What kind of merch can we make on demand, is there a list?
- Yes, virtually everything: https://artists.rexiusrecords.com/merch-the-list/
- …in a variety of colors, qualities, and models.
- If you’re looking for something special, we can investigate if it’s available. The list above is not complete and the range is regularly updated by our supplier.
Do we have the usual percentage on merch when we sell merch?
- See how we think about pricing below. It depends on whether we’re running a cost price strategy or a premium strategy. For Premium, it’s the same percentage as in the agreement and for the “cost price strategy” there are no profits.
- In projects where merch is included, this involves creating the design, uploading it to our website, order handling + sending out receipts. The actual handling of the merch, printing, storage, delivery, returns etc are handled by our partner. This makes the per-unit prices slightly more expensive since they include the handling.
How do you think about pricing?
Given that our logistics firm prints merch on demand, handles orders, packs, ships, manages returns, delivery notes, etc., the cost per item is higher than what you would pay if you bought t-shirts directly from a supplier and then went to a printer. What people often forget is the time it would take to do this yourself, that you would have to store, pack, ship, and bear the cost for this.
Since we work professionally as a company, we follow tax rules around the world and add 25% VAT.
The variable margins are smaller for on-demand merch if you only look at the direct costs. Therefore, we have two pricing strategies that one as an artist can choose between.
1. Cost price –> You see merch as marketing. The margins on the products are virtually zero. However, we use even tiers to keep the webshop uniform and neat.
2. Premium –> You want to monetize your brand. The margins on the products are high.
The purpose is to avoid middlings that makes us earn small amounts per order that then cost a lot in financial administration, i.e., keeping track of, payout, bookkeeping, etc.
For the cost price strategy, the pricing works like this. Supplier price + VAT + Price Rounding. Since there are hardly any margins, we don’t need to keep track of how much should be paid out to the artist and therefore it is not as resource-intensive in our bookkeeping. The artist does not have to worry about invoicing and we avoid reporting obligations to the tax authorities if you are a private individual.
Price rounding is an amount that is reserved up to a maximum of 40 SEK to be able to use even category pricing with 50 SEK intervals in the webshop and cover parts of the financial administration for Rexius.
Cost Price Method:
| Purchase price (från-till( |
Ex.VAT | Price in webshop (inc. VAT) |
| 0 – 40kr | 40 kr | 50 kr |
| 40 – 80kr | 80 kr | 100 kr |
| 80 – 120kr | 120 kr | 150 kr |
| 120 – 160kr | 160 kr | 200 kr |
| 160 – 200kr | 200 kr | 250 kr |
| 200 – 240kr | 240 kr | 300 kr |
| 240 – 280kr | 280 kr | 350 kr |
| 280 – 320kr | 320 kr | 400 kr |
| 320 – 360kr | 360 kr | 450 kr |
| 360 – 400kr | 400 kr | 500 kr |
| 400 – 440kr | 440 kr | 550 kr |
| 440 – 480kr | 480 kr | 600 kr |
| 480 – 520kr | 520 kr | 650 kr |
| 520 – 560kr | 560 kr | 700 kr |
| 560 – 600kr | 600 kr | 750 kr |
| 600 – 640kr | 640 kr | 800 kr |
| 640 – 680kr | 680 kr | 850 kr |
| 680 – 720kr | 720 kr | 900 kr |
| 720 – 760kr | 760 kr | 950 kr |
| 760 – 800kr | 800 kr | 1 000 kr |
Example 1 Cost-Price Method
Supplier price (product, printing, inventory, handling, etc). = 97 SEK
Standard price for the category in the webshop = 150 SEK
Price excluding VAT (150/1.25) = 120 SEK
Price rounding = 120 – 97 = 23 SEK
Example 2 Cost Price:
Supplier price (product, printing, inventory, handling, etc.) = 37 SEK
Standard price for the category in the webshop = 50 SEK
Price excluding VAT (50/1.25) = 40 SEK
Admin rounding = 40 – 37 = 3 SEK
For the Premium strategy, pricing works as follows: Supplier price + markup + VAT.
The markup should be between 100-200%, but it should also be adjusted based on what other artists charge so that the figures do not become unreasonable.
Premium Price Method
Always crosscheck if the price is reasonable compared to other artists merch prices.
| Product Price (between) | Webshop Price (min) | Webshop price (max) |
| 0 – 40 kr | 100 kr | 150 kr |
| 40 – 55 kr | 100 kr | 200 kr |
| 55 – 75 kr | 150 kr | 250 kr |
| 75 – 95 kr | 150 kr | 300 kr |
| 95 – 115 kr | 200 kr | 350 kr |
| 115 – 135 kr | 250 kr | 400 kr |
| 135 – 155 kr | 300 kr | 450 kr |
| 155 – 175 kr | 350 kr | 500 kr |
| 175 – 195 kr | 350 kr | 550 kr |
| 195 – 215 kr | 400 kr | 600 kr |
| 215 – 235 kr | 450 kr | 650 kr |
| 235 – 255 kr | 500 kr | 700 kr |
| 255 – 275 kr | 550 kr | 750 kr |
| 275 – 295 kr | 550 kr | 800 kr |
| 295 – 315 kr | 600 kr | 850 kr |
| 315 – 335 kr | 650 kr | 900 kr |
| 335 – 355 kr | 700 kr | 950 kr |
| 355 – 375 kr | 750 kr | 1 000 kr |
| 375 – 395 kr | 750 kr | 1 050 kr |
| 395 – 415 kr | 800 kr | 1 100 kr |
| 415 – 435 kr | 850 kr | 1 150 kr |
| 435 – 455 kr | 900 kr | 1 200 kr |
| 455 – 475 kr | 950 kr | 1 250 kr |
| 475 – 495 kr | 950 kr | 1 300 kr |
| 495 – 515 kr | 1 000 kr | 1 350 kr |
| 515 – 535 kr | 1 050 kr | 1 400 kr |
| 535 – 555 kr | 1 100 kr | 1 450 kr |
| 555 – 575 kr | 1 150 kr | 1 500 kr |
The vast majority of artists follow the cost-price strategy, while artists with a large fanbase can follow the premium strategy.
How does the payout process work?
When the total amount from merch exceeds 1000 SEK, the artist can invoice the company or be credited against invoices, or it can be included as recoup to be received from royalties.
How to handle on-demand merch at live performances?
There are different ways and ideas depending on what suits the artist best:
-
Handle everything with a tablet where fans can fill in their information and pay on the spot with a card. Have some samples available, and the merch will be sent to their homes. Pros: No need to have inventory. Cons: It may take a long time to fill in the information if there is a queue.
-
Similar to option 1, but ask for fans’ information, accept cash payments, and manually place the orders afterward. Pros: Same as option 1 + faster process. Cons: It takes more time for the artist and requires keeping track of orders.
-
Purchase from the on-demand service at wholesale prices and bring inventory for each performance. Pros: Lower initial costs, ability to customize orders based on demand, have merch available on-site, and fans can take merch with them immediately. Cons: Higher unit cost compared to regular printing, need to manage inventory, difficult to gauge demand and sizes needed.
How does the process of creating merch work?
- If it’s included in your product, we will reach out to you during the project to start the merch process. If not included, you can simply express interest and share ideas regarding the products, visual materials to use, colors, etc, and we’ll take it from there and set up the right contract.
- Our art director guides you and creates mockups.
- Mockups are approved, and the products are uploaded to store.rexiusrecords.com and our print-on-demand service, and prepared to be published on Spotify for Artists.
- Make sure we are given admin rights at your Spotify for Artists account in order to sell merch on your profile.
- The products are published in consultation with you.
- You receive a vendor login to store.rexiusrecords.com, where you can view orders and more.
- Done. The products start selling on store.rexiusrecords.com and Spotify for Artists.