The ROI (Return on Investment) of Good (GREAT) Merch.

TL;DR: Stop thinking of good merch as an expense, and start thinking of it as an investment. Whether you’re selling it or giving it away, better merch is better and leads to better results. A few extra bucks per item can boost profits, improve customer retention, and keep a brand top of mind for years. Plus, retaining customers is way cheaper than acquiring new ones.

Merch Is an Investment, Not an Expense

Too many people look at merch as just another line item in the marketing budget—something they have to spend money on. But when you do it right, merch isn’t a cost. It’s an investment.

  • If you’re selling merch, a small quality upgrade can massively increase your profit per item.

  • If you’re giving it away, think of it as a tool for customer retention—one of the most cost-effective ways to grow your business.

They say that it costs 5-7 times more to acquire a new customer than to keep an existing one. That means keeping your current customers happy is one of the smartest moves you can make. If a $20 hoodie helps retain a loyal customer who spends hundreds (or thousands) with you over time, that’s a fantastic return on investment.

Selling Merch? Spend a Few Extra Bucks & Increase Your Profit

If you’re selling merch, don’t compete on price—compete on quality. People are willing to pay a premium for well-made, well-designed products, and the numbers back it up:

  • People are (something like) 140% more likely to buy if the merch feels premium.

  • Upgrading from a $10 tee to a $15 premium tee can mean charging $35 instead of $25—which increases profit per item. Do the math.

  • I also read that “Businesses who focus on better-quality merch see **30-50% more sales.** I dunno if that’s true but it feels true.

You don’t have to reinvent the wheel. Just make stuff people actually want—soft hoodies, stylish hats, insulated bottles—and price accordingly. The extra cost is minimal, but the perceived value (and your profit margins) go up.

Giving Merch Away? Make It Work for You

Think of your merch like a long-lasting business card—but one that people actually want to use. A high-quality piece of merch sticks around for months (or even years), keeping your brand top of mind.

If you’re already spending money on giveaways, bumping up the quality can completely change how people perceive your business. And because customer retention is way cheaper than customer acquisition, the investment pays off over time.

Example: A cheap plastic pen might cost $1 and get lost in a week. A branded tumbler or hoodie might cost $15-20, but it sticks around for years. Which one has the better ROI? Not a trick question.

Merch That Labors and Pounds the Pavement for Your Brand

When you stop thinking of merch as an expense and start thinking of it as an investment, everything shifts:

  • Higher-quality merch = higher customer retention (saves you money).

  • Better merch = more profit per sale (and if you’re not selling it… should you be?)

  • More use = more impressions = more free advertising (when people wear or use your merch).

If your giveaways are ending up in the trash, or your merch sales aren’t moving, rethink your approach. Spend a little more, get a lot more back. That’s how merch should work. And that’s how it will work. Period.