Here's a finding from the end-user study (228 promotional product buyers and decision-makers from mostly micro and small businesses) that looks simple on the surface — and turns out to be anything but.
| 26.3% cite price as their top factor when choosing a branded merchandise provider | 26.1% cite quality as their top factor — nearly identical |
When asked what matters most when choosing a branded merchandise provider, 26.3% of buyers cited price. 26.1% cited quality. Statistically, those numbers are almost identical.
For every buyer driven by price, there is one driven by quality. When members compete on price alone, they risk leaving that quality-driven half of the market behind — along with the revenue that comes with it.
The opportunity is in creating value: intentionally chosen, quality merchandise at the right price.
The 228 end-users (promotional product buyers and decision-makers from mostly micro and small businesses) surveyed across Australia and New Zealand represent a market characterised by modest, ad-hoc spending but with real and growing sophistication about what they expect. Here are the findings:
| 70.6% have no formal annual budget for promotional products | 51.3% spend less than $5,000 per year | 63% expect their spend to stay flat in the next 12 months | 31% expect their spend to increase |
The picture is of a price-sensitive market — but not a price-exclusive one. The 31% expecting to increase spend are actively looking for reasons to invest more. The question is whether providers are giving them those reasons.
When the 228 end-users surveyed were asked what factors matter most when selecting a branded merchandise provider, three rose to the top:
|
Price — 26.3% | |
|
Quality — 26.1% | |
|
Customer Service — 19.9% |
Speed came in at 12%, creativity at 8.4%, and sustainability at 5.3%.
The data tells a clear story: when end-users choose on price alone and receive items that underperform on quality and usefulness, those items don't build brand awareness — they undermine it.
Recall only happens when recipients actually use an item. Advocacy only happens when recipients are proud to be seen with it. Purchase intent only follows when the item creates a positive brand association.
The primary objectives behind branded merchandise purchases are illuminating:
| 29.7% Brand building / awareness — the clear #1 goal | 14.7% Customer loyalty / retention | 12.6% Create a way to stand out from competitors | 11.2% Employee recognition / incentives | 10.8% Build credibility / trust |
These are sophisticated marketing objectives. They're not being met by inexpensive, throwaway items. They're met by intentional choices that reflect the brand, serve a purpose, and create a lasting impression.
In a market where price and quality are weighted almost equally, the providers who win are those who can articulate the value of quality. Not just sell it — articulate it.
That means helping clients understand the connection between item quality and brand impact. It means showing them the research. It means positioning your expertise as the differentiator, not your price point.
The clients who see you as a creative partner — not just a product supplier — will spend more, stay longer, and give referrals.
Price and quality are weighted almost equally by end-users. In a market this close, the providers who win aren't those with the lowest price — they're those who can articulate why quality is worth it.
| Price and quality are weighted almost equally by end-users (26.3% vs 26.1%) — quality is not secondary |
| Customer service (19.9%) is the third-ranked factor — relationships matter enormously |
| Most end-users have modest, ad-hoc budgets — but 31% expect to increase spend |
| Primary objective is brand building (29.7%) — inexpensive, throw away items can't achieve this |
| Providers who lead with expertise and articulate value will outperform those who compete on price |
The full end-user research is available to APPA members in the research hub, alongside the shareable deck and member toolkit.
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