Going Direct vs. Using a Promo Distributor: A Buyer's Guide
A practical guide to deciding whether direct manufacturing or a promotional products distributor is the right choice for your screen printing and embroidery needs at scale.
The question comes up often with buyers who are managing decorated apparel or merchandise at significant scale: is it time to cut out the distributor and go direct to the manufacturer?
The answer isn’t always yes. But for buyers at the right volume, the case for going direct is compelling. This guide lays out the honest tradeoffs so you can make the call that’s right for your situation.
What a Promo Distributor Actually Does
Before comparing options, it helps to be clear about what a promotional products distributor actually provides:
- Sourcing: They maintain relationships with multiple manufacturers and can find the right vendor for different product types and price points
- Single point of contact: You deal with one company instead of managing multiple factory relationships
- Order coordination: They translate your requirements into factory-ready production specs
- Risk buffer: If something goes wrong, you work through the distributor, who owns the factory relationship
- Catalog access: Access to hundreds of product categories without having to source each vendor individually
These are real services with real value — especially for buyers without a dedicated procurement function or buyers who need flexibility across many product types.
What You Pay for Those Services
A distributor’s compensation comes from the margin between the factory price and what they charge you. On screen printing and embroidery, that margin is typically 40–60% on the decoration cost. On blanks and goods, margins vary but are often 30–50%.
At low volumes, that markup represents a relatively small dollar amount. At high volumes, it becomes a significant line item.
The Volume Threshold
The question “should I go direct?” doesn’t have a universal answer — it depends on your volume, your internal capabilities, and what kind of relationship you want with your supply chain.
As a rough guide:
| Volume Range | Typical Best Approach |
|---|---|
| Under 10,000 units | Promo distributor. The sourcing flexibility and small-order capability aren’t worth bypassing. |
| 10,000–40,000 units | Either can work. Direct relationships become more feasible but distributor value is still meaningful. |
| 40,000–100,000 units | Evaluate both. The math starts favoring direct, but depends on your procurement capacity. |
| 100,000+ units | Direct manufacturing is strongly worth evaluating. The savings at this scale are hard to ignore. |
| 150,000+ units | Direct is almost certainly the right economic choice, assuming program predictability. |
The Direct Relationship: What You Gain
Lower unit cost: The distributor margin is eliminated. You pay factory price.
Direct communication: Your art files, specs, and approvals go directly to the people running your order. No telephone game, no interpretation layer.
Accountability clarity: When something goes wrong (and occasionally, something will), you’re talking directly to the manufacturer. There’s no intermediary to work through.
Production visibility: Direct clients typically get better insight into production status — not “your order is in progress” but “your order enters production on Tuesday.”
Long-term relationship: A direct manufacturing relationship, once established, becomes an operational asset. The factory knows your standards, your brand, and your expectations.
The Direct Relationship: What You Give Up
Sourcing flexibility: A direct manufacturer is one vendor. If you need products across many categories, you’ll manage multiple vendor relationships instead of going to one distributor who handles everything.
Small-order convenience: Most direct manufacturers have meaningful minimum orders. If your volume varies significantly or you occasionally need small supplementary orders, a distributor can handle that; a direct manufacturer often can’t.
Distributor’s sourcing expertise: A good distributor knows which factory is best for which type of product. When you go direct, you’re making that vendor selection yourself.
Reduced internal overhead: Someone on your team will manage the factory relationship — spec submissions, art approvals, production questions. A distributor handles this coordination for you.
Signs You’re Ready to Go Direct
- You’re ordering 100,000+ units per run
- Your orders are relatively predictable (not highly variable)
- You have someone internally who can manage vendor communication
- You’re ordering the same product type consistently (not across many categories)
- You’ve priced a distributor vs. direct and the savings are material
- You’ve been using a distributor for years and have a clear sense of your specifications
Signs a Distributor Still Makes Sense
- Your orders are small or unpredictable
- You need products across many categories from a single vendor
- You don’t have internal bandwidth to manage factory relationships
- Your order specifications change frequently
- The savings from going direct wouldn’t materially impact your budget
The Practical Path Forward
If you’re at or approaching 100,000 units per order and you’ve been working through a distributor, the simplest next step is to get a direct quote for your typical order and compare it to what you’re currently paying.
The gap between distributor pricing and factory-direct pricing at this scale is usually large enough to make the decision clear.
Merch Factory Direct manufactures screen printed and embroidered goods for buyers at 100,000+ units. Read more about why wholesale buyers go direct, or request a direct quote — we respond within one business day.