Birmingham, United Kingdom (PressExposure) April 19, 2008 -- Diversifying itself from its primary role as an OEM manufacturer for some of Europe's largest promotional products suppliers and 2 of the top European and North American electronics retailers. USB Source now aims their business model directly at the over 20,000 European promotional products distributors and nearly 100,000 North American distributors.
"For a long time now our manufacturing and business model has been to act as an OEM manufacturer to several major European and North American promotional products suppliers and 2 major European electronic retail chains" Peter Thomas, of USB Source explains. " Over the past 6 years we have seen our promotional products OEM division grow exponentially with our premium flash drives, digital picture frames, mp3's and mp4's. However our profit margins have eroded over the same period of time. We felt that the best way for us to continue to grow profitably was to open our own supplier branch to directly service the European and North American promotional products distributors and their markets."
Currently the OEM division of USB Source faces an extra level of cost by selling their flash drives and other USB devices through major promotional products suppliers who then in turn sell to distributors whereupon the distributor sells to the eventual end-user. By being their own supplier USB Source eliminates a whole level of sales intermediation, one which has traditionally added 30% to the wholesale price before selling to the distributor.
"I cannot say that our current promotional products customers (North American and European ad specialty suppliers) are happy with this move as we are now not only their supplier but in fact their competition. We may lose some of our supplier business but we feel we will more than make up for it as we become the supplier as well as the manufacturer. Our advantage will be to offer the same great product but with far more competitive pricing" states Peter Thomas.
USB Source and its manufacturing division Guangdong USB has long been a manufacturer of OEM flash drives, digital picture frames, MP3's and MP4's to some of the best know brand names in the industry. It holds strategic alliances with component suppliers Samsung, Panasonic, Hynix, Intel and others. Their web site USB Source currently explains their corporate vision and supplies much needed product knowledge and industry information. Their product catalog and sales channel opens North American operations May 1st 2008 with European operation to follow in July 2008.