Why Is Tour Merch So Expensive? Where Your Money Goes

Posted by

James

Silhouetted band performing on a smoky concert stage

Tour merch is expensive mainly because of costs added between the factory and the merch table: venue merch fees (often 15 to 25 percent of sales, and sometimes more at large venues), printing and blank costs, shipping and storage on the road, staff, taxes, and the share that goes to labels, managers and merch companies. Bands also rely on merch more than ever, because touring costs have risen and streaming pays little. Here is where the money from a typical concert shirt goes, and how fans can get more value.

Why a Concert Shirt Costs $40 to $60 or More

A blank tee costs a few dollars to buy in bulk, and screen printing adds a few more. The large gap between that cost and the price at the show comes from everything that happens after printing.

1. Venue Merch Fees

Many venues take a percentage of every item sold at the show, often called a merch cut. Rates vary by venue and region. Industry reporting puts typical fees at around 10 percent at the low end and 25 to 30 percent at major venues, with a 20 percent cut on clothing and posters being a common split. Some arenas and amphitheaters have reportedly asked for 35 to 40 percent (Ticket Fairy). Some venues also require their own staff to sell the merch, which can add another fee.

Artists have pushed back. Musicians from bands such as Holding Absence, Trash Boat and Igorrr have said cuts of 20 to 30 percent can turn a tour from profit to loss, and Igorrr refused to sell merch at a London show in 2023 over a 25 percent fee (Loudwire). When a band must give a venue a quarter of every sale, it has to raise prices to break even.

2. Printing, Blanks and Design

Better blanks cost more. Heavyweight cotton, ring spun fabric, special dyes and multi color screen prints all raise the base cost. Every new design also needs artwork, screens and samples. Short print runs for a single tour cost more per shirt than mass production.

3. Touring Costs

Merch travels with the tour. It needs to be stored, shipped between cities, restocked and tracked. A merch seller travels with the band and needs wages, travel and accommodation. Unsold sizes often get discounted or written off after the tour.

4. Taxes and Payment Fees

Sales tax in the US and VAT in the UK and Europe are part of the price, and card payment fees take another small percentage of each sale.

5. Who Else Gets Paid

For larger artists, a merch company often handles design, manufacturing and sales in exchange for a share of revenue. Labels and managers may take a percentage as well, depending on the artist's contracts. After every share and cost, the band's profit on a shirt can be far smaller than the price suggests.

Why Bands Depend on Merch

For many touring artists, especially in rock, metal and hardcore, merch sales are what keep a tour running. Fuel, crew, transport, visas and accommodation have all become more expensive, while streaming income for most artists is small. A strong night at the merch table can cover the van, the hotel or the crew's wages. That is why many fans see buying merch at the show as a direct way to support a band.

Is Anything Changing?

Yes. Several campaigns have pushed venues to drop merch fees:

  • The UK's Featured Artists Coalition launched its 100% Venues directory in early 2022 to list venues that let artists keep all merch income. By August 2022 it listed more than 400 venues.
  • The Union of Musicians and Allied Workers (UMAW) runs the #MyMerch pledge in North America, signed by well over 100 venues and festivals.
  • Live Nation announced it would stop taking merch fees at its US club sized venues, such as House of Blues locations, and offered a stipend to artists playing those shows.

Fees at large arenas and stadiums still vary widely, so prices there are likely to stay high.

How to Get More Value as a Fan

  • Buy from the band's official webstore if you want the official design without the venue fee. Prices are sometimes lower online, though you pay shipping.
  • Buy at the show if you want the band to get money on the night and you like the tour exclusive designs.
  • Check fabric details. A heavier, well printed shirt that lasts years can be better value than a cheaper one that cracks after a few washes.
  • Wash it properly. Cold water, inside out and air drying make a shirt last far longer. Our guide to washing graphic tees explains each step.
  • Look at fan made alternatives for everyday wear. Original designs inspired by a genre or era, like our metal inspired and pop punk inspired collections, are not official merch, but they let fans wear the style for less.

Frequently Asked Questions

What is a venue merch cut?

It is a percentage of merchandise sales that a venue charges artists for selling merch on its premises. It is often between 15 and 25 percent, and higher at some large venues.

Does the band get the money from merch?

The band gets what remains after production costs, venue fees, taxes, staff costs and any shares owed to merch companies, labels or managers.

Is buying merch online better for the band?

It depends on the band's deals. Online sales avoid venue fees but add shipping and webstore costs. If you are unsure, buying from the band's official store or at the show both support the artist.

Why are tour shirts more expensive than regular T shirts?

Because of venue fees, short print runs, touring logistics and the shares paid to several parties, not because the shirt itself costs much more to make.


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