By Mitch Rice
Streaming and music gigs don’t have to be the only sources to make some money while an artist or a band grows. The sheer scope of profiting from merchandise is overlooked, with streaming being relied on as a primary source of revenue.
Did you know that The Grateful Dead rakes in around $70 million every year from selling their merchandise? You can still see people wearing these merch in California. True fans!
It’s safe to assume that a good 30-40% of the revenue of top-performing bands come from their merchandise alone.
The Silent Revenue Maker
While the music entertains fans at a show, the merch offers them keepsakes to revisit the memories over and over. Besides, a fan wearing a band’s t-shirt also conveys the message that these merch are hot pieces to other fans who haven’t yet got one. The band or the music event gets both money and some advertisement in the process. It’s the item that silently speaks, encouraging more people to jump on the bandwagon, pun intended.
However, most bands and artists don’t think beyond t-shirts when it comes to merchandise. To maximize the revenue, the merchandise should be diversified. Tees alone won’t cut it. They can spice things up while also considering the season and climate. Winter tours? Invest in wholesale beanie hats and sweatshirts in addition to tees. Concerts for charity? Tees, mugs, and hats can work. It’s important to identify promo items and merchandise that may not work, like custom phone cases or water bottles.
Trends Worth Noting
A trend now worth noting is the shift to sustainable merchandise. There is also a recent trend regarding pricing. Apparently, many surveys found that modern fans actually prefer clean, rounded numbers. For example, a custom tee priced at $19.99 doesn’t have the psychological impact such a price tag used to have on people. People started preferring rounded numbers now. This straightforwardness is attributed to confidence and quality now.
Then there is the “Small Batch = Big Demand” perception. Fans still see limited-edition merch as must-have collectibles they are willing to pay more for. A 100-pieces only limited drop with unique and exclusive designs can have fans scrambling to buy them. Added benefits include:
- Wider social media buzz
- FOMO kicks in hard
- Even more anticipation for the next drop
Standing Out With Your Merch
Unique Designs: Random designs or band logos on the items are now considered amateurish, as people consume more unique content than ever on their phones. Each piece should carry meaning:
- Tour/event dates hidden in artwork
- Rare pics of artists
- Local references for each city
- Lyrics worked into designs
- Reimagined album arts
Ambient Merch Showcase: To stand out, the merch table setup matters a lot too. There are a few things you can do here to maximize sales.
- Keep bestsellers at eye level
- Accept various payment methods
- Work on the ambience of the area
- Stock multiple sizes
- Showcase freebies on specific bundles
Pricing: The numbers should be impressive.
For example, if you are a local band preparing for an event.
Production cost of a tee (sourced wholesale): $8-12
Your selling price: $25-30
Profit per shirt: $17-25
Sell 100 shirts in the event for a quick two grand. Custom wholesale hats and custom mugs wholesale have even lower production costs at around the same profit margins.
Quality: One bad quality item can undo months of good work. That’s a reality. To ensure quality,
- Test wash every shirt design
- Check every seam
- Sample every product personally
- Partner with reliable suppliers
- Keep extras for replacements
Start small but think big. You don’t need to order 10,000 pieces to start. If you expect at least a thousand people to appear for the event, you can begin with:
- 50 tees in core sizes
- 100 customized hats
- 100 customized mugs
- 200 stickers
- 100 premium hoodies
Only you can be certain of the numbers you’ll need.
That’s the gist of it. Just don’t see the merch lineup as a cash register. Fans are taking a piece of the band home with each item. So give them something worth showing off, and they’ll market your music every time they wear it. This is one way to turn casual fans into die-hard supporters. Go ahead and set up the merch, and let the good music carry you forward.
Data and information are provided for informational purposes only, and are not intended for investment or other purposes.
