But many distributors try to gouge manufacturers who make the products. And manufacturers look at those who sell their goods more as competitors than business partners, Silverstein said. That antagonistic relationship is exactly the reason Silverstein got into the promotional product business. He noticed the rift between distributors and suppliers, the fragmented way promotional companies gain market share, and saw an opportunity. The Natick company, located behind Sherwood Plaza, recently closed its third round of funding from private investors.
Distributors demand lower and lower prices from suppliers and demand faster turn-around times.
The suppliers feel taken advantage of. This climate gets in the way of growth, said Silverstein, a former corporate attorney who was introduced to the promotions industry by a friend who wanted him to help a particular company become a franchise. There is a different and better way to do this. The largest distributors in the business hold only 6 percent of the market share. Silverstein and his 20 employees think they can grab a larger percentage of the promotions business simply by treating suppliers better.