How Much Does It Cost to Start a Merch Line?
By The Merch Counter team · Updated · 3 min read
Starting a merch line can cost nothing up front with print on demand, where you pay per item only after a customer buys. With a traditional bulk order, expect to spend several hundred dollars or more before your first sale, once you add up the stock, any setup fees, samples, storage and shipping supplies. What you'll spend depends mostly on which of those two models you choose.
The costs, item by item
| Cost | Bulk ordering | Print on demand (The Merch Counter) |
|---|---|---|
| Design | Your time, or a designer's fee | Same |
| Setup or screen fees | Often, per color per design | None |
| Stock | Paid up front for the whole order | None — paid per sale |
| Samples | Usually included in the order | One of each product at cost |
| Online store | Subscription and setup, or none | Included, no subscription |
| Payment processing | Around 3% per sale ¹ | Included in the 20% fee |
| Storage | Space in your shop | None |
| Packaging and postage | You buy and pack | Done for you |
| Leftover stock | Written off or discounted | None |
¹ Square charges 2.6% + 15¢ for an in-person card payment; Stripe charges 2.9% + 30¢ online. A store builder adds its own subscription, such as $39 a month for Shopify Basic.
The one cost both models share: design
If you have a logo you're happy with, you may not need to spend anything on design. Many businesses start with their existing logo and add a second, more playful design later.
If you need something new, options include a local designer, a design student, or an artist whose work your customers already love (often the best option, since they'll promote it too). Make sure you get the rights to use the design on products, in writing: under US law a transfer of copyright isn't valid unless it's in writing and signed.
Three budget scenarios
$0: test the water. Open a print-on-demand shop with your existing logo on 3–4 products. Order nothing in advance. Share it with a QR code at the counter and a post on Instagram. You'll learn what customers want without spending anything.
A small amount: look the part. Same as above, plus order a sample of each product at cost so you can check quality, take your own photos and keep them on display. On The Merch Counter, a test order has no fee and no markup: you pay what it costs to make and ship each item.
Several hundred dollars and up: bulk stock. A bulk order of one design in a range of sizes, for selling in person. Worth it once you know a design sells, or for staff uniforms and events.
Where to spend money first
- Samples of what you're selling. Seeing and feeling the product is worth more than any photo.
- A good design. It's the one thing that makes people want your merch rather than just tolerate it.
- A nice display. A sample on a hanger by the register sells more than any poster.
Where not to spend money at the start: big bulk orders, paid ads, or a custom website. You can add any of those later, once you know what sells.
What does each item cost to make?
With print on demand, the cost per item depends on the product, size and print. Examples †, in line with what Printful lists for a Bella+Canvas tee ($11.92), a Gildan hoodie ($22.63) and an 11 oz mug ($6.07):
| Product | Example cost to make † |
|---|---|
| T-shirt | $12.00 |
| Hoodie | $24.00 |
| Embroidered hat | $15.00 |
| Mug | $7.50 |
| Tote bag | $11.00 |
| Sticker | $2.00 |
On The Merch Counter, you see the exact cost of each product, for every size, before you list it.
The hidden costs of bulk
Bulk prices look attractive, but they leave things out:
- Leftover sizes. Unsold stock is money you've already spent.
- Your time. Counting, storing, packing and shipping.
- Reorders. Running out of mediums means another minimum order.
- Cash flow. Money sitting in boxes isn't available for anything else in your business.
Bottom line
You can start a merch line for nothing and only pay when a customer has already paid you. Spend a small amount on samples, and save bulk orders for when you know a design sells.
Related: Merch Pricing Guide · Print on Demand vs. Bulk Ordering
† Worked examples. They use our real 20% fee and suggested 2.5× price on an illustrative cost to make; real costs vary by product, size and print. Bulk-order figures are illustrative too. Today’s numbers for every product are in the profit calculator and in your dashboard before you list anything.