Photo Credit: Merch Cat
Live shows are where some of the greatest opportunities lie to capitalize on the artist/fan connection and drive home merch sales.
The following was created in partnership with Merch Cat.
Most of us inherently know that in today’s music landscape, artist merch is an important revenue stream, a great way to market and promote an artist’s brand, and a way to unite and engage fans. But something that no one seems to talk much about is merch strategy.
We hear a lot of talk about music release strategy, booking strategy, tour planning, marketing strategy, rights protection and overall strategy for an artist, but what about merch strategy as a matter of course? As in approaching merch in an intentional way, with the goal of maximizing artist merch income and return on investment while taking a holistic approach and factoring in all of the pieces that go into the whole – i.e. building an actionable plan and then executing it, measuring results, and making go forward adjustments where needed.
It may sound rudimentary, and I’m sure it gets discussed in some artist camps behind the scenes, but doesn’t this very fundamental and potentially very lucrative revenue stream deserve the attention to strategy that the other streams get? After all, it is probably the lowest hanging fruit of revenue streams as far as getting real time cash in hand, especially for touring artists. Live shows are where some of the greatest opportunities lie to capitalize on the artist/fan connection and drive home merch sales.
Artist merch strategy is needed because not strategizing results in lost revenue, lost data for future revenue generation, lost inventory control and lost opportunities.
As fundamental a revenue stream as merch is, there often seems to be an undertone of afterthought or notion that it will somehow get done. And it may very well get done, but likely not with the optimal outcome. In fact, it’s probably not an overstatement to say merch is all over the place and super fragmented.
From the way merch is sourced to the way it is sold, everyone has a different process. And a lot of merch out there lately seems like it’s a check the box item, and feels either disconnected from the artist’s brand or out of touch with what fans might actually want. Strategizing can help. Like other facets of an artist’s business, an overall merch strategy is necessary to provide an outline or game plan of how the desired objectives, namely profitability and marketing, can be achieved given all of the factors that go into it.
Speaking of factors, it’s not surprising that merch can be somewhat daunting. Merch can be super complex because there are multiple disciplines at play and not everyone is an expert at each one. Merch is a combination of:
1) Branding/Logo/Design
2) Physical Merch Purchasing (product selection, costs & shipping considerations)
3) Product Decoration (printing/embroidery/imprinting)
4) Touring & Logistics (if for live shows)
5) E-Commerce (for online)
6) Shipping to fans, venues, etc.
7) Marketing; and
8) Financial Planning/Budgeting.
Sure, some of these factors might be out of our control, but rather than viewing them as stand-alone components aka “it’s not our focus”, “we don’t have time for that” or “the merch company is handling it”, we’d be better positioned if we took control by investing a little time into considering all of the pieces that go into the big merch puzzle, and how they work together as part of the whole picture.
When we do that, things can become a little more cohesive. When things are cohesive, they are measurable. When they are measurable, they are able to be analyzed and improved.
A merch strategy should consider the above factors and answer “What products and designs do we want to offer? Are they on brand? Are they items fans will want? How/where are we going to obtain them? What are we willing to pay for them and what prices can we sell them at to achieve targeted revenue? What is our target revenue and profit? Where will we sell these items? How will we use the merch to fuel relationships with fans? What platform/tools will we use to sell the merch and retain the data and information related to fans and sales? How will we use this data going forward?
By laying out a merch strategy this way, a few things will happen – 1) You will be able to determine if the merch you are planning to make is feasible. 2)You will be able to be thoughtful about products 3) You will be able to take time to consider whether or not fans are being served 4) There will be structure, organization, and a blueprint to follow which will remove some of the pain points involved in the merch process 5) There will be an accountability factor where you can and should check in and see what is working and what is not, re-evaluate and adjust accordingly.
Merch is a journey not a destination, and needs to be evaluated in an ongoing manner to ensure the proper exploitation of this revenue stream.
There may not be a one size fits all answer to the many challenges of merch, but putting strategy at the forefront can certainly help us get closer to clarity, organization, a game plan to follow, accountability, transparency, data insights, and ultimately increased revenue.
Merch is a fan connector and touches every part of an artist’s business either directly or indirectly. A merch strategy should be considered along with the other components of an artist’s business to create synergy so that all facets are working together to maximize the outcomes. Strategizing will help ensure that the main objectives of merch – revenue, marketing and fan engagement – don’t get buried in the process shuffle leading to lost time, money, and opportunity.
Vanessa Ferrer is the founder of Merch Cat, a company that provides a user friendly live show merch management platform for artists and their teams, with a connected direct to fan app that enables fans to pick merch up at the show or ship to home. Merch Cat also provides merch strategy and sourcing services to help artists maximize the merch revenue stream.
