Most promotional product distributors know their sell price and their cost price. But surprisingly few have a clear picture of the total cost per transaction once you factor in payment processing, platform fees, shipping, tax, and decoration. The gap between what you think you're making and what actually hits your bank account can be significant — and it's the gap that determines whether on-demand is viable for your business.
This article breaks down the real economics of selling promotional products through an on-demand model, with actual numbers you can use to evaluate your own margins.
The On-Demand Model vs. Bulk Ordering
In a traditional bulk ordering model, you negotiate a unit price with a decorator, place a minimum order (often 24–72+ pieces), pay upfront, warehouse the inventory, and ship it out as orders come in. Your margin is straightforward: sell price minus unit cost minus shipping. But you carry all the risk. Unsold inventory eats into your profit. Storage costs add up. And if the client changes their logo or cancels the program, you're stuck.
In an on-demand model, there is no upfront inventory investment. Each item is decorated and shipped individually after the end customer places an order. Your cost per unit is higher — single-piece decoration costs more than bulk — but your risk is zero. You never buy what you can't sell.
The trade-off is clear: lower margin per unit, but no inventory risk, no warehousing, and no minimum orders. The question is whether the per-transaction economics still work. Let's find out.
Breaking Down a Real Transaction
Here's a realistic example of an on-demand order processed through Brikl.
The product: A branded polo shirt with a COGS (cost of goods sold) of $25.00.
Your markup: 50%, which brings the sell price to $37.50.
The order:
| Line item | Amount |
|---|---|
| Polo shirt (with 50% markup) | $37.50 |
| Shipping | $9.95 |
| Cart total (excl. tax) | $47.45 |
| Tax | $2.55 |
| Cart total (incl. tax) | $50.00 |
The deductions:
Now let's subtract everything that comes out before you get paid.
- COGS (paid to the decorator): $25.00
- Shipping (paid to the carrier via decorator): $9.95
- Brikl platform fee (3.5% of cart total excl. tax): 3.5% x $47.45 = $1.66
- Stripe processing fee (2.9% + $0.30 of the amount charged): 2.9% x $50.00 + $0.30 = $1.75
Your profit: $50.00 - $25.00 - $9.95 - $2.55 - $1.66 - $1.75 = $9.09
That's a 24.2% net margin on the product markup — after every fee is accounted for. No hidden costs, no surprises.
What About Self-Fulfilled Orders?
Not every order goes through an on-demand decorator. If you fulfill orders yourself — sourcing blanks, decorating in-house, and shipping from your own facility — the payout structure is simpler.
For self-fulfilled orders, the customer pays through your Brikl store, and your payout is the full order total minus:
- Brikl platform fee: 3.5%
- Stripe processing fee: 2.9% + $0.30
That's it. There's no COGS deduction because you're handling production yourself. You receive the payout, and your internal costs (blanks, ink, labor, shipping) are managed on your side.
This makes self-fulfillment attractive for distributors who already have decoration capabilities and want to maximize margin on high-volume items.
What Happens With Coupons?
Coupons are a common tool for company stores, employee rewards programs, and fundraising campaigns. But they change the economics significantly — especially when the coupon covers the full order.
Example: 100% coupon (including shipping)
Using the same polo shirt from above:
| Line item | Amount |
|---|---|
| Polo shirt (with 50% markup) | $37.50 |
| Shipping | $9.95 |
| Coupon discount | -$47.45 |
| Tax | $2.55 |
| Cart total | $0.00 |
The customer pays nothing. Since there's no charge, there's no Stripe processing fee.
But the decorator still needs to be paid. The item still needs to be produced and shipped. Here's what Brikl owes the decorator — and what Brikl invoices you:
| Cost | Amount |
|---|---|
| COGS (decoration + blank) | $25.00 |
| Shipping | $9.95 |
| Tax | $2.55 |
| Brikl platform fee | $1.67 |
| Total invoiced to you | $39.17 |
You funded the coupon, so you cover the full cost. Brikl invoices you directly for $39.17. This is standard for any coupon-funded order where the end customer doesn't pay — someone has to cover production, and that someone is the distributor who issued the coupon.
This is important to understand when budgeting coupon campaigns. A $50 coupon doesn't cost you $50 — it costs you the COGS plus fees, which in this case is $39.17.
Why This Transparency Matters
One of the most common frustrations distributors have with technology platforms is hidden fees and unpredictable costs. You set a price, you make a sale, and then you discover that your actual payout is lower than expected because of charges you didn't see coming.
Brikl is built around real-time COGS visibility. When you set up a product in your store, you see the decorator's cost, the shipping estimate, and the platform fees — before you set your sell price. You know your margin at the point of configuration, not after the fact.
There are no setup fees, no monthly minimums, and no per-transaction surprises beyond the published 3.5% platform fee and standard Stripe processing. The model is success-aligned: Brikl only earns when you earn.
For more details on plan pricing, visit our pricing page. If you have questions about how fees work with specific decorator partners, check our FAQ or reach out to our team.
The Bottom Line
On-demand promotional product selling eliminates inventory risk, removes minimum order requirements, and lets you offer a wider catalog without upfront investment. The per-unit margin is lower than bulk, but the risk-adjusted return is often better — especially for company stores, employee programs, and clients who need flexibility.
Brikl's 3.5% platform fee covers the storefront, order routing, decorator integration, real-time inventory feeds, and artwork management. Stripe handles payment processing at standard rates. Everything else — the markup, the product selection, the client relationship — is yours.
Payouts on the Launch plan are processed on the 1st and 15th of each month via Stripe Express. Enterprise and Connect plans handle billing differently — Brikl invoices you directly, giving you more control over cash flow and reconciliation.
The math works. The transparency is there. And the risk is where it should be: close to zero.
Explore our partner network to see which decorators are available, or visit pricing to find the right plan for your business.
Related Reading
- What Is Print on Demand? A Complete Guide for Distributors — How the POD model works and why it's reshaping the promotional products industry.
- How On-Demand Fulfillment Works in Promotional Products — A step-by-step breakdown of the on-demand fulfillment workflow from order to delivery.
- The Complete Guide to B2B Merchandise Programs — How to structure and scale B2B merch programs for corporate clients.