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\n\t\tOpinions expressed by Entrepreneur contributors are their own.\t<\/p>\n
I love merch<\/a>.<\/p>\n A T-shirt from a cool bar in Key West. A hoodie from that hilarious restaurant in Austin. A baseball cap from that music venue in New York. I\u2019ve been to all of those places. They sold all of those things. I loved the food, loved the experience, had a great time \u2014 and didn\u2019t buy a single piece of merch. That\u2019s right. I didn\u2019t buy. It\u2019s not that I didn\u2019t want the shirt or hoodie or cap. I did. It\u2019s that, after spending $100 on dinner or drinks, I really didn\u2019t want to fork over another $80 for a hoodie.<\/p>\n Why do businesses<\/a> do this? Why do they charge so much for their merch?<\/p>\n Of course there\u2019s a cost. But it\u2019s really not that much. I looked it up. You can too. There are plenty of companies online that sell corporate merchandise<\/a> you can customize with your logo. And when you investigate, you\u2019ll find that things like caps, hats, hoodies, glasses, mugs, golf shirts and T-shirts can cost anywhere from $5 to $15 per item. Yes, there are minimum orders. Yes, nicer materials and more elaborate designs cost more. But the basic merchandise<\/a> itself isn\u2019t particularly expensive. And yet the restaurant or bar selling these items with its logo will often charge you $25, $50, $60 \u2014 or even $80. Yes, that hilarious restaurant wanted $80 for a hoodie with its logo on it. <\/p>\n Is this really such a big profit generator<\/a>? How many pieces of merchandise does a typical restaurant sell in a week? There never seems to be a huge demand. In fact, whenever I\u2019ve finally broken down and bought something, the person behind the counter freezes like a deer in the headlights. \u201cYou want\u2026what?\u201d Or, \u201cHold on. Let me get the manager.\u201d Or, \u201cUh\u2026I think we may still have one or two in the back.\u201d I don\u2019t see a line of people waiting to buy this stuff. Are the profits<\/a> really worth it?<\/p>\n And here\u2019s the bigger problem: today\u2019s customers are already feeling nickele- and-dimed when they eat out. They get penalized for using a credit card. They get turned away unless they meet a minimum purchase. They\u2019re told to \u201cwait until their full party arrives.\u201d They get hit with forced gratuities, \u201chealth and wellness\u201d charges, \u201csharing\u201d charges, processing fees, delivery fees, cancellation fees and cake-cutting fees. And now you\u2019re going to charge me $80 for a hoodie with your logo on it? To advertise your restaurant? C\u2019mon.<\/p>\n A good restaurant or bar should make money from its food and drinks \u2014 not a T-shirt. And yet, people really do love good merch. It reminds them of happy times and places. It makes me smile when I stumble across that baseball cap I bought at a fun dive bar in Key West. I still get a little nostalgic whenever I use that coffee cup from that diner in Vegas. I get it. Merch is a fun souvenir.<\/p>\n I don\u2019t want to discourage the practice. If you own a restaurant, bar or frankly any business with a following, you should absolutely have merch. But instead of overcharging customers<\/a> for it\u2014and potentially spoiling the good vibes they felt about your business \u2014 think about using merch differently.<\/p>\n For example, instead of putting all the profits in your pocket, how about sharing them with a charity? That customer who is grumbling about paying $80 for a hoodie might feel a little differently if they know their purchase is helping a good cause. They get a cool hoodie. They\u2019re supporting a charity. And, in your own little way, so are you. And don\u2019t be shy about promoting it. Accumulate the profits and present a giant check to the charity with a local photographer there. Turn the merch into a feel-good story. You don\u2019t even have to lose money. Just share the profits.<\/p>\n Not so charitable? Fine. Use your merch as giveaways. Hold bingo nights. Quizzo nights. Foosball tournaments. Online contests. Give away a T-shirt or hat as a prize. Suddenly, that piece of merchandise isn\u2019t just something sitting on a shelf. It\u2019s part of the experience.<\/p>\n And speaking of online, use it for social media. How about a free drink for the person who posts a picture of themselves wearing your shirt? Or a free entr\u00e9e for the person who posts a picture of themselves wearing your shirt from the farthest location possible? An extra side of fries for anything overseas.<\/p>\n You have recurring customers. Maybe you think, \u201cWhy give them anything extra? They\u2019re already coming back.\u201d Okay. How about a thank-you? A simple \u201cWe appreciate you.\u201d You\u2019ve got loyalty programs. You\u2019re tracking your biggest and most frequent customers \u2014 and if you\u2019re not, that\u2019s another conversation. So reward them. Same goes for big checks. Party of five? $300 spend? $500? Throw in a piece of merch as a thank-you.<\/p>\n Or maybe, just maybe, sell it for a buck or two above cost. A T-shirt with a cool logo from the bar where you had a fantastic night, for $15? Sign me up. And I bet you\u2019ll sell a lot more of them than you would at $50 or $80. People walk away thinking they got a deal. They did. And now they\u2019re walking around town wearing your logo.<\/p>\n That\u2019s the real value of merch.<\/p>\n Merch can be great for your business. But don\u2019t abuse it. If you do it right, merch can help you make money, reward your customers, generate goodwill, create social content and spread your brand. But don\u2019t do it off the backs of your customers. Use it to reward them. Use it to make them smile. Use it to grow your business.<\/p>\n<\/p><\/div>\n I love merch<\/a>.<\/p>\n A T-shirt from a cool bar in Key West. A hoodie from that hilarious restaurant in Austin. A baseball cap from that music venue in New York. I\u2019ve been to all of those places. They sold all of those things. I loved the food, loved the experience, had a great time \u2014 and didn\u2019t buy a single piece of merch. That\u2019s right. I didn\u2019t buy. It\u2019s not that I didn\u2019t want the shirt or hoodie or cap. I did. It\u2019s that, after spending $100 on dinner or drinks, I really didn\u2019t want to fork over another $80 for a hoodie.<\/p>\n Why do businesses<\/a> do this? Why do they charge so much for their merch?<\/p>\n<\/p><\/div>\nKey Takeaways<\/h2>\n
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