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Key Takeaways Keep merch affordable and use it to reward customers, build goodwill and strengthen loyalty.
The real value of merch is turning happy customers into walking advertisements for your business.
I love merch.
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’ve been to all of those places. They sold all of those things. I loved the food, loved the experience, had a great time — and didn’t buy a single piece of merch. That’s right. I didn’t buy. It’s not that I didn’t want the shirt or hoodie or cap. I did. It’s that, after spending $100 on dinner or drinks, I really didn’t want to fork over another $80 for a hoodie.
Why do businesses do this? Why do they charge so much for their merch?
Of course there’s a cost. But it’s really not that much. I looked it up. You can too. There are plenty of companies online that sell corporate merchandise you can customize with your logo. And when you investigate, you’ll 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 itself isn’t particularly expensive. And yet the restaurant or bar selling these items with its logo will often charge you $25, $50, $60 — or even $80. Yes, that hilarious restaurant wanted $80 for a hoodie with its logo on it.
Is this really such a big profit generator? 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’ve finally broken down and bought something, the person behind the counter freezes like a deer in the headlights. “You want…what?” Or, “Hold on. Let me get the manager.” Or, “Uh…I think we may still have one or two in the back.” I don’t see a line of people waiting to buy this stuff. Are the profits really worth it?
And here’s the bigger problem: today’s 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’re told to “wait until their full party arrives.” They get hit with forced gratuities, “health and wellness” charges, “sharing” charges, processing fees, delivery fees, cancellation fees and cake-cutting fees. And now you’re going to charge me $80 for a hoodie with your logo on it? To advertise your restaurant? C’mon.
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