yeah at 85 quid you probably wont buy all three. At 60 you might. not quite sure how that works profit wise for the club. I feel most people would buy 1 full price But if they was 60 they might buy two or even three and of course that adds up to more profit.
£60 though would make the differential to the Elite shirt too much. Unless that was reduced as well. But then do they lose out on some value-perception? I don't know the first thing about merchandising and setting prices but I assume the starting point is how much has to be paid to the shirt manufacturer per shirt (unless there's a lump sum arrangement), then from that, how much mark-up clubs can add on whilst maintaining an expected level of sales.
Just googled a bit and there's a few articles breaking down the cost of a club shirt. This one from footyheadlines.com from the Mail. And as highlighted below, it's manufacturer who sets the price, not the club, presumably based on the commercials negotiated with each club.
When a shirt is sold, the retailer, often the club itself, pockets £26.40, while the manufacturing brand receives £23.47. VAT accounts for £13.33, and the club earns a £4.80 license fee per shirt. Additionally, £2.40 per shirt is allocated for marketing purposes, and £1.60 goes towards local distribution.
The graphic also illustrates that it is very favorable for the club to sell the kit directly - if they sell it directly, they are the retailer, and grab a lot more money than if you buy the kit via the kit maker or an independent retailer.
It's important to note that these figures are illustrative and can vary depending on the contracts between clubs and their kit providers, who often make additional annual payments to the clubs.
The responsibility for setting shirt prices lies with the kit providers, such as Adidas, Nike, and Puma, according to the clubs contacted by the Mail On Sunday. Replica shirt prices have experienced an increase of £5 for the 2023-2024 season at various Premier League clubs, including Emirates Marketing Project, Liverpool, Aston Villa, Saudi Sportswashing Machine, Everton, Crystal Palace, and Wolves.
Of course, clubs do not only earn from sales. The biggest kit deals bring in as much as 100 million Euros per year.
Liverpool lack in the eight biggest deals in Europe - the deal just has nets a base sum of $37m per year, but there are some favorable royalties that are much higher than usual. Royalties of 20% on sales of merchandise and the firm's superior global reach have led to suggestions Liverpool could actually make upwards of £80m a year.
