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Earlier quoted context omitted.
Given we both just posted within two minutes of each other about how great the Dropbox t-shirts are I think we can conclude it was quite the investment for them!
Is this it? http://stream.mcohen.me/entry/dropbox-t-shirt---back-22-173.... -- this is great because it almost begs anyone who sees it to ask you what it means.
1) Make it interesting - Tie your design into the ethos of what your customers care about. This can compelling beyond just your logo/brand (An Example by CloudMine: http://on.fb.me/MD9E0W and AngelHack http://on.fb.me/Mmn8CM)
2) Fit & Quality Matters - Spend the extra few dollars to get a decent American Apparel shirt, as it will fit better and stand out amongst the bargain bin shirts that most startups hand out (order womens sizes, guys). Increases the likelihood that they will wear it more than average shirt.
3) Make It Exclusive - There are varying strategies on this, but it is my observation that giving it out to those who really care about your company is the best way to go. You don't want the receiver to feel like you are bribing them to try their service/product. It works better if you are thanking them for their loyalty, as you help to solidify that relationship.
4) Reduce Your Colors - Most t-shirts that you are going to put out are screen printed and the cost varies based on the amount of colors used in the design. You can get great results with a one color shirt (see stripe: http://on.fb.me/MHG7Hp or foursquare: http://foursquarestore.com/shop/product/SH_MayorCrown). Even if you have a multicolor logo, there are likely ways to represent it with less colors and still communicate the same things.
5) Ask If The Printers Save Screens - If you are screen printing, have your printer save the screens they use, as it is a fixed cost that can save you money on subsequent runs
6) Vector Artwork (!!!) - Make sure your designer creates vector versions of your logo for print (bonus points if they do different versions for varying amounts of colors). You do not want your logo to look jagged when printed, so the best bet is to play it safe with a vector version of all artwork. (I spend most of my time dealing with this, actually)
Working on a full post on this, will get it out soon!
Earlier quoted context omitted.
Aside from it not being ROI, I thought it was as good as any guess. What I was hoping for was a clever way of measuring some of the things you assumed. I think what you calculated is called customer acquisition cost. ROI is how much you made from your investment in a given time, usually as a multiple of the investment -- sometimes it's quoted in time to breakeven.
Once I read this comment, I think it clicked. The result of what we calculated is customer acquisition cost. But, we were trying to figure out if T-shirts were worth the upfront cost. I am not a marketer, so I am 100% sure I am confused by the terminology.
To get to ROI from CPA, just divide it into your Customer Lifetime Value. I.e. if you think a conversion is worth, on average, $40 over the life of their relationship with your company, then your return would be 40 / 19.05 -1 = 110% or roughly 2-to-1.
Great analysis! I've been working on a startup merchandising site (StartupThreads) so I think about this a good deal. A few tips from working with companies: 1) Make it interesting - Tie your design into the ethos of what your customers care about. This can compelling beyond just your logo/brand (An Example by CloudMine: http://on.fb.me/MD9E0W and AngelHack http://on.fb.me/Mmn8CM ) 2) Fit & Quality Matters - Spend th…
It's an interesting methodology. Some thoughts: (1) 12 times is way too low for number of wears. I'm probably extreme, but I've got tech shirts that could apply for a drivers license; I've easily worn some of them hundreds of times -- let's say every other week for the last 500+ weeks. (The older shirts are too worn thin/ragged to wear in public any more though.) (2) I'm not sure CTR is going to be as high as an expl…
Depends greatly on the quality of the shirt. I have shirts that have held up like you describe, and I have shirts that became unwearable after a half-dozen times. If you want to provide shirts, don't use the lowest bidder.