What’s in a price? –well, a lot more than you might think. In the academic sense, price dictates how you are perceived by your audience. When it comes down to the nuts and bolts of everyday merchandise sales, what does that mean for you?

—Before I get started, I would like to mention that pricing strategy is your decision. Whether you want to make money off your merchandise or use it simply as a promotional tool, it’s your call.–

There are a lot of music organizations that do not have a real “pricing strategy” when it comes to selling their music and merchandise. It either involves doubling the cost or arbitrarily arriving at the industry standard pricing of $10-15/shirt and $10 per CD –which makes no sense at all. People who do this are engaging in what is called “commoditization” of their product. Don’t do this to your music or your group!

Sugar is a commodity. It doesn’t really matter where it comes from, how talented the farmer was, whether the farmer was in it for the love of the sugar versus the love of money, or what equipment with which it was harvested.  It’s wide availability and relative similarity causes it to be purchased based on price, not quality or brand. Same goes for your music and merchandise.

Pricing yourself identically to other group while having the same basic black Anvil, Hanes, or Gildan shirt with white ink  says that you are no different than any other group.

Let people know how unique you are by INTENTIONALLY pricing your merch appropriately. Here are some things to consider:

1. Strategy: What is the point of selling your merch? Are you trying to build a name, are you drawing revenue (make lots of money), or some mix of both?
2. Perceived Value: What does your customer/fan think your product is worth and why? Black shirt with white logo might mean that you have to price it at $10, where as adding some unique design elements, choosing an unusual color/texture/product, or having some interesting CD packaging along with your offerings might be worth more to a fan –because it’s original. Doubly so if you do designs in limited runs and never do the same design twice. Think collectible. Did you record the CD in the basement of you mom’s house, or did you go to a studio, get it professionally mixed down/mastered, and have professionally done album art? People will buy it if they see value in it. Price alone is not the only factor (unless you are a commodity). This is why you probably don’t buy all your clothes at Wal-Mart (because price doesn’t matter if there is perceived value).
3. Competition: Who is your competition and what do they sell and charge? How is yours better or worse? Competition can be other bands, other clothing or music stores and websites, or sometimes the venue that you are playing.
4. Active Vs. Passive Selling: This is basically what it sounds like. Do you just put up a merch table at shows,  do you also have something on your website (if you don’t have one, get one. Midphase offers the best, most music-friendly options and it’s what we use. We do web design too, email us if you need help), do you send out email newsletters or bulletins on social networking sites reminding people of CD releases and new merch for sale, and do you actively go up to people at shows to ask them to support your band. Talking to people is a great way to gauge their reactions to your prices and offerings.
5. Does FREE Sound Like the Best Option?: Depending on your strategy and the product, maybe giving stuff away is the best option. It’s ALWAYS fun to get free stuff at shows; and while you probably won’t buy a run of American Apparel shirts with 6 colors on the front and back to give away, 1-inch buttons, custom bumper stickers/decals and “punk patches” are very cheap to order and make really good give-aways.

The best thing to do when you’re pricing yourself is to consider your intent behind each product. Until you reach popularity on a national level, it’s probably best to have a mix of merch at various price levels –and maybe even some give-aways. If you worked hard on your CD and/or have well-designed merchandise, charge accurately. People will pay if they see the value it in.

Now go forth and profit!