(COPY WIP, PENDING GRAPHICS) Why Does the Price of Custom-Branded Merch Vary So Much?

Understanding what directly impacts the price of custom-branded merchandise, like customization and freight options, is important so you can confidently make informed decisions on your next merch order. Communicating your expectations and deadlines when ordering promotional products for your company is important so no balls get dropped and your campaign runs smoothly and successfully. 

Send us a quick brief explaining your custom merch needs and our team of product specialists will take care of the rest and ensure an on-time and on-budget ordering experience. 

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(After AI clean up, and edits) Ordering custom-branded promotional merchandise for your company can feel a bit overwhelming, whether it's your first time or you've done it many times before. Sometimes, working with a customer service rep or placing an order online means encountering some confusing terms and acronyms. MOQ? LTM? WTH ("what the heck")?!

Worry not, this article is here to help. We'll give you a quick rundown of these terms, explain how they’re calculated, and show you how they affect your budget. With this knowledge, you'll be ready to make smart decisions when buying promotional products and corporate gifts.

(Original) Ordering custom-branded merchandise for your company can be a daunting process whether it's your first or tenth time working on this task. Whether you are working with a dedicated customer service person, or placing the order online on your own, you might come across unfamiliar terms and acronyms describing services and fees.

This article will provide you with a quick introduction to these terms. Understanding what they mean, their calculation process, and how they impact your budget, are the first steps towards making informative decisions when buying promotional products and corporate gifts. 

Why does the Price of Custom Branded Merch vary so much?

Promotional products are usually ordered in large quantities or bulk. This means that the more you buy, the higher the discount, therefore the unit price goes down. Every product has a pricing and quantity matrix that defines the price per unit according to different unit amounts, also known as Minimum Order Quantity or MOQ for short. 

Every product has a magic number of units that need to be met before you can officially place an order. You’ll often see it as MOQ 10 or MOQ 2000, and in tables of 3 to 6 columns of different MOQs.

[table as an image]

Here’s the deal: the more you buy, the cheaper each unit gets. So, it’s no surprise that a product with an MOQ of 50 will cost more per unit than one with an MOQ of 3000.

Other factors impact the price of your custom-branded merchandise. The complexity of your logo or artwork can trigger additional setup and run charges to cover the cost of imprinting multiple colours. The setup charge covers the cost of prepping the machine to add brand to your items. Think of Run Charge as a toll every time the machine decorates a unit of your merch. 

Why does promotional merchandise have a minimum number of units per order

Buying custom-branded merch is not the same as placing an order for same-day delivery on Amazon. You also cannot go physically to a shop and pick up promotional products branded with your logo. Custom-branded merch goes through a long and industrious process of manufacturing and decoration. 

The product must move from the warehouse to the decorator, a service provider specializing in imprinting promotional merchandise. Every customization technique is different, requiring different machinery, and skilled workers. The time and cost to set up the blank product on the machine to be decorated with your logo, that will be doing the job is the same, independent of the number of units being decorated. So for a production run to be worth for everyone, a minimum number of units per product must be assigned. 

How does Freight affect the price of custom-branded merch

Shipping is the last step of the process of getting your merchandise delivered right. Moving products from the warehouse to the decorator and then to you doesn't not come free. Time is money, every second counts in the process of getting your promotional product right. 

Freight price is calculated by the weight and volume of the parcel and the shipping method (air, ocean, or ground), and also by how soon it can be delivered. Ocean freight is usually cheaper than shipping the same parcel via Air, but the transit time is much higher.

When you need the merch delivered in a short time frame, rush orders can save the day. Although limited product options are available, rush orders of custom-branded merchandise are shipped as fast as 24 hours. Usually, a rush fee is applied over the product price for this type of service. 

Be sure to know when you need to have the products in your hands, and when the last date to submit the order approval is. This is most important if you rely on a chain of approval to get the order signed off, and is on a tight schedule.

Freight Delivery Charges section

Rush Fee

In-hands Date (IHD)

In-hands date is one of the most important details in your merch order. IHD refers to the date on which you must have the products in your hands, literally. Communicating your IHD early on in the ordering process to your merch rep is crucial. Make sure you are working with realistic deadlines, and are approaching your merch rep with enough time in advance to ensure a seamless production and delivery. Rush orders are possible, but can open the door for mistakes and errors, as we explain in this article. [link to the article "the cost of running late"]

For example: You have an event on August 1st, so the merchandise ordered must arrive before this date, perhaps a few days before, in case you need to distribute or organise it in the venue. In this scenario, your IHD could be July 25th to allow for any curveballs (have you ever heard of Murphy's Law?). 

Another tip: you also don't want to be too early, especially with a large order. You'll add to the overall costs if this happens because you'll either have to pay for your shipment to wait at the dock for collection or live somewhere in storage until you're ready for it. Talk to us about the timing sweet spot!  

Sample Products Charges

Sometimes it makes more sense to try it before you buy it. If this is your first time buying a promotional product for your company, or if it's your first time buying from a brand or a new supplier, you will want to "see the product with your hands" before committing to 1000s of units printed with your logo on them. A spec sample, or a random sample, is usually available for all mass products and is priced at the highest MOQ price column. The sample charge can be deducted from your final invoice when you sign off on the order of that item. 

A production sample is also available for selected products and is always mandatory when working with bespoke products. But worry not, our experienced production team is here to guide you through every step of the way when creating exclusive branded merchandise for your company. 

The first setup charge (and the first Run Charge) is usually baked into the product price, but if you’re going for extra decoration locations or colours, you might see a few more added to your quote breakdown.

For instance, let’s say you’re getting a T-shirt with a 3-colour artwork using DTG (Direct to Garment) or Transfer printing. Only one setup charge applies since all colours are printed in one go. But if you opt for screen printing, three screens are needed to be produced, leading to two additional setup charges. Another example: a T-shirt with a 1-colour artwork in two locations (chest and sleeve) will have an extra setup charge for that second location.

The good news: if you reorder the exact same product from the same distributor in the future, the setup charge won’t haunt you again. Loyalty to your merch distributor definitely has its perks. 

Run Charge (RC)

Think of Run Charge as a toll every time the machine decorates a unit of your merch. Just like the first setup charge, the run charge for the first colour is baked into the product price. After that, additional colours and locations may apply. 

Time for some maths:

Question: If you’re ordering 200 T-shirts with a 3-colour logo using screen printing, how many run charges will be applied to your invoice? 

Answer: 400 Run Charges. 

Here is the breakdown:

First Colour RC = no charge

Second Colour RC = yes charge for 200 units

Third Colour RC = yes charge for 200 units

Another maths quiz: If you’re ordering 200 T-shirts with a 3-colour logo using Transfer, how many run charges will be applied to your invoice? 

Answer: 0 Run Charges.

Why? Transfer is a full-colour imprint method. It will only run once on the item and it is already baked into the product price.

LTM (Less Than Minimum)

Ever wish you could bend the rules? Sometimes you can. Occasionally, a product with an MOQ of 50, for example, can be sold in quantities as low as 25 units, or 50% of the MOQ. Bending the rules is a luxury that comes with an extra fee.

For example, imagine you need 250 pens for your epic team-building sales conference event, but the pen you love has an MOQ of 500. Your trusty merch rep will quote you the product price for MOQ 500, plus the LTM fee and decoration fees. The unit price might end up being higher than if you’d just ordered the 500 units. So, think ahead! You might find you’ll need those extra pens for another occasion, or it might be better to choose a different product that fits your budget and needed quantities.

Ask us how we can help you to save you $$$ in merchandise decoration - click here.