Swag should inspire excitement, not budget headaches. 

Yet too many companies find themselves staring at invoices for $20,000 or more before a single hoodie, mug, or welcome kit ever reaches their team or clients.

The problem is the software-first platforms that put hefty price tags on something as simple as branded merchandise.

You deserve a hassle-free approach where every dollar goes toward quality promo products instead of a login screen. 

Let’s uncover the true costs of SaaS swag platforms and find a smarter, more profitable way for you to deliver memorable corporate gifts.

Table of Contents

How SaaS Swag Platforms Really Make Money

Why SaaS Swag Budgets Are a Guessing Game

SwagDrop’s Model: Tech-Enabled, Not Fee-Bloated

How SaaS Swag Platforms Really Make Money

You probably think your swag budget simply buys cool apparel, bags, and gadgets — but the truth looks very different once you dig into the numbers.

Earlier this year, we at SwagDrop participated in a large RFP process for a US-based organization with an annual promotional products budget of about $1 million. When we reviewed their spend, we found that $250,000 of that total went to fees, inventory costs, and storage instead of swag. 

This discovery inspired us to examine how much money companies lose to SaaS swag platform fees and where those costs come from.

Let’s take them one by one.

1. Subscription and setup fees

Most SaaS swag platforms follow the same business model as enterprise software companies and charge a monthly or annual subscription fee to give you access to their system.

For instance, well-known corporate gifting platforms like Sendoso and Alyce reportedly charge an astounding $20K yearly subscription.

As Fondy puts it, this subscription model creates predictable revenue for vendors, but reduces your business’s cash flow flexibility.

Some platforms also add setup or onboarding fees for initial account configuration and platform training. 

We found online reports indicating that Axomo users pay a $1K onboarding fee, while Achievers clients can spend anywhere between $5K and $50K on implementation fees.

Learn more about the prices and features these companies offer in our in-depth analysis of swag management platforms.

2. Per-user pricing

Many corporate gifting companies use per-seat or per-user pricing, meaning your costs automatically rise as your team grows.

Based on our online research, most employee gifting platforms, including Vantage Circle, Bonusly, and Kudos, charge around $2 per user monthly.

$2 might sound like a bargain at first, but if you start with 500 employees and double your headcount over two years, the costs quickly add up. Your platform fee jumps from $1,200 to $2,400 without any improvement in service, support, or swag quality. 

The worst part is that these costs don’t cover employee rewards, so they only chip away at your swag budget.

3. Storage, fulfillment, and hidden handling fees

Many swag companies, like Printfection and Postal, run warehouse operations and charge clients for every touchpoint, from storage and inventory management to picking, packing, and boxing.

According to Speed Commerce, in 2025, the average pick-and-pack cost for B2C orders will be about $3.18 per order, and storage fees will run around $20.37 per pallet per month. 

Lokad adds that inventory carrying costs generally equal 25% of the total inventory value each year.

These expenses don’t even include shipping and return processing fees, further increasing your spending.

Imagine picking a $5 water bottle for an employee, only to pay $50 in fulfillment fees. 

Does that sound fair? Absolutely not! Unfortunately, predicting these costs is tricky.

Why SaaS Swag Budgets Are a Guessing Game

Creating a spending plan for your branded products is simple: set a budget, pick your merch, and ship it out. 

In reality, SaaS swag platforms turn budgeting into a frustrating guessing game.

Lack of transparency

Platforms like Printfection, Awardco, and Sendoso rarely show their true pricing upfront.

You need to request demos or custom quotes, staying in the dark regarding their pricing, sometimes for weeks.

Software subscriptions, per-user fees, and additional service charges all add up, making it even more difficult to predict actual costs.

You can end up juggling multiple spreadsheets, trying to estimate fulfillment, storage, or setup costs that the platform doesn’t clearly disclose.

This ambiguity makes it next to impossible to compare different SaaS platforms to find the one that best suits your needs and budget.

The cost of opaque pricing

If costs are unclear, HR and marketing leaders cannot plan branded giveaway campaigns, and finance teams cannot approve budgets. 

Instead of focusing on creativity and connection, your managers waste hours trying to calculate the cost of sending a promotional gift.

If the platform fees for individual gifts are too high, your team will likely opt for bulk orders. This option has its drawbacks, as we explain in our latest article on the hidden costs of bulk swag and storage.

The lack of transparency also diminishes trust as your teams question whether investing in a SaaS platform offers real value or wastes resources.

If your swag program feels more like managing software than celebrating people, it’s time for a change.

We offer a transparent, predictable system where your entire budget supports genuine engagement.

SwagDrop’s Model: Tech-Enabled, Not Fee-Bloated

Unlike SaaS swag companies that rent access to their software, SwagDrop is a promotional products company first. 

Our swag-on-demand shops are powered by technology that enhances your experience instead of putting a dent in your budget.

Here’s how our business model compares to traditional SaaS swag platforms:

Now, let us explain how our platform works.

1. We use tech to empower, not upsell

Our technology simplifies every aspect of your corporate gifting campaigns without the software price tag.

You don’t need to buy access to our platform or wait through long onboarding calls. We create branded swag-on-demand shops built around your needs, from new employee onboarding to showing customer appreciation.

You can approve the storefront mock-up in as little as 24 hours and have it ready for thousands of users within a week. 

2. Transparent pricing, predictable budgets

We’ve built our pricing around fairness and simplicity, so you always know where your budget is going.

You’ll never have to pay setup or subscription fees. You only pay for the products you order, and shipping is always $9.95 per recipient across the U.S.

We even let you set spending limits, define product price ranges, or issue gift credits per person to keep your costs under control.

3. No inventory or waste

We never ask clients to pre-order branded merchandise or pay for warehouse storage. 

Our print-on-demand model means we start swag production only when someone places an order. 

Every promotional gift you send is high-quality and tailored to the recipient’s taste, helping you avoid overstock, wasted budgets, and sustainability setbacks.

We even offer eco-friendly promotional products to support environmental best practices further.

4. End-to-end fulfillment

We handle every detail in-house, from sourcing and printing to packing and shipping. 

Orders go directly to each recipient’s doorstep, complete with automated tracking updates via email. 

Our system is so intuitive that less than 1% of recipients ever need support, and if they do, our team responds personally. 

Your managers can run swag programs without chasing couriers, spreadsheets, or support tickets.

5. A personalized swag experience

Clients and employees deserve company swag they’ll actually use. 

Our shops offer recipients the option to choose their preferred items, sizes, and styles from a curated catalog of over 600 premium products. 

This personal choice turns ordinary corporate gifts into memorable experiences that reflect your brand and make people feel valued.

6. Real people, real guidance

Technology runs our system, but people run our business. 

With over 30 years of industry experience, we guide clients honestly and practically, even if it means advising against an idea that won’t land. 

We’ve told law firms that nobody wants another pen with a gavel logo and helped marketing teams choose products that employees actually love.

With SwagDrop, you get a partner who listens, advises, and supports your brand with genuine expertise.

Our clients notice the difference. Angelica Colantuoni, who manages swag programs for a company with over 3,500 employees, shared how we supported her team through a major rebrand:

“SwagDrop is hands down one of the BEST partners I have ever worked with. Our company just went through a huge transition with four new brands, six different logos, and countless last-minute orders, and SwagDrop has been there for us every single step of the way. […] They take what could be a stressful situation and turn it into something exciting.

But what really sets SwagDrop apart is the people. They are genuine, kind, and thoughtful ALL of the time. They truly care about our success, and it shows in every interaction. It feels like we have our own in-house swag team because that is how invested they are in helping us look great and feel proud of our brand.”

Now, let’s conclude!

The Bottom Line: Spend on Swag, Not Software

Stop spending tens of thousands of dollars on SaaS fees that don’t make your swag better. Your budget should go toward meaningful gifts, not software access. 

SwagDrop’s tech-enabled, swag-on-demand shops eliminate platform costs and deliver real value. Re-assess your spend and invest it in your people and your brand.

Book a call with us to start saving right away.