Promotional product scams are everywhere. Here are a few simple steps on how to avoid the most common swindles!
sales scams in the promotional product industry
“I think of set up fees like I think of buying ink for office printers, it’s a scam!”
The most commonly used scam to dupe consumers is the use of set up fees.
Set up fees are a scam employed by distributors and suppliers alike in an effort to do a couple of things:
1) Increase the cost and the revenue. Revenue is so tight for many promotional swag suppliers these days that they will do anything to pad the costs.
“Set up fees can represent a hidden charge that amount to as much as 32% of a sales costs, beware!”
2) The use of set ups has come about as a way for swag merchants to try and fool the unsuspecting customer into thinking the actual price of the product is less than it is.
“If you think of set ups as an ADDED TAX on your sale you won’t be happy!”
3) The other issue we have with set ups is that they are totally unnecessary and generally are a cost to you that is NOT an actual cost to the supplier.
Normal distributors buy from suppliers. These suppliers either bring in decorated products direct from China or decorate domestically.
If they come from China, we know that China never charges set ups. They (Chinese factories) don’t culturally understand why anyone would charge an extra, it’s just not done.
So, as we do not pay these outlandish fees, why should we charge you?
Next, if a promo supplier decorates here in the States the idea of a set up is even more ridiculous. Ask yourself, what does a set up fee cover?
Labor? Does a decorator only pay their labor on each job (i.e. call someone in to print your job only)? No, these people are fully employed at the supplier and as such their labor is easily accounted for in the supplier’s overhead.
Materials? The cost of ink is almost nil.
“So in 2018 why would you still be paying set up fees?!”
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