The North American gaming organization Immortals recently announced it had teamed up with We Are Nations to launch the Immortals Essentials merchandise line. Some of the products that will be produced by the companies include t-shirts, hoodies, hats, and more.
Immortals Essentials is a part of the organization’s new “zero-profit pricing” program. This project promises low prices for high-quality products with the company taking in zero profits from sales.
“We’re excited to announce our ‘zero profit pricing’ for the Immortals Essentials line. Immortals is contribution margin positive across all business units, which allows us to offer this merch line in a more accessible way to fans — while yielding zero profit to us,” said Jordan Sherman, the President of Immortals. “We want to consistently deliver value back to our new and existing fans, rewarding them for their passion and loyalty. Offering an enhanced product with zero profit and passing the savings on to these fans allows us to do just that.”
The Immortals Essentials collection can be purchased now. The products’ prices range from $17-$40.
The Profit‘s Take:
I think zero-profit pricing is kind of genius. Gaming accessibility is key to the success of the industry. In this case, I would rather spend time and resources creating partnerships with cryptocurrency companies instead of selling clothing products that give me a 3% profit margin. The highest-priced Immortals item is $40, which will not bring in a lot of money for you. There’s a divergence in values. You can’t say gaming is all about accessibility and then turn around and sell a hoodie for $250. You’re either in one boat or the other. Quite often, you find some of these teams are disingenuous about making esports accessible to everybody. I’m surprised a team has not given away free merchandise at this point. Then you basically have a series of walking billboards and advertisements. I want to emphasize that zero-profit pricing does bring in money. It just brings in money to a different part of your business. None of these esports teams will be able to build successful companies if their main focus is creating clothing and apparel sales.