Bridging the Gap

This article was featured in the April 2020 issue of PS Magainze.

For more than 15 years, The Ampersand Group has supported a network of more than 60 independent print distributors by providing back-office and e-commerce solutions, vendor databases and more. At the beginning of the year, the organization announced a new initiative: The Power of One Group, a buying group that allows members to search for and buy both print and promotional products online.

“The Power of One Group spurred from having the buying power on The Ampersand Group side,” says Todd Mellon, president and CEO of The Ampersand Group. “We thought it would be neat to incorporate our print buying power and promotional buying power with a buying group that offers office supplies — we could provide different special pricings through the whole gamut.”

Ampersand is known for its e-commerce technology, which its members can use to run their own businesses, as well as its administrative and fulfillment support. Mellon, a former distributor principal who started the organization in 2005, says The Power of One Group was the logical next step in the company’s growth based on member needs and industry trends.

The buying group is designed to bridge the gap between print, promotional and office products, which are typically sold separately. The Power of One Group provides one platform for members to browse for and purchase both print and promotional products.

“There are a handful of companies like us on the promotional side, but there’s nobody that bridges the gap between print and promotional materials,” Mellon says. “We’re marrying those together, which is a unique proposition.”

The model is intended to provide benefits for both members and vendors — distributors have access to more products and lower pricing through the combined buying group, while vendors have the opportunity to connect with customers through advertising and coupons. It gives both parties access that might not otherwise exist.

“I think people either know the print or promotional side of the business, but promotional people and buying groups know nothing about print,” Mellon says. “Because we own our own distributorship, we’re experts at both the print and promotional sides of business. Realistically, when you look at a buying group, I only know of people with groups on the promotional side, and a couple on the office products side — and then there’s us.”

Building Out a Diverse Database

It took about six months to formulate the software that powers the buying group, and vendors started receiving access to the system in January 2020. Mellon says the plan is to populate the vendor database before opening the portal up to prospective members this spring.

“The first day we made the announcement, we had 48 vendors sign up,” Mellon says. “The biggest challenge is to facilitate all of the vendors wanting to jump in at one time. We probably have 100 vendors coming into the portal right now, and in 45 days we’ll let at least another 100 into the system. That’s pretty amazing; it’s really gone over like wildfire. We’re offering vendors many different services, like extensive rate discounts built into the system.”

Mellon says that the software has been updated throughout the preliminary rollout to make the portal more robust for both vendors and distributors. Right now, vendors can build out detailed profiles that include their catalogs and pricing. They can also set up targeted coupons and marketing materials to foster new partnerships with members. The software includes tracking capabilities that alert the vendor which distributors have clicked on their coupons, allowing them to follow up in real time. This cultivates open communication and prompt customer service, benefiting both distributors and vendors.

“It’s a two-way marketing tool,” Mellon says. “Within the vendor searches, if someone is looking for a specific item, we have coupons that pop up that automatically spell out pricing for the members.”

More Members, More Power

As for the distributors The Ampersand Group has served for 15 years, they will be able to join The Power of One Group once the vendor database is established. Those 65 companies will automatically have access to the system, but Mellon says the buying group’s membership will also be developed independently of The Ampersand Group.

“Anyone in the print industry and promotional industry — and anyone who wants to sell those items — those are really our targets,” Mellon says. “After promoting The Power of One Group at the Advertising Specialty Institute and the Promotional Products Association International (PPAI) shows, we have a waiting list of people that want to join, which is exciting.”

The concept of The Power of One Group is not only exciting because it’s facilitating a new way to do business but because it’s educating primarily print distributors about promotional consultants and vice versa, Mellon says.

“What we’re finding is that a lot of promotional people don’t sell print, and print people don’t want to take on promotional materials,” Mellon says. “Joining The Power of One Group would be the natural progression toward selling both.”

As the industry continues to evolve, it’s more important than ever for distributors to diversify by offering new print and promotional products to their customers, Mellon says, but many distributors don’t know where to start.

“I think offering both print and promotional products is going to be an industry trend,” Mellon says. “Even when we had 200 people come to our booth at PPAI, half of them said they didn’t sell print, but they’d love to get into the game. With our search engine, members can look for specific products, and we’ll help them find the vendors that work best for their needs.”

By Lillian Chapa