

TOTAL PPPC Member 2012 2009 2008 2006 2002 Yes No

Distributor Margins Average Mark-up 113.2% 95.3% 84.2% 86.6% 75.3% 91.3% 122.8% Average Gross Profit Margin 53.1% 48.8% 45.7% 46.4% 42.9% 47.7% 55.1%

Mark-up applied -

55%

Based on gross profit

margin target - 35%

Other/Not Stated - 10%

Method of Determining Selling Price

Distributor Type 23

26%

16% 54%

4%

Type of Distributor

Agency style, full service includinggraphics, premiums, catalogue programs,consultancy

Promotional products some premiums,possibly small branding catalogues

Owner/Operator, strictly promotionalproduct distributors

Other

Distributors – PPPC Members and Incidence of Importing

24

Distributor Profile

Yes - 28%

No - 72%

Company is a Member of the PPPC?

Yes - 61%

No - 39%

Company Imports Products From Outside of Canada?

Distributors – Three Most Common Job Functions

13%

17%

19%

21%

38%

48%

60%

83%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Finance/Accounting

Human Resources

Sales

Communications/PR

Administrative /Clerical

Purchasing

Marketing /Advertising

Owner

Three Most Common Job Functions Typically Dealt with in Client’s Organization

25

Distributors – Top Three Sectors in Client Base 26

7%

7%

9%

11%

12%

13%

15%

15%

15%

18%

24%

28%

32%

32%

35%

36%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Finance (banking investment)

Entertainment/Publishing

Advertising/Marketing Agencies

Insurance

Tourism and Hospitality

Pharmaceutical/Healthcare

Retail

High Technology

Automotive

Real Estate

Restaurant

Professional Services

Manufacturing (exc. automotive)

Government

Construction

Not-for-profit sector (assoc./charity)

Top Three Sectors Represented By Client Base

Distributor Profile 27

TOTAL Revenue Employees PPPC Member

<=$300k >$300k 1 or 2 3+ Yes No

Type of Distributor TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 Agency style, full service including graphics, premiums, catalogue programmes, consultancy

26% 21% 36% 15% 47% 26% 26%

Promotional products some premiums, possibly small branding catalogues

16% 11% 23% 13% 24% 32% 10%

Owner/Operator, strictly promotional product distributors 54% 64% 38% 68% 23% 36% 60% Other 4% 5% 3% 4% 6% 6% 4%

Head Office Province TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 British Columbia 7% 6% 9% 4% 13% 16% 3% Alberta 18% 21% 15% 22% 11% 15% 20% Prairies/ Territories 1% 0% 3% 0% 2% 2% 0% Saskatchewan 1% 0% 3% 0% 2% 2% 0% Ontario 50% 48% 46% 54% 46% 41% 54% Quebec 24% 25% 28% 20% 29% 25% 24% Atlantic 0% 1% 0% 1% 0% 1% 0% New Brunswick 0% 1% 0% 1% 0% 1% 0%



<=$300k >$300k 1 or 2 3+ Yes No

Number of Full Time Equivalent Staff Involved in Promotional Products TOTAL (unweighted) 96 43 45 50 45 65 31

TOTAL (weighted) 96 67 23 66 28 27 69

One 34% 46% 7% 50% 0% 14% 42%

Two 36% 42% 18% 50% 0% 28% 39%

Three 8% 8% 7% 1% 26% 21% 3%

4 to 5 8% 3% 12% 0% 26% 11% 6%

6 to 10 10% 0% 41% 0% 34% 18% 7%

More than 10 4% 0% 15% 0% 14% 7% 3%

Mean 3.6 1.7 8.4 1.5 8.6 5.4 2.9

Median 2 2 6 2 5 3 2

Gross Revenue from Promotional Products in 2012 TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 $125,000 or less 46% 67% 0% 61% 14% 17% 57% $125,001 to $300,000 23% 34% 0% 25% 12% 26% 22% $300,001 to $500,000 6% 0% 24% 6% 5% 11% 4% $500,001 to $1,000,000 9% 0% 38% 2% 25% 15% 7% $1,000,001 to $2,000,000 7% 0% 29% 1% 21% 17% 3% More than $2,000,000 2% 0% 9% 0% 7% 7% 0% Not stated 7% 0% 0% 4% 15% 7% 7% Mean $ (000's) $370 $96 $1183 $128 $1029 $826 $196 Median $ (000's) $126 $70 $810 $70 $670 $355 $72



<=$300k >$300k 1 or 2 3+ Yes No

Financial Ratios in 2012 TOTAL (unweighted) 96 43 45 50 45 65 31

TOTAL (weighted) 96 67 23 66 28 27 69

Cost of Goods Sold 46.9% 46.7% 52.6% 46.9% 47.1% 52.3% 44.9%

Selling Cost 15.7% 14.2% 19.0% 14.2% 19.1% 15.5% 15.8%

All Other Expenses* 22.2% 21.5% 19.7% 23.9% 18.5% 19.4% 23.2%

Net Profit 15.3% 17.6% 8.7% 15.0% 15.3% 12.9% 16.1%

Gross Profit Margin 53.1% 53.3% 47.4% 53.1% 52.9% 47.7% 55.1%

* All Other Expenses includes fixed overhead, IT costs and all other expenses. See slide 36 & 37 in the appendix for additional detail.


Supplier Results

Supplier Sales Volume by Year 31

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

1993 1994 1998 2002 2006 2008 2009 2011 2012

$418 $451

$660

$1,139

$2,191

$2,505 $2,400 $2,338

$2,085

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According to suppliers

reporting on their 2012

results, the total size

of the promotional

products industry

continued a slow

decline since its high

mark in 2008.

Sales Volumes shown are in millions of dollars, so 2012’s $2,086 represents $2,086,000,000

Supplier Employment by Year 32

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

1994 1998 2002 2006 2008 2009 2012

3,652 4,347

6,372

10,705

13,050 13,556

15,919

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Based on responses

from this year, the

number of full time

equivalent positions

on the supplier side of

the promotional

product industry

continues to increase.

Caution should be

observed, however,

because of the low

sample size in this

year’s study.

Supplier Sales Volume Confidence Intervals and Employment 33

Estimated Sales

Volume (millions) Sales Volume Confidence Interval (millions)

Employees Lower Upper

TOTAL Total $ 2,085.41 $ 937.26 $ 3,233.57 15,919

A Confidence Interval is an estimate of the reliability of the estimated mean. In this case a 95% Confidence Interval was used, so we are 95% sure that the mean is between the Lower and Upper bounds.

Supplier Type 34

Other - 18%

Printer - 14%

Importer - 21%

Manufacturer 47%

Type of Supplier

Supplier Profile – PPPC Membership and Importing Practices

35

Yes - 90%

No - 10%

Company is a Member of the PPPC?

Yes - 72%

No - 28%

Company Imports Products From Outside of Canada?

Supplier Profile – Selling Direct 36

15%

57%

9%

14%

16%

20%

0% 10% 20% 30% 40% 50% 60%

Other

Never sell direct

For very large orders

To long-time corporate customers

Very large orders with commission to distributor

In special circumstances

Instances of Selling Direct to Corporate Buyers

Supplier Profile – Revenue Derived From Sales to PPPC Members

37

61%

59%

58% 59% 59% 60% 60% 61% 61% 62%

2012

2011

Percent of Revenue Derived From The Sale of

Products To Members of the PPPC

Supplier Profile – Revenue From Various Sources 38

28% - Outside Canada/U.S.

U.S. Suppliers - 22%

Canadian Suppliers - 49%

Percent of 2012 Revenue Derived From Sources Shown

Supplier Profile – Amount Spent on Printed Materials 39

$35,235

$35,904

$32,281

$35,736

$30,000 $31,000 $32,000 $33,000 $34,000 $35,000 $36,000 $37,000

2012

2011

2010

2009

Average Amount Spent on Printed Materials

Supplier Profile – Head Office 40

Type of Supplier

TOTAL (unweighted) 47 TOTAL (weighted) 47 Manufacturer 47%

Importer 21% Printer 14%

Other 18%

Province of Head Office TOTAL (unweighted) 47

TOTAL (weighted) 47

British Columbia 13% Alberta 4% Prairies/ Territories 2% Manitoba 2% Ontario 51% Quebec 25% Atlantic 5%

New Brunswick 3% Nova Scotia 3%

Supplier Profile - Staffing 41

Number of FTE Staff Involved in Promotional Products

TOTAL (unweighted) 47

TOTAL (weighted) 47

One 10%

Two 4%

Three 9%

4 to 5 13%

6 to 10 12%

11 to 50 42%

More than 50 11%

Mean 17.2

Median 10

Maximum Value 70

Standard Deviation is a measure of how much variance there is between all of a question’s responses. The more consistent the responses are, the lower the Standard Deviation. Standard Error measures the accuracy with which the respondents represent the actual industry. The lower the Standard Error, the closer the estimated mean will be to the actual mean of the entire industry.

Supplier Profile – Revenue Breakdown 42

Gross Revenue from Promotional Products for 2012


TOTAL (weighted) 47

$125,000 or less 6%

$125,001 to $300,000 5%

$300,001 to $500,000 4%

$500,001 to $1,000,000 15%

$1,000,001 to $2,000,000 12%

$2,000,001 to $5,000,000 24%

More than $10,000,000 2%

Not stated 33%

Mean (000's) 2255

Median (000's) 1770

Maximum Value (000's) 20000


Appendices



<=$300k >$300k 1 or 2 3+ Yes No D3. Company is a member of the Promotional Product Professionals of Canada TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 Yes 28% 17% 60% 15% 53% 100% 0% No 72% 83% 41% 85% 47% 0% 100% D4. Company imports products from outside Canada TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 Yes 61% 49% 85% 52% 78% 82% 52% No 39% 51% 15% 48% 22% 18% 48% D5. Sources used to procure products (Base: Company imports products from outside Canada in D4) TOTAL (unweighted) 66 19 40 28 37 50 16 TOTAL (weighted) 58 32 19 34 22 22 36 Directly from original product manufacturer located in Asia 43% 46% 53% 37% 49% 38% 47% Directly from original product manufacturer located in a country other than in Asia

65% 72% 61% 67% 67% 48% 75%

From Asia using a trading agent, sales agent, or vendors located in Asia 37% 22% 71% 21% 55% 45% 32% From Asia through own organization, acting as trading or sales agent 23% 32% 12% 20% 20% 22% 23% From other countries other than in Asia, using either of the two previous methods

27% 27% 34% 17% 35% 30% 25%

None of the above 10% 7% 4% 14% 5% 15% 7%



<=$300k >$300k 1 or 2 3+ Yes No D6. Import from... (Base: Company imports products from outside Canada in D4) TOTAL (unweighted) 66 19 40 28 37 50 16 TOTAL (weighted) 58 32 19 34 22 22 36 Mexico 4% 0% 12% 1% 9% 11% 0% United States 87% 88% 98% 81% 96% 96% 82% Europe 12% 6% 25% 3% 26% 11% 12% India, Pakistan, Sri Lanka 8% 6% 14% 9% 8% 12% 5% Mainland China 57% 56% 78% 56% 53% 48% 62% Korea 9% 8% 0% 7% 11% 0% 14% Taiwan 13% 20% 4% 19% 4% 4% 18% Japan 6% 6% 5% 9% 2% 6% 6% Hong Kong 23% 26% 24% 19% 31% 23% 22% Other Pacific Rim countries 4% 6% 2% 6% 1% 1% 5% Other 9% 0% 2% 7% 13% 2% 14% None of the above 1% 0% 0% 0% 2% 2% 0% D7. Company intends to import direct in near future (Base: Company does not import products from outside Canada in D4) TOTAL (unweighted) 30 24 5 22 8 15 15 TOTAL (weighted) 38 34 3 32 6 5 33 Yes 2% 2% 0% 2% 0% 13% 0% No 98% 98% 100% 98% 100% 87% 100%



<=$300k >$300k 1 or 2 3+ Yes No D8. Best description of business TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 Agency style, full service including graphics, premiums, catalogue programmes, consultancy

26% 21% 36% 15% 47% 26% 26%

Promotional products some premiums, possibly small branding catalogues 16% 11% 23% 13% 24% 32% 10% Owner/Operator, strictly promotional product distributors 54% 64% 38% 68% 23% 36% 60% Other 4% 5% 3% 4% 6% 6% 4% D9. Head office location TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 British Columbia 7% 6% 9% 4% 13% 16% 3% Alberta 18% 21% 15% 22% 11% 15% 20% Prairies/ Territories 1% 0% 3% 0% 2% 2% 0% Saskatchewan 1% 0% 3% 0% 2% 2% 0% Ontario 50% 48% 46% 54% 46% 41% 54% Quebec 24% 25% 28% 20% 29% 25% 24% Atlantic 0% 1% 0% 1% 0% 1% 0% New Brunswick 0% 1% 0% 1% 0% 1% 0% D11. Location of branch offices or offices TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 British Columbia 4% 3% 7% 3% 6% 8% 3% Alberta 7% 3% 19% 4% 13% 6% 7% Ontario 11% 8% 14% 12% 11% 4% 14% Quebec 10% 8% 15% 9% 15% 14% 9% No branch offices 61% 64% 57% 62% 55% 60% 61% Not stated 14% 18% 9% 14% 15% 18% 13%



<=$300k >$300k 1 or 2 3+ Yes No D11. Number of other offices/ branch offices in Alberta (Base: Company has offices/ branch offices in this location) TOTAL (unweighted) 7 1 5 2 5 6 1 TOTAL (weighted) 4 2 2 2 2 2 2 One 42% 0% 80% 15% 80% 83% 0% Not stated 58% 100% 20% 85% 20% 17% 100% D11. Number of other offices/ branch offices in BC (Base: Company has offices/ branch offices in this location) TOTAL (unweighted) 7 1 6 3 4 5 2 TOTAL (weighted) 6 2 4 3 3 2 5 One 84% 100% 76% 100% 71% 40% 100% Not stated 16% 0% 24% 0% 29% 60% 0% D11. Number of other offices/ branch offices in Ontario (Base: Company has offices/ branch offices in this location) TOTAL (unweighted) 7 3 3 4 3 3 4 TOTAL (weighted) 11 5 3 8 3 1 10 One 71% 53% 79% 64% 90% 33% 75% Two 3% 0% 11% 4% 0% 33% 0% Not stated 26% 47% 11% 32% 11% 33% 25% D11. Number of other offices/ branch offices in Quebec (Base: Company has offices/ branch offices in this location) TOTAL (unweighted) 15 6 5 7 8 12 3 TOTAL (weighted) 10 5 3 6 4 4 6 One 40% 56% 0% 58% 16% 51% 33% Two 24% 0% 72% 0% 56% 8% 33% Not stated 36% 44% 28% 42% 28% 41% 33%



<=$300k >$300k 1 or 2 3+ Yes No

D12. Full Time Equivalent Staff Involved in Promotional Products at Your Head Office

TOTAL (unweighted) 96 43 45 50 45 65 31

TOTAL (weighted) 96 67 23 66 28 27 69

One 38% 50% 10% 55% 0% 17% 45%

Two 33% 39% 17% 45% 0% 27% 36%

Three 8% 8% 6% 0% 27% 21% 3%

4 to 5 10% 3% 23% 0% 34% 10% 10%

6 to 10 8% 0% 30% 0% 26% 20% 3%

More than 10 4% 0% 15% 0% 13% 6% 3%

Mean 3.4 1.7 8.0 1.5 8.1 5.2 2.7

Median 2 1 5 1 5 3 2

Maximum Value* 41 5 32 2 41 41 25

D12. Full Time Equivalent Staff Involved in Promotional Products Outside Head Office

TOTAL (unweighted) 96 43 45 50 45 65 31

TOTAL (weighted) 96 67 23 66 28 27 69

None 90% 96% 74% 95% 78% 91% 90%

One 6% 4% 14% 4% 11% 5% 7%

Two 3% 0% 13% 1% 9% 1% 4%

4 to 5 0% 0% 0% 0% 1% 1% 0%

6 to 10 0% 0% 0% 0% 1% 1% 0%

Mean 0.2 0.0 0.4 0.1 0.5 0.2 0.1

Median 0 0 0 0 0 0 0

Maximum Value* 10 1 2 2 10 10 2

* Maximum Value: This is the largest value in the answers supplied by respondents. For example, the greatest number of full time equivalent staff involved in promotional products at the head office was 41.



<=$300k >$300k 1 or 2 3+ Yes No D12. Total FTE Staff Involved in Promotional Products at all locations TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 One 34% 46% 7% 50% 0% 14% 42% Two 36% 42% 18% 50% 0% 28% 39% Three 8% 8% 7% 1% 26% 21% 3% 4 to 5 8% 3% 12% 0% 26% 11% 6% 6 to 10 10% 0% 41% 0% 34% 18% 7% More than 10 4% 0% 15% 0% 14% 7% 3% Mean 3.6 1.7 8.4 1.5 8.6 5.4 2.9 Median 2 2 6 2 5 3 2 Maximum Value 46 5 32 3 46 46 26

D13. Percentage of your total sales came from your head office in 2012 TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 1 to 10 2% 3% 2% 3% 0% 1% 3% 11 to 20 3% 4% 0% 4% 0% 0% 4% 31 to 40 2% 3% 0% 0% 0% 8% 0% 41 to 50 2% 3% 0% 3% 0% 0% 3% 51 to 60 0% 0% 0% 0% 1% 1% 0% 61 to 70 3% 0% 11% 0% 10% 1% 4% 71 to 80 5% 3% 11% 3% 10% 3% 6% 91 to 99 1% 0% 3% 0% 2% 2% 0% 100 81% 84% 71% 86% 76% 81% 81% Not stated 1% 0% 3% 1% 1% 2% 0% Mean 91 90 93 92 94 92 91



<=$300k >$300k 1 or 2 3+ Yes No D14. Total 2011 Promotional Products Revenue TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 $125,000 or less 48% 69% 0% 61% 14% 17% 60% $125,001 to $300,000 15% 20% 6% 16% 14% 20% 13% $300,001 to $500,000 11% 5% 32% 10% 15% 11% 11% $500,001 to $1,000,000 7% 0% 28% 3% 17% 16% 3% $1,000,001 to $2,000,000 6% 0% 27% 1% 20% 15% 3% More than $2,000,000 2% 0% 7% 0% 6% 6% 0% Not stated 12% 7% 0% 11% 15% 15% 11% Mean (000's) 366 99 1104 129 967 880 178 Median (000's) 125 55 800 62 550 415 62 Maximum Value (000's) 10051 325 10051 1100 10051 10051 1500

D14. Total 2012 Promotional Products Revenue TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 $125,000 or less 46% 67% 0% 61% 14% 17% 57% $125,001 to $300,000 23% 34% 0% 25% 12% 26% 22% $300,001 to $500,000 6% 0% 24% 6% 5% 11% 4% $500,001 to $1,000,000 9% 0% 38% 2% 25% 15% 7% $1,000,001 to $2,000,000 7% 0% 29% 1% 21% 17% 3% More than $2,000,000 2% 0% 9% 0% 7% 7% 0% Not stated 7% 0% 0% 4% 15% 7% 7% Mean (000's) 370 96 1183 128 1029 826 196 Median (000's) 126 70 810 70 670 355 72 Maximum Value (000's) 8982 300 8982 1200 8982 8982 1750



<=$300k >$300k 1 or 2 3+ Yes No D15. Three most common job functions typically dealt with in client's organization TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 Administrative /Clerical 38% 47% 19% 47% 13% 36% 39% Communications/PR 21% 21% 26% 20% 17% 34% 16% Finance/Accounting 13% 18% 3% 15% 2% 10% 14% Human Resources 17% 14% 31% 11% 32% 25% 15% Marketing /Advertising 60% 48% 85% 49% 82% 88% 49% Owner 83% 85% 77% 83% 84% 73% 87% Purchasing 48% 38% 65% 43% 57% 49% 48% Sales 19% 24% 9% 25% 6% 18% 20%

D16. Top three industry sectors represented by client base TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 Advertising/Marketing Agencies 9% 10% 7% 7% 14% 10% 9% Automotive 15% 18% 7% 19% 8% 12% 17% Construction 35% 34% 44% 37% 24% 46% 31% Entertainment/Publishing 7% 3% 10% 4% 16% 17% 4% Finance (banking investment) 7% 4% 17% 4% 14% 9% 6% Government 32% 22% 48% 27% 45% 42% 28% High Technology 15% 18% 10% 15% 16% 19% 13% Insurance 11% 14% 4% 12% 4% 14% 10% Manufacturing (exc. automotive) 32% 17% 62% 24% 54% 32% 33% Not-for-profit sector (assoc./charity) 36% 41% 21% 38% 29% 40% 35% Pharmaceutical/Healthcare 13% 14% 13% 16% 7% 12% 13% Professional Services 28% 32% 19% 29% 20% 30% 27% Real Estate 18% 25% 3% 19% 9% 12% 20% Restaurant 24% 27% 21% 18% 33% 23% 25% Retail 15% 17% 12% 14% 10% 10% 17% Tourism and Hospitality 12% 14% 7% 12% 5% 16% 10% None of the above 0% 0% 2% 0% 1% 1% 0%



<=$300k >$300k 1 or 2 3+ Yes No D17. Percentage of 2012 gross revenue allocated to: Cost of Goods Sold TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 1 to 10 2% 3% 0% 3% 0% 0% 3% 11 to 20 2% 3% 0% 3% 0% 1% 3% 21 to 30 6% 3% 4% 7% 5% 5% 6% 31 to 40 22% 23% 13% 20% 27% 8% 27% 41 to 50 24% 33% 4% 23% 20% 29% 22% 51 to 60 19% 19% 25% 20% 20% 18% 20% 61 to 70 4% 1% 15% 3% 8% 15% 0% 71 to 80 1% 2% 1% 2% 0% 5% 0% 81 to 90 2% 3% 0% 3% 0% 0% 3% Not stated 18% 12% 37% 17% 21% 18% 17% Mean 47 47 53 47 47 52 45

D17. Percentage of 2012 gross revenue allocated to: Selling Cost TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 None 0% 1% 0% 1% 0% 1% 0% 1 to 10 42% 51% 27% 47% 33% 33% 45% 11 to 20 26% 27% 16% 25% 22% 27% 25% 21 to 30 8% 7% 10% 8% 7% 19% 3% 31 to 40 3% 0% 2% 0% 10% 1% 4% 41 to 50 2% 0% 9% 0% 7% 0% 3% 61 to 70 2% 3% 0% 3% 0% 0% 3% Not stated 18% 12% 37% 17% 21% 18% 17% Mean 16 14 19 14 19 15 16



<=$300k >$300k 1 or 2 3+ Yes No D17. Percentage of 2012 gross revenue allocated to: IT Costs TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 None 16% 20% 7% 18% 13% 17% 16% 1 to 10 66% 68% 56% 65% 66% 65% 67% Not stated 18% 12% 37% 17% 21% 18% 17% Mean 4 4 3 4 3 3 4 D17. Percentage of 2012 gross revenue allocated to: Fixed Overhead Costs TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 None 10% 13% 3% 10% 10% 11% 9% 1 to 10 54% 59% 52% 53% 53% 55% 53% 11 to 20 15% 12% 6% 16% 14% 9% 17% 21 to 30 3% 4% 3% 3% 4% 5% 3% 31 to 40 0% 1% 0% 1% 0% 1% 0% Not stated 18% 12% 37% 17% 21% 18% 17% Mean 9 9 8 10 9 8 10



<=$300k >$300k 1 or 2 3+ Yes No D17. Percentage of 2012 gross revenue allocated to: All Other Expenses TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 None 12% 17% 2% 8% 16% 13% 12% 1 to 10 47% 47% 47% 50% 44% 46% 48% 11 to 20 17% 20% 11% 17% 18% 20% 16% 21 to 30 3% 0% 3% 4% 2% 3% 4% 31 to 40 3% 4% 0% 4% 0% 0% 4% Not stated 18% 12% 37% 17% 21% 18% 17% Mean 9 9 8 11 7 8 10 D17. Percentage of 2012 gross revenue allocated to: Net Profit TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 None 19% 17% 19% 21% 16% 11% 22% 1 to 10 18% 15% 30% 16% 23% 26% 15% 11 to 20 23% 25% 7% 20% 24% 37% 17% 21 to 30 12% 15% 6% 16% 2% 6% 14% 31 to 40 12% 16% 2% 10% 16% 2% 15% Not stated 18% 12% 37% 17% 21% 18% 17% Mean 15 18 9 15 15 13 16



<=$300k >$300k 1 or 2 3+ Yes No D18. Method of determining the selling price of a product TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 Mark-up applied 55% 58% 52% 61% 38% 48% 58% Based on gross profit margin target 35% 34% 43% 30% 47% 44% 31% Other 9% 8% 4% 8% 12% 5% 11% Not stated 1% 1% 2% 1% 2% 4% 0% D19. Percentage of gross 2011 promotional product revenue derived from products supplied by members of PPPC TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 None 7% 10% 0% 10% 1% 9% 6% 1 to 10 0% 1% 0% 1% 0% 1% 0% 11 to 20 0% 0% 2% 0% 1% 1% 0% 21 to 30 3% 4% 0% 4% 1% 1% 4% 31 to 40 10% 7% 11% 11% 9% 2% 13% 41 to 50 9% 7% 18% 11% 7% 7% 10% 51 to 60 9% 11% 3% 9% 9% 5% 10% 61 to 70 5% 0% 23% 1% 17% 2% 7% 71 to 80 10% 9% 16% 10% 11% 18% 6% 81 to 90 20% 21% 10% 18% 25% 22% 19% 91 to 99 4% 3% 9% 5% 4% 9% 3% 100 13% 18% 2% 12% 10% 14% 13% Not stated 10% 11% 7% 12% 6% 9% 10% Mean 67 67 67 63 73 71 65



<=$300k >$300k 1 or 2 3+ Yes No D19. Percentage of gross 2012 promotional product revenue derived from products supplied by members of PPPC TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 None 2% 3% 0% 3% 1% 1% 3% 1 to 10 5% 7% 0% 3% 9% 11% 3% 11 to 20 0% 0% 2% 0% 1% 1% 0% 21 to 30 3% 4% 0% 4% 1% 1% 4% 31 to 40 8% 4% 12% 7% 10% 4% 10% 41 to 50 14% 14% 17% 18% 5% 6% 17% 51 to 60 4% 4% 4% 4% 2% 4% 4% 61 to 70 3% 3% 1% 1% 9% 4% 3% 71 to 80 12% 8% 26% 9% 18% 16% 10% 81 to 90 20% 20% 12% 21% 17% 22% 19% 91 to 99 2% 1% 9% 2% 4% 9% 0% 100 16% 22% 2% 19% 10% 6% 20% Not stated 12% 11% 17% 9% 13% 16% 10% Mean 68 68 67 69 65 68 68



<=$300k >$300k 1 or 2 3+ Yes No D21. Percentage of gross 2012 promotional product revenue derived from: Canadian suppliers TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 11 to 20 2% 3% 0% 3% 0% 0% 3% 21 to 30 1% 0% 3% 0% 2% 2% 0% 31 to 40 4% 4% 4% 4% 2% 4% 4% 41 to 50 5% 3% 14% 3% 11% 2% 7% 51 to 60 12% 10% 10% 13% 12% 9% 14% 61 to 70 15% 15% 7% 11% 26% 21% 13% 71 to 80 17% 17% 21% 18% 16% 12% 19% 81 to 90 18% 17% 24% 19% 17% 28% 14% 91 to 99 14% 16% 14% 16% 3% 14% 14% 100 11% 15% 0% 12% 7% 5% 13% Not stated 1% 0% 3% 0% 3% 4% 0% Mean 76 79 72 78 71 78 76



<=$300k >$300k 1 or 2 3+ Yes No D21. Percentage of gross 2012 promotional product revenue derived from: U.S. suppliers TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 None 11% 15% 0% 12% 7% 5% 13% 1 to 10 29% 32% 28% 34% 13% 39% 26% 11 to 20 22% 18% 39% 19% 32% 23% 22% 21 to 30 25% 27% 12% 22% 33% 23% 25% 31 to 40 9% 4% 16% 9% 10% 4% 11% 41 to 50 0% 0% 2% 0% 1% 1% 0% 51 to 60 3% 4% 2% 4% 0% 1% 4% Not stated 1% 0% 3% 0% 3% 4% 0% Mean 18 16 20 17 21 17 18

D21. Percentage of gross 2012 promotional product revenue derived from: Suppliers outside Canada/U.S. TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 None 58% 67% 35% 72% 29% 37% 65% 1 to 10 30% 24% 39% 19% 50% 48% 22% 11 to 20 6% 3% 17% 4% 12% 5% 7% 21 to 30 1% 0% 3% 0% 2% 2% 0% 31 to 40 2% 3% 0% 3% 0% 0% 3% 41 to 50 0% 0% 2% 0% 1% 1% 0% 51 to 60 2% 3% 1% 3% 1% 1% 3% 61 to 70 0% 0% 2% 0% 1% 1% 0% Not stated 1% 0% 3% 0% 3% 4% 0% Mean 6 5 8 5 8 6 6



<=$300k >$300k 1 or 2 3+ Yes No D22. Promotional product categories sold in 2012 TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 Automotive Accessories 53% 47% 72% 41% 79% 64% 49% Buttons/Badges/Ribbons/Stickers/Magnets 70% 63% 87% 65% 81% 91% 62% Calendars 63% 59% 77% 64% 65% 66% 62% Computer Products 34% 23% 71% 24% 60% 62% 23% Desk/Office/Business Accessories 76% 67% 99% 70% 97% 77% 76% Drinkware (Coffee Mugs) 84% 78% 99% 81% 92% 85% 84% Drinkware (Other Drinkware) 68% 55% 97% 61% 89% 79% 64% Electronic Products, Devices, and Accessories 26% 19% 51% 22% 36% 30% 24% Food Products 26% 19% 55% 22% 38% 43% 20% Games/Toys/Playing Cards /Inflatables 32% 20% 61% 20% 63% 55% 23% Housewares 26% 21% 47% 24% 33% 39% 22% Jewellery/Watches/Clocks 45% 34% 87% 30% 76% 70% 36% Leisure Products 53% 42% 75% 50% 66% 51% 54% Personal/Pocket-Purse Products 46% 32% 83% 32% 80% 57% 41% Plaques/Trophies 51% 43% 61% 40% 72% 82% 39% Sporting Goods (specifically Golf Accessories) 52% 39% 90% 41% 81% 56% 50% Sporting Goods (other than Golf) 28% 20% 33% 23% 42% 27% 28% Textiles 71% 58% 100% 60% 93% 92% 63% Tools 50% 33% 85% 38% 80% 69% 42% Travel Products and Accessories 48% 29% 93% 37% 77% 61% 42% Wearables/Apparel (golf garments) 69% 60% 96% 56% 97% 90% 61% Wearables/Apparel (other than golf) 85% 83% 86% 82% 90% 95% 81% Writing Instruments 89% 86% 97% 86% 98% 95% 87% Other 16% 22% 3% 18% 11% 16% 15%



<=$300k >$300k 1 or 2 3+ Yes No D23. Avg. percentage of 2012 gross revenues derived from each category TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 Automotive Accessories 4% 4% 2% 4% 2% 2% 4% Buttons/Badges/Ribbons/Stickers/Magnets 6% 6% 3% 6% 3% 6% 6% Calendars 7% 8% 2% 9% 3% 2% 9% Computer Products 1% 1% 2% 1% 3% 3% 1% Desk/Office/Business Accessories 5% 5% 6% 5% 5% 3% 6% Drinkware (Coffee Mugs) 4% 4% 6% 4% 5% 4% 5% Drinkware (Other Drinkware) 3% 3% 5% 3% 4% 4% 3% Electronic Products, Devices, and Accessories 1% 1% 2% 1% 1% 1% 1% Food Products 1% 1% 1% 1% 0% 1% 1% Games/Toys/Playing Cards /Inflatables 1% 1% 1% 1% 1% 1% 1% Housewares 1% 1% 1% 1% 1% 1% 1% Jewellery/Watches/Clocks 2% 2% 3% 2% 3% 2% 2% Leisure Products 4% 4% 3% 5% 2% 1% 5% Personal/Pocket-Purse Products 1% 1% 3% 1% 2% 2% 1% Plaques/Trophies 2% 2% 2% 2% 2% 4% 2% Sporting Goods (specifically Golf Accessories) 4% 4% 6% 4% 5% 2% 5% Sporting Goods (other than Golf) 2% 2% 1% 2% 1% 1% 2% Textiles 5% 4% 6% 4% 6% 8% 4% Tools 1% 1% 2% 1% 1% 2% 1% Travel Products and Accessories 2% 1% 4% 1% 3% 3% 2% Wearables/Apparel (Golf Garments) 9% 9% 11% 8% 11% 17% 6% Wearables/Apparel (other than Golf) 23% 24% 21% 22% 27% 23% 24% Writing Instruments 9% 9% 8% 9% 6% 8% 9% Other 2% 2% 1% 2% 1% 2% 2%



<=$300k >$300k 1 or 2 3+ Yes No D25. Avg. percentage of 2012 promotional product sales derived from each program type TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 Brand Awareness 18% 18% 15% 18% 18% 14% 19% Business Gifts 17% 16% 23% 13% 26% 18% 17% Customer Referral 4% 4% 4% 4% 4% 4% 4% Dealer/Distributor Programmes 2% 2% 3% 2% 3% 4% 2% Employee Incentive Programmes 6% 6% 7% 5% 7% 6% 6% Employee Relations and Events 12% 14% 7% 15% 6% 6% 13% Employee Safety and Education 4% 4% 4% 4% 4% 5% 4% Employee Service Awards 4% 4% 4% 4% 4% 6% 3% Marketing Research 1% 1% 2% 1% 1% 2% 1% New Customer/Account Generation 8% 8% 7% 8% 6% 5% 8% New Product/Service Introduction 5% 5% 6% 5% 5% 4% 5% Not-for-Profit Programmes 3% 3% 3% 4% 2% 5% 3% Public Relations 6% 5% 4% 6% 5% 9% 5% Trade Shows 7% 8% 6% 8% 6% 9% 7% All Other Reasons 3% 2% 5% 3% 3% 5% 3%

Appendix B – All Supplier Results 62

S3. Company is a member of the Promotional Product Professionals of Canada


TOTAL (weighted) 47

Yes 90%

No 10%

S4. Company imports products from outside Canada


TOTAL (weighted) 47

Yes 72%

No 28%

S5. Sources used to procure products

(Base: Company imports products from outside Canada in S4)


TOTAL (weighted) 34

Directly from original product manufacturer located in Asia 74%

Directly from original product manufacturer located in a country other than in Asia 64%

From Asia using a trading agent, sales agent, or vendors located in Asia 24%

From Asia through own organization, acting as trading or sales agent 38%

From other countries other than in Asia, using either of the two previous methods 30%

Manufacture our own goods in Canada 48%


S6. Import from... (Base: Company imports products from outside Canada in S4) TOTAL (unweighted) 34 TOTAL (weighted) 34 Mexico 8% United States 71% South America 12% Europe 17% India, Pakistan, Sir Lanka 22% Mainland China 80% Korea 6% Taiwan 25% Japan 12% Hong Kong 13% Australia 3% Other Pacific Rim countries 8% Other 8% S7. Company intends to import direct in near future (Base: Company does not import products from outside Canada in S4) TOTAL (unweighted) 13 TOTAL (weighted) 13 Yes 23% No 77% S8. Company is primarily a... TOTAL (unweighted) 47 TOTAL (weighted) 47 Manufacturer 47% Importer 21% Printer 14% Other 18%

S9. Instances when promotional products lines are sold direct to "corporate buyers" TOTAL (unweighted) 47 TOTAL (weighted) 47 To long-time corporate customers 14% For very large orders 9% In special circumstances 20% Very large orders with commission to distributor 16% Other 15% Never sell direct 57% S10. Head office location TOTAL (unweighted) 47 TOTAL (weighted) 47 British Columbia 13% Alberta 4% Prairies/ Territories 2% Manitoba 2% Ontario 51% Quebec 25% Atlantic 5% New Brunswick 3% Nova Scotia 3% S12. Location of branch offices or offices TOTAL (unweighted) 47 TOTAL (weighted) 47 British Columbia 6% Alberta 2% Nova Scotia 3% Ontario 20% No branch offices 65% Not stated 12%



S12. Number of other offices/ branch offices in Ontario

(base: Company has offices/ branch offices in this location)


TOTAL (weighted) 9

One 41%

Two 30%

Not stated 29%

S13. Percentage of your total sales came from your head office in 2012


TOTAL (weighted) 47

None 4%

51 to 60 4%

61 to 70 2%

81 to 90 2%

91 to 99 2%

100 75%

Not stated 11%

Mean 92.6


S14. Full Time Equivalent Staff Involved in Promotional Products at your Head Office TOTAL (unweighted) 47 TOTAL (weighted) 47 One 12% Two 8% Three 7% 4 to 5 13% 6 to 10 14% 11 to 50 38% More than 50 9%

Mean 15.2

Median 8

Maximum Value 70

S14. Full Time Equivalent Staff Involved in Promotional Products outside Head Office TOTAL (unweighted) 47 TOTAL (weighted) 47 None 77% One 2% Two 9% Three 4% 4 to 5 2% 6 to 10 2% 11 to 50 4%

Mean 1.8

Median 0

Maximum Value 45


S14. Total FTE Staff Involved in Promotional Products at all locations TOTAL (unweighted) 47 TOTAL (weighted) 47 One 10% Two 4% Three 9% 4 to 5 13% 6 to 10 12% 11 to 50 42% More than 50 11%

Mean 17.2

Median 10

Maximum Value 70

S15. Total 2011 Promotional Products Revenue TOTAL (unweighted) 47 TOTAL (weighted) 47 $125,000 or less 6% $125,001 to $300,000 5% $300,001 to $500,000 2% $500,001 to $1,000,000 17% $1,000,001 to $2,000,000 14% $2,000,001 to $5,000,000 17% More than $10,000,000 4% Not stated 35% Mean (000's) 2528 Median (000's) 1750 Maximum Value (000's) 20000


S15. Total 2012 Promotional Products Revenue


TOTAL (weighted) 47

$125,000 or less 6%

$125,001 to $300,000 5%

$300,001 to $500,000 4%

$500,001 to $1,000,000 15%

$1,000,001 to $2,000,000 12%

$2,000,001 to $5,000,000 24%

More than $10,000,000 2%

Not stated 33%

Mean (000's) 2255

Median (000's) 1770

Maximum Value (000's) 20000


S16. Percentage of gross 2011 promotional product revenue derived from products supplied to members of PPPC


TOTAL (weighted) 47

None 8%

11 to 20 5%

21 to 30 3%

31 to 40 2%

41 to 50 7%

51 to 60 13%

61 to 70 15%

71 to 80 7%

81 to 90 9%

91 to 99 2%

100 6%

Not stated 25%

Mean 58.7


S16. Percentage of gross 2012 promotional product revenue derived from products supplied to members of PPPC


TOTAL (weighted) 47

None 6%

11 to 20 5%

31 to 40 5%

41 to 50 11%

51 to 60 10%

61 to 70 13%

71 to 80 4%

81 to 90 11%

91 to 99 4%

100 6%

Not stated 25%

Mean 60.6


S17. Percentage of gross 2012 promotional product revenue derived from: Canadian suppliers


TOTAL (weighted) 47

None 13%

1 to 10 8%

11 to 20 9%

31 to 40 4%

41 to 50 6%

71 to 80 7%

81 to 90 7%

91 to 99 2%

100 16%

Not stated 30%

Mean 49.4


S17. Percentage of gross 2012 promotional product revenue derived from: U.S. suppliers TOTAL (unweighted) 47 TOTAL (weighted) 47 None 31% 1 to 10 12% 11 to 20 5% 21 to 30 2% 31 to 40 2% 41 to 50 6% 51 to 60 4% 71 to 80 4% 81 to 90 3% 91 to 99 2% Not stated 30% Mean 22.3

S17. Percentage of gross 2012 promotional product revenue derived from: Suppliers outside Canada/U.S. TOTAL (unweighted) 47 TOTAL (weighted) 47 None 37% 1 to 10 8% 11 to 20 5% 51 to 60 2% 71 to 80 5% 81 to 90 6% 100 9% Not stated 30% Mean 28.3


S18. Amount spent on printed materials in 2012

TOTAL (unweighted) 47 TOTAL (weighted) 47

Less than $5,000 11% $5,000 to $9,999 9% $10,000 to $19,999 9% $20,000 to $49,999 5% $50,000 to $99,999 13% $100,000 or more 6% Not stated 49%

Mean $35,235 S18. Amount spent on printed materials in 2011

TOTAL (unweighted) 47 TOTAL (weighted) 47 Less than $5,000 7%

$5,000 to $9,999 11% $10,000 to $19,999 9%

$20,000 to $49,999 5% $50,000 to $99,999 8%

$100,000 or more 8% Not stated 53% Mean $35,904


S18. Amount spent on printed materials in 2010

TOTAL (unweighted) 47 TOTAL (weighted) 47

Less than $5,000 5% $5,000 to $9,999 16% $10,000 to $19,999 6% $20,000 to $49,999 7% $50,000 to $99,999 2% $100,000 or more 8% Not stated 57%

Mean $32,281 S18. Amount spent on printed materials in 2009

TOTAL (unweighted) 47 TOTAL (weighted) 47 Less than $5,000 2%

$5,000 to $9,999 16% $10,000 to $19,999 2%

$20,000 to $49,999 11% $50,000 to $99,999 2%

$100,000 or more 8% Not stated 59% Mean $35,736

sales volume update 2013 - pppc · and quebec make up over 60% of the total national sales volume....

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