Make money merchandising

What is merchandising? Merchandising refers to the process of selling merchandise-T-shirts, hats, stickers, programmes, posters, and other goods that bear an artist’s name and often his or her likeness. When these products are sold (particularly in conjunction with a concert tour or gig), they can generate substantial sums of money. 

Merchandising monies are especially useful in helping artists subsidise touring costs when the money they’re earning for a live performance may be minimal. Merchandising is also helpful to artists when their record companies fail to provide adequate tour support funds. In any case, it’s important to have a basic knowledge of how merchandising works, and to have a broad understanding of everything from your merchandising rights, to making merchandising deals, to handling your own merchandising independently. 

Plain white T’s – What, why, how?

So merchandising can be very lucrative, in fact it is fast becoming a major revenue stream for bands and artists in the wake of declining physical music sales. 

However, you will need to invest money into raw materials and stock to get things up and running, blank t-shirts and badges don’t grow on trees. It is important to do some research into manufacturers for your chosen products. Clothing, pens, posters, and mugs will vary in price, buying in bulk will bring the cost per unit down, but will cost you more initially. 

Perhaps the most important thing to remember is does the product you’re selling actually fit the target audience? If your core audience demographic is largely twenty something men, you will need to stock more men’s sized products than women. Simple. Know your audience and what they would actually spend money on. Bryan G founder of seminal Drum and Bass record label, V Recordings says “merchandising is very important. It is your Identity”, so make sure it sells. 

Merchandising can be an expensive game, so here are some key tips on how to make the most of your ideas and money and sell, sell, sell.

1. Start small and grow Start small, print some t-shirts or some posters and see how they sell at gigs. If the demand is strong you know you can start investing in larger quantities.
2. Get noticed Advertise your product on the band’s MySpace, and set up a Paypal function so that you can sell it. Purchase some mailers, bubble wrap and parcel tape so that you can post product to your customers.
3. Find your market Attend all gigs and create good point of sale advertising in order to attract customers at gigs – remember fans hyped up after a gig are more willing to splash the cash.
4. Does it all add up? Keep detailed accounts of how much stock you have sold and how much you have left. If you run out before a big gig you’ve lost out on potential sales that could ruin your cash flow.
5. Brand reinforcement Make sure the band wears the gear on stage, TV and in any promotional shoots and promotes it to their audience at gigs.
6. Speculate to accumulate Give a few away. Getting the attractive girl in the front row to wear your merchandise is a great, but slightly shameless way of promoting the brand. Get photos and put them up online.

Do and Don’ts courtesy of Pat Hinds @ Inspirational ideas

Do’s

• Try and find shops that will take your product.
• Try and sell it to them and if possible avoid Sale or Return (SOR) deals.
• Offer package deals when selling your music at gigs.
• Collect names for a database so you can sell your fans more merchandise and also keep them up to speed of what you are doing.
• Make sure you keep an eye on your best sellers.
• Plan your campaign make sure you keep an eye on product.
• Plug into website shops that sell your music.

Don’ts

• Do not over stock. It’s better to run out of product than to have stock in your bedroom.