Stop Treating Your Branded Merch Like a Cash Grab

When a customer spends a significant amount on dinner and drinks, an additional $80 surcharge for a branded hoodie feels less like a souvenir and more like a penalty. While wholesale costs for custom apparel typically range from $5 to $15, many establishments inflate prices to levels that kill demand. Employees are often left unprepared to process these sales, suggesting that the items are rarely moving and that the pursuit of high margins is yielding little real-world return.

Instead of treating merchandise as a high-margin product, businesses should view it as a tool for engagement. If the goal is brand visibility, pricing items closer to cost—or even using them as rewards for frequent diners—turns a static inventory item into a marketing asset. Whether through charitable partnerships, social media incentives, or loyalty program perks, shifting the focus from profit to goodwill creates a lasting connection. When a customer wears your logo, they are providing free advertising; charging them a premium for the privilege is a missed opportunity to build genuine brand affinity.