Promotional merchandise can be an effective marketing tool to grow your business in several ways:

1. Brand Awareness: Promotional merchandise such as t-shirts, hats, and bags can help spread awareness of your brand by providing a walking billboard for your business. When people wear or use these items, they help to promote your brand to others.
2. Customer Loyalty: Promotional merchandise can help to build customer loyalty by showing your appreciation for their business. Giving away free branded items to customers can create a positive association with your brand and make them more likely to return to your business in the future.
3. Increased Sales: Promotional merchandise can also help to increase sales by incentivizing customers to make a purchase. For example, offering a free gift with purchase can encourage customers to buy more and increase their overall spend.
4. Trade Shows and Events: Promotional merchandise can be a powerful tool for trade shows and events, where it can help your business stand out from the competition. Branded items such as pens, notepads, or tote bags can also serve as a reminder of your brand long after the event has ended.
5. Cost-effective: Promotional merchandise can be a cost-effective marketing tool when compared to other forms of advertising. The cost of producing promotional merchandise is relatively low, and it can provide long-term exposure for your brand.

Overall, promotional merchandise can be an effective way to promote your brand, increase customer loyalty, and boost sales, making it a worthwhile investment for any business.