How Much Does a Promo Company Mark Up Screen Printing?
Most promotional products distributors mark up screen printing 40–60% or more. We break down the math on what you're actually paying for — and what you could save at 100,000+ units.
If you’ve ever requested a quote from a promotional products company for a large screen print run and then quietly wondered how they arrived at that number — you’re not alone. The promo industry is notoriously opaque about pricing, and for good reason: the margin between what a manufacturer charges and what a distributor bills the end buyer is substantial.
Let’s put some actual numbers to it.
The Structure of a Promo Distributor Quote
When you call a promotional products company, you’re talking to a sales organization. They have a catalog, a CRM, and relationships with manufacturers like us — but they don’t have presses or embroidery machines. They are a procurement layer.
Their quote to you works like this:
- They contact a decorator (us, or someone like us) and get a factory price
- They add their margin — typically 40–60% on decoration
- They add setup charges, art charges, and sometimes handling fees
- They present you with a “net price” that obscures where the margin lives
A screen print at $2.50 per unit from a factory becomes $3.75–$4.00 per unit through a distributor. At 100,000 units, that’s $125,000–$150,000 in additional cost — for the distributor’s role in forwarding your artwork and handling the PO.
What the Markup Pays For
To be fair to distributors: the markup isn’t pure profit. It pays for:
- Sales commissions: The rep who took your call gets a cut
- Distributor overhead: Offices, software, and staff who support the transaction
- Sourcing relationships: Knowing multiple vendors and being able to comparison shop
- Order coordination: Managing the relationship between you and a factory you’ve never met
- Risk management: The distributor owns the relationship if something goes wrong
For buyers ordering 5,000–20,000 pieces, that coordination value is real. The distributor’s network and relationships make sense at that scale.
When the Math Stops Working
At 100,000 units, the calculus changes. Here’s a simplified illustration:
| Order Size | Factory Price | Distributor Price (50% markup) | Markup Cost |
|---|---|---|---|
| 100,000 units | $230,000 | $345,000 | $115,000 |
| 250,000 units | $550,000 | $825,000 | $275,000 |
| 500,000 units | $1,050,000 | $1,575,000 | $525,000 |
Illustrative estimates only. Actual pricing varies by decoration complexity, garment, and ink count.
At 100,000 units, you’re potentially paying $115,000 for a service that amounts to: receiving your purchase order, placing it with a factory, and relaying questions between you and production.
That’s the point where most large buyers start asking whether a direct relationship makes more sense.
What You Get (and Don’t Get) from a Distributor
You get:
- A single, accountable contact
- Sourcing flexibility across multiple vendors
- Protection from having to manage factory relationships
You don’t get:
- Factory pricing
- Direct communication with the people running your order
- Full transparency on production status
- The ability to resolve issues without a middleman
At high volume, the things you don’t get start to matter more than the things you do.
The Direct Alternative
Working directly with a screen print manufacturer at 100,000+ units gives you:
- Factory pricing — the distributor margin is simply eliminated
- Direct communication — your specs go straight to the production team
- Single accountability — no blame-shifting between a distributor and a factory
- Consistent quality control — because there’s no communication gap
The tradeoff is that you now own the factory relationship. You’ll need to manage art submissions, approve proofs, and communicate production requirements. For buyers with a dedicated procurement or merchandising function, that’s a normal part of the job. For buyers used to handing everything off to a distributor, it’s a small adjustment with a large financial payoff.
The Bottom Line
Promotional product distributors mark up screen printing significantly — and that markup grows linearly with your order size. At 100,000 units or more, that number is large enough to justify evaluating a direct manufacturing relationship.
If you’re currently ordering at that volume through a promo company, the first step is simply getting a direct quote for comparison. The gap is usually eye-opening.
Merch Factory Direct is a US-based screen print and embroidery manufacturer serving buyers at 100,000+ units. For the full breakdown on going direct, see why wholesale buyers skip the promo distributor, or request a direct quote to see the difference.