The Company Store Dilemma Nobody Talks About
We’ve been building company online store programs for almost 3 decades, and we’ve learned a few things along the way. Here is the biggest lesson for orgs that think it’s ok to sell corporate merch to their beloved staff:
Selling employees your company-branded gear isn’t always a bad idea…
…But it can be a strategic contradiction to ask employees to pay for the branded merchandise you hope will be the answer to building culture and turning them into brand ambassadors.
Why? Here are the biggest reasons:
- You’re asking employees to pay to advertise their employer. If you want someone wearing your logo at the brewery, gym, rave, or kids’ soccer game, giving them gear that is high quality is a pretty inexpensive media investment.
- It can undermine belonging. A $65 hoodie says something different when it arrives unexpectedly with “We appreciate you” than when it arrives with an invoice.
- It favors higher-paid employees. The people who have the most money to buy premium gear end up with the most visible symbols of belonging. And that’s not inclusive.
- Participation plummets. Free quality merch gets worn. A company store with the intent to sell to employees gets browsed.
- It turns appreciation into a transaction. “You crushed it this year. Here’s a link where you can buy our quarter-zip” isn’t exactly a dopamine hit.
- The company loses organic impressions. Employees wearing genuinely desirable branded apparel are walking endorsements. Why put a tollbooth in front of that?
- It can feel cheap. Particularly when employees know the company is buying at wholesale and then charging them, possibly with a markup.
- It misses an opportunity for recognition. Merch should celebrate anniversaries, accomplishments, onboarding, promotions, values, and team wins. Those moments are worth more than the merchandise itself.
That said, don’t eliminate the employee store! Just change its purpose.
Give employees a meaningful allowance or points associated with loyalty, wins, rebrands, or just because! Surprise them with great branded gifts throughout the year. Use recognition to unlock special merchandise. Then keep your store available 24/7/365 for those who are willing to spend their hard-earned greenbacks for extras, other colorways, gifts for family, replacement items, or premium upgrades.
The philosophy we humbly suggest: Employees shouldn’t have to buy their way into displaying company pride. Give them something wonderful enough that they choose to wear it. Consider brand name quality, design beyond the logo slap, and the methodology for a feel-good delivery.
And there’s an even better test: What if your best culture metric isn’t your Net Promoter Score (NPS)? What if it’s what’s in your closet? That’s a Net Pride Score?! If your employees won’t wear your branded gear when they’re off the clock, charging them for it probably isn’t the problem you need to solve.
The Best employee merch isn’t sold. It’s EGL! Earned, Gifted and Loved!
We spend fortunes trying to get customers to wear our logos. Then, when our own employees actually want to wear them, we send them to a company store and ask for their credit card. Maybe we’ve got this part backwards.
Free the merch!