Calculating how much merch to bring on the road is complicated. You don’t want to leave money on the table by printing too little -or worse, printing too much of the wrong items. But you can’t just cram merch into every empty corner of the van and trailer “just in case” either.
At Fire Sign, we start with concert ticket sales data. Ticket sales data is a key figure necessary to estimate how much merchandise an artist should bring to sell. As a proxy for the expected attendance at each concert, the number of attendees directly correlates with the potential demand for merch. We also take into consideration external factors. For instance, will there be one show where the artist opts not to sell merch at all due to venue overreach?
Here’s a general overview of how we use concert ticket sales to estimate merch quantities:
- Analyzing Ticket Sales Data:
- We look at historical ticket sales data from your past tours.
- We look at the current tickets sold per-date on your current tour.
- We create a diverse assortment of merchandise designs, including T-shirts, hoodies, hats, posters, CDs, vinyl records, and other collectibles (like custom house slippers for children).
- You decide which designs to print and which to kill.
- Throughout the tour, closely monitors sales at each concert. Your merch person should have inventory down to a science.
- Using real-time sales data, we work in tandem to replenish popular items by shipping careful quantities directly to the venue.
Estimating merchandise quantities for a tour is both an art and a science. If you’d like some assistance planning your next tour, we’ll work with you and management to strike the right balance and maximize your revenue potential on the road.
- Estimating Potential Attendance:
- Additional factors must be considered including the artist’s popularity, the venue’s capacity and location, no-show rate, the climate, the season, and any promotional efforts surrounding the show.
- To account for potential fluctuations, we may also consider the day of the week a show lands on, as well as the city’s demographics.
- Calculating Conversion Rate:
- Conversion rates vary based on factors like the artist’s fanbase, the appeal of the merchandise (Does it commemorate a moment? Does it celebrate your new album?), and an artist’s pricing strategy.
- Determining Merchandise Assortment:
- We create a diverse assortment of merchandise designs, including T-shirts, hoodies, hats, posters, CDs, vinyl records, and other collectibles (like custom house slippers for children).
- You decide which designs to print and which to kill.
- Tracking Sales and Replenishing Inventory:
- Throughout the tour, closely monitors sales at each concert. Your merch person should have inventory down to a science.
- Using real-time sales data, we work in tandem to replenish popular items by shipping careful quantities directly to the venue.
Estimating merchandise quantities for a tour is both an art and a science. If you’d like some assistance planning your next tour, we’ll work with you and management to strike the right balance and maximize your revenue potential on the road.