Pricing Merchandise Items
3 min read
Merchandise & InventoryLast updated: January 10, 2025Calculate Your Costs
Before setting prices, know your total costs:
Cost Components
| Cost Type | Example |
|---|---|
| Blank Item | R35-R80 per shirt |
| Printing/Branding | R15-R40 per item |
| Setup Fees | R500-R2000 (one-time) |
| Shipping/Delivery | R200-R1000 |
Calculate Cost Per Item
Example: 100 T-Shirts
Blank shirts: 100 × R50 = R5,000
Printing: 100 × R25 = R2,500
Setup fee: R1,000
Shipping: R500
Total: R9,000
Cost per shirt: R90
Pricing Strategy
Markup Formula
Standard approach:
Sale Price = Cost × (1 + Markup %)
Example: R90 cost × 1.40 (40% markup) = R126
Round to R130 for clean pricing
Typical Markups
- 30-40%: Standard for event merchandise
- 50-60%: Premium/exclusive items
- 20-25%: High-volume items
Competitive Pricing
Research similar events:
- What do comparable events charge?
- What's the perceived value?
- Is your merchandise higher quality?
- Are you offering something unique?
Psychological Pricing
- R99 feels cheaper than R100
- R150 is cleaner than R146
- Bundle discounts increase sales
- Premium pricing signals quality
Platform Fees
Commission on Merchandise
Starting Line commission applies to merchandise sales:
- Same rates as entry fees (2.5%-4% based on tier)
- Plus processing fee (2.65%-2.85%)
- Total: 5.15%-6.85% depending on your tier
Factor Fees Into Pricing
Example (Tier 1 - 6.85% total fees):
Cost per item: R90
Desired profit: R40
Subtotal: R130
Fees (6.85%): R8.90
Sale Price: R140
Your net after fees: R131.10 - R90 cost = R41.10 profit ✓
Volume Benefits
As you grow:
- Platform fees decrease (tier progression)
- Bulk ordering reduces supplier costs
- Setup fees amortized over more items
- Better profit margins at scale
✅ Pro Tip: Test different price points. Higher prices with strong branding often outsell cheaper alternatives!
Bundling Strategy
Increase average order value:
- "Entry + T-shirt" bundle (save R20)
- "Cap + shirt combo" discounts
- Free item with premium entries
- Early bird special includes merchandise