The New England Patriots got some favorable press today, including a front-page link on ESPN.com, for their new “jersey guarantee.”
Under the terms of the guarantee, if a jersey is purchased of a Pats player who departs the team within 12 months of purchase, the customer is entitled to a new jersey at a 25 percent discount.
Generous? Not so much. Clothing markup is typically 40-50% from wholesale; that $100 jersey costs the Patriots $50-60 to procure. So at a 25% discount, the replacement jersey is in all likelihood still sold at a profit.
The Patriots aren’t accepting product returns or giving refunds. They’re offering a well targeted coupon code. The only certainty from this promo is that the Pats have a new path to selling more jerseys and making more money. Some guarantee.