The merchandise split is rent. The venue provides the stand, the staff and the till, and keeps a percentage of what is sold that night.
What the rates look like
Europe is friendlier than the United States here, and often charges nothing. Dutch, Belgian and German clubs frequently take zero, or a flat fee for the seller. UK venues commonly take 10 to 25 percent of gross on clothing, and many take nothing on music. Arenas and venues run by a national chain sit at the top of that range.
What it is calculated on
- Gross sales, or net of VAT. This changes the number a lot, so agree which.
- Soft merchandise, meaning clothing, is usually split. Music is often exempt.
- Selling it yourself sometimes lowers or removes the split.
At settlement
Stock is counted before doors and again after the show, the difference is the sale, and the venue's percentage comes off before the artist is paid. Count the stock yourself, keep the sheet, and check the VAT treatment in every country the tour crosses.