5. Pricing
- higherlimits
- Little People
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5. Pricing
5. How does the price for merchandise get set? Is seems like t-shirts for example are waay waay more than a few years ago for a number of bands.
Prices are set according to the production costs, which are always more than you’d expect. There are a lot of things to consider when calculating the true cost of making something.
Prices are set according to the production costs, which are always more than you’d expect. There are a lot of things to consider when calculating the true cost of making something.
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- Pinball Wizard
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Re: 5. Pricing
There's also an aspect of pricing that comes into play that i think a lot of fans are in the dark about.
When you sell merchandise at a concert venue, nine times out of ten that venue takes a percentage of your sales. This practice is absurd on so many levels i don't know where to begin. Basically clubs are more often than not just trying to grab every last possible cent. Can you imagine if a band went to the club and said "we want a percentage of your alcohol sales tonight"? they'd get laughed out of the building! But for some reason, it's acceptable for the clubs to take a cut of the band's merch.
The reason i bring this up is because it is a major factor in deciding what price merch is sold for. Budgets are worked so that you know EXACTLY how much money the band is making on each item sold. That wouldn't be too difficult if the venues weren't all taking a cut and all taking a DIFFERENT cut. i can tell you for a fact that Radio City Music Hall takes 50% (!) of your merch sales. So if you sell your t-shirt for $10, you're only getting $5 out of that...which probably doesn't even cover production, shipping and any of the other different factors present in producing the item.
There's really only two ways to combat this accounting nightmare - 1) pass the cost on to the customer or 2) don't sell any merch at all. So i guess the question is, would you rather have the option to not buy merch if you think it's too expensive or no opportunity to buy merch at all?
(as a sidenote, most venues only take a percentage of "wearables" ie, t-shirts, jackets, etc and not the more esoteric items like Inchophones or Stylophones)
When you sell merchandise at a concert venue, nine times out of ten that venue takes a percentage of your sales. This practice is absurd on so many levels i don't know where to begin. Basically clubs are more often than not just trying to grab every last possible cent. Can you imagine if a band went to the club and said "we want a percentage of your alcohol sales tonight"? they'd get laughed out of the building! But for some reason, it's acceptable for the clubs to take a cut of the band's merch.
The reason i bring this up is because it is a major factor in deciding what price merch is sold for. Budgets are worked so that you know EXACTLY how much money the band is making on each item sold. That wouldn't be too difficult if the venues weren't all taking a cut and all taking a DIFFERENT cut. i can tell you for a fact that Radio City Music Hall takes 50% (!) of your merch sales. So if you sell your t-shirt for $10, you're only getting $5 out of that...which probably doesn't even cover production, shipping and any of the other different factors present in producing the item.
There's really only two ways to combat this accounting nightmare - 1) pass the cost on to the customer or 2) don't sell any merch at all. So i guess the question is, would you rather have the option to not buy merch if you think it's too expensive or no opportunity to buy merch at all?
(as a sidenote, most venues only take a percentage of "wearables" ie, t-shirts, jackets, etc and not the more esoteric items like Inchophones or Stylophones)
- stoutr
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Re: 5. Pricing
Yes! A Mystery Machine Van with merchants dressed up as Fred, Daphne, Velma and Norville.Kaber wrote:
Thanks for the info.
Maybe the band should start selling the stuff out of a van
I got that deep into variants once before with a collection, please shoot me if I go there again, it will drive you crazy I promise...
But nice stuff for sure.
Grim
But nice stuff for sure.
Grim
Re: 5. Pricing
Thanks for the info Ben. Just thought of a scenario to attack this problem. Announce on the vault a particular street near the venue, pull up with 2 - 3 trucks full of merch and cash grab the shit out of it, while screaming GO GO GO GO! and then peel away.
- anonymousbrunette
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Re: 5. Pricing
I LOVE it!!! Show your ticket - grab some merch.hawke000 wrote:Thanks for the info Ben. Just thought of a scenario to attack this problem. Announce on the vault a particular street near the venue, pull up with 2 - 3 trucks full of merch and cash grab the shit out of it, while screaming GO GO GO GO! and then peel away.
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- candycaneboy03
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Re: 5. Pricing
^^haha...i'm really up for that...pull up in the alley behind the venue...
That really blows...50%, my oh my, are they legally allowed to do that? i mean, they're getting a cut of the ticket sales already, and hell, if you are bringing them a packed house, that guarantees food and beverage sales. Is it really necessary for a venue to dip into the merch sales?...besides, couldnt you just tell them you sold a certain amount although you actually sold more? ...
well this has really opened my eyes about pricing merch. now if they could do something about having more knowledgeable merch people sometimes.
That really blows...50%, my oh my, are they legally allowed to do that? i mean, they're getting a cut of the ticket sales already, and hell, if you are bringing them a packed house, that guarantees food and beverage sales. Is it really necessary for a venue to dip into the merch sales?...besides, couldnt you just tell them you sold a certain amount although you actually sold more? ...
well this has really opened my eyes about pricing merch. now if they could do something about having more knowledgeable merch people sometimes.
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- kevron6
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Re: 5. Pricing
subpopfan1 wrote:There's also an aspect of pricing that comes into play that i think a lot of fans are in the dark about.
When you sell merchandise at a concert venue, nine times out of ten that venue takes a percentage of your sales. This practice is absurd on so many levels i don't know where to begin. Basically clubs are more often than not just trying to grab every last possible cent. Can you imagine if a band went to the club and said "we want a percentage of your alcohol sales tonight"? they'd get laughed out of the building! But for some reason, it's acceptable for the clubs to take a cut of the band's merch.
The reason i bring this up is because it is a major factor in deciding what price merch is sold for. Budgets are worked so that you know EXACTLY how much money the band is making on each item sold. That wouldn't be too difficult if the venues weren't all taking a cut and all taking a DIFFERENT cut. i can tell you for a fact that Radio City Music Hall takes 50% (!) of your merch sales. So if you sell your t-shirt for $10, you're only getting $5 out of that...which probably doesn't even cover production, shipping and any of the other different factors present in producing the item.
There's really only two ways to combat this accounting nightmare - 1) pass the cost on to the customer or 2) don't sell any merch at all. So i guess the question is, would you rather have the option to not buy merch if you think it's too expensive or no opportunity to buy merch at all?
(as a sidenote, most venues only take a percentage of "wearables" ie, t-shirts, jackets, etc and not the more esoteric items like Inchophones or Stylophones)
This is the most interesting fact I have read in a long time. Thanks for the insight Ben, makes sense why t-shirts are so damn high now.
I always said, if I had to fuck a guy... I mean had to, if my life depended on it... I'd fuck Elvis.
- Grimtale
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Re: 5. Pricing
I wonder when this crazy practice started of the venue taking so much of the band's money? I've been a concert junkie since the middle 70's and I remember when a T-shirt was $5.00 at the shows but then again entry fee was about the same price. I guess many moons later the price of a shirt and the price of admission have increased about proportionally.kevron6 wrote:This is the most interesting fact I have read in a long time. Thanks for the insight Ben, makes sense why t-shirts are so damn high now.
My 15 year old daughter and I see about a concert a month. She's into the alternative scene. I know every time she says dad, can we go see "whatever band", there goes about $150-200... Usually $20-30 for each of us to get in, $50 for merch for her, gas and food for her and a friend or two.
Ah well, I'd rather spend my money there than on a lot of other things and you can't take it with you....
-Grimtale
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Re: 5. Pricing
i just bought BB tix @ $15 a pop, + if the venue takes a % man, will he make anything?
i'd pay way more to see BB solo, was floored @ $15.
i'd pay way more to see BB solo, was floored @ $15.
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- kevron6
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Re: 5. Pricing
I did get a $5.00 t-shirt at the opening show for the Icky Thump tour. I guess the Cannery received $2.50 per shirt?Grimtale wrote:I wonder when this crazy practice started of the venue taking so much of the band's money? I've been a concert junkie since the middle 70's and I remember when a T-shirt was $5.00 at the shows but then again entry fee was about the same price. I guess many moons later the price of a shirt and the price of admission have increased about proportionally.kevron6 wrote:This is the most interesting fact I have read in a long time. Thanks for the insight Ben, makes sense why t-shirts are so damn high now.
My 15 year old daughter and I see about a concert a month. She's into the alternative scene. I know every time she says dad, can we go see "whatever band", there goes about $150-200... Usually $20-30 for each of us to get in, $50 for merch for her, gas and food for her and a friend or two.
Ah well, I'd rather spend my money there than on a lot of other things and you can't take it with you....
-Grimtale
I always said, if I had to fuck a guy... I mean had to, if my life depended on it... I'd fuck Elvis.