Sports Marketing: Product Supply
Product Supply is another part of the player contract which needs to be looked at carefully. The product supply is included in the contract as an annual or an “over the term” value. But “value” is not the same. The value could be defined as Landed cost, Wholesale Price or Retail Price. it is always a good idea to ask some very basic questions –
“What is landed cost?” What is the mark up between WSP and MRP?
Usually , brands do not surgically apply product costs as more the product supplied by the brand to the athletes means more product being worn by the athlete.
A bargaining point for the brand when asked for a higher product allocation is “will this mean that we can also include in the contract that you will wear the product at X, Y and Z moments?. This ensures that the brand gets more bang for their buck at the most “clicked” moments!