Outside of registration fees, there are only so many levers an event director can pull to increase the revenue they generate from a specific race or event. We have some new functionality in the works around this question, but in the meantime we wanted to provide an answer to another question we get a lot: how much additional revenue are races generating from merchandise?
For those already selling merchandise, you may be looking for a benchmark to compare side-by-side with your current strategy and performance. If you haven’t yet jumped into the merchandise game, you may be curious about the potential if you were to take on that extra work.
Whichever camp you’re in, let’s dig into data from the 4,000+ events on athleteReg and see what we find.
1. Percentage of Events Selling Merch
We’ll start by zooming out and looking at how many events are selling merch in the first place.
Ski races are a bit of an outlier here with the season and type of participant likely making merch a little less aligned than other sports. Even still, 15% are finding ways to generate revenue from this channel.
Looking at the rest of the group, 31% of running events, 38% of bike events, and 47% of triathlons are offering some sort of gear, apparel, or other swag to their participants. Not a majority, but not far away.
2. Percentage of Income from Merch
Selling some types of merchandise can be a lighter lift than it once was, but premium and sport-specific products still require a certain level of planning, management, and coordination. So, how much of an event’s total revenue does that effort account contribute?
In this case, we see a similar cluster between bike, run, and tri (around 10-15%), but it’s ski that comes out on top with 22% of their total revenue coming from merch sales.
3. How Much are Events Charging for Merch
Your instincts might already be doing these calculations, so let’s round this out with a look at the average cost of merch items for participants.
This may be somewhat expected based on that last chart, but ski comes out on top with the highest cost per item. On the bike, run, and tri side, average prices below $20-$30 suggest events are offering a broader selection than just a big, high-end item..
Four Key Lessons
As you consider the feasibility of selling merchandise, there are three things this data suggests should be kept in mind.
First, have realistic expectations. Yes, on average, events are seeing notable revenue from merchandise sales, and some events have been able to multiply that by 2-3x. That being said, be realistic if you are introducing merchandise options to your participant base.
Second, there are a lot of events leaving money on the table. Events with merch sales may not be the majority, but the fact that so many are already benefitting suggests there are likely many more events that could be taking advantage. It also means there are many event directors who have already gone down this road that you can learn from.
Third, it doesn’t have to be complex. Some races have a full store with dozens of options while others keep it simple with a branded kit or t-shirt. If you’re overwhelmed with the idea of merch, it’s okay to start simple with even a single item. If that test works, you can always expand.
Fourth, good merch is better. Don’t be afraid to spend a little more to ensure quality, memorable merch. As an example, there is an event close to my home that sells out of their T-Shirts every year because they pay a graphic designer to create one-of-a-kind designs for their event. Consumers are more willing to buy something if it looks and feels better.
Merchandise sales are something we work hard to simplify through the athleteReg platform so it’s extremely easy to get started. If you want to go deeper on strategy before you dive in, check out Generate Additional Revenue With Strategic Event Merchandise and the Webinar Recap: Boost Your Bottom Line with Event Merchandise That Sells for a fuller picture of what’s working for events like yours.
Set realistic expectations, keep it simple, and there’s a good chance merch sales will make your next event more profitable than the last.
Ready to add merchandise to your event? Log into your event director dashboard to add merch to your registration page. New to athleteReg? Request more information about setting up your event registration page.
