Maximising Your Profits – Why Merchandising is So Important
There are a number of different revenue streams you as a Promoter should be looking at to make the most profit possible from an event. Ticket sales are often one of the most important streams, but merchandising products can be extremely lucrative when handled correctly – by having your logo or branding on different products, you not only increase your sales potential with customers, but you set yourself up for advertising and marketing before and after the event as well.
People quite often take photos and videos to share with others or to remind them of the event – it’s a way of preserving their memory. Offering your guests promotional products or merchandise to purchase increases your profits, and allows them to purchase a tangible reminder of their experience, or something that will increase their excitement and enthusiasm for the event.
Whether you’re looking to design and produce the merchandise in-house, or outsource it to others – it’s important that you have a budget for promotional items and a carefully thought out plan in place.
Not the Kitchen Sink – Decide Carefully What You’ll Offer
Before you start ordering goods to sell, you need to look at the specifics of your event and your guests. Whether you’re aiming at a specific demographic, or niche in the market – you need to do some basic research to discover who your audience are, and what actually appeals to them, before you look at the specifics of your event and balance it all out.
There are some items that will always be popular – such as t-shirts, but others go in and out of fashion. At one point, phone-straps were a popular accessory – but with the rise of smartphone usage (with nowhere on these devices for the strap to hand), they fell out of use.
It is important that you decide what goods will be created for your event, how many will be available, what product categories you will cover – and whether any or all of the goods will be event only exclusives.
You must carefully balance the need to make a profit with the spending habits of your customers. If your event is £50 a ticket, and you’re selling branded t-shirts for £35 – you’re likely to annoy your guests and come across as greedy; covering your costs and making a profit is important – but so too is keeping your guests happy and wanting to attend more and more of your future events.
When you do your research into your audience, it’s important to see not only what they are buying, but how much they are willing to spend. You need to make your merchandise attractive by being the types of items they’re interested in, and at prices that they can afford.
It Actually Becomes a Valuable Source of Free Advertising
Customers buying merchandise is great for immediately increasing your profits, but it also offers the opportunity for free advertising when their friends, family, and social network see your logo or branding being used or worn by that customer.
If you’re selling goods before the event, you can encourage more word of mouth user-generated content, as ticket buying guests purchase your merchandise and show it off to their social network and friends. This is also an opportunity for Influencer Marketing – if you get the right Influencer, who appeals and sways the opinion of your target audience, to wear or promote your merchandise – you can expect to see an increase in interest and sales.
Even after the event, if people see your logo and branding on Influencers or their friend’s pictures, videos and social content – they may then decide to see who you are and what you do, which brings more attention to your brand and any future events you might be holding.
Use Every Opportunity to Make an Awesome Impact
You can also encourage more advertising and word-of-mouth interaction by highlighting people using your brand. You might run a competition on your social media channels – ask people to share photos or videos of themselves wearing your branded merchandise, with a view to having a prize draw. By offering out a few small prizes, you can potentially make a lot more money – through direct sales of people wanting to be involved, and indirect sales from those who have been influenced by the competition.
Having a range of goods available on the night and before-hand gives you the opportunity to promote your brand and advertise your event, potentially increasing your profits as a result.
What Can We Do for you?
At Party Ace, we believe in fully supporting our Promoters, and will use our connections to help you make the most of your opportunities. Whether you’re looking to advertise your merchandise or want to be put in touch with talent who will provide signed goods – we are here to help you ace it.